Pakistan’s Public Sector Development Programme: Only Rs16.59bn set aside for new projects

ISLAMABAD: In the Federal Public Sector Development Programme (PSDP), having an outlay of Rs 1000 billion for the current financial year, only a paltry amount of Rs 16.59 billion has been earmarked for new development projects.

According to the Ministry of Planning’s reply submitted to the National Assembly Standing Committee on Economic Affairs Division, PSDP allocation was made for 801 projects, of which 733 are ongoing and 68 are new projects. For 238 national projects,Rs. 313 billion has been allocated, out of which Rs 306.9 has been allocated for the ongoing and Rs 6.65 billion for new projects. For 127 development projects in Punjab, Rs 76.63 billion has been allocated of which Rs 75 billion is for ongoing projects and only Rs 1.55 billion has been allocated for the new projects.

Sindh’s share in PSDP is Rs 146 billion of which Rs 144.85 has been earmarked for ongoing projects and merely Rs 1.15 billion for new projects.

Projects under PSDP: Ministry tells IMF allocations capped at 2pc

For 71 projects in Khyber Pakhtunkhwa, Rs 308 billion has been allocated, of which Rs 30.64 billion is allocated for the ongoing projects, and just Rs 200 million has been allocated for the new projects.

For Balochistan Rs 209.6 billion has been allocated in the PSDP, in which Rs 208.3 billion has been allocated for the ongoing and Rs 1.3 billion for new development projects.

For Azad Jammu Kashmir, an allocation of Rs 48.39 billion was made for ongoing projects, and no allocation was made for new projects. For Gilgit-Baltistan, Rs 59.16 billion has been allocated, of which Rs 58.98 billion has earmarked for the ongoing projects and Rs 183 million for the new projects.

Allocation of Rs 67.6 billion made for the merged districts (formerly FATA) and for Federal/ICT of which Rs 48.24 has been earmarked while the share for the ongoing projects is Rs 42.65 billion and Rs 5.58 billion for new projects.

In the reply it was also mentioned that the focus of Federal PSDP is on funding of ongoing core/mega projects of national significance. Unlike National Finance Commission Award, funds under the federal (PSDP) are not distributed among the provinces; rather, allocations are earmarked for development projects, prepared by the relevant federal ministries /divisions, as per the assigned Rules of Business, and approved by the competent authority like DDWP/CWDP/ECNEC.

Copyright Business Recorder, 2025