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Underutilising PSDP budget not only a missed opportunity but borders on negligence

15 14
21.01.2025

It’s ironic that a democratic government prioritises the perks and privileges of the administrative machinery and the elite political class while neglecting to spend the limited funds allocated for development. This is happening in an environment where private investors are hesitant, and working masses are enduring the worst economic distress in recent history.

According to official data for the first half of the Fiscal Year 2025 (July-December 2024), total development spending amounted to approximately Rs148 billion. This represents 12.4 per cent of the twice-reduced Public Sector Development Programme (PSDP) of R1.1 trillion and barely 10.5pc of the original budgetary allocation of Rs1.4tr announced in June last year.

Defending the slow pace of development spending in Pakistan, the government asserts its commitment to delivering better outcomes for citizens by streamlining processes, enhancing project management capacities, and ensuring more efficient utilisation of development funds.

It acknowledges that effective utilisation of PSDP funds is critical for advancing its development agenda but advises critics to consider the demands of prudent financial management (read the International Monetary Fund’s conditions) and inherent time lag at the start of the financial year before questioning the government’s dedication for public welfare.

Given the needs of the country, underutilising the PSDP budget is not only a missed opportunity but borders on negligence

“Actions speak louder than words. If the government genuinely cares about the people and their........

© Dawn Business