Historic Rs1.5 trillion allocated for PSDP 2024-25

WEB DESK: The government has announced the largest ever Federal Public Sector Development Programme (PSDP) for 2024-25, set at Rs1.5 trillion, which includes Rs100 billion for Public-Private Partnership (PPP) projects.

This marks a 101 per cent increase compared to the revised PSDP size for 2023-24, according to the Planning Commission.

“This substantial PSDP allocation underscores the government’s commitment to advancing infrastructure and tackling key challenges in transportation, energy, and water resource management, all aimed at fostering economic growth and improving citizens’ quality of life,” the statement read.

In the 2024-25 PSDP, 81 per cent of funds are designated for ongoing projects, with only 19 per cent allocated for new initiatives.

The infrastructure sector, being a primary federal responsibility, receives the largest share of over 61 per cent, followed by the social sector at 17 per cent, and balanced regional development for Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts of Khyber Pakhtunkhwa at 10 per cent.

About 12 per cent is earmarked for other sectors such as IT and telecom, science and technology, governance, and production.

The National Economic Council’s (NEC) guidelines for the PSDP emphasize prioritizing the completion of projects in advanced stages, particularly in the water resources, transport, communications, and energy sectors. Foreign-aided projects are given top priority to ensure smooth execution, continuous foreign exchange inflow, and adherence to international commitments.

Projects with over 80 per cent expenditure across all sectors are targeted for completion in FY2024-25 to deliver timely economic benefits. Additionally, new projects supporting exports, productivity, digital infrastructure, innovation, agroindustry, blue economy, and science and technology have been included.

The PSDP also focuses on balanced development, regional equity, and sustainable economic growth. The government encourages private sector investment and supports it through viability gap funding, emphasizing the importance of public-private collaboration for sustainable and inclusive development.

The 2024-25 PSDP encompasses a broad range of infrastructure and development projects, including transportation, energy, water resources, and power.

These initiatives range from building and upgrading highways and motorways to establishing power generation facilities, transmission lines, and grid stations. Water resource management projects include constructing dams, canals, and water supply schemes.

In transportation, projects aim to enhance road networks and connectivity between major cities and regions. Energy sector initiatives include building hydropower dams, solar power plants, and transmission lines to ensure efficient power distribution and meet growing demand.

Efforts in water management focus on constructing dams, irrigation systems, and drainage networks to mitigate flooding and ensure sustainable water supply for agriculture and domestic use.

Overall, the PSDP 2024-25 demonstrates Pakistan’s commitment to infrastructure advancement and addressing critical challenges to support economic growth and improve citizens’ quality of life.

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