Latest news with #APCC
NDTV
13 hours ago
- Politics
- NDTV
Gaurav Gogoi Takes Charge As Assam Congress Chief
Guwahati: Assam MP and son of former Chief Minister Tarun Gogoi, Gaurav Gogoi formally assumed charge as the President of the Assam Pradesh Congress Committee (APCC) on Tuesday. The ceremonial handover took place at the party headquarters, Rajiv Bhawan in Guwahati, where outgoing APCC President Bhupen Bora officially passed the baton. This marks Gaurav Gogoi's first visit to Rajiv Bhawan since being appointed APCC president. Before the event, he paid a visit to the Kamakhya Temple in the morning to offer prayers. Thousands of Congress supporters, along with senior leaders and newly-appointed APCC members, gathered to welcome the new state chief with enthusiasm and optimism. Addressing the media, Gaurav Gogoi expressed gratitude to senior Congress leadership including Congress President Mallikarjun Kharge, CPP Chairperson Sonia Gandhi, Lok Sabha Leader of Opposition Rahul Gandhi, General Secretary (Organisation) K.C. Venugopal, and Jitendra Singh, AICC in-charge of Assam. "I am honoured by the responsibility entrusted to me. We aim to bring back a Congress-led government in Assam that stands for justice, unity, and peace," said Gaurav Gogoi. He also praised his predecessor, Bhupen Bora, for his contributions during the past four years. Gaurav Gogoi highlighted the newly appointed leadership team, which includes three Working Presidents -Jakir Hussain Sikdar, Pradeep Sarkar, and Ruznina Tirkey. He emphasised that the Congress will work towards justice for the people of Assam, addressing issues of corruption, violence, and divisive politics. "Our vision is to restore Assam's legacy as the land of Srimanta Sankardeva, Ajan Peer, Chao-Lung Sukaphaa, Lachit Borphukan, and Jyoti Prasad Agarwala-a land of unity, brotherhood, and dignity for all communities," he stated. Gaurav Gogoi's appointment is seen as an effort by the Congress to rejuvenate the party in Assam ahead of upcoming electoral challenges.
United News of India
15 hours ago
- Politics
- United News of India
Gaurav Gogoi visits Kamakhya temple before assuming charge
Guwahati, June 3 (UNI) Newly appointed president of the Assam Pradesh Congress Committee (APCC) Gaurav Gogoi visited the Kamakhya temple in Guwahati on Tuesday and sought the blessings of the Goddess. Gogoi, who is a Lok Sabha MP from Kaliabar Lok Sabha Constituency in Assam and deputy leader of the Opposition in Lok Sabha, reached the Congress headquarters Rajib Bhavan in the city after visiting the temple and formally took charge as APCC president from outgoing chief Bhupen Borah. 'We have sought the blessings of Maa Kamakhya and we wish the best to all the people of Assam. We wish for peace, prosperity and harmony. We wish that all of us can live together in unity,' Gogoi told media after visiting the temple. Gogoi was given a red carpet welcome at the Rajib Bhavan with thousands of party supporters thronging the Congress headquarters on Tuesday morning. A colourful cultural procession awaited Gogoi at the Rajiv Bhavan in the city on Tuesday. People were seen rushing in to garland him with traditional Gamochas. Gogoi, who is a three-time Lok Sabha MP, arrived in Assam on May 31 and started his work for the new assignment from Titabar constituency, held by his father and former Assam Chief Minister Late Tarun Gogoi. 'My father began his journey of public service from Jorhat. The people here stood by him and have stood by me ever since. Today, I begin my first visit to Assam as the newly appointed president of the Assam Pradesh Congress Committee from Jorhat, a place deeply tied to both his legacy and my own path in public life. "Grateful for the outpouring of love and support from the people of Assam,' Gogoi said recently on his social media handle. Gaurav arrived in Guwahati on Monday and visited the houses of the victims of the recent landslides. UNI ANP PRS
Business Recorder
18 hours ago
- Business
- Business Recorder
Budget FY26: APCC proposes historic Rs4.083trn outlay
ISLAMABAD: The Annual Plan Coordination Committee (APCC) on Monday recommended the highest-ever national development outlay of Rs4.083 trillion of the country's history and a GDP growth target of 4.2 percent for the upcoming fiscal year 2025-26 for the approval of the National Economic Council. The meeting was informed that the proposed National Development Outlay of Rs4.083 trillion for the next fiscal year Rs1 trillion Federal PSDP, Rs288 billion for State-Owned Enterprises (SOEs) investment and Rs2.795 trillion. The APCC met here under the chairmanship of the Federal Minister for Planning and Development Ahsan Iqbal. It was also attended by senior federal and provincial representatives, including secretaries, principal accounting officers, and planning officials from Gilgit-Baltistan (G-B) and Azad Jammu Kashmir (AJK). Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 The session was convened at a critical juncture as Pakistan seeks to navigate significant economic and geopolitical challenges while continuing to implement its long-term development agenda under URAAN Pakistan. Addressing the participants, the minister emphasized that despite limited fiscal space and competing demands, the government remains fully committed to sustaining development momentum through strategic realignment of resources and policy reforms. He noted that when the current government assumed office in early 2024, it inherited an economic landscape marked by constrained revenues, pressing foreign obligations, and structural imbalances. However, with a clear vision and decisive leadership, the Planning Commission mobilised stakeholders around a common development framework—URAAN Pakistan—which aims to transform Pakistan into a $1 trillion economy by 2035 and a $3 trillion economy by 2047. The minister reiterated that the federal government believes that the success of URAAN Pakistan depends on close coordination with provincial governments and the alignment of all tiers of development planning with national priorities. During the meeting all the provinces appreciated Minister Planning's personal and dedicated efforts for the transparent and collaborative planning process — especially the mechanisms put in place to ensure smooth project implementation and timely fund releases. They gave positive feedback on how streamlined approvals are speeding up development and helping deliver results on the ground. Together, Pakistan is building a more connected, efficient, and prosperous Pakistan. During the meeting, a detailed review of PSDP 2024–25 was presented. It was noted that the National Economic Council (NEC) had approved a National Development Outlay of Rs3,792.3 billion, which included Rs1,400 billion for the Federal PSDP, Rs2,095.4 billion for Provincial ADPs, and Rs196.9 billion for SOEs. However, due to financial constraints, the federal PSDP was later reduced to Rs1,100 billion. As of 31st May 2025, Rs1,036 billion had been authorized for release, and Rs 596 billion had been utilized. A total of 1,071 projects were included in the PSDP, with an approved cost of Rs13,427 billion, of which Rs3,216 billion had already been spent by June 2024. A throw-forward liability of Rs. 10,216 billion remains, underscoring the urgent need for project rationalization and financial discipline. The minister highlighted that there is a dire need to increase the development budget of the country, which has direct bearing on growth and job creation. However, due to fiscal discipline agreed with IMF government is constrained to not increase PSDP. The only way to increase development spending is to increase the revenues by increasing Tax/GDP ratio from 10 per cent to 16-18 per cent. He said that by being lowest tax paying economy we can't aspire to grow. Every tax paying citizen must become partner of the government in rooting out the menace of tax theft. The government has undertaken number of reforms to overhaul tax administration. To ensure maximum value for the investment in development sector, the ministry has taken multiple reviews of project performance, including quarterly and mid-year reviews for better investment efficiency. A comprehensive assessment of the ongoing project portfolio was conducted. As a result, over 118 slow-moving or redundant projects, mostly approved at the DDWP level, were recommended for capping or closure, potentially saving Rs1,000 billion and freeing resources for high-impact initiatives. Moreover, the Planning Commission facilitated re-appropriations of Rs84 billion to fast-moving projects and critical interventions, while Rs80 billion were reallocated through TSGs for emergent national priorities such as the solarisation of tube wells in Balochistan. Looking ahead to FY 2025–26, the minister announced that the proposed PSDP has been restructured in line with core principles of sustainability, impact, and equity. The Finance Division, after consultations with the IMF, has firmed up an Indicative Budget Ceiling of Rs1,000 billion for the federal PSDP, including Rs270 billion in foreign aid. The PSDP 2025–26 portfolios have been developed following extensive consultations with ministries and provinces through Priority Committee meetings and high-level reviews chaired by the Deputy Prime Minister and Advisor to the Prime Minister. The final recommendations reflect a strict prioritisation of ongoing high-impact, foreign-aided, and near-completion projects. In total, 1,120 projects have been included in the proposed PSDP, of which a significant number are designed to be completed within the next 3–4 years if fiscal space is maintained. Pakistan faces serious challenge of water security therefore Diamer Bhasha Dam is given top priority. Hyderabad-Sukkur Motorway will be started during 2025-26. Balochistan will get highest share in development funds of nearly Rs250 billion. Sectoral allocations have been finalised with Rs644 billion allocated to infrastructure, including Rs332 billion for transport and communications and Rs144 billion for