'PSDP likely to be slashed by additional Rs400 billion'

Federal Minister for Planning, Ahsan Iqbal, has indicated that the Public Sector Development Programme (PSDP) may face further cuts, with the budget potentially being reduced by an additional 200 to 400 billion rupees.

In an interview with Express News, Ahsan Iqbal explained that due to Pakistan's ongoing economic challenges, the current development budget is insufficient to meet the country's needs.

He noted that increasing the budget allocation would require imposing additional taxes, which the public cannot bear at this time. Consequently, the development budget has already been reduced from 1,400 billion to 1,100 billion rupees, and further reductions are now likely.

The minister has sought a final clarification from the Ministry of Finance on the matter, emphasizing that the government's priority will be to continue projects funded by external sources, complete CPEC projects using the development budget, and focus on other national interest projects.

Iqbal also mentioned that discussions with China regarding the ML-1 project have been finalized, with significant progress expected this year. The decision on whether ML-1 will be completed in two or four phases is still under discussion.

Earlier, during a meeting of the Senate Standing Committee on Planning, chaired by Quratulain Marri, Ahsan Iqbal briefed the committee on the current situation. He highlighted that the IMF's conditions have placed a significant burden on the public, and the IMF has shown no willingness to offer concessions. The largest cut in the current economic situation has impacted the development budget, which has already been reduced from 1,400 billion to 1,100 billion rupees.

Iqbal warned that there is a risk of an additional 200 to 400 billion rupees cut in the development budget, which has delayed the release of development funds for the first quarter of the current fiscal year. He expressed hope that if the government successfully implements reforms over the next two to three years, Pakistan will experience significant progress.