Government is considering removal of 137 PSDP non-starter projects

In Islamabad, the government is thinking about getting rid of 137 projects that have not started making money in the 2023-24 plan. This decision may save Rs116 billion this year.

They are also thinking about shifting projects with provincial impact to be funded by provinces themselves.

They also mentioned that the provincial projects are taking place in the federal PSDP. These projects are replacing federal nature projects. Right now, 33% of Rs314 billion in the federal PSDP 2023-24 is going towards provincial projects.

Important national projects are not getting enough funds due to limited resources. This is causing delays & increase in costs, which means we’re missing out on the expected benefits.

The federal government is putting a good amount of money into projects in AJ&K, GB, and the merged districts of KP because it’s their responsibility, despite having less money to spare.

Back in 2021, the NEC agreed to fund provincial projects in special situations where the costs are shared. They emphasized this again in 2023. If we talk about numbers, the total cost of provincial projects is Rs1,373 billion.

Punjab’s share is Rs195 billion, Sindh’s share is Rs327 billion, KP’s is Rs69 billion, merged districts have Rs4 billion, Balochistan is at Rs317 billion, and the umbrella/block covers Rs390 billion. It also includes Rs90 billion set aside for SAP funding under the cabinet division.

According to sources, they are thinking about a few things. Firstly, they are considering dropping 137 projects with zero money progress to save Rs116 billion this year. Secondly, they are considering the option of not releasing more money for the SDGs achievement program (SAP) to save Rs29 billion.

Thirdly, they are thinking about moving 49 projects with 0-20% progress to provinces so they can finance, which would save Rs29 billion. Fourthly, finishing 20 projects with over 80% progress quickly this year.

And lastly, provinces should carefully check & finish 150 projects with 21-80% progress if they can find the resources, which includes provincial funds too.

Join Our Knowledge Hub: Sign Up for Diverse Insights Today!