The Ministry of Planning, Development, and Special Initiatives approved strategic guidelines for the Public Sector Development Programme (PSDP) 2025-26, during a high-level meeting chaired by Federal Minister Ahsan Iqbal.
The session, attended by Planning Secretary Awais Manzoor Sumra and senior officials, outlined key priorities to optimise fiscal space and ensure development effectiveness.
Federal Minister Iqbal emphasised the need to rationalise PSDP liabilities by prioritising projects that have achieved 80% financial progress, to complete them within the current fiscal year. He directed the suspension of low-priority schemes to reallocate resources towards strategically significant initiatives that maximise socioeconomic returns.
The meeting resolved to align new development projects with the objectives of the “Uraan Pakistan” framework, a cornerstone of the National Transformation Plan 2024-2029. Iqbal stressed that PSDP allocations would be outcome-driven, performance-based, and subject to public accountability to ensure the efficient use of public funds. Ministries were instructed to submit project proposals with measurable Key Performance Indicators (KPIs) to enhance quality and monitoring.
Highlighting the strategic vision of “Uraan Pakistan,” Iqbal reiterated that only projects contributing directly to national priorities and providing clear socioeconomic benefits would be included in PSDP 2025-26. He also called for expediting ongoing PSDP projects, particularly those financed through foreign aid and concessional loans, to avoid cost escalation and time overruns.
The minister criticised the previous PTI government for implementing significant budget cuts to PSDP funding between 2018 and 2022, which he claimed hindered development progress. He noted that 40% of federal allocations during that period were diverted to provincial projects, disrupting the balance in national development priorities.
Iqbal underscored the importance of transparency, institutional ownership, and accountable resource management in accelerating economic growth and achieving sustainable development. He reaffirmed that new project approvals would depend on their strategic relevance, economic feasibility, and alignment with national goals.
The meeting concluded with a commitment to fostering an investment-friendly environment, enhancing public expenditure quality, and ensuring that PSDP projects contribute meaningfully to Pakistan’s long-term development agenda.
