PM Reviews Rs1.51T Development Budget, Vows Performance-Based Funding

ISLAMABAD – Prime Minister Shehbaz Sharif on Monday reviewed the proposed Rs1.51 trillion Public Sector Development Programme (PSDP) for the upcoming fiscal year, directing that public money must be invested in development projects that ensure tangible results.

In an initial meeting ahead of the federal budget, the prime minister instructed officials to allocate more funds to ministries and divisions demonstrating strong performance, while reducing funding for those lagging behind. He specifically praised the performance of the ministries of railways, information technology, and power. The premier emphasised that better-performing ministries would be given priority in the allocation of development funds.

Water reservoir and hydropower projects were identified as the government’s top priorities in development spending. The prime minister stressed that projects aimed at enhancing water storage capacity would be accorded high priority. During the session, officials presented updates on the progress of major national projects, including the Dasu, Diamer-Bhasha, and Mohmand dams. The prime minister also directed authorities to encourage public-private partnerships in development projects.

The high-level meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, along with federal ministers Ahsan Iqbal, Ahad Khan Cheema, and Muhammad Aurangzeb. Prime Minister Sharif commended Finance Minister Aurangzeb for the successful launch of Panda Bonds and their positive reception in the market.

The meeting was briefed on the progress of the current fiscal year’s PSDP and proposed schemes for the next year. This review comes after the government, last year, restricted financing for new projects under the PSDP to just two per cent, in line with conditions from the International Monetary Fund’s (IMF) Extended Fund Facility.