The proposed increase of Rs. 200 billion in the federal Public Sector Development Program (PSDP) has yet to materialize, with the development budget remaining at Rs. 1.126 trillion as no formal written directive has been issued by the Prime Minister’s Office, sources in the Ministry of Planning told ProPakistani.
According to sources, Prime Minister Shehbaz Sharif had verbally directed that the PSDP allocation be increased from Rs. 1.126 trillion to Rs. 1.326 trillion for the upcoming fiscal year. However, the Planning Ministry has not received any written instructions to implement the increase.
Sources said the Ministry of Finance has not supported an expansion in the development budget due to fiscal constraints, while the International Monetary Fund has linked any increase in development spending to the generation of additional revenues.
Planning Minister Ahsan Iqbal also confirmed to ProPakistani that the PSDP currently remains at Rs. 1.126 trillion, indicating that no formal revision has been approved so far.
Under the existing proposal, development projects of federal ministries and divisions are expected to receive Rs. 754 billion during the next fiscal year. The largest allocations are proposed for the National Highway Authority and the Power Division, which are expected to receive more than Rs. 355 billion collectively.
According to budget documents, the National Highway Authority is proposed to receive Rs. 264 billion, while the Power Division is expected to be allocated Rs. 91 billion. The Water Resources Division is projected to receive Rs. 179 billion for the next fiscal year.
An estimated Rs. 251 billion has been earmarked for provinces and special areas. This includes Rs. 99 billion for provincial nature projects and Rs. 66 billion for the merged districts.
Budget documents further show that Azad Jammu and Kashmir and Gilgit Baltistan are expected to receive a combined Rs. 86 billion under the development program. Among other allocations, the Defence Division is proposed to receive Rs. 11 billion, while the Higher Education Commission is expected to be allocated Rs. 41 billion. The Railways Division is projected to receive Rs. 28 billion, and the Planning and Development Division Rs. 25 billion.
The Interior Ministry is expected to receive Rs. 16 billion under the development program, while allocations of more than Rs. 4 billion have been proposed for the Ministry of Information. Sources said discussions on increasing the PSDP allocation are continuing, but the development budget remains unchanged at Rs. 1.126 trillion pending a final decision by the government.
