Islamabad : The First Session of Senate Standing Committee on Planning Development and Special Initiatives, Chaired by Senator Quratulain Marri, convened at Parliament House to review the Public Sector Development Program PSDP for the Year 2025-26.
At the outset,Secretary for Planning Development and Special Initiatives,Awais Manzur Sumra, provided a backdrop of PSDP for the year 2024-25. He apprised that a total of 1,071 projects were included in PSDP 2024-25 with an estimated cost of around Rs. 1.4 Trillion. However, the planning ministry was only allocated around Rs. 1.1 Trillion. Out of 1,071 projects, 85 were Foreign funded, 30 projects falls under the High Impact category,06 Projects were included for Azad Jammu and Kashmir,Gilgit Baltistan and Newly Merged Districts and 80 ongoing projects made part of PSDP 2024-25. He reiterated that the PSDP size has been reduced to roughly 5pc for the second time in the country’s history. With the current level of reduced PSDP allocation and the increasing demand of rupee cover for Foreign Funded Projects, an estimated period of 10 years is required to complete the on going projects, he added.
Senator Quratulain Marri asserted that the projects initially initiated by the Pak PWD was handed over to the provinces after the disbandment of Pak PWD,except the projects of Sindh province. To which,Federal Minister Ahsan Iqbal informed that the projects was handed over to Pakistan Infrastructure Development Company, successor of Pak PWD, on the request of sponsors.
While discussing the PSDP for 2025-26, Secretary PD&SI remarked that the Government has prioritized the completion of on going projects while capped around 348 projects having nominal progress for the current year.
Discussing the Projects for the Year 2025-26, informed the committee that a total of 801 projects are included in PSDP 2025-26, with an estimated allocation of around Rs. 1,000 Billion against the demand of Rs. 2,436 Billion by the ministries. Of these Projects,82 projects are foreign funded,88 projects falls under the strategic and important category and 172 are those projects which are estimated to be completed in 2025-26,384 ongoing projects, 07 projects for Azad Jammu and Kashmir and Gilgit Baltistan and includes only 68 New projects.
Moreover, Secretary PD&SI provided the sector wise breakdown of PSDP 2025-26. He stated that the cost of Infrastructure related projects have been reduced from Rs. 661 Billion (2024-25) to Rs. 629 Billion. Likewise, the cost of Social Projects has been reduced to Rs. 167 Billion as compared to Rs. 200 Billion in the ongoing PSDP. Similarly,the Cost of Production Sectors,Science and IT and Governance related projects have been to Rs. 8 Billion, Rs. 38 Billion and Rs. 11 Billion from Rs. 15 Billion,Rs. 62 Billion and Rs. 17 Billion respectively.
Furthermore, Federal Minister for Planning Development and Special Initiatives,Ahsan Iqbal highlighted key factors playing a critical role in National Development Outlay. He reiterated that under the current scenario Provinces development space has been growing rapidly leaving a nominal space for the Federal outlay. He called for the revision of NFC on demographic basis as the rapidly growing population creating a major hindrance for national development. He asserted that the NFC share should also be given to Azad Jammu and Kashmir and Gilgit Baltistan as currently the Federal Government is bearing the burden of AJ&k and Gilgit Baltistan. He remarked that the annual budget of BISP alone has rose to Rs. 716 Billion leaving minimal financial space for other sectors. He urged the Provincial contribution in BISP budget as the subject poverty alleviation falls under the provincial list.
Federal Minister Ahsan Iqbal called for further devolution of powers to district level as the 18th amendment has shifted the country to “Centre Heavy Federation to Centre Heavy Provinces but it could not deliver the desired. He reiterated that it is quite impossible to govern the provinces from the provincial capitals and there is dire need for further devolution of power as the country lagged in providing basic health facilities and the nation still has highest rank in Hepatitis,Diabetes and stunting. Chairperson Committee agreed to the Federal Minister Ahsan Iqbal key insights and called for National cohesion for tackling staggering increasing population.
The Committee was also briefed by the Board of Investment,Cabinet Division and Climate Change division about the current status of ongoing projects and projected allocation of funds for these projects in PSDP 2025-26.However, the committee recommended complete allocation of around Rs. 1,678.878 Million against the project named Infrastructure Development of Islamabad Techno polis.
In the Second Session of Senate Standing Committee on Planning Development and Special Initiatives, the Committee reviewed the PSDP Projects of Defence Production,Interior Ministry and Establishment Division
Officials of Defence Production briefed the committee about the ongoing schemes of the ministry under the PSDP 2025-26. Officials stated that there are only two schemes ongoing namely Establishment of Project Management Cell for creation of Shipyard at Gwadar and Infrastructure up gradation of KS&EW and the total cost of these projects is around Rs. 11,463 Million and a total expenditure incurred on these projects is around Rs. 9,287 Million. Under the PSDP 2025-26, a total of Rs. 1,786 Million is allocated for these projects.
Moreover, the Establishment Division officials apprised that,as of now, a total of three schemes are on going namely with a total cost of Rs. 1,331 Million. The expenditure incurred on these projects is around Rs. 87.500 Million. However, the Committee raised eyebrows on estimated cost Rs. 3 Billion for the new project named as Digitalization of in House Processes&Automation of Examination System of FPSC. The Committee suggested that the division should explore cheaper ways for the completion of project as it will take around ten years for completion of such projects under the current fiscal crunches.
Furthermore, the Committee was briefed about the on going and new schemes of the Interior Ministry. Officials stated that a total of 15 schemes relating to enhance the security and delivery system of the Interior Ministry was made part of PSDP 2025-26. The total cost of these projects is around Rs. 40,736 Million with an expenditure of around Rs. 14,545 Million. Moreover, three new schemes aimed to built Forensic Facilities for NFA and development of rural infrastructure of Islamabad has also included in PSDP 2025-26.
The Committee deferred the briefing of Federal Education and Professional Training due to absence of concerned officials.
In attendance were Senators Zeeshan Khanzada,Jam Saifullah Khan,Saadia Abbasi,Dr. Afnan Ullah Khan,Shahadat Awan,Federal Minister for Planning Development and Special Initiatives Ahsan Iqbal,Secretary for Planning Development and Special Initiatives Awais Manzur Sumra and Senior Officials of relevant departments.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
