Govt earmarks Rs1.5tr for PSDP

ISLAMABAD    -   The federal government has proposed an allocation of Rs1.5 trillion for Public Sector Development Programme (PSDP) during the fiscal 2024-25, which is 30 percent higher than the existing Rs 1150 billion allocated in the current fiscal year.

The proposed allocation of Rs 1.4 trillion for the fiscal 2024-25, to be funded by the federal government, is 47.4 percent higher than Rs 950 billion PSDP budget of the ongoing fiscal year while the allocations of Rs 100 billion for Viability Gap Funding (VGF) for the PPP mode projects is 50 percent less than the initial allocations of Rs 200 billion during the ongoing fiscal year. A proposed investment of Rs 196.839 billion by the State Owned Enterprises to be funded by the Ministries/Divisions is the new phenomenon introduced in the Federal Development budget 2024-25.

The total development budget for the upcoming fiscal under the umbrella of the federal government will be Rs 1696.839 billion. Another Rs2095.380 billion have been proposed for the provincial Annual Development Plans. The total National Development Outlay for the upcoming fiscal year will be Rs 3.792 trillion.

Out of the proposed federal PSDP allocation of Rs 1400 billion, the foreign exchange component is 22.57 percent or Rs 316 billion, while remaining Rs 1084 billion will be funded through rupee component.  

An allocation of Rs 857 billion has been proposed for the infrastructure projects for FY 2024-25, including Energy, Transport & Communications, Water and Physical Planning & Housing, which is 74.2 percent or Rs 365 billion higher than the allocations of Rs 492 billion during the ongoing fiscal year. The allocation for energy has been increased by 212 percent from Rs 81 billion to Rs 253 billion, Transport and Communications allocation enhanced by 15.1 percent from Rs 265 billion to Rs 305 billion, allocation for Water has increased by 106 percent from Rs 100 billion to Rs 206 billion, and physical planning & housing by 102.2 percent from the existing Rs 46 billion to Rs 93 billion.

The allocation for social sector i.e. health, education including HEC and SDGs achievement Programme and other social sector has been decreased by 0.4 percent or Rs 1 billion from the existing Rs 244 billion to Rs 243 billion during FY 2024-25.

The health allocation has been enhanced by 54.2 percent from Rs 24 billion to Rs 37 billion and education including HEC has been increased by 10.7 percent from Rs 84 billion to Rs 93 billion. While allocations for the SDGs has been proposed to be decreased by 16.7 percent from Rs 90 billion to Rs 75 billion and other have been reduced by 17.4 percent from Rs 46 billion to Rs 37 billion. Allocation for Special Areas (AJ&K, GB) have been enhanced by 23 percent from Rs 61 billion to Rs 75 billion, for the merged districts of Khyber Pakhtunkhwa by 20.7 percent to Rs 64 billion has been proposed against the ongoing fiscal Rs 58 billion. An allocations of Rs 79 billion has been proposed in the upcoming PSDP for Science &IT which is 132.4 percent higher than Rs 34 billion during ongoing fiscal, for governance the allocations has been increased by 116.7 percent from Rs 12 billion to Rs26 billion, for Production Sectors i.e. Food & Agriculture and Industries, an allocation of Rs 50 billion has been proposed which is 2 percent higher than the existing Rs 49 billion. The allocation for Agriculture and Food has been decreased by 4.5 percent from existing Rs 44 billion from Rs 42 billion, while for the industries it has been enhanced by Rs 60 percent from Rs 5 billion to Rs 7 billion.

Of Rs 1400 billion PSDP, Ministries/Divisions will get Rs 1041.776 billion, Corporations (NHA, WAPDA-Power) Rs 358.223 billion. Against the allocations of Rs 80 billion during the ongoing fiscal year 2023-24, no allocation has been proposed for the Prime Minister Special Initiative in the upcoming PSDP. Similarly, no separate allocations have been reflected for the provinces in the proposed PSDP 2024-25.

A total of 1025 ongoing and new projects have been included in the PSDP 2024-25.

The total proposed allocations for provinces and special areas are Rs 228.16 billion in the proposed PSDP which is almost Rs 93 billion higher than the allocations of Rs 135.856 billion in the ongoing Fiscal Year. For special Areas (AJK & GB) an allocation of Rs 74.500 billion has been proposed which is almost Rs 22 billion higher than the allocations of Rs 52.645 billion during the ongoing fiscal year, for merged districts of Khyber Pakhtunkhwa Rs 70 billion have been proposed for the upcoming FY, which is approximately Rs 20 billion higher than the allocations of Rs 50.200 billion during the ongoing fiscal year, while for provincial Projects Rs 82.416 billion has been proposed in the PSDP 2024-25, which is almost Rs 50 billion higher than the allocations of Rs 33.011 billion during the ongoing fiscal year.