energy. Rs150 billion has been proposed for the social sector, including Rs63 billion for education and higher education and Rs22 billion for health. Special areas like AJK and GB will receive Rs63 billion, while Rs70 billion has been allocated for merged districts of Khyber Pakhtunkhwa. Science and IT sectors have been allocated Rs53 billion, while Rs9 billion has been proposed for governance. Production sectors, including food, agriculture, and industries, will receive Rs11 billion. In addition, State-Owned Enterprises have submitted development plans amounting to Rs288 billion, with major contributions from entities like WAPDA, NTDC, OGDCL, and others. The minister informed the participants that one of the most serious challenges has been the increasing tension and security risks following the events of May 7, 2025, when hostilities broke out along the eastern border. This conflict has led to increased defence spending requirements and exerted additional pressure on the already limited development budget. He candidly acknowledged the dilemma faced by the government: choosing between critical national defense and the developmental needs of the people. However, he reassured participants that the government remains committed to maintaining a careful balance. The minister stated that the strength of a nation lies not just in its defense capabilities, but also in the health, education, and economic empowerment of its citizens. The government will not allow Pakistan's development journey to be derailed. Instead, it will adopt innovative planning, smart budgeting, and rigorous monitoring to ensure that the needs of both defense and development are addressed. The APCC also deliberated on critical policy reforms. It endorsed the proposal to stop at-source deduction of Cash Development Loans (CDL) from PSDP funds, as this practice hampers project cash flows and delays implementation. The Committee reiterated the policy that provincial nature projects should be funded by provinces, except in cases involving strategic national interest or implementation in deprived regions. Furthermore, the APCC recommended imposing a moratorium on DDWP-level project approvals during the tenure of the IMF programme, except in exceptional cases with full justification and review by the CDWP. It was also proposed that no development funds be diverted to recurring expenditures during the fiscal year. Ahsan Iqbal reiterated the federal government's unwavering resolve to transform adversity into opportunity. He emphasized that Pakistan's current economic path, though challenging, is also full of potential. URAAN Pakistan provides the guiding vision, rooted in five core pillars: Exports, E-Pakistan, Energy and Infrastructure, Environment and Climate Resilience, and Equity, Ethics and Empowerment. Through this framework, the government aims to restore public trust, inspire innovation, and unlock economic potential across all sectors and regions. He called upon all stakeholders—federal ministries, provincial departments, development partners, and the private sector—to move forward with shared commitment and unity of purpose. He concluded by stating, 'We are not just managing a budget we are shaping the future. The world may see limitations, but we see opportunities. Our history is full of moments when the Pakistani nation rose above challenges through resolve and resilience. This is one such moment. Together, let us rise and lead Pakistan towards sustainable development, economic dignity, and national pride. URAAN Pakistan is not just a programme—it is the spirit of our national ambition.' Earlier, talking to journalist Ahsan Iqbal has said that fiscal space will be provided in the next Public Sector Development Program (PSDP) for the projects of strategic importance envisioned under Uraan Pakistan. The minister mentioned that these projects include Diamer Bhasha Dam, Sukkur Hyderabad motorway project, N-25 in Balochistan and Karakoram highway phase two. The minister emphasised the need for greater synergy between the development projects of the center and the provinces for early completion of national priority projects. Ahsan Iqbal said that projects with foreign component and those nearing completion have also been prioritised in the PSDP. He said allocations for special regions such as AJK, Gilgit Baltistan and the tribal districts have also been prioritised. He said that an effort has been made to align the development budget with national priorities while staying within limited resources. Iqbal said that over 118 different projects worth Rs1,000bn were scrapped due to limited resources, adding that the country has to make difficult decisions about limiting the ongoing projects. Only key projects can be prioritised due to limited funds, the planning minister said, adding that the provincial-level projects should now be completed by the provinces themselves. 'Provinces have far more resources than the federation,' he added. The minister said that everyone must play their part in national development. Shedding light on the upcoming budget, the minister said that the economic size target for next year had been set at Rs129 trillion. 