Islamabad, June 9, 2023: The Pakistani government has allocated Rs1,150 billion for the Public Sector Development Program (PSDP) for the upcoming fiscal year, as per the official budget documents released on Friday.
According to the documents, the National Economic Council (NEC) approved a national development outlay of Rs. 2,709 billion for 2023-24, reflecting a 14 percent increase compared to the revised outlay of Rs. 2,385 billion.
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The Federal PSDP 2023-24 has been set at Rs. 1,150 billion, which includes Rs. 75 billion in foreign aid and Rs. 200 billion for Public-Private-Partnership/Built-Operate-Transfer (PPP/BOT) projects. This allocation marks a significant increase of over 46 percent compared to the revised figures of the previous year, which stood at Rs. 787 billion, including foreign aid of Rs. 68 billion and PPP/BOT provision of Rs. 73 billion.
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The Federal Government has formulated the PSDP with a focus on completing ongoing projects in key sectors that support the economic turnaround, based on the 5Es framework: Exports, E-Pakistan, Equity & Empowerment, Environment & Climate Change, and Energy. Additionally, the framework of Resilient Recovery, Rehabilitation, and Reconstruction (4RF) following the catastrophic floods of 2022 has been given priority in allocating resources for the PSDP 2023-24.
In the PSDP 2023-24, the infrastructure sector, which falls under the primary responsibility of the Federal Government, has been given the highest priority with a share of over 52 percent amounting to Rs. 950 billion. The social sector follows with a 25 percent share, while balanced regional development (AJ&K, GB, and Merged Districts of KP) receives a 12.4 percent share. The remaining funds are allocated for other sectors. Within the infrastructure sector, major allocations include transport & communications (28 percent share), water resources (11 percent share), and energy (9 percent share), among others.
The government also plans to undertake new initiatives under the PSDP 2023-24, including projects such as the Solarization of Agri Tube Wells, Youth Program for Small Loans, Pakistan Fund for Education, Support for IT Start-ups & Venture Capital, Women Empowerment, Laptop Scheme, Green Revolution 2.0, Youth Skill Development, Establishment of Institutes for Sports, Hepatitis-C Control Program, and more.
These initiatives aim to address various sectors such as education, entrepreneurship, healthcare, sports, and technology. With a significant allocation towards infrastructure and social sectors, the government aims to stimulate economic growth and enhance the overall development of the country in the coming fiscal year.
