Senate panel urges banning new PSDP projects

The chairperson of a Senate panel has called for banning all new projects under the Public Sector Development Programme (PSDP) in view of a growing number of "throw-forward" projects.

A meeting of the Senate Standing Committee on Planning and Special Initiatives was held on Friday under the chairmanship of Senator Qurat-ul-Ain Marri.

The committee was earlier briefed on PSDP funds allocated for Punjab projects.

The Punjab government has requested Rs150 billion from the federal government through the PSDP. The Ministry of Finance stated that details of allocated funds for the third quarter have not yet been received.

The planning secretary informed the panel that Minister for Planning Ahsan Iqbal approved PSDP fund allocations a day earlier and that details have been sent and will reach the Ministry of Finance soon.

Speaking on the occasion, Marri said there should be a ban on new PSDP projects due to the increasing throw-forward of PSDP projects. She said the minister should attend the committee meeting to provide a briefing on the "Uraan Pakistan" initiative. "The minister needs to address several unanswered questions," she added.

The committee was told that a total of 170 new projects are included in the PSDP but only 25 projects have been issued NOCs so far.

The committee instructed the Punjab government to include its share in PSDP projects. The panel was informed that ministries have utilized less of their allocated budgets.

The Board of Investment has spent 7% and Climate Change Ministry 12% of their budgets in six months. The Anti-Narcotics Ministry and Religious Affairs Ministry have spent nothing compared to their allocations.

The committee later directed all ministries to accelerate PSDP budget utilization.

The PSDP is a key framework used by the government of Pakistan to fund and manage development projects and initiatives in various sectors across the country.

PSDP funds are allocated to develop infrastructure, improve public services, and support economic growth. It focuses on areas like health, education, transportation, energy, water resources, and agriculture.