Pursuing an approach of balanced development across the country, the Federal Government on Friday revealed Rs 2.263 trillion Public Sector Development Programme (PSDP) for the fiscal year 2022-23, with special focus on bridging infrastructure gaps and improve human and social development indicators. The National Economic Council (NEC) in its meeting held on June 08, approved National Development Outlay for 2022-23 at Rs 2.263 trillion, including Federal PSDP at Rs 800 billion and provincial Annual Development Programme (ADP) at Rs 1.463 trillion, according to a budgetary document released here. The NEC also approved the annual targets for the upcoming fiscal year 2022-23 including the economic growth target at 5%, along with the commitment to make efforts to raise it to 6 percent. The NEC also approved various sectors’ growth targets for the new fiscal year including agriculture 3.9%, industries 5.9% and services 5.1 percent. The Council decided that 60% of the development budget would be spent on the ongoing projects, while the remaining 40% would be spent on the new development schemes.
In the outgoing fiscal year 2021-22, the federal government had allocated Rs 900 billion under the PSDP, however, owing to fiscal imbalance and to contain the increasing current account deficit and primary deficit, besides continuing with public relief package, the PSDP size was reduced to Rs 550 billion to accommodate resource constraint. The PSDP 2022-23 of Rs 800 billion includes Rs 73 billion as Public Private Partnership (PPP). The PSDP reflects the resolve of the government to achieve the targeted economic growth, maintain the momentum of development, improve livelihoods and remove regional disparities.
The PSDP 2022-23 focused specially on revival of China Pakistan Economic Corridor (CPEC) and related projects for inter-provincial and regional connectivity with equal importance to Special Economic Zones (SEZs) to promote trade, industrialization and create job opportunities.
The CPEC continued to remain in focus as its projects had been fully funded, while special funds were kept for railways, water resource projects and housing sector in the PSDP.
Meanwhile, out of total Rs 800 billion federal PSDP, the government allocated Rs 564.963 billion for federal ministries, Rs 161.53 billion for corporations, including National Highway Authority (Rs 118.4 billion) and PEPCO (Rs 43.41 billion), Rs 500 million for ERRA, and Rs 73 billion for VGF for Public Private Partnership (PPP) projects.
The government proposed an allocation of Rs 99.57 billion for Water Resource Division, Rs 2.48 billion for Aviation Division, Rs 807 million for Board of Investment, Rs 70 billion for Cabinet Division, Rs 9.6 billion for Climate Change Division, Rs1.17 billion for Commerce Division, Rs 180 million for Communication Division (other than NHA), Rs 2.23 billion for Defence Division while Rs 2.2 billion have been earmarked for Defence Production Division.
Likewise, Rs 900 million was allocated for Establishment Division, Rs 7.24 billion for Federal Education and Professional Training Division, Rs 1.66 billion for Finance Division, Rs 44.18 billion for Higher Education Commission, Rs 13.9 billion for Housing and Works Division, Rs 184.6 million for Human Rights Division, Rs 2.85 billion for Industries and Production Division, Rs 2.1 billion for Information and Broadcasting Division and Rs 6.33 billion for Information Technology and Telecom Division.
Similarly, an amount of Rs 3.74 billion was earmarked for Inter-provincial Coordination Division, Rs 9.1 billion for Interior Division, Rs 1.83 billion for Law and Justice Division, Rs 3.46 billion for Maritime Affairs Division, Rs 207.9 million for Narcotics Control Division, Rs 10.1 billion for National Food Security and Research Division, Rs 12.6 billion for National Health Services Regulations and Coordination Division, Rs 550 million for National Culture and Literary Heritage Division, and Rs 26 billion for Pakistan Atomic Energy Commission.
The government also allocated Rs 289 million for Pakistan Nuclear Regulatory Authority, Rs 1.48 billion for Petroleum Division, Rs 42 billion for Planning, Development and Reform Division, Rs 500 million for Poverty Alleviation and Social Safety Division, Rs 32.6 billion for Railways Division, Rs 600 million for Religious Affairs and Interfaith Harmony Division, Rs 3.2 billion for Revenue Division, Rs 5.7 billion for Science and Technological Research Division, and Rs 7.4 billion for SUPPARCO.
The document revealed that to augment PSDP, resources of the private sector would be leveraged with the help of Public Private Partnership Authority (PPA), attracting domestic and foreign direct investment in commercially viable projects.
