Islamabad - The Annual Plan Coordination Committee (APCC) is meeting here on Friday (May 27) to clear Public Sector Development Programme (PSDP) of around Rs 655 billion for fiscal 2016-17.

The meeting of Annual Plan Coordination Committee (APCC) will set macroeconomic indicators for next fiscal and will recommend Public Sector Development Programme (PSDP) for the approval of National Economic Council (NEC). The date for the meeting was changed thrice, first it was convened for May 23, then changed to May 28 but finally it is scheduled for May 27, an official source told The Nation.

The current budget ceiling is not meeting even 33 percent, of the PSDP of Rs 1950 billion, demanded by the Ministries, departments and divisions for their projects, the source said. This was the reason that the Ministry of Planning, Development and Reforms in a letter to Prime Minister Nawaz Sharif has demanded the increase in allocation of the Public Sector Development Programme (PSDP).If the demanded increase, of Rs 200 billion, was allowed by the Prime Minister,  even then a lot of projects will be dropped from the PSDP, the source said.

The source said that PSDP has been finalized now and the Projects details will be send on Monday (today) to their respective provinces for consideration.  

The total budget is likely to reach to Rs 800 billion as the Ministry of Finance has allowed allocation of PSDP to the tune of Rs655 billion for federal share in fiscal 2016-17 and Rs145 billion for the repatriations  of Temporary Displaced Persons (TDPs) and other special initiatives of the PML(N) government, such as Prime Minister Youth loan, etc.

A major chunk of PSDP allocation will go for the China Pakistan Economic Corridor (CPEC) related projects, the source said. Around Rs455 billion will go for the infrastructure projects while Rs200 billion is being earmarked for energy projects, the source said.

The government has already convened a meeting of the National Economic Council (NEC) on  May 30 to approve the macroeconomic framework and development plan for the next fiscal year. The NEC meeting will be chaired by Prime Minister Nawaz Sharif and attended by the four chief ministers, AJK prime minister, Gilgit Baltistan (GB) chief executive and the federal ministers. Governor Khyber Pakhtunkhwa will attend the meeting as the representative of FATA.

Majority of departments and divisions are already informed that there would be no increase in their development budget as a major chunk of the projects are going toward the energy and infrastructure projects related to the China-Pakistan Economic Corridor (CPEC).Even budget for the Water which is one of the most important sector is not being enhanced, the source said.