'This year's development budget has been set at Rs1,000 billion,' he added. The minister said that Rs150bn had been allocated for the social sector and Rs70bn for KP's merged districts in the next budget. 'GDP growth target for the next fiscal year was set at 4.2%,' Iqbal said, adding that the target for exports was set at $35bn. Earlier, giving a blueprint of the annual PSDP for the next fiscal year at the APCC meeting, he said that fiscal space will be provided in the next PSDP for the projects of strategic importance envisioned under Uraan Pakistan. He mentioned that these projects include the Diamer Bhasha Dam, Sukkur Hyderabad motorway project, N-25 in Balochistan and Karakoram highway phase two. The minister emphasised the need for greater synergy between the development projects of the Centre and the provinces for the early completion of national priority projects. He said that projects with a foreign component and those nearing completion have also been prioritised in the PSDP. The minister elaborated that the said allocations for special regions such as AJK, Gilgit-Baltistan and the tribal districts have also been prioritised. The minister further said that an effort has been made to align the development budget with national priorities while staying within limited resources. Copyright Business Recorder, 2025
Business Recorder
21 hours ago
- Business
- Business Recorder
APCC proposes historic Rs4.083trn outlay
ISLAMABAD: The Annual Plan Coordination Committee (APCC) on Monday recommended the highest-ever national development outlay of Rs4.083 trillion of the country's history and a GDP growth target of 4.2 percent for the upcoming fiscal year 2025-26 for the approval of the National Economic Council. The meeting was informed that the proposed National Development Outlay of Rs4.083 trillion for the next fiscal year Rs1 trillion Federal PSDP, Rs288 billion for State-Owned Enterprises (SOEs) investment and Rs2.795 trillion. The APCC met here under the chairmanship of the Federal Minister for Planning and Development Ahsan Iqbal. It was also attended by senior federal and provincial representatives, including secretaries, principal accounting officers, and planning officials from Gilgit-Baltistan (G-B) and Azad Jammu Kashmir (AJK). Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 The session was convened at a critical juncture as Pakistan seeks to navigate significant economic and geopolitical challenges while continuing to implement its long-term development agenda under URAAN Pakistan. Addressing the participants, the minister emphasized that despite limited fiscal space and competing demands, the government remains fully committed to sustaining development momentum through strategic realignment of resources and policy reforms. He noted that when the current government assumed office in early 2024, it inherited an economic landscape marked by constrained revenues, pressing foreign obligations, and structural imbalances. However, with a clear vision and decisive leadership, the Planning Commission mobilised stakeholders around a common development framework—URAAN Pakistan—which aims to transform Pakistan into a $1 trillion economy by 2035 and a $3 trillion economy by 2047. The minister reiterated that the federal government believes that the success of URAAN Pakistan depends on close coordination with provincial governments and the alignment of all tiers of development planning with national priorities. During the meeting all the provinces appreciated Minister Planning's personal and dedicated efforts for the transparent and collaborative planning process — especially the mechanisms put in place to ensure smooth project implementation and timely fund releases. They gave positive feedback on how streamlined approvals are speeding up development and helping deliver results on the ground. Together, Pakistan is building a more connected, efficient, and prosperous Pakistan. During the meeting, a detailed review of PSDP 2024–25 was presented. It was noted that the National Economic Council (NEC) had approved a National Development Outlay of Rs3,792.3 billion, which included Rs1,400 billion for the Federal PSDP, Rs2,095.4 billion for Provincial ADPs, and Rs196.9 billion for SOEs. However, due to financial constraints, the federal PSDP was later reduced to Rs1,100 billion. As of 31st May 2025, Rs1,036 billion had been authorized for release, and Rs 596 billion had been utilized. A total of 1,071 projects were included in the PSDP, with an approved cost of Rs13,427 billion, of which Rs3,216 billion had already been spent by June 2024. A throw-forward liability of Rs. 10,216 billion remains, underscoring the urgent need for project rationalization and financial discipline. The minister highlighted that there is a dire need to increase the development budget of the country, which has direct bearing on growth and job creation. However, due