Development paralysis

Listen to article

In a country grappling with economic stagnation and rising inequality, one would expect development spending to be the last thing sacrificed. Yet, the latest government figures reveal that only Rs449 billion was spent during the first ten months of the current fiscal year — less than half of the budgeted Rs1.1 trillion under the federally-funded Public Sector Development Programme (PSDP). With Rs648 billion in planned funds left unused, the state's commitment to development seems more rhetorical than real.

This underutilisation is not a one-off error and reflects a deeply flawed prioritisation model. The National Assembly may pass impressive-sounding development budgets as part of the Finance Bill, but the real decisions are made elsewhere — often within the Finance Ministry, which treats development allocations as a contingency cushion to manage fiscal shortfalls, especially those caused by the underperformance of FBR.

In effect, roads go unpaved, schools remain unfinished and hospitals stay understaffed — just because the state cannot collect taxes efficiently or spend wisely. What's worse, the outlook for the next fiscal year (2025–26) is no more encouraging. Despite the Planning Ministry's estimate of Rs1.6 trillion in development needs, the Finance Ministry has indicated that only Rs921 billion will be allocated — a figure that covers just 58 per cent of the actual requirement.

This discrepancy will eventually translate into an even slower economic wheel, meaning fewer jobs and deepening regional disparities. It is unfortunate that Pakistan's development programmes are increasingly being reduced to bureaucratic exercises.

A country that spends more on firefighting fiscal deficits than on investing in its future cannot hope to emerge from its economic rut. Development is not a luxury but a necessity. And unless it is shielded from short-term political and fiscal pressures, Pakistan will continue to fall behind its regional peers. If the government truly wishes to change course, it must reform the budgeting process to ring-fence development funds.