Approximately 764 schemes of Rs 2.3 Trillion may be Excluded From PSDP

According to resources it is heard that planning ministry proposed to exclude 764 development projects costing 2.3 Trillion rupees. Ministry of planning suggested to Ahsan Iqbal the projects having very little spending and of provincial nature should be dropped from the Public Sector Development Program (PSDP). The ministry proposed that 764 schemes having increasing cost of 2.3 trillion rupees should be kept out from PSDP purview.

1169 projects are pending under PSDP costing 6.3 trillion. The ministry recommended to wind up of 65% of the total projects that will reduce the overall PSDP financing 36% to 4 trillion rupees.

The Ministry also proposed that government may put out 326 projects having cost of 97 billion rupees. These projects are of provincial nature. Although, it wastes billions of rupees that have already been spent on these schemes.

Senior official planning ministry said that federal government gave a lot of funds the national development framework projects so that there was need to reduce size of PSDP. He further said that planning commission had also sent summary to National Economic Council (NEC) with appeal to ban the approval of provincial project founded by federal government. Instead of those that fall notified under developed areas of Pakistan.

During previous government of PTI, many projects of provincial nature were approved under political convenience. According to sources, previous government added few projects of Gujrat and Dera Bugti, to attract its allies.

According to sources, Ahsan Iqbal planning minister has not yet taken any decision about closing the projects and would take decision after further calculations. Further is that minister will make some inspections of the projects before making any decision about closing the projects.

It is a great challenge that planning minister is facing to create financial space for the new projects. The last government of PTI had approved 900 billion rupees development budget which it had cut short to 600 billion rupees, before getting out of power. However the financial space is not so enough finance even the ongoing projects. Ministry also recommended closing Sustainable Development Goals (SGDs) program, which is necessarily a funding mechanism for the parliamentarians’ schemes. The PSDP spending would remain low in next financial year too, in case Pakistan and IMF agree to revive the stalled saving packages.

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