The federally-funded Public Sector Development Programme (PSDP) has slowed to a near halt under the International Monetary Fund (IMF) programme, with spending in the first five months of the fiscal year reaching only 6.6% of the targeted 26% of annual allocations.
According to a news report, during a review meeting chaired by Planning Minister Ahsan Iqbal, it was revealed that just Rs92 billion had been utilised out of the revised Rs1.1 trillion PSDP budget as of November 20, 2024. This reflects a steep decline from last year’s Rs117 billion spending during the same period, which accounted for 13% of the previous year’s budgeted Rs940 billion allocation.
The Planning Commission had approved Rs142 billion for PSDP projects so far, representing only 10% of the initial Rs1.4 trillion allocation before the IMF agreement cut the budget to Rs1.1 trillion. Adding to the slow pace, international lending agencies disbursed a mere Rs2.5 billion over the nearly five-month period.
Under the Ministry of Finance’s release mechanism, 26% of the annual PSDP allocation—or Rs290 billion—should have been released by November 20. This shortfall has further hindered progress on critical development initiatives.
The planning minister emphasised the need for a “comprehensive strategy” to ensure the timely completion of PSDP projects, including significant road infrastructure initiatives in Balochistan valued at approximately Rs406 billion. These projects include the dualisation and rehabilitation of key highways such as the N-25 Khuzdar-Kuchlak section and the Karachi-Quetta-Chaman road.
Other major projects in the province include the construction of the Hoshab-Awaran-Khuzdar section of the M-8 motorway and the Gwadar-Ratodero road, alongside the dualisation of the N-50 from Yarik-Sagu-Zhob Bypass and the Awaran-Jhali Jao Road.
The minister directed his ministry to strengthen coordination with other departments to ensure timely fund utilisation and align financial disbursements, especially for projects reliant on external assistance. He reiterated the government’s commitment to prioritising development initiatives, particularly in underserved regions like Balochistan, and urged immediate measures to avoid delays in fund allocation and project execution.
The meeting also highlighted the need for enhanced collaboration with external lenders to address disbursement bottlenecks and accelerate project implementation.
