‘Balochistan PSDP projects will be included in the next financial year’, PM assures CM

The premier says newly-proposed projects of Balochistan will also be part of the federal PSDP

Prime Minister Imran Khan on Thursday assured Balochistan Chief Minister Jam Kamal Khan that uplift projects of the province approved last year and which could not be included in the Public Sector Development Programme (PSDP) would be included in the next financial year.

The two leaders, during a phone call, discussed issues related to the inclusion of Balochistan projects in the federal PSDP. The chief minister apprised the premier on the province's position in this regard.

Premier Imran agreed with the chief minister's stand and assured that the projects of Balochistan approved  last year and which could not be included in the PSDP would be included in the federal PSDP for the next financial year.

He said that the newly-proposed projects of Balochistan will also be part of the federal PSDP which will be approved in the budget session.



CM Kamal thanked the premier for his assurance to include the projects of the province in the Federal Development Programme.

Earlier, the federal and four provincial governments proposed Rs1.3 trillion for development spending in the next fiscal year, which is 18% less than the outgoing fiscal year’s original budget, underscoring the lack of fiscal space that will hamper economic growth.

The scarcity of funds has exposed the discontent between the Centre and federating units as the Balochistan chief minister staged a walkout from the meeting called to endorse development budgets for fiscal year 2020-21. Sindh too raised objections over ignoring the province while distributing money among the federally funded projects.

The Annual Plan Coordination Committee (APCC) recommended a Rs1.312 trillion National Development Budget for fiscal year 2020-21 to the National Economic Council (NEC).

The APCC proposed Rs536 billion for the PSDP, down Rs165 billion or 24% over the current year’s original budget.

CM Kamal boycotted APCC proceedings while protesting against “less preference and strategy for Balochistan projects”. He criticised the planning ministry for ignoring his province in allocation for the development budget.



Projects have remained incomplete for years due to minuscule allocations. For instance, the PSDP 2020-21 document showed that for the Kachhi canal project, Rs2.5 billion had been proposed against the remaining requirement of Rs5.5 billion.

For the Gwadar International Airport, only Rs519 million has been proposed, suggesting no major uptick in work in the next fiscal year too.

Similarly, the Gwadar safe city project was given just Rs50 million against the remaining need for Rs687 million. The project is being implemented since 2016.