Govt increases PSDP budget by 101pc
Business
Govt allocates Rs1,500 billion for PSDP
ISLAMABAD – The federal government has set highest-ever size of the Public Sector Development Programme (PSDP) 2024-25 at Rs1,500 billion including Rs100 billion for PPP mode projects, which is 101 percent higher than the revised size of previous year’s PSDP 2023-24.
According to the budget 2024-25 document available with Dunya News, this size of PSDP reflects the government’s dedication 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 percent of resources have been allocated to the ongoing project while only 19 percent 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 percent of allocations, followed by Social Sector having 17 percent and balanced regional development (AJ&K, GB and Merged Districts of KP) with 10 percent of allocations for FY 2024-25.
About 12 percent resources are earmarked for other sectors like IT& Telecom, S&T, Governance and Production sectors etc, read the budget document.
“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,” read the budget document.
“The PSDP 2024-25 encompasses wide range of infrastructure and development projects across various sectors, including transportation, energy, water resources, and power. These projects range from the construction and rehabilitation of highways and motorways to the establishment of power generation facilities, transmission lines, and grid stations. They also include initiatives for water resource management, such as the construction of dams, canals, and water supply schemes.
“In the transportation sector, projects focus on improving road networks, enhancing connectivity between major cities and regions, and upgrading existing infrastructure to accommodate increased traffic volumes. Additionally, there are initiatives aimed at expanding and modernizing the country's energy infrastructure, including the construction of hydropower dams, solar power plants, and transmission lines to ensure efficient power distribution and meet growing energy demands.
“Moreover, efforts are underway to enhance water resource management through the construction of dams, irrigation systems, and drainage networks to mitigate flooding and ensure sustainable water supply for agricultural and domestic use. These projects reflect Pakistan's commitment 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,” concluded the document.
