June 12, 2024 (MLN): The government has set highest ever size of the Federal Public Sector Development Programme (PSDP) 2024-25 at Rs1.5 trillion including Rs100 billion for PPP mode projects, which is 101% higher than the revised size of the previous year’s PSDP 2023-24, according to details disclosed by the Planning Commission.
"In this constrained fiscal situation, the 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," the statement reads.
In PSDP 2024-25, the completion of ongoing projects has been accorded priority and almost 81% of resources have been allocated to the ongoing project while only 19% of the resources have been earmarked for new projects.
The priority has been assigned to the Infrastructure sector being the primary responsibility of the Federal Government with over 61% of allocations, followed by Social Sector having 17% and balanced regional development (AJ&K, GB and Merged Districts of KP) with 10% of allocations for FY 2024-25.
About 12% of resources are earmarked for other sectors like IT& Telecom, S&T, Governance and Production sectors etc.
As per the guidelines approved by the NEC for PSDP 2024-25, funding priority is given to completing projects in advanced stages of execution and allocating adequate funding to strategic and core ongoing projects, with a particular focus on water resources, transport, communications, and energy sectors.
For foreign-aided projects, to ensure smooth execution, uninterrupted inflow of foreign exchange, and to honor international commitments, top priority in allocation of funds is provided to these projects.
Additionally, projects with over 80% expenditure across all sectors are prioritized to be completed during FY2024-25 to provide timely financial and economic benefits to the economy from these critical projects.
Furthermore, 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.
"We encourage private sector investment and are ready to supplement their efforts through viability gap arrangements. We believe that collaboration between the public and private sectors not only leverage the strength of both sectors but is essential for achieving sustainable and inclusive development goals," it added.
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 citezens.
It is worth adding here that PSDP stands as the bedrock of economic vitality, putting the nation towards progress, prosperity and societal advancement.
It serves as a catalyst for innovation, infrastructure expansion, and sustainable development, fostering a conducive environment for growth and prosperity.
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Posted on: 2024-06-12T17:10:13+05:00
