
PSDP 2024-25: Ministry authorises Rs1.035trn for projects, releases Rs596.61bn
ISLAMABAD: The Ministry of Planning, Development and Special Initiatives has authorised a total of Rs1.035 trillion (94.51 per cent ) out of Rs1.096 trillion for development projects from July to May while Rs596.61 billion have been expended so far under Public Sector Development Programmes (PSDP)-2024-25.
According to the Ministry of Finance's notification, the Ministry of Planning, Development and Special Initiatives authorised 15 per cent funds for the first quarter, 20 per cent for the second quarter, 25 per cent for the third quarter, and 40 per cent for the fourth quarter under the PSDP.
According to the data available on the website of Ministry of Planning, the ministry authorised Rs770 billion (92.8 per cent) for development projects of various federal ministries, divisions and other departments against Rs829.67 billion including Rs139.2 billion foreign loan budgeted allocation for the financial year 2024-25.
A total of Rs437 billion has been expended so far on the development projects on various federal ministries, division and departments.
The ministry authorised Rs256.85 billion (100 per cent) out of Rs265.85 billion budgeted allocations for the National Highways Authority (NHA) and power sector (NTDC/PEPCO) for development projects.
But a total of Rs159.56 expenditures have been made so far on the development projects. A total of Rs161.26 (100 per cent ) billion has been authorised out of Rs161.26 billion for development projects of the NHA while Rs87.42 billion has been spent. A total of Rs104.59 billion (100 per cent ) has been authorised out of Rs104.59 billion for the power sector (NTDC/PEPCO) while Rs159.56 billion expenditures have been made from July to May 2025.
According to the data, a total of Rs48.97 billion (100 per cent) has been authorised out of Rs48.97 billion budgeted allocations for development projects for the Cabinet Division, while Rs34.97 billion has been expended.
A total of Rs5 billion has been authorised out of Rs5 billion for development projects of the Aviation Division, Rs3.535 billion (100 per cent ) for the Climate Change Division, Rs20.75 billion (100 per cent ) for the Federal Education and Professional Training Division, Rs5.578 billion (100 per cent) for defence Division, Rs7 billion out of Rs7.1 billion for Finance Division, Rs710 million (100 per cent) for States and Frontier Regions Division, Rs11.375 billion (100 per cent) billion for Information Technology and Telecom Division, and Rs35 billion (100 per cent ) for Railway Division during financial year 2024-25.
The ministry also authorised Rs217.66 billion out of Rs276.45 billion for provinces and Special Areas, Rs61.12 billion (100 per cent) for development projects for Higher Education Commission (HEC), and Rs8.374 billion (100 per cent) has been authorised for the development projects of National Food Security and Research Division.
The ministry also authorised Rs9.78 billion (100 per cent) budgeted allocation for the Interior Division, Rs21 billion (100 per cent ) for National Health Service, Regulations and Coordination Division, Rs2.176 billion (100 per cent ) for Defence Production Division, Rs8.49 billion (100 per cent) for Planning, Development and Special Initiatives Division, Rs6.65 billion (100 per cent) for Science and Technological Research Division, Rs3.23 billion (100 per cent) for Petroleum Division, and Rs199.6 billion (100 per cent out of Rs199.6 billion budgeted allocation for development projects of Water Resources Division etc.