to fiscal discipline agreed with IMF government is constrained to not increase PSDP. The only way to increase development spending is to increase the revenues by increasing Tax/GDP ratio from 10 per cent to 16-18 per cent. He said that by being lowest tax paying economy we can't aspire to grow. Every tax paying citizen must become partner of the government in rooting out the menace of tax theft. The government has undertaken number of reforms to overhaul tax administration. To ensure maximum value for the investment in development sector, the ministry has taken multiple reviews of project performance, including quarterly and mid-year reviews for better investment efficiency. A comprehensive assessment of the ongoing project portfolio was conducted. As a result, over 118 slow-moving or redundant projects, mostly approved at the DDWP level, were recommended for capping or closure, potentially saving Rs1,000 billion and freeing resources for high-impact initiatives. Moreover, the Planning Commission facilitated re-appropriations of Rs84 billion to fast-moving projects and critical interventions, while Rs80 billion were reallocated through TSGs for emergent national priorities such as the solarisation of tube wells in Balochistan. Looking ahead to FY 2025–26, the minister announced that the proposed PSDP has been restructured in line with core principles of sustainability, impact, and equity. The Finance Division, after consultations with the IMF, has firmed up an Indicative Budget Ceiling of Rs1,000 billion for the federal PSDP, including Rs270 billion in foreign aid. The PSDP 2025–26 portfolios have been developed following extensive consultations with ministries and provinces through Priority Committee meetings and high-level reviews chaired by the Deputy Prime Minister and Advisor to the Prime Minister. The final recommendations reflect a strict prioritisation of ongoing high-impact, foreign-aided, and near-completion projects. In total, 1,120 projects have been included in the proposed PSDP, of which a significant number are designed to be completed within the next 3–4 years if fiscal space is maintained. Pakistan faces serious challenge of water security therefore Diamer Bhasha Dam is given top priority. Hyderabad-Sukkur Motorway will be started during 2025-26. Balochistan will get highest share in development funds of nearly Rs250 billion. Sectoral allocations have been finalised with Rs644 billion allocated to infrastructure, including Rs332 billion for transport and communications and Rs144 billion for energy. Rs150 billion has been proposed for the social sector, including Rs63 billion for education and higher education and Rs22 billion for health. Special areas like AJK and GB will receive Rs63 billion, while Rs70 billion has been allocated for merged districts of Khyber Pakhtunkhwa. Science and IT sectors have been allocated Rs53 billion, while Rs9 billion has been proposed for governance. Production sectors, including food, agriculture, and industries, will receive Rs11 billion. In addition, State-Owned Enterprises have submitted development plans amounting to Rs288 billion, with major contributions from entities like WAPDA, NTDC, OGDCL, and others. The minister informed the participants that one of the most serious challenges has been the increasing tension and security risks following the events of May 7, 2025, when hostilities broke out along the eastern border. This conflict has led to increased defence spending requirements and exerted additional pressure on the already limited development budget. He candidly acknowledged the dilemma faced by the government: choosing between critical national defense and the developmental needs of the people. However, he reassured participants that the government remains committed to maintaining a careful balance. The minister stated that the strength of a nation lies not just in its defense capabilities, but also in the health, education, and economic empowerment of its citizens. The government will not allow Pakistan's development journey to be derailed. Instead, it will adopt innovative planning, smart budgeting, and rigorous monitoring to ensure that the needs of both defense and development are addressed. The APCC also deliberated on critical policy reforms. It endorsed the proposal to stop at-source deduction of Cash Development Loans (CDL) from PSDP funds, as this practice hampers project cash flows and delays implementation. The Committee reiterated the policy that provincial nature projects should be funded by provinces, except in cases involving strategic national interest or implementation in deprived regions. Furthermore, the APCC recommended imposing a moratorium on DDWP-level project approvals during the tenure of the IMF programme, except in exceptional cases with full justification and review by the CDWP. It was also proposed that no development funds be diverted to recurring expenditures during the fiscal year. Ahsan Iqbal reiterated the federal government's unwavering resolve to transform adversity