The federal government has further slashed the Public Sector Development Programme (PSDP) by Rs. 50 billion just ten days into the new fiscal year 2024-25, as disclosed during a session of the National Assembly Standing Committee on the Planning Ministry on Tuesday.
Chairman Saeed Abdul Qadir Gilani led the committee meeting, where members sought specifics on the revised PSDP and the status of ongoing development projects. Planning Secretary Awais Manzur Sumra provided an overview of the ministry’s operations during the session.
In attendance, Planning Minister Ahsan Iqbal painted a stark economic picture, highlighting Pakistan’s heavy reliance on borrowing to sustain essential expenditures like salaries, pensions, and subsidies. He lamented decades of policy discontinuity due to political instability, stressing the urgent need for fiscal discipline and export-driven growth to navigate the current crisis.
Iqbal proposed following the “5Es Framework” — emphasizing Exports, E-Pakistan, Environment and Climate Change, Energy and Infrastructure, and Equity and Empowerment — as a path forward for Pakistan. He underscored the importance of adapting to innovations like artificial intelligence (AI) and addressing climate change, which he identified as the nation’s foremost challenge.
Secretary Sumra briefed the committee on the ministry’s role in formulating the Annual National Plan, which includes performance data from the previous year and targets for the upcoming year. He explained that the plan and the PSDP are approved by the National Economic Council (NEC), detailing recent adjustments to the PSDP budget from Rs. 1,400 billion initially to Rs. 1,150 billion following successive reductions.
Sumra assured the committee that the revised PSDP details would soon be finalized. Committee members also raised concerns about delays in development projects, citing various reasons for the setbacks.