Copyright Business Recorder, 2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
2 hours ago
- Business Recorder
Numbers speak: Sindh agriculturalists spend more on vehicle registration, pay less in income tax
In a revealing fiscal projection, the Sindh government has said it will collect Rs9.35 billion in motor vehicle registration fees in the outgoing fiscal year ending June 30, 2025. That is more than double the Rs4 billion to be collected from income tax on the province's vast agriculture sector, according to budget documents. The figures highlight a long-standing wealth imbalance, suggesting people who are classified in middle and upper agriculture income brackets and rural elite earn and spend significantly on their lifestyle, but their tax contributions remain surprisingly low. The situation has resulted in a climbing tax burden on tax compliant industrial and services sectors as well as individuals earning salaries from non-agriculture sectors. The provincial government is set to collect comparatively higher revenue from motor vehicle registration fees despite the fact that the tax is charged at lower rates — ranging from 1% to 5% of the value of vehicles, depending on engine size. In contrast, agriculture income is taxed at significantly higher rates, from 15% to 45%, effective January 1, 2025. Additionally, a super tax of 1% to 10% applies to high agricultural incomes, while corporate farming is taxed at rates between 20% and 29%. Agriculturists remain minimal contributors to provincial tax revenues During the first half of FY25 (July–December), the applicable agriculture income tax ranged from 5% to 15%. Yet, agriculturists continue to contribute disproportionately little to provincial tax revenues. Agriculture remains a big source of income for almost half of the total provincial population (55.7 million) living in rural areas including poor farmers, landlords and individuals as well as businesses engaged in large-scale agricultural production including livestock. Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, estimated that some 40% of the total vehicles sold nationwide are purchased by the people living in rural areas across the country. People living in rural Sindh buy around 40% of the total sold in the province. Other analysts said car purchasing is at peak in rural areas at the time of harvesting winter and summer crops, as well as around Eid-ul-Adha when farmers sell livestock mainly in urban centers. Hamdan Ahmed, an auto analyst at Optimus Capital Management, said in a commentary this week that agriculture season and development (PSDP/public sector development programme) spending fueled volumes growth in sale of passenger cars, SUVs (Sports Utility Vehicles) and LCVs (Light Commercial Vehicles) in May 2025. Auto sales (excluding tractors, buses and 2/3 wheelers) improved 38% year-on-year to 15,396 units in May, 'supported by the easing of highway closures from last month's canal protests, PSDP spending in the last months of FY25, (and) 'wheat harvest' despite pre-budgetary expectations.' Numbers reveal deeper reality As cars continue to fill garages in rural Sindh while collection of revenue in income tax on agriculture remain significantly low, the province's fiscal data tells a deeper story — of wealth that's visible on roads, but not reflected in the tax rolls. Latest estimates suggest the share of agriculture in Pakistan's gross domestic product stands at around 23.54% in FY25, while its share in revenue in taxes remained around 1%. Since agriculture income tax remains a provincial subject, Federal Finance Minister Muhammad Aurangzeb said the provinces have done legislation for income tax on agriculture, expecting a significant increase in collections in the next fiscal year starting July 1, 2025. In contrast to Aurangzeb's projection, the Sindh government has targeted to collect Rs8 billion income tax on agriculture at in the next fiscal year (FY26) starting July 1, 2025. This is still low compared to the motor vehicle registration fees to be collected at Rs9.35 billion in both outgoing FY25 and upcoming FY26. All four provincial governments have legislated agriculture income tax recently in compliance with the federal government commitment with International Monetary Fund (IMF) to increase tax collection to Rs14.307 trillion (10.7% of GDP). The Sindh government, however, criticized the federal government for the commitment, saying it should have taken provinces into confidence before making such promises. The agriculture income tax is projected to make agriculture produces expensive, as people belonging to the sector may pass on the tax impact to end-consumers, it was learnt. A major portion of the motor vehicle registration fee was earned from passenger cars, SUVs and LCVs segment, according to Sindh's Excise, Taxation and Narcotics Control Department, which collects the fee in the range of 1% to 5% of the value of the vehicle. The department books small collections from the registration of tractors at Rs2,000/unit and motorcycles in range of 0.5% to 2% of the value of the two-wheelers.