into opportunity. He emphasized that Pakistan's current economic path, though challenging, is also full of potential. URAAN Pakistan provides the guiding vision, rooted in five core pillars: Exports, E-Pakistan, Energy and Infrastructure, Environment and Climate Resilience, and Equity, Ethics and Empowerment. Through this framework, the government aims to restore public trust, inspire innovation, and unlock economic potential across all sectors and regions. He called upon all stakeholders—federal ministries, provincial departments, development partners, and the private sector—to move forward with shared commitment and unity of purpose. He concluded by stating, 'We are not just managing a budget we are shaping the future. The world may see limitations, but we see opportunities. Our history is full of moments when the Pakistani nation rose above challenges through resolve and resilience. This is one such moment. Together, let us rise and lead Pakistan towards sustainable development, economic dignity, and national pride. URAAN Pakistan is not just a programme—it is the spirit of our national ambition.' Earlier, talking to journalist Ahsan Iqbal has said that fiscal space will be provided in the next Public Sector Development Program (PSDP) for the projects of strategic importance envisioned under Uraan Pakistan. The minister mentioned that these projects include Diamer Bhasha Dam, Sukkur Hyderabad motorway project, N-25 in Balochistan and Karakoram highway phase two. The minister emphasised the need for greater synergy between the development projects of the center and the provinces for early completion of national priority projects. Ahsan Iqbal said that projects with foreign component and those nearing completion have also been prioritised in the PSDP. He said allocations for special regions such as AJK, Gilgit Baltistan and the tribal districts have also been prioritised. He said that an effort has been made to align the development budget with national priorities while staying within limited resources. Iqbal said that over 118 different projects worth Rs1,000bn were scrapped due to limited resources, adding that the country has to make difficult decisions about limiting the ongoing projects. Only key projects can be prioritised due to limited funds, the planning minister said, adding that the provincial-level projects should now be completed by the provinces themselves. 'Provinces have far more resources than the federation,' he added. The minister said that everyone must play their part in national development. Shedding light on the upcoming budget, the minister said that the economic size target for next year had been set at Rs129 trillion. 'This year's development budget has been set at Rs1,000 billion,' he added. The minister said that Rs150bn had been allocated for the social sector and Rs70bn for KP's merged districts in the next budget. 'GDP growth target for the next fiscal year was set at 4.2%,' Iqbal said, adding that the target for exports was set at $35bn. Earlier, giving a blueprint of the annual PSDP for the next fiscal year at the APCC meeting, he said that fiscal space will be provided in the next PSDP for the projects of strategic importance envisioned under Uraan Pakistan. He mentioned that these projects include the Diamer Bhasha Dam, Sukkur Hyderabad motorway project, N-25 in Balochistan and Karakoram highway phase two. The minister emphasised the need for greater synergy between the development projects of the Centre and the provinces for the early completion of national priority projects. He said that projects with a foreign component and those nearing completion have also been prioritised in the PSDP. The minister elaborated that the said allocations for special regions such as AJK, Gilgit-Baltistan and the tribal districts have also been prioritised. The minister further said that an effort has been made to align the development budget with national priorities while staying within limited resources. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Business
- Express Tribune
Govt approves Rs1tr uplift budget
The government on Monday approved a Rs1 trillion federal development budget and set the economic growth target at 4.2% for the next fiscal year, as Planning Minister Ahsan Iqbal said that the development budget cuts could compromise economic growth and delay strategic projects. The Annual Plan Coordination Committee (APCC) approved a record Rs4.1 trillion national development outlay, primarily backed by a Rs2.8 trillion financing envelope from the four provinces. Despite limited resources, the Sindh government secured Rs86 billion from the federal Public Sector Development Programme (PSDP), leveraging its alliance with the ruling coalition. "The Pakistan Peoples Party took advantage of being an ally of the government that is dependent on its vote for the budget," said a cabinet minister. Planning Minister Ahsan Iqbal, speaking after chairing the APCC meeting, said the Rs1 trillion PSDP includes Rs120 billion earmarked for the N-25 