ISLAMABAD: The Ministry for Planning, Development and Special Initiatives approved the strategic guidelines for Public Sector Development Programme (PSDP) 2025-26.
The guidelines were approved by a high-level meeting to review the proposals of PSDP2025-26 chaired by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal on Monday.
The meeting was attended by Planning Secretary Awais Manzoor Sumra, along with senior officials from the Ministry of Planning, Development and Special Initiatives.
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During the deliberations, the strategic guidelines for the PSDP 2025-26 were thoroughly examined, with a strong emphasis on optimising fiscal space and enhancing development impact.
The federal minister underscored the need to rationalise the PSDP throw-forward liabilities by prioritising projects that have achieved 80 per cent financial progress, ensuring their completion within the current fiscal year to maximise the return on investment.
He directed the suspension of low-priority schemes to reallocate financial resources towards high-impact, strategically significant projects.
The meeting also resolved to incorporate new development initiatives aligned with the objectives of the “Uraan Pakistan” framework, which is a cornerstone of the National Transformation Plan 2024-2029.
The federal minister emphasised that PSDP allocations will be outcome-driven, performance-based, and subject to public accountability to ensure efficient utilisation of public funds.
The ministries were instructed to submit project proposals with comprehensive implementation frameworks, including measurable Key Performance Indicators (KPIs) to enhance project quality and monitoring.
Reaffirming the strategic vision of “Uraan Pakistan” as an integrated development roadmap, Iqbal emphasised that all national development priorities should align with its goals to achieve targeted economic growth and socio-economic transformation by 2029.
He clarified that only those projects contributing directly to national development objectives, with a clear socioeconomic return, would be included in the PSDP 2025-26 to ensure fiscal prudence and development effectiveness.
The minister highlighted that new project approvals will be contingent upon their strategic relevance, economic feasibility, and alignment with national priorities, while stressing the importance of expediting the completion of ongoing PSDP projects, particularly, those financed through foreign aid and concessional loans, to mitigate the risks of cost escalation and time overruns.
He also called for greater transparency and institutional ownership to ensure successful project execution.
In his remarks, Iqbal criticised the previous PTI government for implementing drastic budgetary cuts in PSDP funding between 2018 and 2022, which he stated had severely impeded the country’s development trajectory.
He pointed out that during this period, 40 per cent of federal development allocations were redirected to provincial projects, which led to an imbalance in national development priorities.
He stressed the importance of transparent, efficient, and accountable resource management to accelerate economic growth and achieve sustainable development.
The meeting concluded with a firm commitment to fostering an investment-friendly environment, enhancing the quality of public expenditure, and ensuring that PSDP interventions contribute effectively to Pakistan’s long-term development agenda.
Copyright Business Recorder, 2025
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