Pakistan government prioritizes political projects over development funding

The PML-N-led coalition government in Pakistan is facing criticism for not changing its approach to development spending. Recent data from the Planning Commission shows that only 26 percent of the allocated funds, about Rs277 billion, for the Public Sector Development Programme (PSDP) projects were used in the first eight months of the fiscal year. In contrast, funds for the Sustainable Development Achievement Programme (SAP), which are discretionary funds given to parliamentarians, were quickly utilized. After allocation amounts were doubled to over Rs50 billion, 96 percent of those funds were released soon after, with 72 percent already used by the end of February. This trend raises concerns about the government's financial discipline, as SAP funds exceeded allowed limits. This approach is seen as a way for the government to buy support from lawmakers and coalition partners, without proper oversight on how the funds are spent. Unlike PSDP projects, which require strict approval processes, SAP projects do not face similar scrutiny. This lack of oversight raises worries about potential corruption and inefficiency, diverting resources from essential national development. The decline in PSDP funding from 1.7 percent of GDP in 2013-14 to just 0.6 percent in 2024-25 illustrates a troubling development pattern. The country needs Rs10.7 trillion to finish ongoing projects, yet political interests continue to overshadow strategic development plans. Although funding for local projects may provide short-term benefits, it does not help in reaching long-term economic goals. With a significant revenue shortfall of Rs600 billion this fiscal year, all development efforts must align with broader economic objectives. Short-term political gains should not lead to misallocation of resources away from sustainable growth investments.