Public Sector Development Programmes (PSDP)
The formulation of the Public Sector Development Program (PSDP) for Khyber Pakhtunkhwa (KP) involves meticulous coordination with various line departments to ensure the submission of relevant projects for the upcoming financial year. The Planning Commission of Islamabad shares guidelines with different KP departments to align future PSDP projections. Timely preparation and submission of PC-1s for PSDP schemes are crucial for the clearance of PDWP and approval from respective Federal Ministries and CDWP/ECNEC. Liaison with the Federal Government is essential for the inclusion of approved schemes in the PSDP.
also read New Registration Code for Ineligible Persons in Ehsaas ProgramSchema
CDWP Meetings
Regular attendance at CDWP meetings is mandatory. Coordination with different sections and high-level officials of the P&D Department, KP, ensures their availability during these meetings, facilitating smooth discussions and decision-making.
PSDP Review Meetings
Review meetings are conducted with concerned line departments and Federal Entities to evaluate KP-related PSDP schemes. Quarterly reviews with the Planning Commission in Islamabad and special meetings chaired by the Chief Minister of Khyber Pakhtunkhwa help in assessing the progress and addressing any issues promptly.
Financial Management of PSDP Projects
Effective financial management is critical for PSDP projects. This includes coordinating with the Federal Government for the allocation and timely release of funds, authorizing funds, and requesting the Finance Department, KP, for early release to ensure smooth execution of projects. Re-appropriation of funds and arrangement of supplementary grants from the Federal Government are also part of the process. Additionally, requests are made to Federal Ministries for enhancing allocations for important and fast-moving projects. Managing excess/surrender with provincial and Federal Finance Departments ensures efficient use of resources.
Annual Plan Preparation
The preparation of the annual plan for KP involves careful planning and coordination. Comments on the working paper for APCC and NEC meetings are provided, ensuring that all directives from the Prime Minister and Chief Minister, as well as any special tasks assigned by competent authorities, are adhered to.
Public Sector Development Programmes (PSDP)
Guidelines and Priorities for PSDP 2024-25
The formulation of PSDP 2024-25, along with projections for 2025-26 and 2026-27, is initiated to enable sponsoring Ministries, Divisions, and Agencies to prepare their development portfolios in line with the Public Finance Management (PFM) Act 2019. Key priorities include:
- Strategic and Core Ongoing Projects: Focus on water resources, transport, communications, and energy sectors.
- Projects with High Expenditure: Prioritize projects with 80%+ expenditure to complete them during FY 2024-25.
- Annual Phasing of Ongoing Projects: Ensure allocations are within the Indicative Budget Ceiling (IBC).
- Minimize New Projects: Limit new infrastructure projects due to fiscal constraints.
- Support Key Sectors: Allocate 10% of the development budget to new projects supporting exports, productivity, competitiveness, digital infrastructure, industrial development, agro-industry, blue economy, science & technology, and R&D.
- Approved Projects Only: Allocate resources to DDWP approved projects first.
- No O&M Projects: Avoid projects involving operations and maintenance expenditures.
- Foreign Aid Estimates: Firm up foreign aid estimates for FY 2024-25 with a two-year projection.
- Rupee Cover for Foreign Funded Projects: Allocate adequate rupee cover for foreign-funded projects.
- Provincial Projects: Exclude provincial nature projects unless in least developed districts.
- Project Directors: Ensure full-time Project Directors and set qualitative/quantitative monitoring indicators.
- PPP Projects: Prioritize Public-Private Partnership projects using PSDP funding as equity or viability gap.
Broader Instructions
Additional guidelines for preparing the project-wise budgetary proposals include ensuring unapproved projects are not part of the development budget, scrutinizing projects to align with government development objectives, and prioritizing ongoing projects of national significance. New projects addressing climate change effects are encouraged. Proposals should optimize limited PSDP resources to produce maximum outputs and achieve high-level development goals. Foreign aid-financed projects should clearly indicate the source and amount, and the cost-sharing basis between Federal and Provincial Governments should be specified. The Planning Division requests thorough reviews and accurate information for budget formulation.
also read Solar Panel SchemeSchema
Proposals from Public Sector Corporations
Public sector corporations and autonomous bodies are requested to provide detailed development programs financed with their own resources. This includes a brief project profile and core objectives to ensure transparency and effective resource allocation.
Quick Details
| Category | Details |
| Focus Sectors | Water, Transport, Communications, Energy |
| Projects with 80%+ Expenditure | Priority to complete in FY 2024-25 |
| New Projects | 10% of development budget |
| Foreign Aid Estimates | Firmed up for FY 2024-25, with two-year projection |
| Provincial Projects | Exclude unless in least developed districts |
| Full-time Project Directors | Ensure placement |
| Public-Private Partnership Projects | Priority for funding as equity or viability gap |
This strategic approach aims to ensure efficient use of resources, timely completion of projects, and balanced regional development through effective public sector investment.
