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The Development Disconnect: A decade of cuts and delays
March 30th, 2026
The tradition continues.
The federal government has just cut its FY26 development budget (PSDP) by another PKR 100 billion. This is anything but surprising. Every single year since FY17, the center has revised its development outlay downward.
On average, that cut has been nearly 20%. While debt servicing now consumes around half the federal budget, the PSDP — the vehicle to build Pakistan’s infrastructure — keeps taking the hit.
In its policy brief last year, KSBL InsightLab highlighted the neglect faced by development spending. Download here