FY2024-25: Historic milestone achieved in PSDP spending: minister
'First time ever Rs 1.46 trillion (96 percent) of the PSDP for FY2024–25 had been utilised, reflecting strong implementation. This utilisation is driving inclusive growth through targeted investments in exports, innovation, and human development. The PSDP, which was limited to Rs 754 billion last year, is now back on the path of growth. The PSDP, initially set at Rs 1.4 trillion, was reduced to Rs 1.1 trillion due to macroeconomic constraints,' the minister expressed these views while speaking at the launch of the 'Monthly Development Report' on Thursday.
He said that for the first time ever, Pakistan has closed its development budget with such high utilisation, reflecting our unwavering commitment to development as a national priority.
Govt spends record Rs1.046tr under PSDP in FY25: Ahsan Iqbal
The minister said that any underutilisation this year would have shifted financial burdens to the next fiscal year, where the PSDP has already been further reduced to Rs 1 trillion.
'We had no fiscal space to leave Rs 200-300 billion unutilised that would have created a backlog and severely impacted our development portfolio. Thankfully, we avoided that scenario through discipline and coordination,' he said.
He said that in the current fiscal year, Balochistan projects have been given top priority and Rs 210 billion has been allocated for 147 projects. He said that the launch of infrastructure projects in Balochistan would help stimulate the economy of Balochistan and creating development and employment opportunities.
He said, 'Under Uraan Pakistan, we are witnessing a positive turnaround in economy. One of the biggest indicators is inflation, which dropped to 4.5 percent, the lowest in nine years. That's a 23.4 percent decrease from last year — a rare feat globally.'
The minister said that Pakistan's macroeconomic performance in financial year 2025 demonstrated resilience despite global headwinds, with GDP growth rising to 2.7 percent and the inflation dropping sharply to an average of 4.5 percent, the lowest since financial year 2016. He said that the inflation rate in the previous year was 23.4 percent. He said that remittances exceed $38 billion, a 27 percent increase in one year. He said that Pakistan Stock Exchange recorded 65 percent growth in fiscal year 2024-2025.
He said that strong fiscal consolidation reduced the deficit to 3.7 percent of GDP, supported by record tax revenues of Rs 11.740 trillion, while the external sector posted a $1.8 billion current account surplus, driven by higher exports and record remittances.
On the development front, the minister said that 33 projects at cost of Rs 90.4 billion were approved by the Central Development Working Party (CDWP) in June 2025, while 19 major projects at cost of Rs 1.423 trillion were recommended to the Executive Committee of the National Economic Council (ECNEC). He said that the remaining seven projects were deferred for further review. These initiatives are expected to create approximately 9,968 direct and 47,174 indirect jobs in the coming months, he said.
He said that major investments targeted energy (over Rs500 billion), transport (Hyderabad–Sukkur Motorway at Rs 395 billion, Eastbay Expressway at Rs 301 billion), education (Rs 43 billion for 17 projects), health (Rs 25.5 billion), and water (Ghand Dam at Rs 6.4 billion).
Iqbal said, 'Due to improved scrutiny and evaluation of projects, Rs 1 billion in savings was achieved during June.'
He said that the global ranking of Pakistani passports has improved, with the Pakistani passport moving up from 113 to 100.
He said that Pakistan demonstrated its defensive superiority in the region through 'Operation Bunyan um Marsoos.'
He said that Pakistan's stance on the Pahalgam attack and Iran-Israel tensions was recognised globally.
He said that the world rejected India's narrative and accepted Pakistan's stance, adding Pakistan achieved a major success on the diplomatic front.
