THE approval of the national development outlay of Rs4.083 trillion by the Annual Plan Coordination Committee (APCC) for the upcoming fiscal year offers a mixed picture.
The federal development budget has been set at just Rs1 trillion—a figure that continues the downward trend witnessed in recent years.
This declining allocation is largely attributed to stringent fiscal constraints under the International Monetary Fund (IMF) program.
As a result, 118 projects have been dropped from the Public Sector Development Programme (PSDP), limiting the federal government’s ability to push forward critical national initiatives.
In contrast, provincial development budgets have seen a notable rise, now totaling Rs2.8 trillion—an increase of over 180 percent compared to the federal outlay.
While this shows that provinces are stepping up, it also underscores the urgent need for effective coordination between the center and provinces.
As emphasized by the Minister for Planning and Development during the APCC meeting, development efforts must be synergized to ensure the timely completion of national priority projects.
Key infrastructure ventures, such as the Diamer Basha Dam, must be given the highest priority.
This project is vital not only for enhancing water storage capacity but also for long-term food and energy security.
Its timely completion requires the allocation of maximum funds.
Similarly, the Sukkur-Karachi Motorway—integral for improving connectivity and trade logistics—must receive the funding it needs to stay on track.
Moreover, the practice of federal allocations to devolved subjects must come to an end.
With provinces constitutionally mandated to handle certain sectors, federal resources should not be spread over areas that lie outside its primary domain.
This realignment would free up fiscal space at the federal level, enabling more focused investment on strategic, cross-regional initiatives.
Enhanced revenue collection is imperative to expand the development envelope.
At the same time, private sector participation must be actively sought—through public-private partnerships, regulatory incentives, and investment-friendly frameworks—to accelerate the implementation of critical infrastructure projects.
Development spending is not merely an expenditure; it is an investment in the country’s economic future.
The development plan, though constrained, offers a path forward if managed wisely.
Through strategic coordination, smart prioritization, and broader stakeholder engagement, development outlays can serve as the engine of inclusive growth, employment generation and national progress.
