Pakistan's local cement sales have been adversely affected by reduced government funding, as several cement firms have attributed this factor to weak dispatches. In the first five months of the FY24-25, the Public Sector Development Programme (PSDP) saw decreased spending, with media reports indicating that spending has nearly stopped due to strict fiscal controls by the IMF.
This decline impacts essential public projects that improve living standards and economic growth. During a meeting on PSDP progress, it was reported that in the 5MFY24-25 only PKR92bn (US$331.3m) had been used out of a revised allocation of PKR1.1trn, representing just 6.6 per cent of the budget.
The Ministry of Finance has established a release schedule for the budget, expecting to allocate 15 per cent in the first quarter and up to 40 per cent in the last. The current year’s utilisation is significantly lower than previous year's PKR117bn, constituting about 13 per cent of a PKR940bn allocation. This decrease is largely due to reduced disbursements from international lending agencies, which have provided only PKR2.5bn in almost five months.
by Abdul Rab Siddiqi, Pakistan