He said that our goal is to achieve one trillion-dollar economy by 2035. A major digital connectivity project worth Rs 2,150 million is underway in 30 cities of AJK and GB. The initiative is transforming lives by expanding access to education, healthcare, tourism, and business opportunities in these remote areas.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
KSE-100 hits all-time high as investors cheer US tariff reduction
Buying momentum was seen at the Pakistan Stock Exchange (PSX) on Friday as investors celebrated the reduction in US reciprocal tariffs on Pakistan, with the benchmark KSE-100 Index closing the session at over 141,000 for first time in history. The bulls largely remained dominated in the last session of the week, pushing the KSE-100 to an intra-day high of 141,160.93. At close, the benchmark index settled at 141,034.99, up by 1,644.56 or 1.18%. 'This positivity in market can be attributed to news that Pakistan secured 'landmark' tariff deal with US, wherein Pakistan will now face reciprocal tariffs of 19% compared to earlier rate of 29%,' brokerage house Topline Securities said in its post-market report. 'Apart from this noise in the market that government will make payment to clear circular debt in coming weeks by obtaining Rs1.25 trillion from banks, provided stimulus to the market.' Top positive contribution of 1,355 points to the index cumulatively came from OGDC, PPL, HUBC & PSO, as they stand to benefit for circular debt payment, Topline said. 'Potential US-Pakistan collaboration on oil exploration and news regarding Circular Debt payment likely in next week provided much needed impetus to energy sector stocks today,' Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said in a report. In a key development, the US administration imposed a 19% reciprocal tariff on a wide range of Pakistani goods, significantly lower than the initially proposed 29%, under a sweeping new executive order signed by President Donald Trump. Late on Thursday, President Trump signed an executive order imposing tariffs ranging from 10% to 41% on US imports from dozens of countries and foreign locations. Rates were set at 25% for India's US-bound exports, 20% for Taiwan's, 19% for Thailand's and 15% for South Korea's. He also increased duties on Canadian goods to 35% from 25% for all products not covered by the US-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal. On Thursday, PSX roared back to life as bullish momentum dominated the trading floor. This sharp surge came on the heels of a surprise tweet by US President Donald Trump, who announced what he described as a historic trade deal with Pakistan. The benchmark KSE-100 Index went up by a remarkable 978 points, equivalent to a 0.71% increase, to close at 139,390.42 points. Internationally, Asian shares fell on Friday after the US slapped dozens of trading partners with steep tariffs, while investors anxiously await US jobs data that could make or break the case for a Fed rate cut next month. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%, bringing the total loss this week to 1.8%. South Korea's KOSPI plunged 3% while Taiwanese shares fell 0.9%. Japan's Nikkei dropped 0.4%. Chinese blue chips were flat and Hong Kong's Hang Seng index eked out a small gain of 0.2%. EUROSTOXX 50 futures slipped 0.2%. Both Nasdaq futures and S&P 500 futures eased 0.2% after earnings from Amazon failed to live up to lofty expectations, sending its shares tumbling 6.6% after hours. Meanwhile, the Pakistani rupee maintained its upward trajectory against the US dollar, appreciating 0.05% during trading in the inter-bank market on Friday. At close, the currency settled at 282.72, a gain of Re0.15. Volume on the all-share index increased to 609.71 million from 577.35 million recorded in the previous close. The value of shares rose to Rs50.55 billion from Rs36.35 billion in the previous session. WorldCall Telecom was the volume leader with 55.01 million shares, followed by Pak Petroleum with 43.04 million shares, and Oil & Gas Dev with 37.04 million shares. Shares of 483 companies were traded on Friday, of which 199 registered an increase, 246 recorded a fall, while 38 remained unchanged.
Business Recorder
9 hours ago
- Business Recorder
JDW Sugar establishes ethanol production facility
JDW Sugar Mills Limited said on Friday that it had successfully completed a 20-day trial run of its newly established ethanol project. 'The Company is pleased to announce August 1, 2025, as the Commercial Operation Date (COD),' read the notice issued to the Pakistan Stock Exchange (PSX). The Ethanol Project is located at Mouza Peer Ahmedabad, Kot Sabzal, Tehsil Sadiqabad, District Rahim Yar Khan and has been designed for a production capacity of 230,000 litres per day. It is fully equipped to produce export-grade ethanol from molasses, said the company. 'This strategic milestone underscores the Company's commitment to enhancing shareholder value through diversified and profitable avenues. The Board of Directors expresses its sincere appreciation to all employees, vendors, and the management team for their dedication and hard work. The mills was set up as a private limited company in 1990 under the Companies Ordinance, 1984. In 1991, it was converted into a public limited company. The company produces and sells crystalline sugar, electricity, and manages corporate farms.
Business Recorder
9 hours ago
- Business Recorder
Bank Makramah Limited sells Cullinan Tower in Karachi
Bank Makramah Limited (BML) announced on Friday that it had received the down payment for Cullinan Tower, formerly Summit Tower. The BML issued a notice to the Pakistan Stock Exchange today in this regard. 'We hereby convey that subsequent to the approval of the Bank Makramah Limited's Board of Directors, in their previous meeting held on July 3, 2025, for the sale of Cullinan Tower (formerly Summit Tower) situated at Plot No. G-2, Block-2, Scheme-5, Clifton, Karachi, the Sale Purchase Agreement (SPA) has been executed today and down payment received thereagainst,' the notice read. Recently, the BML had also announced significant capital injections alongside a major strategic asset sale. On July 5, BML's Board of Directors approved the sale of Cullinan Tower in Clifton, Karachi, for a confirmed offer of Rs 12 billion.
