According to Ministry of Planning Secretary Syed Zafar Ali, the government has budgeted PKR 371 billion for development projects under the Public Sector Development Programme (PSDP) 2022-23.
Mr Zafar stated that the PSDP’s total budgetary allocation is PKR 727 billion, of which more than half (PKR 371 billion) has been approved. During a press conference, Zafar mentioned that PKR 311 billion of the approved projects had local components and PKR 60 billion was for foreign assistance. He also stated that 22% of the budget allocation has been spent, with PKR 207 billion spent, of which PKR 147 billion was spent on local components and PKR 60 billion on foreign aid.
The secretary added that?13 early harvest development projects costing?USD 3 billion for flood-hit?areas have been approved and funds will be transferred soon, out of the total USD 10 billion in aid vowed by countries at the Geneva conference. He emphasised that if a project is related to a province, the province must share 50% of its resources, and the federal government must do the same.
It is worth noting that the recent floods in the country have destroyed infrastructure in all four provinces, with Baluchistan losing USD 2.5 billion, Sindh losing USD 8 billion, and the other provinces losing USD 750 million. To assist with rehabilitation, the government has directed the international community to pledge reconstruction funds through their climate resilience and justice initiatives.
Last year, the Pakistan Association of Large Steel Producers (PALSP)?asked the government to release Public Sector Development Program (PSDP) funds to help the industry and economy recover from the devastation caused by the heavy floods. The authority said that releasing funds will help encourage economic growth and create job opportunities.?
Moreover, Sources reported that the government reduced development spending during the first quarter of the current fiscal year by changing the fund release strategy. It was revealed that the government reduced the release of funds from 20% to 10%.