ISLAMABAD: The government has reduced the Public Sector Development Program (PSDP) by 25% to Rs600 billion from the allocated Rs800bn due to fiscal constraints
This is the second consecutive year that the underfunded infrastructure development of the country will face severe cuts even in the funds authorized by the parliament.
In the previous fiscal year, the PSDP was curtailed by about 40% as no funds were released for spending in the last quarter due to the political transition.
Although the Ministry of Planning and Development authorized the disbursement of Rs129bn for PSDP projects for the fourth quarter despite financial constraints and disruptions caused by floods last year, it should have authorized Rs145bn under the prescribed disbursement mechanism notified by the Planning Commission.
The Planning Commission has prioritized water resources and the Higher Education Commission while authorizing Rs129bn for the fourth quarter within fiscal constraints.
The development projects in special areas like Azad Jammu and Kashmir, Gilgit Baltistan, and the erstwhile Fata region have been underfunded, with the total authorizations not going beyond Rs72bn, almost half of the allocation.
