The Annual Plan Coordination Committee (APCC) approved Rs 1,221 billion Public Sector Development Program (PSDP) for the upcoming fiscal year 2024-25 on Friday.
The APCC meeting chaired by Deputy Chairman, Planning Commission was attended by the officials of Federal Ministries/Divisions, provincial governments and State Bank of Pakistan, according to press release issued by Planning Commission.
The APCC noted that Ministries/Divisions initially requested over Rs. 2.8 trillion for projects, however, due to fiscal constraints, the essential funding requirements were discussed with the Ministry of Finance and consequently, the provisional size of the PSDP was set at Rs. 1,221 billion. The formulation of the PSDP faced several challenges, including rising throw-forward, additional demands and provincial projects of devolved nature.
The forum was apprised about the challenges faced in formulation of PSDP for the fiscal year 2024-25, including thin spreading of PSDP allocation and rising throw-forward which exacerbates challenges in prioritizing and completing ongoing projects. In addition, significantly high demand for rupee cover against Foreign Exchange /Foreign Aid component and additional demands for post-flood 2022 rehabilitation efforts and implementation of 5Es initiatives aimed at economic recovery and resilience were the other major challenges.
APCC advised Ministries/Divisions to prioritize core national projects, foreign aided projects, fund projects with high expenditures for timely completion, prioritize federal, clear pending liabilities. PSDP formulation process was guided by National Economic Council (NEC) and Special Investment Facilitation Council (SIFC) recommendations/directions.
Following adjustments, the proposed PSDP for 2024-25 was slightly modified, with specific allocations detailed for various sectors. The sectoral strategy of the proposed PSDP 2024-25 included allocations for infrastructure development and promoting industrial linkages, energy sufficiency, augmenting water resources, improving transport and communications, emphasizing social sectors, science and IT, governance, production sectors, and ensuring balanced regional development.
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