In a significant move to appease the International Monetary Fund, the caretaker government has decided to terminate a total of 137 development projects under the Public Sector Development Program (PSDP) with a combined value of Rs. 116 billion.
Sources informed ProPakistani that work on these 137 development projects, initially included in the PSDP, has not even commenced. The Planning Commission has confirmed that the development budget for the current financial year will be reduced to Rs. 834 billion. This is a significant reduction from the initially allocated amount of Rs. 950 billion.
The cuts are widespread, affecting projects in various sectors including those sanctioned by the Ministry of Education, Ministry of Health, Food Security, and other key ministries. Sources said the reduction in development projects and expenditures is seen as a necessary step to address financial challenges and maintain control over the fiscal deficit.
Sources added that the terminated projects will not be reconsidered or included in the budget for the fiscal year 2024-25.
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