Of the total proposed allocation of Rs 1041.776 billion for the ministries/divisions, the rupee component is Rs 862.324 billion and FEC is Rs 179.451 billion. For corporations including NHA, NTDC/PEPCO the total proposed allocations are Rs 358.223 billion which includes rupee component of Rs 219.675 billion and FEC of Rs 135.648 billion. For NHA Rs 180.284 billion has been proposed which is around Rs 24 billion higher than Rs 156.500 billion during the current fiscal year. For NTDC/PEPCO the total proposed allocation of Rs 175.940 billion for 2024-25, which is around Rs 121 billion higher than Rs 55.278 billion allocated for the current fiscal year.

In the proposed allocation in PSDP 2024-25 for the ministries/divisions, Aviation Division will get Rs 7.303 billion against existing Rs 5.450 billion, Board of Investment Rs 1.658 billion against the allocation of Rs 1.115 billion in the current fiscal, Cabinet Division Rs 73.772 billion down from the current Rs 90.120 billion allocated in the ongoing fiscal, Climate Change Division Rs 6.257 billion against the allocation of Rs 4.050 billion in the ongoing fiscal year, for Commerce Division Rs 2.206 billion against the allocation of Rs 1.1b billion in the FY 2023-24, Communications (other than NHA) Rs 728 million up from the allocation of Rs 360.390 million in the ongoing fiscal, Defence Division Rs 5.636 billion up from the current Rs 3.4 billion allocated in the current fiscal,  Defence Production Division Rs 3.776 billion against Rs 2 billion allocation in the ongoing fiscal, Establishment Division Rs 991 million against the allocation of Rs 840 million, Federal Education & Professional Training Division Rs 25.751 billion against Rs 8.5 billion during the ongoing fiscal, Finance Division Rs 5.084 billion against Rs 3.220 billion allocation in the current PSDP, Higher Education Commission Rs 66.315 billion against Rs 59.700 allocation in the ongoing fiscal, Housing & Works Division Rs 27.688 billion against Rs 40.680 billion in the current PSDP, Human Rights Division Rs 104 million against the allocation of Rs 814 million in the ongoing PSDP, Industries & Production Division 4.917 billion against Rs 3 billion, Information & Broadcasting Division Rs 6.550 billion against Rs 2 billion, Information Technology & Telecom Division Rs 28.929 billion against the allocations of Rs 6 billion during the ongoing FY, Inter Provincial Coordination Division Rs 3.650 billion against Rs 1.9 billion allocation during current fiscal, Interior Division Rs 9.950 billion against Rs 9.950 billion, for Law & Justice Division Rs1.230 billion decreased from Rs 1.4 billion during the ongoing fiscal year, Maritime Affairs Division Rs 5.300 billion enhanced from Rs 3.300 billion during the ongoing fiscal, Narcotics Control Division increased from Rs 150 million during the current fiscal to Rs 189.505 million, the allocation for National Food Security & Research Division has been increased to Rs41.250 billion from Rs 8.850 billion during the current PSDP, National Health Services, Regulations & Coordination Division share has been increased from Rs 13.100 billion during the ongoing FY to Rs 27 billion in the proposed PSDP, National Heritage & Culture Division allocation has been increased from Rs 540 million to Rs 1.015 billion during upcoming PSDP, Pakistan Atomic Energy Commission’s share has been increased to Rs 25 billion from Rs 22.680 billion during the ongoing FY, Pakistan Nuclear Regulatory Authority allocation has been enhanced to Rs 256.330 million from Rs 150 million during the ongoing fiscal year, Petroleum Division allocation has been increased to Rs 3.225 billion from existing Rs 1.5 billion, Planning, Development & Special Initiatives Division to Rs 59.115 billion up from Rs 24.897 billion during the ongoing fiscal, Power Division (through budget and own resources) Rs 267.413 billion from the existing Rs 107.413 billion, Railways Division Rs 45 billion up from existing Rs 33 billion, Religious Affairs & Interfaith Harmony Division Rs 500 million down from Rs 800 million during the ongoing fiscal year, Revenue Division Rs 17.696 billion up from the existing Rs 3.2 billion, Science & Technological Research Division Rs 7.150 billion against the existing Rs8 billion, State and Frontier Region Rs 987.084 million up from the existing Rs 964.223 million, for S U P A R C O an allocation of Rs 35.617 billion has been proposed against the current Rs 6.9 billion, Water Resources (Through Budget and WAPDA self financing) Rs 259.898 billion up

from the existing revised Rs110.500 billion.

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