Islamabad: The Federal Minister for Planning, Development, and Reforms, Ahsan Iqbal, chaired the annual review meeting of the Public Sector Development Programme (PSDP) for the fiscal year 2023-24, focusing on the economic challenges confronting Pakistan and the need for strategic alignment in development projects. The meeting, which brought together various government officials, underscored the significant drop in the development budget compared to previous years and the importance of transparency and adherence to national priorities in budget planning.
According to Press Information Department, the session was attended by Federal and Provincial Secretaries, as well as other senior officials, where several pivotal decisions and recommendations about the development budget were deliberated. Minister Ahsan Iqbal highlighted the stark contrast between the development budgets of past years and the present, noting a substantial decrease from 12% of the GDP in 2018 to just 4% currently. He attributed this decline to inconsistencies in government policies over the years.
The Minister emphasized that the development budget had seen an increase from PKR 340 billion in 2013 to PKR 1,000 billion by 2018 during his previous term. However, due to disruptions, the current budget stands at only PKR 1,100 billion, a figure that could have been much higher at PKR 3,000 billion if the government’s tenure had continued uninterrupted. He stressed that the development budget could have reached 15% of the GDP by now with consistent policies.
Ahsan Iqbal also addressed the need for ministries and provincial governments to realign their budget demands and project planning warning against the misuse of development funds. He pointed out that the current practice of funding budgets, subsidies, salaries, and pensions through loans was unsustainable, and emphasized the urgent need to boost government revenue and manage expenditures more effectively.
Concluding his remarks, the Minister affirmed that moving forward, only projects with a direct, positive impact on the populace would be initiated, with the primary goal of strengthening the national economy.