Business Recorder
2 hours ago
- Business Recorder
Numbers speak: Sindh agriculturalists spend more on vehicles, pay less in income tax
In a revealing fiscal projection, the Sindh government has said it will collect Rs9.35 billion in motor vehicle registration fees in the outgoing fiscal year ending June 30, 2025. That is more than double the Rs4 billion to be collected from income tax on the province's vast agriculture sector, according to budget documents. The figures highlight a long-standing wealth imbalance, suggesting people who are classified in middle and upper agriculture income brackets and rural elite earn and spend significantly on their lifestyle, but their tax contributions remain surprisingly low. The situation has resulted in a climbing tax burden on tax compliant industrial and services sectors as well as individuals earning salaries from non-agriculture sectors. The provincial government is set to collect comparatively higher revenue from motor vehicle registration fees despite the fact that the tax is charged at lower rates — ranging from 1% to 5% of the value of vehicles, depending on engine size. In contrast, agriculture income is taxed at significantly higher rates, from 15% to 45%, effective January 1, 2025. Additionally, a super tax of 1% to 10% applies to high agricultural incomes, while corporate farming is taxed at rates between 20% and 29%. Agriculturists remain minimal contributors to provincial tax revenues During the first half of FY25 (July–December), the applicable agriculture income tax ranged from 5% to 15%. Yet, agriculturists continue to contribute disproportionately little to provincial tax revenues. Agriculture remains a big source of income for almost half of the total provincial population (55.7 million) living in rural areas including poor farmers, landlords and individuals as well as businesses engaged in large-scale agricultural production including livestock. Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, estimated that some 40% of the total vehicles sold nationwide are purchased by the people living in rural areas across the country. People living in rural Sindh buy around 40% of the total sold in the province. Other analysts said car purchasing is at peak in rural areas at the time of harvesting winter and summer crops, as well as around Eid-ul-Adha when farmers sell livestock mainly in urban centers. Hamdan Ahmed, an auto analyst at Optimus Capital Management, said in a commentary this week that agriculture season and development (PSDP/public sector development programme) spending fueled volumes growth in sale of passenger cars, SUVs (Sports Utility Vehicles) and LCVs (Light Commercial Vehicles) in May 2025. Auto sales (excluding tractors, buses and 2/3 wheelers) improved 38% year-on-year to 15,396 units in May, 'supported by the easing of highway closures from last month's canal protests, PSDP spending in the last months of FY25, (and) 'wheat harvest' despite pre-budgetary expectations.' Numbers reveal deeper reality As cars continue to fill garages in rural Sindh while collection of revenue in income tax on agriculture remain significantly low, the province's fiscal data tells a deeper story — of wealth that's visible on roads, but not reflected in the tax rolls. Latest estimates suggest the share of agriculture in Pakistan's gross domestic product stands at around 23.54% in FY25, while its share in revenue in taxes remained around 1%. Since agriculture income tax remains a provincial subject, Federal Finance Minister Muhammad Aurangzeb said the provinces have done legislation for income tax on agriculture, expecting a significant increase in collections in the next fiscal year starting July 1, 2025. In contrast to Aurangzeb's projection, the Sindh government has targeted to collect Rs8 billion income tax on agriculture at in the next fiscal year (FY26) starting July 1, 2025. This is still low compared to the motor vehicle registration fees to be collected at Rs9.35 billion in both outgoing FY25 and upcoming FY26. All four provincial governments have legislated agriculture income tax recently in compliance with the federal government commitment with International Monetary Fund (IMF) to increase tax collection to Rs14.307 trillion (10.7% of GDP). The Sindh government, however, criticized the federal government for the commitment, saying it should have taken provinces into confidence before making such promises. The agriculture income tax is projected to make agriculture produces expensive, as people belonging to the sector may pass on the tax impact to end-consumers, it was learnt. A major portion of the motor vehicle registration fee was earned from passenger cars, SUVs and LCVs segment, according to Sindh's Excise, Taxation and Narcotics Control Department, which collects the fee in the range of 1% to 5% of the value of the vehicle. The department books small collections from the registration of tractors at Rs2,000/unit and motorcycles in range of 0.5% to 2% of the value of the two-wheelers.


