Low Fund Utilization Holds Back Rs. 0.5 Trillion PSDP Projects, causing delays in crucial power and hydel energy initiatives across Pakistan. The Public Sector Development Program (PSDP) has allocated Rs. 104.7 billion for 2025–26, but slow spending affects economic and social returns. This low fund utilization threatens energy availability, industrial productivity, and investor confidence.
Federal Minister for Planning, Professor Ahsan Iqbal, recently reviewed 37 major power sector projects worth Rs. 1.7 trillion. Only Rs. 1.1 trillion had been spent up to June 2025, leaving a throw-forward of Rs. 492.4 billion. He emphasized the need for a project-wise break-up and year-wise financing plan to prioritize near-completion projects.
Key power sector projects facing delays include the 2x660MW coal-fired power plant at Jamshoro, electricity distribution improvement projects in MEPCO and HESCO, and the 500kV Matiari–Moro–Rahim Yar Khan transmission line. Hydel energy projects under review included the Dasu Hydropower Project (2,160MW) and the Ghazi-Barotha Hydropower Project. The NTDC SCADA system upgrade and the Advanced Metering Infrastructure programme also remain pending due to slow fund utilization.
Project delays increase fiscal pressures and reduce the efficiency of government funding. Proper public resources management and timely execution can convert sunk investments into operational assets. Minister Iqbal highlighted that disciplined spending and prioritization of PSDP projects are essential to strengthen energy security and overall economic growth.
In conclusion, low fund utilization holds back Rs. 0.5 trillion PSDP projects, slowing critical power and hydel energy initiatives. Coordinated planning, faster project execution, and adequate financing are key to unlocking economic benefits and improving national infrastructure.
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Low fund utilization holds back Rs. 0.5 trillion PSDP projects, affecting power sector projects and economic growth in Pakistan.
