Islamabad, Oct 25: The ministries wanted Rs2,900 billion development budget while the federal government allocated Rs1.100 billion under the PSDP 2024-25.
This demand was put forward when the ministries gathered at a meeting of Prime Minister’s committee for Planning and Execution of Foreign-Funded Development Projects with Federal Minister for Planning Ahsan Iqbal on Thursday here.
The minister asked the Economic Affairs Division (EAD) to prepare a correct demand of budget in consultation with respective ministries/divisions for which required funds will be discussed with Ministry of Finance for arranging requirements for development projects.
The committee did a detailed discussion on planning as well as the management of the foreign-funded projects and the necessity for enhancement of the policy regarding these issues in accordance with the ECC actions.
Key issues which were underlined during the briefing are that they are felt that more problems arise due to scarce resources and increasing demands of the development projects to be met during the financial year.
The PSDP 2024-25 now amounts to Rs1,100 billions of which Rs220 billion has been proposed for spending out of foreign funds in the shape of rupee cover.
Due to financial limitations, the throw-forward has gone up ten folds, in addition to concerns that revolve around administration and implementation. The minister pointed out that in the past years the pie of development portfolio is shrinking meanwhile there is more and more calls for development infrastructure.
He also stressed the need for compensation related measures and a mechanism to ease pressure and ensure implementation on the ground.
Iqbal also emphasized that all PSDP projects particularly the foreign funded comprised various projects that required to be implemented in stipulated time frames or owning offices for cost efficiency.
He focused more on protection of economic and especially, financial risks connected with foreign funded projects because fluctuations in exchange rates can make heavy additional loads on government repayments on loans.
Senior officials present in the meeting includes Secretary Planning Awais Manzur Sumra, Secretary Economic Affairs Division (EAD), Member Infrastructure, Waqas Anwar and other officials from the Ministry of Planning. Ahad Cheema was present at Federal Minister for EAD through a video link.
