June 12, 2020 (MLN): The size of Public Sector Development Programme (PSDP) for 2020-21 has been set at Rs1.3 trillion, shows PSDP document issued by Ministry of Planning, Development and Special Initiatives.
Out of this, Rs 674 billion has been allocated to provinces. Federal PSDP is estimated at Rs 650 billion including foreign assistance of Rs 72.5 billion, out of which Rs 418.67 billion for Federal Ministries/Divisions, Rs 158.3 billion for Corporations, Rs 70 billion for COVID Responsive and Other Natural Calamities Programme and Rs 3 billion for ERRA.
A special programme to mitigate COVID-19 impact, with an outlay of Rs 70 billion, will focus on education, sewerage, solid waste management, clean drinking water and upgrading existing health facilities. This will be executed in collaboration with provincial and areas governments.
Public Private Partnership Authority has been activated leveraging RS 50 billion private sector investment to complement public resources. The current PSDP 2020-21 is part of a three years rolling plan to carry forward vision of the government, the document highlighted.
The document further stated that PSDP 2020-21 has been prepared under challenging times, addressing key priorities of the government as well as Covid responsive needs. The former includes investments in social sector, food security, water sector, energy security, social uplift, employment generation, infrastructure development and regional connectivity. Youth and women empowerment, tourism promotion, climate change and employment generation are essential corner stones of the development process.
Development of less developed areas would continue to receive priority attention of the government. In PSDP 2020-21, special interventions have been made for Balochistan, Merged Districts of Khyber Pakhtunkhwa and Gilgit-Baltistan. Allocations for Balochistan’s projects have not only been enhanced but new projects have been included i.e. N-50 from Yarik-Zhob including Zhob Bypass, Jhal-Jhao Bela Section, Naukandi-Mashkhel, in addition to other road and water sectors projects.
Similarly, to harness hydropower potential of Gilgit-Baltistan, substantial resources have been allocated to on-going hydropower projects. Likewise, in addition to annual development programme of Merged Districts of Khyber Pakhtunkhwa, a 10 Years Development Plan for Merged Districts with an allocation of Rs 24 billion is being financed. Sufficient funds have also been provided to Karachi city and other areas of Sindh, the document said.
To augment PSDP, resources of the private sector would be leveraged with the help of PPP Authority (PPPA), attracting domestic and foreign direct investment incommercially viable projects.
PPPA will reduce transaction cost, ensure appropriate regulatory control and provide legal and economic mechanism to facilitate development initiatives. During FY 2020-21, four projects with tentative cost of Rs 300 billion and estimated investment of Rs 50 billion would be implemented in PPP mode, the document added.
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