Govt allocates Rs900b for PSDP in new fiscal despite COVID ramifications

The PSDP focuses on improving transport and communication facilities with special emphasis on inter-provincial and regional connectivity, investment on building large dams and water conservation systems, augmenting and strengthening health sector infrastructure, improving access to higher education, social protection, increasing employment and livelihood opportunities. 

 

It also aims at reducing regional disparities, mitigating effects of climate change, building knowledge economy, enhancing agricultural productivity and ensuring food security and supporting Public Private Partnership initiatives.

According to the annual plan, an amount of Rs469 billion, which is 52 per cent of total PSDP, has been allocated for projects aiming at modernizing infrastructure for accelerating growth.

Rs228,767 million have been earmarked for energy sector projects for the next fiscal year.  By June next year, an additional 5981 megawatts of electricity is expected to be plugged into the system, including 1536 megawatts from renewable sources.

To boost industrial development, electricity and gas supply schemes for Special Economic Zones (SPZs) under CPEC are expected to be completed by June next year.

There is a plan to add another 10 million acre feet in the water storage capacity during the next year.  To overcome water scarcity and enhance storage capacity, two major storage dams Diamer-Basha and Mohmand along with five hundred and eighteen medium and small dams having cumulative storage capacity of 8.33 million acre feet have been initiated throughout the country. An amount of Rs90.313 billion has been allocated for water sector projects, excluding hydel projects during the next fiscal year.

To attain one percent additional afforestation during the next fiscal year, the government has allocated 14,000 million funds to ensure efficient implementation of Ten Billion Tree Tsunami Program-Phase 1.

An amount of Rs302 billion, which is 74r percent higher than the PSDP 2020-21, has been earmarked for the development program of the transport and logistics. The concessional financing agreement for landmark ML-1 project of Pakistan Railways is expected to be finalized in the first quarter of next financial year and subsequently arrangements will be made for its groundbreaking.

The Ministry of National Health Services has proposed 42 new schemes for financing out of the next year's PSDP. Some important initiatives include improving emergency and response services for COVID-19 and other transmittable diseases.

An amount of Rs5.52 billion has been earmarked for projects in education sector including one billion rupees earmarked for Azad Kashmir. An amount of 37.3 billion rupees for development projects of higher education sector projects and 8341 million rupees for the development projects of the Ministry of Science and Technology. 

An amount of Rs49 billion has been reserved for Physical Planning and Housing Sector programs.

Funds to the tune of Rs1,899.86 million have been allocated in the PSDP for the Ministry of Information and Broadcasting and Rs125.93 million for the National Heritage and Culture Division.

To promote balanced regional development, an amount of 160 billion rupees, which is eighteen percent of the PSDP, has been kept aside for projects aiming at fostering harmony in the federation.

The government has planned to invest one hundred billion rupees during the next fiscal year in Azad Kashmir and Gilgit Baltistan and for the merged districts in Khyber Pakhtunkhwa.

The CPEC planned activities during the next fiscal year include continuing work on four Special Economic Zones whilst work will commence on the remaining twenty-three of the twenty seven projects identified for poverty alleviation, health, education, vocational training, agriculture and water supply.

Finance Minister Shaukat Tarin pointed out that there is a considerable interest from various investors in national projects. He said the Public-Private Partnership Authority currently has 50 projects at various stages of processing within an aggregate value of about Rs2,000 billion, covering Railways, roads, logistics, science and technology, water, aviation and health. 

Sialkot Kharian and Sukkur-Hyderabad motorways with Rs233 billion have been processed in record time, while another six projects of Rs710 billion will be processed in next fiscal year, the minister added.