No room for provincial schemes in federal PSDP

The caretaker federal government has decided to stop including provincial development projects in the Public Sector Development Programme (PSDP), except for the least developed districts or regions, as determined by the Planning Commission.

BR reported, quoting sources, that the Finance Ministry has informed the provincial governments that it will also shelve hundreds of non-starter projects and require the provinces to share the cost of fertiliser subsidy and Benazir Income Support Programme (BISP) funding.

The decision was taken by the Apex Committee of the Special Investment Facilitation Council, which directed the Ministry of Planning, Development, and Special Initiatives to move a summary to the National Economic Council (NEC) for approval.

The Ministry of Planning will also consult with the provinces to close or transfer the existing provincial projects in the federal PSDP to the provincial governments. A special working group led by the caretaker Minister of Planning will finalize the implementation modalities.

The Finance Ministry will also submit a report on its consultation with the caretaker Chief Ministers on co-financing of Rs 80 billion subsidy on agriculture tube wells and Rs 23 billion expenditure of Higher Education Commission (HEC).