ISLAMABAD: The members of the Standing Committee on Planning, Development, and Special Initiatives raised concerns over the development projects that are included in the Public Sector Development Programme (PSDP)-2024-25 but are not developmental in nature.
The committee met with Senator Quratul Ain Marri in the chair at the Parliament House, Islamabad on Thursday.
The meeting also discussed and scrutinised the working of the Climate Division, Commerce Division, and Revenue Division. The members raised concerns over the projects that are included in PSDP but are not developmental in nature.
Committee Chairperson Senator Quratul Ain Marri told Business Recorder that many non-development projects have been included in PSDP-2024-25. She said that the projects relevant to capacity building and annual games have been included in the PSDP.
“We asked the Secretary Planning why the projects relevant to non-development have been included in PSDP-2024-25. The Secretary Planning was unaware about it. He told the members that he would inform the Committee today meeting (Friday) about it,” Quratul Ain said.
The meeting began with a briefing on Pakistan’s economy by the Secretary Ministry of Planning, Development, and Special Initiatives Division. He said that a 2.4 percent growth was reported for 2024, up from 0.2 percent the previous year, with a target of 3.6 percent for the next year.
The chairperson questioned the two percent growth projection, which officers attributed to the production process. He said that the current GDP is 106 trillion, with a target of 130.8 trillion for next year.
The officers also discussed savings, investments, inflation, fiscal developments, and external sector performance. He said that total investment is 13.1 percent, targeting 14.2 percent next year. He said that national savings are 13.0 percent, targeting 13.3 percent next year. He said that inflation is 24.5 percent, expected to drop to 12.0 percent next year. He said that the fiscal balance is 3.7 percent this year.
Following this, the secretary of Planning, Development, and Special Initiatives presented the Public Sector Development Programme (PSDP), with a total federal development outlay of 2,709 billion rupees. The secretary reported 1,100 ongoing schemes, 357 in the projection phase, and 313 allocated. He highlighted challenges like low PSDP allocation and rising demand for projects. Only projects compliant with PSDP and National Economic Council (NEC) directions are approved, according to the PFM Act, 2019.
The senior joint secretary from the Aviation Division then briefed on core and foreign-aided projects. He endorsed the Multan core project worth Rs 50 million and noted that out of eight radar systems in Pakistan, three are operational, and five need optimisation.
He expressed optimism about project outcomes by 2028. The chairperson inquired about cross-checking funding allocations, and the officers assured that a third party and the World Bank oversee the finalisation.
Copyright Business Recorder, 2024