Rs700b for next PSDP being mulled: minister

42% of projects belong to provinces, should be funded by them, says Ahsan Iqbal

ISLAMABAD:

Planning Minister Ahsan Iqbal on Friday said a proposal to allocate Rs700 billion for the federal Public Sector Development Programme (PSDP) for the next financial year was being considered.

He added that in the entire PDSP, 42% of the projects belonged to the provinces.

“They [projects] should be funded by the provinces,” he told the media after attending a Senate Standing Committee on Planning, Development and Special Initiatives meeting.

The minister claimed that the previous government had included provincial projects in the PSDP as a “political bribe”.

He added that the current government had put an end to projects started during the PTI's tenure that were “unimportant” and “political in nature”

He described the PTI-led government's plan of setting up a university at the Prime Minister's House as a “political project” and “drama”.

The minister further claimed he had no idea where the Rs23 to 25 billion – reserved for that project – had been spent.

He further claimed that Rs900 billion were allocated for PSDP projects in the current financial year but that amount had been reduced to Rs500 billion.

Iqbal disclosed that talks were underway with the International Monetary Fund (IMF) to see how much it would allow the government to spend on the PSDP.

The minister said nuclear scientist Dr Abdul Qadeer Khan, the "father of Pakistan's atomic bomb", had sent him a feasibility report for establishing a science and technology university before his death last year.

He further informed the media that the project would be approved immediately and he had asked the Higher Education Commission (HEC) to start working on it in July.

“The university would be affiliated with Dr Abdul Qadeer Khan,” he added.

 The planning minister said the National Highway Authority (NHA needed Rs460 billion for its ongoing projects and the total PSDP was Rs480 billion. “There is no money to give to the Higher Education Commission and NHA,” he added, blaming his predecessor for the predicament, claiming that he had retained provincial projects in the PSDP.

However, he said the present government would take as many steps as it could to correct the previous regime’s actions.

"We will definitely do that as our responsibility. But we cannot be punished for the previous government's sins and [let them be] portrayed as victims. The burden of the previous government's sins cannot be put on us. We also cannot accept any burden that will make life harder for people who are already tired because of inflation and taxes. The government is walking a tightrope.”

Earlier, the Senate panel sought a report from the Khyber-Pakhtunkhwa government on the use of funds allocated for the newly merged tribal districts.

The meeting of the standing committee was held at Parliament Lodges, chaired by Senator Saleem Mandviwalla.

Senator Dost Mohammad Khan questioned the ministry officials about the cuts in the development funds reserved for the tribal districts.

The ministry’s officials told the committee that Rs52.73 billion were allocated for the former Fata districts -- of which Rs36 billion had been transferred to the province.

After that, the chairman of the panel sought a report from the K-P government on the use of these funds.

The meeting participants also discussed the progress made on the recommendations made by the committee in October 2021. NHA officials briefed the panel on the progress made on Dera Ismail Khan M-14 Motorway from Hakla.

The director of the 10 Billion Tree Tsunami Project told the committee about the funding and implementation of the scheme.

He added that the total cost of the project was Rs125 billion, 50% of which was to be provided by the provincial government.

The project director said that despite the lack of funds, 44% of the targets had been achieved in the first three years of the project.

(With input from APP)