ISLAMABAD - Planning Commission (PC) Deputy Chairman Dr Nadeem ul Haq Tuesday said that PC has decided to take the Public Sector Development Programme (PSDP) as a mode for encouraging private investments specially in the area of key infrastructure. This he said after the launching of Analytical Review of the PSDP Portfolio. He said that for decades, we have looked upon the PSDP for the provision of key infrastructure to stimulate vigorous private investment for achieving the objectives of sustainable economic growth. The PSDP has delivered some key infrastructure such as dams, power stations, roads, universities etc. Yet sustainable growth has eluded Pakistan, he added. With this in mind we are beginning to take a long, hard look at the PSDP with view to understand what is the return on the investment the taxpayer is making said Dr Haque. PSDP delivery suffers from difficulties like the inadequacies of fiscal policy and weak Planning Process. PSDP incentives project development but not public service delivery, productivity and no attempt is made to deliver real benefits to the people. Since outcomes are not monitored or reviewed and because of the continuous pressure to initiate projects several weaknesses remain in project development and execution, highlighted by Dy Chairman. The report analyses the current portfolio of investments in the PSDP costing Rs4.1 trillion with a view to identify issues hindering its effective implementation. PSDP contributes towards economic development of Pakistan. Therefore, emphasis has been given on its rationalisation in light of its increasing throw-forward of over Rs3.0 trillion of approved projects in backdrop of fiscal constraints. The most critical issues are including what is the consequence of 18th Amendment and 7th NFC Award on federal PSDP, how to address Rs3.0 trillion throw-forward, can PSDP finance mega infrastructure projects, like Basha Dam. Cost/ time overruns of projects occur due to consecutive cuts in PSDP, backlog of approved projects has been increasing.