Quetta-Chaman-Karachi expressway. He confirmed that the committee had also approved a 4.2% growth target and a 7.5% inflation target for the fiscal year 2025-26. These recommendations will now be submitted to the National Economic Council for final approval, said Iqbal. He identified top-priority projects for the upcoming year, including the Diamer Basha Dam, the Karakoram Highway, the Hyderabad-Sukkur Motorway, and the N-25 Expressway from Karachi to Quetta. However, he expressed concern that the remaining Rs880 billionafter accounting for the expresswaywould be inadequate, potentially compromising future economic growth. He added that enhancing the development budget would be impossible without a significant increase in tax revenues. "The water sector is our priority but due to limited resources and with current allocation, it will take 20 years to complete the Diamer Basha dam project," said Iqbal. He maintained, however, that the government would strive to allocate maximum resources to ensure its completion within the next three to four years. Ironically, despite increasing threats from India over water security, the federal water sector allocation has been slashed by 45%or Rs119 billionbringing it down to Rs140 billion for FY2025-26. The planning minister reiterated that the commodity-producing sectors are expected to grow by 4.4%, led by a 4.5% recovery in agriculture and 3.5% growth in large-scale manufacturing. Exports are projected at $35 billion, while foreign remittances are expected to exceed $39 billion. "I am thankful to overseas Pakistanis who, despite calls to the contrary, sent $10 billion in additional remittances over the past two years," he added. The Rs1 trillion federal PSDP was finalised by a committee formed by Prime Minister Shehbaz Sharif. According to the APCC working paper, this year's development outlay is Rs300 billionor 8%higher than the previous year's budget. The four provincial governments are set to increase development spending by 28% from their own resources – enabled by substantial revenues under the 2010 National Finance Commission (NFC) award. Despite the record outlay, the Rs1 trillion federal PSDP is actually Rs400 billion lower than the originally approved budget for the current fiscal year. To fund this, the federal government plans to borrow Rs270 billion externally. The four governments plan to spend Rs2.8 trillion, higher by Rs609 billion or 28% over this year's original budget. Provincial governments will borrow Rs802 billion, while state-owned companies will spend another Rs288 billion outside the federal budget. Punjab leads provincial spending with a proposed Rs1.19 trillion allocation41% higher than last year. Khyber-Pakhtunkhwa (K-P) follows with Rs440 billion, reflecting a 63% increase. Sindh will spend Rs887 billion, up 7%, and Balochistan plans to spend Rs280 billion, marking an increase of Rs32 billion. KP's Finance Advisor, Muzzammil Aslam, criticised the federal government for allocating disproportionately less funding to his province compared to Sindh. "Only Rs3 billion were allocated to K-P, while Sindh received Rs47 billion. Punjab got Rs15 billion," he said. In response, Iqbal clarified that Rs70 billion has been allocated for K-P's merged districts and that the federal government is cutting back on spending for projects that fall under provincial jurisdiction. The APCC decided not to include any new provincial-nature projects in the PSDP due to fiscal limitations and imposed a moratorium on the approval of projects costing up to Rs1 billion until the International Monetary Fund (IMF) programme concludes. Despite these constraints, 30-40% of PSDP funds are still being directed to provincial-nature projects, which the planning ministry said has significantly hampered progress on large-scale national initiatives. In contrast, funding for the National Highway Authority (NHA) has increased by Rs49 billion, or 27%, to Rs229 billion. However, to accommodate the political priorities of coalition partners, the government has proposed sharp reductions in water and power sector budgets. The power sector's funding is down 41%or Rs72 billionto Rs104 billion. The federal education ministry's budget is reduced by 27% to Rs20 billion, while the Higher Education Commission will face a 32% cut, reducing its budget to Rs45 billion. Still, the government has retained Rs50 billion for parliamentarians' schemes under the Sustainable Development Goals Achievement Programme. Currently, 1,071 development projects with a total cost of Rs13.4 trillion are under implementation. These projects require an additional Rs10.2 trillion to be completed, and the planning ministry estimates it would take more than a decade to finish them all. Iqbal stated that the ministry has identified 183 slow-moving or problematic projectsmostly under the DDWPthat should be capped or closed by June 2025. "By capping or closing these projects, around Rs1 trillion could be saved, freeing up Rs100 billion immediately for fast-moving projects," he said.
