Ahsan Iqbal 'stunned' over no consultation on development budget

ISLAMABAD: Federal Minister for Planning and Development, Ahsan Iqbal, has expressed his reservations over the approval of the development budget and annual plan without his consultation, ARY News reported citing sources.

According to sources, the deputy chairman of the Planning Commission, Jahanzeb Khan, did not consult Ahsan Iqbal before approving the PSDP worth Rs 1221 billion on May 31.

Moreover, the minister was also not consulted on the GDP growth targets of 2.4% for the current year and 3.6% for the next year, sources added.

Sources said that the Annual Plan Coordination Committee meeting is likely to be convened again, it was not held due to the non-formation of the National Economic Council.

The PSDP and annual plan will require approval from the Prime Minister-headed National Economic Council, sources added.

READ: Pakistan’s development budget gets affected by IMF demands

In a separate report, it was revealed that due to the International Monetary Fund (IMF) target, the development budget of Pakistan is reportedly being affected, ARY News reported on Friday.

According to recent documents, the development budget of Rs 950 billion only Rs 379 billion was utilized to meet IMF targets this year.

These budget reductions have damaged the various sectors including health, higher education, and infrastructure projects in Pakistan.

The already ongoing projects under the Public Sector Development Programme (PSDP) require Rs 9,800 billion, while the federal PSDP proposal is Rs 1,221 billion for the next financial year.

Over the past decade, the federal development budget has averaged Rs 630 billion. However, this budget has also been affected by a significant decrease in the value of the rupee and rising inflation.