Pakistan Ministry Of Planning Halts New Psdp Projects Funding

In a significant development, the Ministry of Planning, Development and Special Initiatives has indicated that it is unlikely to allocate fresh funds for new projects under the Public Sector Development Programme (PSDP) for the fiscal year 2026-27 due to severe financial constraints. During a parliamentary meeting, officials revealed that even ongoing projects might not receive the necessary allocations. Humayun Khan, Additional Secretary (Development) of the Power Division, stated, "The division had been directed not to recommend new projects for PSDP 2026–27," highlighting the dire situation. The committee also noted that the Ministry of Water Resources had requested Rs 190 billion for the Mohmand Dam but only Rs 20 billion had been committed, showcasing a drastic reduction in overall development allocations.