Public Sector Development Programme (PSDP) 2022-23 of the Federal Government has been drastically slashed by as much as 50 per cent consecutively for the second year which will quite obviously further slowdown implementation of the new and old development projects in all sectors of the national economy.
PSDP 2022-23 was approved by the Planning Commission in line with the directions of the highest economic body of the country, National Economic Council (NEC) on June 8,2022 ahead of the presentation of the federal budget for the ongoing financial year in the National Assembly on June 10,2022 at size of Rs 725 billion comprising 1219 ongoing and new schemes of the Federal Ministries/ Divisions, Corporations etc. Now, its size stands at Rs 350 billion only.
Though no official announcement was made for such drastic reduction in the PSDP 2022 -23 in the second quarter of the ongoing financial year but some reports indicated that this extreme step has been taken under pressure and instructions of the International Monetary Fund (IMF) which is persistently demanding of the federal government to curtail its both development and current expenditures forthwith.
It could not be immediately ascertained from official quarters including the planning Commission and the Ministry of Planning, Development & Special Initiatives as how this extraordinary step of the federal government will now adversely affect implementation of the development projects already scheduled for completion in all sectors of the national economy by end June 2023.
During last financial year PSDP 2021–22 originally sized at Rs 900 billion was also cut down to Rs 550 billion in the third quarter owing to to fiscal imbalance and to contain the increasing current account deficit and primary deficit besides continuing with the public relief package . The planning Commission sources afterwards pointed out that the number of development projects due for completion by June 30, 2022 has been reduced downward from 371 to 170 only.