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Pakistan’s development spending fell to 0.8% of GDP in 2025 due to IMF limits, threatening growth and jobs.
Pakistan's development budget has dropped from 2.6% of GDP in 2018 to 0.8% in 2025, limiting economic growth and job creation, according to Planning Minister Ahsan Iqbal.
He cited IMF-imposed restrictions as a key factor and stressed the need to prioritize high-impact projects amid shrinking funds.
Iqbal chaired a review of the 2024-25 PSDP performance and the first quarter of 2025-26, urging ministries to reassess portfolios and focus only on essential projects.
Concerns remain over stalled projects and underused foreign grants, with officials warning that lack of rupee cover could worsen debt and project delays.
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El gasto de desarrollo de Pakistán cayó al 0,8% del PIB en 2025 debido a los límites del FMI, lo que amenaza el crecimiento y el empleo.