The Annual Plan Coordination Committee (APCC) has recommended a budget of Rs1,221 billion for the federal development program for the fiscal year 2024-25, acknowledging severe financial constraints and reduced funding under the International Monetary Fund (IMF) program.
In a meeting chaired by Deputy Chairman of the Planning Commission, Dr. Mohammad Jehanzeb Khan, the APCC approved the Public Sector Development Program (PSDP) at Rs1,221 billion. The GDP growth rate was projected at 3.6%, with inflation expected to be at 12%.
Key highlights of the proposed budget include a reduction in discretionary funding for parliamentarians under Sustainable Development Goals (SDGs) and the discontinuation of funding for the Earthquake Reconstruction & Rehabilitation Authority (ERRA). Furthermore, there is no indication of Annual Development Plans (ADPs) for several regions including Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, and Azad Jammu & Kashmir for the upcoming budget.
Out of the proposed allocation, Rs877 billion is earmarked for infrastructure, reflecting a significant increase from the previous year’s allocation. However, the social sector budget has been reduced to Rs83 billion, and funding for special areas such as AJK and GB stands at Rs51 billion. Additionally, allocations for merged districts and Science & Information Technology have been increased.
The APCC also discussed the challenges faced in formulating Ministry/Division wise Indicative Budget Ceilings (IBCs) for PSDP 2024-25, including liability rollover from the previous fiscal year, thin spreading of allocations, rising throw-forward, and additional demands for important projects.
Efforts are being made to streamline the release of funds for federally funded projects executed by provinces to ensure uninterrupted progress and utilization of allocated funds. The Finance Division, in collaboration with the Planning Commission, has devised procedures like the Asaan Assignment Account 2020 to facilitate the timely release of funds and financial reporting for provincially executed projects.
