Islamabad June 12 2024: Pakistan has set highest ever size of the Federal Public Sector Development Programme (PSDP) 2024-25 at Rs. 1,500 billion including Rs. 100 billion for PPP mode projects, which is 101 % higher than the revised size of previous year’s PSDP 2023-24.
In this constrained fiscal situation, this size of PSDP reflects the government’s dedications to advancing its infrastructure and addressing key challenges in transportation, energy, and water resources management to support economic growth and improve the quality of life for its citizens.
In PSDP 2024-25, the completion of on-going projects has been accorded the priority and almost 81% of resources have been allocated to the ongoing project while only 19% of the resources have been earmarked for new projects. The priority has been assigned to Infrastructure sector being the primary responsibility of the Federal Government with over 61% of allocations, followed by Social Sector having 17% and balanced regional development (AJ&K, GB and Merged Districts of KP) with 10% of allocations for FY 2024-25. About 12% resources are earmarked for other sectors like IT& Telecom, S&T, Governance and Production sectors etc.
As per guidelines approved by NEC for PSDP 2024-25, the priority in funding is given to complete projects in advance stages of execution and allocate adequate funding to (a) strategic and core on-going projects, with particular focus on water resources, transport, communications, and energy sectors (b) foreign aided projects to ensure smooth execution of the foreign aided projects, uninterrupted inflow of the foreign exchange and to honor international commitments, top most priority in allocation of funds is provided to foreign aided projects and (c) projects with 80% plus expenditure in all sectors with the aim of completing them during FY2024-25 so as to provide timely occurrence of financial and economic benefits to economy from critical projects.
Importance has also been given to the development projects relating to 5Es i.e. Exports, Equity, Empowerment, Environment and Energy Framework, CPEC as well as 4RF i.e. Resilient, Recovery, Rehabilitation and Reconstruction Framework. New projects focusing on supporting exports, enhancing productivity, deepening IT/digital infrastructure, innovation driven enterprises, agroindustry and seed development, blue economy, science & technology, R&D and innovation reforms have been included in PSDP FY 2024-25.
New projects focusing on supporting exports, enhancing productivity, fostering competitiveness, deepening and spreading digital infrastructure, innovation driven enterprises, industrial development, agroindustry and seed development, blue economy, science & technology, R&D and innovation reforms have also been encouraged. Besides, balanced development and regional equity and sustainable economic growth and development have also been included in PSDP 2024-25.
