The government is set to slash allocations for development spending by 12.5 percent in the current fiscal year 2025-26 (FY26), as the originally allocated fund remains largely unspent in the first five months.

The railway ministry, the power division, and the primary and mass education ministry will see the biggest chop.

The plan comes as $42.85b foreign funds remained unused at start of current FY

The interim government is going to ask ministries to accelerate the implementation of ongoing development projects, Planning Adviser Prof Wahiduddin Mahmud said, as he believes this would help avert a further economic slowdown.