Govt to save Rs314 billion by prioritising only essential development projects

WEB DESK: The Special Investment Facilitation Council (SIFC) has announced a strategic decision to exclusively fund crucial development projects across Pakistani provinces.

Under this new directive, 50 per cent of the funds will be allocated by the federal government, with an equal share of 50 per cent coming from the provinces.

In line with this, the Planning Ministry has meticulously identified all the projects listed in the Public Sector Development Programmes (PSDP).

These projects are slated to be presented before the Cabinet Committee on Economic Revival (CCER).

The primary objective of this presentation is to propose the discontinuation of such schemes, aiming to save a substantial amount of Rs314 billion as part of the ongoing austerity drive.

A senior government official has confirmed that the process of removing projects of provincial nature from the PSDP list is already in progress.

The decision, reached during the last SIFC’s Apex Committee meeting, stipulates that future development projects with a provincial scope will only proceed through a cost-sharing mechanism.

Read more: Pakistan’s services trade deficit surges by over 75% to $216 million

Specifically, both the Centre and provinces will equally bear 50 per cent of the project costs.

Notably, if a provincial government fails to contribute its share, the Centre will withhold its funding, according to The News.

Simultaneously, various ministries and divisions have received directives to implement austerity measures diligently.

The Ministry of Finance has instructed all its wings and affiliated departments to conduct a thorough review of foreign visits.

Additionally, next week, any non-essential visits will be prohibited in a bid to enhance savings as part of the austerity plans.