10-07-2025
- Business
- Business Recorder
Govt spends record Rs1.046tr under PSDP in FY25: Ahsan Iqbal
The federal government utilized a record Rs1.046 trillion under the Public Sector Development Programme (PSDP) during FY2024–25, reflecting 96% of the total allocation, Planning Minister Ahsan Iqbal said on Thursday.
Speaking at the launch of the Ministry of Planning's Monthly Development Update, Iqbal said the development spending, the highest in Pakistan's history, marks a return to a growth-oriented trajectory.
'The PSDP, which was Rs754 billion last year, is now back on track,' he said.
Iqbal credited the surge to improved project execution and better economic management, noting signs of macroeconomic stability, including GDP growth, easing inflation, and improved external indicators.
Budget 2025-26: Rs1trn planned for PSDP, says Ahsan Iqbal
In June alone, the Central Development Working Party (CDWP) approved 33 projects, while 19 major initiatives were referred to ECNEC.
The minister said this will help create nearly 57,000 jobs, and noted Rs1 billion was saved through improved scrutiny.
Iqbal said Balochistan remained a key focus, with Rs210 billion allocated for 147 projects, including the Karachi-Quetta-Chaman Highway, M-8 Motorway, and post-flood reconstruction. A Rs2.15 billion digital connectivity project is also underway in 30 cities of AJK and GB.
The Ministry exceeded its annual monitoring target, covering 261 projects versus a goal of 240.
On energy, petrol and diesel prices declined 5% since March 2024, while electricity tariffs saw an overall 35% cut, including a 69% reduction for the 51-100 unit slab.
Only uplift-oriented projects be included in PSDP: minister
On the diplomatic front, Iqbal highlighted Pakistan's strengthened global standing, citing recognition of its position on regional tensions and improved passport ranking, which moved from 113th to 100th since 2021.
He also announced the launch of the URAAN Overseas Summer Internship Programme, through which 31 Pakistani students from top global universities are working on national development projects.
'The data shows Pakistan is regaining macroeconomic stability, with inclusive and sustainable growth back on the agenda,' Iqbal added.
