Budget 2019/2020: Rs951 billion allocated for PSDP

Budget 2019/2020: Rs951 billion allocated for PSDP

ISLAMABAD: The federal government has allocated Rs951 billion for development projects under Public Sector Development Program (PSDP) for fiscal year 2019/2020.

In his budget 2019/2020 speech State Minister for Revenue Hammad Azhar said that the government has allocated Rs951 billion for federal PSDP, which was Rs500 billion in the ongoing fiscal year.

This year, the combined allocation of national programs is Rs.1,863 billion.

Out of this the Federal PSDP is Rs.951 billion which will be increased from Rs.500 billion.

Policy priorities are water management, building a knowledge economy, fixing electricity transmission and distribution, low-cost hydel power generation, China-Pakistan Economic Corridor, investing in human and social development and “Public Private Partnership” in eligible sectors such as highways.

Notable details are:

a. Water – To better utilize our water resources the PSDP focus is on building dams and drainage projects with an allocation of Rs.70 billion. Diamer Bhasha Damshall be allocated Rs.20 billion for land acquisition, while Mohmand Dam “hydel power” will get Rs.15 billion for its ongoing construction.

b. Road / rail networks – Some of these projects of road networks are also part of China-Pakistan Economic Corridor. Around Rs.200 billion is allocated of which Rs.156 billion is through the National Highways Authority. Key projects are:

Rs.24 billion for Havelian-Thakot road

Rs.13 billion for Burhan-Hakla motorway

Rs.19 billion for Sukkur-Multan section of Peshawar-Karachi motorway.

Additionally, “Public Private Partnership” financing mode will be utilised for construction of Chakdara-Bagh Dheri extension of Swat expressway, Construction of road from Sambrial-Kharian Motorway, and dualization of Mianwali-Muzaffargarh road.

c. Energy –Rs.80 billion of projects shall be undertaken. For construction of Dasu hydro power Rs.55 billion are allocated.

d. Human development / knowledge economy–Rs.58 billion are proposed in budget for human development. Health, education, attainment of development goals, and climate change are some of the key areas. For higher education record funds of Rs 43 billion are proposed to for an important sector

e. Agriculture – While agriculture sector is administratively under the domain of the provinces, the Federal Government is investing a recordRs.12 billion for multiple projects in consultation with them

f. Quetta development package – the government has announced second phase of “Quetta development package” for Rs.10.4 billion. This is in addition to Rs.30 billion of water and road sector projects that the federal government is financing

g. Karachi development package –9 projects costing Rs.45.5 billion are being undertaken.