Minister Iqbal leads committee for PSDP allocation

Prime Minister Shehbaz Sharif has taken a significant step by establishing a committee to work on finalizing a new Public Sector Development Programme (PSDP). This move comes in response to the ministries' request for a substantial Rs2.8 trillion allocation in the upcoming budget for both ongoing and new projects. The planning and development ministry has suggested a minimum of Rs1.5 trillion, while the finance ministry proposed a maximum of Rs1 trillion, which was deemed insufficient by the PM. The committee's primary objective is to bridge the gap between the two ministries and address the development budget for the fiscal year 2024-25.

Key Points of the Committee's Work

The committee, led by Planning Minister Ahsan Iqbal, consists of key ministers and officials tasked with reviewing the allocation of funds for the PSDP. They have a one-week deadline to evaluate project sizes, outcomes, and their alignment with provincial plans. Due to the demand surpassing available funds, the government may need to exclude new projects due to financial constraints, focusing instead on essential areas such as communication, water resources, and climate change.

Furthermore, the committee will address issues like Cash Development Loans recoveries affecting project implementation and the necessity of at least Rs1.5 trillion to adhere to project completion guidelines. It will also explore ways to enhance the Public Private Partnership Authority framework to attract private sector participation. Budget limitations have impacted foreign-funded projects, leading to delays in initiatives like the Mainline-I railway project under CPEC.

Importance of CPEC and National Development Goals

Minister Iqbal emphasized the significance of the China-Pakistan Economic Corridor (CPEC) in addressing energy and infrastructure challenges, stressing the need to regain momentum in this crucial initiative. The government is grappling with financing development projects amidst fiscal constraints and competing demands, necessitating strategic planning and prioritization to drive national development goals forward.

Conclusion

The formation of this committee marks a proactive approach by the government to streamline the allocation of funds for development projects, ensuring efficient utilization of resources and a focus on key areas for national progress. By addressing challenges and exploring avenues for enhanced partnerships, the government aims to overcome obstacles and propel the country towards sustainable growth and development.