The Finance Division has given a ceiling of Rs. 500 billion for the Public Sector Development Programme (PSDP) for FY 2022–23, but the Planning Commission is pursuing the government for Rs. 700 billion in allocations.
The update was revealed by an official source. Furthermore, a meeting of the Annual Plan Coordination Committee (APCC) has been scheduled for 4 June to finalize the development budget for the upcoming FY 2022–23.
The APCC is a consultative body that gives recommendations to the National Economic Council (NEC) on macroeconomic and development frameworks. In the absence of the Deputy Chairman of the Planning Commission, the APCC will be presided over by the Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, and its meetings will be attended by the Provincial Ministers for Planning and their counterparts from special areas like Azad Jammu and Kashmir and Gilgit-Baltistan.
The meeting will entail the approval of the overall indicative development budget for the Federal Public Sector Development Program (PSDP) and the provincial Annual Development Plan (ADP).
According to the official source, the APCC will consider the PSDP’s proposal for an allocation of Rs. 700 billion. The rupee component of the PSDP is likely to be Rs. 600 billion, while the foreign exchange component will be Rs. 100, the source added.
The Foreign Exchange Component (FEC) of the original PSDP allocation has been around 10 percent during the ongoing fiscal year, but its ratio to the rupee component is being increased to around 15 percent for the upcoming fiscal year, the source said.