The Ministry of Planning, Development, and Special Initiatives (M/oPD&SI) has directed all Ministries and Divisions to prioritize their development projects within the budget allocations provided in the federal budget. This directive comes with a clear warning against submitting requests for additional funds or authorizations beyond the Finance Division’s release strategy.
According to sources close to the Planning Minister, the Planning Ministry has reiterated that the Public Sector Development Programme (PSDP) for FY 2024-25 was meticulously formulated. The process began with the issuance of the PSDP Call Circular in February 2024, where Ministries and Divisions were asked to submit their proposals. Initial demands totaled Rs 2.80 trillion for 1,366 projects, but after several consultative meetings in April 2024, the demands were revised downwards to Rs. 245 trillion to align with the National Economic Council (NEC) guidelines.
Ultimately, the PSDP FY 2024-25 was approved at a size of Rs 1.15 trillion by the Parliament on June 28, 2024, after being adjusted multiple times due to fiscal constraints. Despite this approval, some Ministries and Divisions have continued to approach the Planning Commission for additional allocations.
The Planning Ministry emphasized that due to the constrained fiscal space, there is no room for upward revisions in project-wise budgetary allocations. The Ministry has advised that Ministries and Divisions should focus on prioritizing core, foreign-funded, and near-completion projects within their allocated budgets, in line with the government’s direction. Any re-appropriation of funds should also stay within the approved budget limits, rather than seeking additional allocations beyond the Finance Division’s release strategy.
In summary, the Planning Ministry has made it clear that the development budget has been fully allocated, and no lump sum amounts are available for further distribution. Therefore, Ministries and Divisions must adhere strictly to the allocated ceilings and prioritize their projects accordingly.
