ISLAMABAD - The Planning Commission has demanded the provision of Rs 1.3 trillion ceiling for the PSDP 2018-19 against the ceiling of Rs 745 billion proposed by the finance division for the upcoming fiscal year.

“After receiving the demands of the ministries and divisions, we have realised that majority of the projects cannot be adjusted in Rs 745 billion and therefore we have demanded of the government that PSDP allocation may be increased to Rs 1.3 trillion, Secretary Planning Shoaib Siddiqui told a selected group of journalists here Friday.

"We have informed the ministries/divisions that the initial gross ceiling provided by the finance ministry is Rs 745 billion but only one voice is coming from them and that is to increase the size of PSDP, he added. When asked that when the ministries/divisions have utilised less than 50 percent of the allocated amount in the first three quarters of current financial year, then why the Planning Commission is requesting for increase in ceiling, the secretary responded that it is not their job to oversee the utilisation we look to the financial requirements of the ministries/divisions.

He said that NHA is asking for more than Rs 790 billion, besides there are some ongoing important projects of the ministries and some strategic projects where work has already been started or about to start, Siddiqui said.

However, he made it clear that there is no space for the new projects in the coming PSDP, unless a project is of vital national importance and verified by the accounting officer. He said that priority will be given to ongoing near to completion projects, CPEC projects and the projects related to western route of the corridor. Regarding Annual Plan Coordination Committee (APCC) meeting, he said, “We have requested the Planning Minister Ahsan Iqbal to convene the APCC meeting on 15th or 16th of April and we are waiting for his response. The tentative date for the National Economic Council (NEC) meeting is 20th April.”

When asked about Karachi Circular Railway project, he said that agreement in this regard will be signed between Sindh government and China. He said that the federal government has played its part and the Sindh government should also take some initiative.

Regarding the financing mode of the CPEC projects, he said, “The agreements we have signed with China will be honored, and China also very strongly believes in honouring the commitments, especially the written ones. Besides, we are also using diplomatic channels through foreign office, Economic Affairs Division and MOFCOM.” He said that planning minister will also accompany the Prime Minister on China’s visit and will stay there for discussing all the matters with Chinese political leadership.

He said that there is no issue in financing of the projects under CPEC except deciding the mode of the loans to be concessional or commercial.

He said that Pakistan is on the top of China concessional loan recipient list and when we talk about the financing of new projects on the concessional mode we are being told that Pakistan is the biggest recipient of the same.

Regarding railway Main Line-I project, he said, “Financial agreement in this regard has already been signed with China and now we are waiting for the ministry of railways response for the final approval of the project from the concerned forum.” He said that ML-I has already been declared a strategic project of Long Term Plan (LTP) by both China and Pakistan.