Pakistan Limits PSDP 2025-26 to 2% Under IMF Commitments
The Ministry of Planning, Development and Special Initiatives has announced that the Public Sector Development Programme (PSDP) for 2025-26 will be capped at 2%, instead of the 10% suggested by the International Monetary Fund (IMF).
Federal Secretary for Planning, Awais Manzur Sumra, informed the Senate Standing Committee on Planning, chaired by Senator Quratulain Marri, that the decision was made due to limited financial resources. He explained that the government will focus mainly on ongoing national projects rather than launching new ones.
During the review of PSDP 2024-25, around 344 projects worth Rs2.52 trillion were either completed or closed, reducing liabilities by approximately Rs2.16 trillion. Although new projects will still have a 10% cap, the effective allocation for 2025-26 remains just 2% because of existing financial commitments.
Sumra also clarified that recommendations for Parliamentarians’ schemes come under the Cabinet Division. He added that the government will give priority to high-impact and fast-moving mega projects, with better management through automation tools, re-appropriations, and technical supplementary grants.
Discussing the IMF’s Diagnostic Report, Sumra noted that the Fund pointed out problems such as poor project selection, unnecessary delays, cost increases, and weak protection of funds.
Senator Quratulain Marri supported the focus on finishing existing projects before starting new ones. She also welcomed the launch of the Intelligent Project Automation System (IPAS), which will improve planning, budgeting, and timely release of funds through digital integration.
