ISLAMABAD: The federal government is considering capping financing for provincial development projects and allocating resources to five strategic sectors in the Public Sector Development Programme (PSDP) for 2023-24, according to a senior government official.
The official revealed that the Planning and Development Ministry has submitted a summary to the prime minister proposing to restrict the PSDP to exports, energy, equity, e-Pakistan, and environment (5Es) and exclude projects of devolved responsibilities from the provinces.
The proposal aims to address the fiscal challenges and declining federal PSDP, which dropped from about Rs. 1 trillion in 2017-18 to less than Rs600 billion in 2022-23 due to resource constraints and allocation for devolved responsibilities.
Besides, the official also said the CDWP would only entertain projects relating to the 5Es. The planning minister is expected to discuss the matter with the prime minister this week.
Source: DAWN
