ISLAMABAD – The government is planning to slash the current fiscal year’sPublic Sector Development Program (PSDP) to Rs600-Rs650 billion fromRs1,030 billion, sources said on Tuesday.
Prime Minister Imran Khan has asked the Planning Commission to present therevised PSDP document before the Parliament in the next few days forapproval.
The Ministry of Finance would propose slashing down the development budget,as all budgetary targets would be revised in a major way to bring down thebudget deficit, which peaked to Rs2,260 billon or 6.6 percent of GDP in thelast fiscal ended June 30, 2018.
In the PSDP for 2018-19 approved by the National Economic Council (NEC)during the last Pakistan Muslim League-Nawaz (PML-N) led regime, thePlanning Commission inserted around 400 to 450 unapproved schemes as partof the PSDP.
It was argued at that time that with approval of NEC it was made part ofrules in 2004 that no projects would be approved without securing itsresources, after which the Planning Commission used to entertain PC-1 ofonly those projects which were already made part of the PSDP list.
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In a unique but rare episode, it was admitted at the highest levels thatthere was difference between Finance Ministry’s allocated amount for PSDPin pink book and green book of PSDP published by the Planning Commission.
The Finance Ministry mentioned allocation of Rs800 billion in the Pink Bookof Budget for 2018/19, but the Planning Ministry showed allocation ofRs1,030 billion in the Green Book of PSDP. “Now the allocation amount willbe further slashed down into fresh PSDP and it will stand at Rs600 to Rs650billion maximum,” added the sources.
