Federal Minister for Planning Ahsan Iqbal hinted on Friday at yet another reduction in the Public Sector Development Program (PSDP), saying that the measure was a bitter pill dictated by harsh economic conditions.
In an interview with Express News, the minister said further reductions were looming on the horizon as, after an initial cut of Rs300 billion, discussions were now underway for an additional slash of up to Rs400 billion.
He said that the economic challenges have led to a decrease in the development budget, which is already insufficient for our developmental needs.
Ahsan Iqbal further explained that any increase in budget allocations would necessitate imposing more taxes, a burden that the public cannot bear. The PSDP budget has already been reduced from Rs1,400 billion to Rs1,100 billion, with further cuts imminent.
The minister also revealed that a final clarification has been sought from the finance ministry regarding the PSDP. "Our top priority will be to continue the projects funded by external sources, complete the CPEC projects using the development budget, and focus on other projects of national interest," he added.
Moreover, in a briefing to the Senate Standing Committee on Planning, the planning minister informed that the conditions imposed by the IMF have placed a massive burden on the public.
"The IMF is unwilling to offer any leniency, and the current economic situation has resulted in the largest cut being applied to the development budget," he stated.
The finance ministry has yet to determine the final size of the PSDP, which has already been reduced to Rs1,100 billion. The minister warned that an additional reduction of Rs200 to 400 billion might be necessary, which has delayed the release of development funds for the first quarter of the current fiscal year.
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