Business Recorder
3 hours ago
- Business Recorder
Tax imbalance: Sindh to earn over twice as much from vehicle registration as agriculture
In a revealing fiscal projection, the Sindh government has said it will collect Rs9.35 billion in motor vehicle registration fees in the outgoing fiscal year ending June 30, 2025. That is more than double the Rs4 billion to be collected from income tax on the province's vast agriculture sector, according to budget documents. The figures highlight a long-standing wealth imbalance, suggesting people who are classified in middle and upper agriculture income brackets and rural elite earn and spend significantly on their lifestyle, but their tax contributions remain surprisingly low. The situation has resulted in a climbing tax burden on tax compliant industrial and services sectors as well as individuals earning salaries from non-agriculture sectors. The provincial government is set to collect comparatively higher revenue from motor vehicle registration fees despite the fact that the tax is charged at lower rates — ranging from 1% to 5% of the value of vehicles, depending on engine size. In contrast, agriculture income is taxed at significantly higher rates, from 15% to 45%, effective January 1, 2025. Additionally, a super tax of 1% to 10% applies to high agricultural incomes, while corporate farming is taxed at rates between 20% and 29%. Agriculturists remain minimal contributors to provincial tax revenues During the first half of FY25 (July–December), the applicable agriculture income tax ranged from 5% to 15%. Yet, agriculturists continue to contribute disproportionately little to provincial tax revenues. Agriculture remains a big source of income for almost half of the total provincial population (55.7 million) living in rural areas including poor farmers, landlords and individuals as well as businesses engaged in large-scale agricultural production including livestock. Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, estimated that some 40% of the total vehicles sold nationwide are purchased by the people living in rural areas across the country. People living in rural Sindh buy around 40% of the total sold in the province. Other analysts said car purchasing is at peak in rural areas at the time of harvesting winter and summer crops, as well as around Eid-ul-Adha when farmers sell livestock mainly in urban centers. Hamdan Ahmed, an auto analyst at Optimus Capital Management, said in a commentary this week that agriculture season and development (PSDP/public sector development programme) spending fueled volumes growth in sale of passenger cars, SUVs (Sports Utility Vehicles) and LCVs (Light Commercial Vehicles) in May 2025. Auto sales (excluding tractors, buses and 2/3 wheelers) improved 38% year-on-year to 15,396 units in May, 'supported by the easing of highway closures from last month's canal protests, PSDP spending in the last months of FY25, (and) 'wheat harvest' despite pre-budgetary expectations.' Numbers reveal deeper reality As cars continue to fill garages in rural Sindh while collection of revenue in income tax on agriculture remain significantly low, the province's fiscal data tells a deeper story — of wealth that's visible on roads, but not reflected in the tax rolls. Latest estimates suggest the share of agriculture in Pakistan's gross domestic product stands at around 23.54% in FY25, while its share in revenue in taxes remained around 1%. Since agriculture income tax remains a provincial subject, Federal Finance Minister Muhammad Aurangzeb said the provinces have done legislation for income tax on agriculture, expecting a significant increase in collections in the next fiscal year starting July 1, 2025. In contrast to Aurangzeb's projection, the Sindh government has targeted to collect Rs8 billion income tax on agriculture at in the next fiscal year (FY26) starting July 1, 2025. This is still low compared to the motor vehicle registration fees to be collected at Rs9.35 billion in both outgoing FY25 and upcoming FY26. All four provincial governments have legislated agriculture income tax recently in compliance with the federal government commitment with International Monetary Fund (IMF) to increase tax collection to Rs14.307 trillion (10.7% of GDP). The Sindh government, however, criticized the federal government for the commitment, saying it should have taken provinces into confidence before making such promises. The agriculture income tax is projected to make agriculture produces expensive, as people belonging to the sector may pass on the tax impact to end-consumers, it was learnt. A major portion of the motor vehicle registration fee was earned from passenger cars, SUVs and LCVs segment, according to Sindh's Excuse, Taxation and Narcotics Control Department, which collects the fee in the range of 1% to 5% of the value of the vehicle. The department books small collections from the registration of tractors at Rs2,000/unit and motorcycles in range of 0.5% to 2% of the value of the two-wheelers.