Federal govt convenes APCC to finalise 2024-25 fiscal budget

The Federal Government has convened the Annual Plan Coordination Committee (APCC) meeting today to finalise the budget for the upcoming fiscal year 2024-25. This pivotal gathering is set to approve the Public Sector Development Programme (PSDP) and the national development outlay.

The APCC will deliberate on the annual macroeconomic plan and development programme, crucial for steering the country’s economic policies and infrastructure projects. According to inside sources, the planning ministry has drafted two comprehensive proposals for the PSDP, with financial requirements amounting to Rs2.44 trillion for 1,370 development projects.

The first proposal outlines a demand for Rs1.17 trillion to fund 248 specific projects. In contrast, the second proposal requests Rs1.50 trillion to support 628 initiatives. A significant portion of the budget, Rs769 billion, is earmarked for projects under foreign funding, prioritising those nearing completion.

Additionally, the ministry has proposed allocating Rs71 billion for new development projects and Rs328 billion for ongoing ones. Public-private partnerships are expected to contribute Rs200 billion to these endeavours, and Rs108 billion is suggested for non-specific projects.

The finance ministry will play a critical role in allocating the development budget, ensuring it aligns with the government’s funding capacity and investment priorities. Key areas for investment will be determined to maximise economic growth and development.

Economic targets for the next fiscal year include a GDP growth rate of 3.7 per cent and an inflation rate of 11.8pc. These targets reflect the government’s efforts to stabilise and stimulate the economy amidst various challenges.

Reflecting on last year’s fiscal decisions, the APCC had approved a national development outlay of Rs2.6 trillion, with Rs950 billion dedicated to the federal PSDP. Federal Planning Minister Ahsan Iqbal expressed optimism about invigorating projects under China’s Belt and Road Initiative (BRI).

“The government is keen to form joint ventures in renewable energy, agricultural production, and to attract Chinese companies to relocate to Pakistan,” said Iqbal. He emphasised the significance of his recent visit to China, where he engaged with senior Chinese leaders, noting their strong interest in reviving and advancing the China-Pakistan Economic Corridor (CPEC).

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