Islamabad Chamber of Commerce and Industry has shown concerns over a major cut in funds for the Public Sector Development Program (PSDP) as it would negatively affect the work being done on developmental projects and stop the economic growth of the country.
Islamabad Chamber of Commerce and Industry President Muzzamil Hussain Sabri said that enhanced spending on PSDP was vital to achieve sustainable economic development and improve living standards. However, the ad-hoc approach of our successive governments to make PSDP first casualty whenever they faced the problem of revenue shortfall has held the country back from realising its development potential.
He said the government has released only 41 percent funds (Rs.216.2 billion) for PSDP during the first seven months (July to January) of the current fiscal year, while under its disbursement policy it should have released at least 50 percent of the funds for PSDP during this period.
He said that the country’s PSDP for 2014-15 has already been slashed from the original Rs.525 billion allocation to Rs.477 billion, making a reduction of Rs.48 billion, apparently to meet the IMF criteria to restrict the budget deficit. However, it was not a wise approach as it would affect the pace of development works and increase poverty in the country.
He said there was a dire need to increase spending on infrastructure development to facilitate the growth of business activities. But, there were reports that the government might make another 22 per cent cut in PSDP that would bring more problems for the economy as lower development spending would negatively impact the growth of trade and industry, as well as reduce the living standards of the people.
