Rs1.2tr set to be allocated for PSDP

ISLAMABAD: The government is all set to convene Annual Plan Coordination Committee (APCC) on May 31, 2024 for considering Public Sector Development Programme (PSDP) to the tune of Rs1,200 billion for next budget 2024-25.

The government is all set to grant assent to the 13th Five-Year Plan and it will be presented before the upcoming National Economic Council (NEC) expected to be convened by June 3, 2024 under chairmanship of Prime Minister Shehbaz Sharif. The federal government is all set to approve a policy for abandoning the provincial nature projects from the next fiscal year for 2024-25.

Out of total envisaged PSDP, there is a possibility of Rs1,000 billion from government resources and Rs2,00 billion through Public Private Partnership (PPP). However, the Ministry of Planning has been finding itself in quite difficult situation because the ministries/divisions tabled initial demand of Rs2,900 billion before them. “Under tough financial conditions, the Ministry of Finance is verbally allocating the PSDP in the range of Rs1,000 billion for the next budget and showed its reluctance to share Indicative Budget Ceiling till recently,” top official sources confirmed while talking to The News here on Monday.

The APCC if is going to meet on May 31, 2024 then the possibility of convening of National Economic Council (NEC) on June 3, 2024 in which the national development outlay including the federal PSDP and provincial Annual Development Plans (ADPs) would be approved. Prime Minister Shehbaz Sharif is scheduled to pay visit to China before the announcement of the budget for 2024-25. Although, the budget date has not yet been finalised but there are strong chances that the next budget might be tabled before Parliament on June 8 or 9, 2024.

On macroeconomic front, the government is envisaging the GDP growth rate in the range of 3.5 to 3.7 percent for the next budget against the provisional growth rate of 2.38 percent for the outgoing fiscal year. The government is making plans to fix the CPI based target at 12.5 or 12.7 percent for the next budget for 2024-25.