Empowering LGs: Govt decides to review PSDP

ISLAMABAD: The federal government has reportedly decided to review the Public Sector Development Program (PSDP) for 2024-25 with the aim of empowering local governments, district/ tehsil administrations, and ensuring the judicious utilisation of Corporate Social Responsibility (CSR) funds, according to well-informed sources within the federal government who spoke to Business Recorder.

This decision was made during a recent high-level meeting chaired by Prime Minister Shehbaz Sharif, which was attended by top officials.

The meeting also decided to conduct a comprehensive technological, legal, and constitutional review of the 18th Amendment and NFC Awards, taking into account the latest census data, as per Article 160 of the Constitution of Pakistan.

No new PSDP uplift scheme next year

According to the sources, the meeting also approved the establishment of National and Provincial Intelligence Fusion and Threat Assessment Centres, a decision that has received the backing of all provinces, including Gilgit-Baltistan (GB), Azad Jammu and Kashmir (AJK), and the Islamabad Capital Territory (ICT). Additionally, the enactment of a National Counter Violent Extremism Act is also under consideration.

The sources further noted that the creation of a “National Explosive Control Authority” is being considered to make it a federal subject, with effective legislation to be approved by Parliament.

Other key decisions from the meeting included the establishment of Implementation Committees at both federal and provincial levels, the creation of District Coordination Committees, and the appointment of high-profile Pakistan Administrative Service (PAS) officers in newly merged districts (following the Balochistan model).

The government has also decided to enhance the capabilities of police and Counter-Terrorism Departments (CTDs) through technological upgrades, training, the posting of senior police officers, and ensuring tenure stability.

The de-politicisation of police and civil administration has also been prioritised.

Sources revealed that efforts will be made to dismantle the ecosystem of illegal spectrum activities, the crime-terror nexus, and to launch a massive anti-encroachment drive targeting illegal settlements and activities in the suburbs of major cities.

Additionally, the government has decided to extend federal jurisdiction over institutions like the State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA), and the Anti-Narcotics Force (ANF) in Azad Jammu & Kashmir and Gilgit-Baltistan. There are also plans to establish “safe cities” in all major urban centres.

The sources indicated that the government plans to enforce strict laws to punish perpetrators of violence, social media abusers, and anti-state anarchists. There are also plans to register madaris (religious schools) and implement reforms in madaris and mosques.

Finally, it has been decided to make terrorism a federal subject. NACTA (National Counter Terrorism Authority) will be empowered by placing CTD under its jurisdiction as part of the “Federal CT Force.” This decision was agreed upon by all provinces, except Khyber Pakhtunkhwa (KP), which expressed concerns.

The Chief Minister of KP supported the creation of the Federal CT Force under the KP IGP. The Prime Minister has instructed the Interior Minister to address KP’s concerns, ensuring that the Federal CT Force will remain under federal control.

Copyright Business Recorder, 2025