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The IMF's review of Pakistan's $7 billion Extended Fund Facility forecasts a decline in the Public Sector Development Program (PSDP) from 0.7% of GDP this fiscal year to 0.6% by FY30, despite an increase in PSDP spending from Rs873 billion to Rs1.2 trillion. Defense spending is expected to rise from Rs2.57 trillion to nearly Rs4 trillion by the end of the decade, driven by regional security concerns. The report highlights the need for significant investments in infrastructure, education, and health, urging public-private partnerships to support both defense and development initiatives amid shrinking PSDP allocations.