ISLAMABAD: Prime Minister Shehbaz Sharif has reportedly termed the proposed Rs1.126 trillion allocation for the federal Public Sector directed the Finance Ministry to make budget adjustments to increase the size of the Public Sector Development Programme (PSDP) by Rs200 billion in the upcoming fiscal year.
FBR has expressed reservations about generating an additional Rs200 billion in revenue to support the increaseISLAMABAD: Prime Minister Shehbaz Sharif has reportedly termed the proposed Rs1.126 trillion allocation for the federal Public Sector directed the Finance Ministry to make budget adjustments to increase the size of the Public Sector Development Program has expressed reservations about generating an additional Rs200 billion in revenue to support the increase. Sources said the issue is also being discussed with the International Monetary Fund , which has called for a higher revenue target to expand development spending. The government is expected to allocate around Rs754 billion for development projects of various ministries and divisions in the next budget.
A significant share of the funds will go to infrastructure and energy projects. The wider PSDP is proposed at Rs. 1.126 trillion. Infrastructure still gets the biggest share, and limited fiscal space means the government may hold back most new schemes. More than Rs355 billion has been proposed for the National Highway Authority and the Power Division, while Rs264 billion is expected to be allocated to the NHA, while Rs91 billion will go to the Power Division.
The Water Resources Division is likely to receive Rs179 billion for ongoing and new projects. Meanwhile, Rs251 billion has been estimated for provinces and special areas. Around Rs99 billion will be spent on provincialAn estimated Rs86 billion will be allocated for development projects in Azad Jammu and Kashmir and Gilgit-Baltistan. Other proposed allocations include Rs41 billion for the Higher Education Commission, Rs28 billion for the Railways Division, and Rs25 billion for the Planning and Development Division.
The Defence Division is expected to receive Rs11 billion, while the Interior Ministry may get Rs16 billion. More than Rs4 billion has been proposed for the Ministry of Information.
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