Pakistan Unveils Phased Plan for Public Sector Development Amid IMF Deal

Pakistan's government plans a phased rollout of the Public Sector Development Programme over three years to ensure timely project completion and comply with IMF guidelines. The strategy aims to streamline current projects under the IMF's USD 7 billion Extended Fund Facility, enhancing fiscal discipline and transparency.

In a strategic move to align with the International Monetary Fund's requirements, the Pakistani government has announced a three-year phased plan for its Public Sector Development Programme (PSDP), as reported by the Dawn. This initiative aims to complete high-priority projects promptly and optimize the ongoing Rs 9 trillion development portfolio.

During a recent meeting chaired by Planning Minister Ahsan Iqbal, key decisions included shifting the PSDP review schedule from biannual to quarterly, a move intended to ensure adherence to development priorities. This meeting addressed the startling projection that, without change, full implementation of current projects could take over 14 years.

With only 105 of 1,071 projects close to completion, the government is now focused on financially viable projects to tackle fiscal challenges. The PSDP has shown slow fund utilization, with a release plan now in place to regulate expenditures. Reforms set by the IMF will focus on transparency and fiscal discipline, requiring public criteria for project selection by January 2025.

(With inputs from agencies.)