Muneeb ur Rehman

Pakistan needs to achieve a robust GDP growth rate, considering the slow performance of its economy in recent years. The increased allocation of funds for the Public Sector Development Program (PSDP) will act as a catalyst for various industries, said Secretary of Planning and Development Gilgit-Baltistan Asif Ullah while talking to WealthPK. As per the Annual Budget document published by the Ministry of Finance, the federal government has allocated Rs 1,150 billion for the PSDP in the ongoing Fiscal Year 2023-24, reflecting a growth of 28.02% compared to the preceding year's PSDP. Asif Ullah said the industrial growth rate remained stagnant at approximately 20% of the GDP due to the weakened economic conditions, resulting in diminished demand for industrial products.

“The construction and implementation stages of projects play a crucial role in generating higher demand for inputs from the industrial sector. This, in turn, will increase revenues for the interconnected industries within the supply chain, including cement, iron, wood, and steel,” he added. For provinces, an amount of Rs1,559 billion has been allocated this year, indicating a rise of Rs128 from the previous allocation of Rs1,431 billion. The PSDP places emphasis on construction and advancement of vital infrastructure, including but not limited to roads, bridges, ports, airports, railways, energy projects, and telecommunications networks.

These strategic investments in infrastructure play a pivotal role in enhancing connectivity, facilitating trade, attracting investments, and boosting productivity across diverse sectors of the economy, he said. Discussing the benefits of private sector collaboration in the PSDP projects, Asif Ullah said such collaborations can heighten business activities and increase investments. He mentioned that the GDP growth resulting from an increase in the PSDP will also have a positive impact on the government revenue, as a higher growth rate is always accompanied by high tax collection. In summary, the PSDP projects assume a crucial role in stimulating economic growth by enhancing infrastructure, generating employment opportunities, and nurturing industry development.

Credit: INP-WealthPk