The federal government has reduced the Public Sector Development Programme (PSDP) by Rs 50 billion just 10 days into the new fiscal year 2024–25. During a meeting on Tuesday, the National Assembly Standing Committee on Planning Ministry heard this. The committee, led by Chairman Saeed Abdul Qadir Gilani, requested details about the revised PSDP and ongoing development projects. Planning Secretary Awais Manzur Sumra provided an overview of the ministry’s operations.
Attendees included Minister of Planning Ahsan Iqbal, who spoke about the state of the nation’s economy. He painted a gloomy picture, noting that borrowing funds public services like salaries, pensions, and subsidies. The political instability that has persisted throughout the years, as Iqbal pointed out, has made it impossible to consistently implement policies. He stressed that the government must prioritize export-led growth and improve its fiscal management. He claims that Pakistan risks losing its independence argument if it does not improve its efficiency within the next quarter of a century.
Iqbal highlighted the importance of planning and development for any country and suggested that Pakistan could overcome its crisis by following the 5Es Framework: exports, e-Pakistan, environment and climate change, energy and infrastructure, and equity and empowerment. Despite Pakistan’s current $30 billion export value, he pointed out that the country must repay a $75 billion debt over the next three years. Emphasizing the importance of innovation and artificial intelligence, he mentioned that the country must embrace these advancements to transform itself into E-Pakistan.
Iqbal also identified climate change as Pakistan’s most significant challenge, predicting unpredictable rainfall patterns in the future. He stressed the need to manage water resources effectively to avoid future droughts.
Later in the meeting, Planning Secretary Awais Manzur Sumra explained the ministry’s role in preparing the Annual National Plan, which includes performance data from the previous year and targets for the upcoming year. The National Economic Council (NEC) approves this plan. Sumra stated that the PSDP, which the NEC approves, is the second part of the National Plan. The NEC met on June 10 to approve the annual plan and PSDP.
Sumra mentioned that the ministry is responsible for revising and updating economic targets in the annual plan. The ministry initially set and approved the PSDP at Rs 1,400 billion. However, the ministry later reduced it by Rs 250 billion to Rs 1,150 billion, followed by another cut of Rs 50 billion. He assured the committee that the revised PSDP would be ready in the next few days, and the committee requested its details.
During the meeting, committee members also raised concerns about delays in development projects due to various reasons.
