ISLAMABAD: The Mini­stry of Planning and Develo­pment has authorised the release of Rs141 billion under Public Sector Development Programme (PSDP) for the projects of federal ministries and divisions for the first quarter (July-September) of the current fiscal year.

Funds for Azad Jammu and Kashmir, and Gilgit-Baltistan will be released on a biannual basis due to seasonal constr­aints, accor­ding to the min­istry’s Mont­hly Development Update for August 2025, released by Planning Minister Ahsan Iqbal on Tuesday.

According to the update, the Ministry of Finance notified the funds release strategy for the FY26 devel­o­p­ment budget, under which 15 per cent of the Rs1 trill­ion PSDP is required for disbursement in July-Septe­mber, followed by 20pc in October-December, 25pc in January-March and the rem­a­i­­ning 40pc in April-June.

This strategy has been chall­enged by the Ministry of Plan­n­ing, which believes low disbu­r­sements in the first quarter negatively impacted project off-take. The minister has directed the Ministry of Fina­nce to increase first-quarter PSDP releases from 15pc to 20pc and reduce last-quarter rele­ases from 40pc to 30pc to ensure steady project execu­tion throug­hout the year, accor­ding to a written statement.

AJK, GB to get funds on biannual basis due to ‘seasonal constraints’

The Ministry of Planning has accordingly authorised the release of Rs141bn (about 14pc of the PSDP outlay) in the third week of July. “Releases to the Azad Jam­mu and........

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