Government Implements New Policy Direction for Rationalising Public Sector Development Programme
The government, under the guidance of the International Monetary Fund (IMF), has initiated a strategic overhaul of the Public Sector Development Programme (PSDP). This new policy direction mandates that all future projects must demonstrate strong economic and financial rationale, taking into account the current balance of payments challenges. Ministries have been instructed to ensure timely completion of schemes to reduce financial burdens and ensure practical implementation.
The Planning Minister, Ahsan Iqbal, chaired a meeting where the government outlined the need for project selection criteria and annual limits on new projects entering the PSDP portfolio. This development aligns with the conditions set by the IMF as part of the $7 billion Extended Fund Facility (EFF) approved recently.
The government aims to enhance budgetary discipline, transparency, and confidence in budgetary spending. Measures include quarterly reports comparing budget projections with actual executions and managing economic and financial risks, especially for foreign-funded initiatives.
With a focus on project management and financial reforms, the government is committed to streamlining the PSDP pipeline and strengthening governance frameworks for Public Private Partnerships (PPP). This proactive approach signifies the government’s dedication to efficient and effective development project management.
Source: Dawn, October 25th, 2024
Source link