The government of Pakistan has planned to introduce a three year Public Sector Development Plus Program (PSDP+) in the country to increase economic growth and create greater job opportunities for the youth, reported a local media house.
According to the report, the plan involves 53 megaprojects with Rs. 5.2 trillion investment. This plan will be implemented in three years between FY 2020-23. The plan was approved by Prime Minister Imran Khan on November 27.
As part of the PSDP Plus, different development projects will be undertaken and completed across the country with the cooperation of the private sector.
The government has introduced PSDP plus to enhance development spending with an aim to achieve a sustainable GDP growth rate of 6.7 percent at the end of the program from the current fiscal year projected growth rate of 3.3 percent.
The PSDP plus projects will be implemented throughout Pakistan and are divided into two broad categories. At the start, there are 29 projects in 11 sectors with zero government investment that are expected to inject direct investment of Rs. 2.9 trillion into the economy.
PSDP Plus is an important part of public sector investment which channels domestic and foreign resources to implement the development programs and projects prepared by the federal, provincial and local agencies.
Due to various reasons, the program’s expenses have remained far below the required level to ensure sustained upward economic growth. This was due to major reasons which included financial mismanagement in the past. Now, the plan has been designed to achieve targets keeping in view the resource constraints and importance of the private sector as a driver of economic growth.
The government, through public sector investment, will also provide an enabling environment to crowding in the private sector, fostering public-private partnerships and joint ventures to reduce the burden on the PSDP.
The government wants to facilitate the business community in every possible manner as there is a huge potential for the private sector to capitalize on the existing opportunities.