Senate Committee Reviews PSDP 2025–26 Amid Budget Constraints and Calls for Devolution and National Cohesion

Islamabad – The Senate Standing Committee on Planning, Development, and Special Initiatives, chaired by Senator Quratulain Marri, convened its first session at Parliament House to review the Public Sector Development Program (PSDP) for the fiscal year 2025–26. Secretary Awais Manzur Sumra briefed the Committee on the 2024–25 PSDP, which included 1,071 projects valued at Rs. 1.4 trillion, though only Rs. 1.1 trillion was allocated. With the shrinking PSDP and increasing rupee demand for foreign-funded projects, the secretary warned that it may take up to 10 years to complete ongoing schemes. For 2025–26, the Committee was informed that 801 projects have been proposed, with Rs. 1,000 billion allocated against a demand of Rs. 2,436 billion. This includes 82 foreign-funded, 88 strategic, 172 completion-targeted, and 68 new projects. Infrastructure and social sectors saw budget cuts, while allocations for production, science, IT, and governance also declined. Federal Minister Ahsan Iqbal stressed the urgency of revising the NFC Award based on demographics, noting that rising population pressures and programs like BISP, now at Rs. 716 billion, leave little fiscal room for development. He advocated for devolving governance to district levels and highlighted the health crisis due to stunting, hepatitis, and diabetes. The Committee agreed on the need for national cohesion and provincial responsibility in shared initiatives like poverty alleviation. Officials from the Board of Investment, Cabinet Division, and Climate Change Division also presented updates, and the Committee recommended full funding of Rs. 1.68 billion for the Islamabad Technopolis project. In its second session, the Committee reviewed PSDP allocations for the Defence Production, Interior, and Establishment divisions. Defence Production reported two major projects totaling Rs. 11.46 billion, while the Establishment Division faced scrutiny over a Rs. 3 billion proposal for FPSC digitalization, with the Committee urging cost-effective alternatives. The Interior Ministry reported 15 projects worth Rs. 40.73 billion, including new forensic and rural infrastructure schemes. The briefing from the Ministry of Federal Education and Professional Training was deferred due to absence. Attendees included Senators Zeeshan Khanzada, Jam Saifullah Khan, Saadia Abbasi, Dr. Afnan Ullah Khan, and Shahadat Awan, along with senior officials and Federal Minister Ahsan Iqbal.