Federal development budget set at Rs.800 bn for FY 2022-23

ISLAMABAD: Ahsan Iqbal, the Minister of Planning, Development, and Special Initiatives, said on Saturday that the federal development budget under the government’s Public Sector Development Programme (PSDP) has been set to Rs.800 billion for the fiscal year 2022-23.

The Minister also stated that the GDP growth target for the upcoming fiscal year has been set at 5 percent, while the previous year was fixed at 4.8 percent.

He also said that Rs.100 billion out of the total outlay will be allocated to Public-Private Partnerships (PPP) to boost economic growth.

Under the chairmanship of Ahsan Iqbal, the Annual Plan Coordination Committee (APCC) held a meeting to review recommendations for the development budget that were provided by various stakeholders within the provincial and federal governments.

Under the current allocation of the budget, 90 percent is set to go towards ongoing development schemes, while new initiatives will only gain 10 percent from the total budget. The decision has been taken by keeping in view the country’s current needs and economic situation.

The government has decided to focus on fulfilling key needs by allocating resources to projects that fulfil basic needs such as infrastructure, water, health, and education. Funds for key water projects such as the Diamir Bhasha Dam were protected under the budget.

Ahsan Iqbal also stated that Higher Education projects were given an increase in funds. The government is also planning on resuming the laptop schemes for university students, as laptops are a necessity for all university students.

Projects under the umbrella of the China Pakistan Economic Corridor (CPEC) also received an increased in funds to fast-track the overall developments.