The Federal Public Sector Development Programme — the federal government's development/infrastructure spending budget.
Source: Budget in Brief — Ministry of Finance, Government of Pakistan.
PSDP stands for Public Sector Development Programme. In simple words, it is the part of the federal budget set aside for building things — roads, dams, power plants, hospitals, and other long-term infrastructure projects.
This is different from most of the rest of the budget, which mainly pays for ongoing costs like salaries, pensions, debt servicing, and subsidies. PSDP money goes into new projects meant to grow the economy over many years, not just keep the government running today.
Each province also runs its own separate development programme, funded from its own budget — so PSDP only covers federal projects, not the full national picture of development spending.
PSDP is often one of the first things cut when the government needs to save money during a tight year, because unlike salaries or interest payments, it is easier to delay a new project than to stop paying an existing bill. That is one reason Pakistan's infrastructure spending can swing sharply from year to year.
PSDP is the main lever for federally-funded infrastructure, energy, and development projects. Provinces run their own, separate development programmes (Annual Development Programmes) outside this figure.
Is PSDP the same as total development spending in Pakistan?
No — this is the federal PSDP only. Each province runs its own Annual Development Programme (ADP), funded from its own budget, which is not included in this federal figure.
What kind of projects does PSDP fund?
Mainly physical infrastructure: roads, highways, dams, power generation and transmission, irrigation, and federal buildings, along with some social-sector projects run by federal agencies.
Why is PSDP often called the most flexible part of the budget?
Because it funds new, not-yet-started projects, it's easier for the government to delay or cut than ongoing costs like salaries or debt servicing — which is why PSDP allocations swing more from year to year.
Does PSDP money always get fully spent?
Not always — PSDP allocations are frequently revised down during the year if the government needs to cut spending to meet fiscal targets, often agreed with the IMF.
How is PSDP different from CPEC projects?
CPEC (China-Pakistan Economic Corridor) projects are often financed separately, through Chinese loans or joint ventures, rather than fully through PSDP — though some CPEC-related federal projects do appear within PSDP allocations.
Who decides which projects go into PSDP?
The Ministry of Planning, Development & Special Initiatives compiles PSDP each year, with projects proposed by federal ministries and approved through the Annual Plan Coordination Committee and National Economic Council.
Is PSDP spending the same as government investment?
Broadly yes — PSDP is the closest equivalent in the federal budget to what economists call public investment, as opposed to current or recurring spending.
Why does PSDP matter for long-term growth?
Infrastructure like roads, power, and irrigation underpins private-sector productivity for decades — cutting PSDP saves money short-term but can slow growth later, which is why economists watch PSDP allocations closely.
Every figure on this page is the Budget Estimate (BE) for that fiscal year, transcribed from that year’s own official Budget in Brief (Finance Division, Government of Pakistan). Most recent year:
Budget in Brief, FY2026-27 (Table 1: Budget at a Glance, Table 2/3: Fiscal Deficit & Financing / BE & RE Comparison, Table 11: Function-Wise Expenditure)Related Budget Categories
Related Provincial Pages