Development spending under the federal Public Sector Development Programme (PSDP) remained subdued in the first five months of the current fiscal year, with utilisation amounting to just 9.2 per cent of the Rs1 trillion annual allocation amid fiscal rationing to meet the IMF’s contingency measures for growing revenue shortfall. The report said the PSDP portfolio comprised 86 foreign-funded projects with a total foreign cost component of Rs4.2tr, of which 15 projects are fully foreign-funded, while the remaining 61 projects are implemented with counterpart local funding.
It said a PSDP review was conducted from Nov 10-12 to assess financial and physical progress on the ongoing development portfolio. It said the government had decided to prioritise fast-moving schemes, strengthen project execution and ensure timely allocations to maximise development impact. The report said Pakistan’s economic and development outlook was optimistic, supported by stronger fiscal management, moderating inflation and resilient remittance inflows.