The Special Investment Facilitation Council (SIFC) has proposed significant budgetary measures to save Rs 149 billion in federal spending.Â
According to a report by Express Tribune, this decision involves dropping 76 provincial projects valued at Rs 121 billion, freezing further expenditure on parliamentarians’ schemes and the Prime Minister’s initiatives, and prioritizing projects in the least developed districts.
Despite these cuts, the federal government will continue to fund 247 provincial projects, requiring an estimated Rs 800 billion in the coming years to see them to completion.Â
The original plan to transfer all 323 provincial projects, totaling Rs912 billion, to provincial governments was met with resistance, leading to the current compromise.
The SIFC has also frozen further funding for parliamentarians’ schemes and prime minister’s initiatives, known as the Sustainable Development Programme (SDGs), saving an additional Rs 28 billion. Moreover, spending on six prime ministerial schemes has been halted, conserving Rs55 billion more.
A summary of these decisions will be presented to the National Economic Council (NEC) for final approval. The SIFC’s recommendation to transfer projects with minimal spending to the provinces will also be considered by the NEC.
The SIFC has prioritised the completion of provincial projects with over 80% financial progress within the current fiscal year, while no further federal PSDP funding will be allocated from the next fiscal year.
The council has granted permission to complete 38 projects in the least developed districts, requiring an additional Rs65 billion. However, the remaining Rs28 billion allocated for parliamentarians’ schemes will not be released, following the PDM government’s expenditure of Rs61 billion before its term ended.
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