F.P. Report
ISLAMABAD: Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal has stated that more than half of the national budget will be spent on debt repayment, and over 118 unnecessary or low-priority projects have been discontinued.
He was addressing a key meeting of the Annual Plan Coordination Committee (APCC), which he chaired.
The meeting was attended by Federal Minister Khalid Maqbool, various federal secretaries, representatives from the State Bank of Pakistan, provincial governments, national and provincial institutions, and other senior officials.
Chief Economist Dr Imtiaz briefed participants on the upcoming annual development plan, economic roadmap, and priority targets.
In his speech, Ahsan Iqbal said that due to the economic challenges of recent years, the consistent decline in the national development budget has become a major issue.
“Expanding development funds is the need of the hour, as citizens expect improvements in health, education, water, electricity, and infrastructure from elected governments,” he added.
He pointed out that managing the development budget within current resources has become extremely difficult, with more than half of the federal budget going towards debt repayment. The development budget for the current fiscal year is set at Rs1,000 billion, making it impossible to include projects from all ministries.
He emphasized that reduced development budgets present challenges to economic growth, public welfare, and achieving national goals. Ahsan Iqbal stressed the urgent need for a nationwide campaign to curb tax evasion and expand the tax net, noting that Pakistan has one of the lowest tax revenue-to-GDP ratios in the world.
The minister revealed that over 118 inactive or low-priority projects have already been terminated, and only key national projects are being prioritized under the limited funds. Foreign-funded projects also remain a top priority in the Public Sector Development Programme (PSDP).
He announced that major projects like the Diamer-Bhasha Dam, Sukkur-Hyderabad Motorway, Chaman Road, and Phase II of the Karakoram Highway are of national importance, and their timely completion is vital for Pakistan’s future.
Ahsan Iqbal also highlighted that under the “Uraan Pakistan” program, workshops are being organized across all provinces to promote national cohesion. He acknowledged the need to increase the development budget over time rather than shrink it further.
He remarked that in 2018, the government was planning new projects, but today it is faced with tough decisions to cut down ongoing ones.
“Everyone must fulfill their responsibility towards national development. If any project has been left out, we apologize in advance,” he concluded.
