ISLAMABAD (Web Desk) - The federal development budget has been significantly reduced by Rs 173 billion due to pressure from the International Monetary Fund and the negative impact of Middle East tensions.
The Public Sector Development Programme (PSDP) has decreased from Rs 1,000 billion to Rs 837 billion, with Rs 100 billion cut in the first phase and an additional Rs 73 billion reduced in the second phase.
According to officials from the Ministry of Planning, development expenditures were reduced to meet IMF conditions, while ongoing tensions in the Middle East have added further pressure on the budget.
The largest reduction was made in road construction funds, which were cut by Rs 38 billion. Funding for water projects decreased by Rs 23 billion, while provincial schemes saw a reduction of Rs 22.5 billion.
However, most schemes of the Ministry of Planning and members of parliament have been retained. For the current fiscal year, over Rs 1,000 billion development budget had initially been approved, but only 41 percent has been utilized during the first nine months.