In a surprising decision, the federal government has chosen to scrap about 24% of ongoing development projects this fiscal year. This move affects the Public Sector Development Programme (PSDP), which includes 1,092 listed projects. A total of 260 development schemes will be eliminated, saving billions of rupees.
The Planning Ministry has set criteria for selecting which projects to cut, aiming to improve resource allocation. Minister for Planning Ahsan Iqbal confirmed this decision, stating it is not politically motivated. He highlighted the successful completion of the NED University project as a model for future projects.
This year, the overall PSDP allocation is Rs1,100 billion. This total includes Rs843.145 billion for various ministries and Rs255.854 billion for public corporations. However, reports show that only Rs312.3 billion has been spent so far, even though Rs631 billion has been authorized.
While acknowledging the slow use of funds, Iqbal promised that spending would speed up in the final quarter of the fiscal year. The Finance Ministry is still finalizing the budget for the next development year. The Planning Ministry estimates that between Rs2,500 billion and Rs2,900 billion will be needed to meet the country’s development demands.