Islamabad: The government is expected to allocate PKR 600 billion for the Public Sector Development Programme (PSDP) in the upcoming budget session, a news source reported. The executive has yet to reach a final decision on the matter since the country is still dealing with the COVID-19 lockdown.
According to details, the budget will include PKR 530 billion for core projects being executed under PSDP, while the finance ministry will administer the remaining PKR 70 billion.
Due the coronavirus and its impact on the economy, the PSDP budget for Fiscal Year 2020-21 will be PKR 101 billion (14.4% less than the budget allocations made for Fiscal Year 2019-20). However, the actual spending in FY 2019-20 has just been PKR 525 billion due to the lockdown. Similarly it is expected that the economic activities will remain relatively slow during the first quarter of FY 2020-21, which will limit the spending by government.
