In a candid revelation that highlights Pakistan’s ongoing economic challenges, Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal has stated that over half of the federal budget will be spent on debt repayments this year.
His remarks came during a crucial Annual Plan Coordination Committee (APCC) meeting, where top officials from federal and provincial governments, the State Bank, and national institutions gathered to discuss Pakistan’s future development roadmap.
The federal minister didn’t mince words when addressing the nation’s strained development financing. “Due to years of economic instability, we’re now in a position where managing the development budget of Pakistan has become extremely difficult,” said Iqbal. “This year, our development allocation stands at Rs. 1000 billion, but with limited resources, we had to make some tough choices.”
As part of austerity measures, 118 non-priority and inactive projects have already been scrapped, allowing the government to focus on what Iqbal termed as “essential national initiatives.” Among the projects given top priority are the Diamer Bhasha Dam, Sukkur-Hyderabad Motorway, Chaman Road, and Phase-II of the Karakoram Highway — all seen as critical for Pakistan’s long-term growth and stability.
Iqbal emphasized the need to expand the tax net in Pakistan, pointing out that the country ranks among the lowest in global tax revenue generation. “To truly invest in education, health, water, and power infrastructure — things people expect from elected governments — we need a nationwide campaign to curb tax evasion,” he said.
During the meeting, Chief Economist Dr. Imtiaz presented a detailed overview of next year’s development plans and economic targets, sparking discussions on how best to achieve growth amid rising financial constraints.
The development budget of Pakistan, once a symbol of ambitious nation-building, now faces cuts that may impact everything from rural infrastructure to social welfare programs. Still, Ahsan Iqbal remains hopeful. He announced the continuation of the "Uraan Pakistan Program," which aims to promote national unity through workshops held across all provinces.
He concluded with a sobering reflection: “In 2018, we were thinking of launching new projects. Today, we’re forced to limit ongoing ones. These are not easy decisions, but they are necessary.”
As the government pushes forward with a sharpened focus on debt repayment and development priorities, the message is clear — Pakistan's path to economic recovery will demand collective responsibility, strategic planning, and a renewed commitment to financial discipline.
