Chairperson Senate Standing Committee Quratul Ain Marri questions the 2 percent growth projection

ISLAMABAD, June 13 (SABAH): The Senate Standing Committee of Planning, Development, and Special Initiatives chaired by Senator Quratul Ain Marri was held on Thursday in Parliament House, Islamabad.

The meeting began with a briefing on Pakistan’s economy by the Secretary, Ministry of Planning, Development, and Special Initiatives Division. A 2.4 percent growth was reported for 2024, up from 0.2 percent the previous year, with a target of 3.6 percent for next year. The Chairperson questioned the 2 percent growth projection, which officers attributed to the production process. The current GDP is 106 trillion, with a target of 130.8 trillion for next year.

The officers also discussed savings, investments, inflation, fiscal developments, and external sector performance. Total investment is 13.1 percent, targeting 14.2 percent next year. National savings are 13.0 percent, targeting 13.3 percent next year. Inflation is 24.5 percent, expected to drop to 12.0 percent next year. The fiscal balance is 3.7 percent this year.

Following this, the Secretary of Planning, Development, and Special Initiatives presented the Public Sector Development Program (PSDP), with a total federal development outlay of 2,709 billion rupees. The Secretary reported 1,100 ongoing schemes, 357 in the projection phase, and 313 allocated. He highlighted challenges like low PSDP allocation and rising demand for projects. Only projects compliant with PSDP and National Economic Council (NEC) directions are approved, according to the PFM Act 2019.

The Senior Joint Secretary from the Aviation Division then briefed on core and foreign-aided projects. He endorsed the Multan core project worth Rs. 50 million and noted that out of 8 radar systems in Pakistan, 3 are operational, and 5 need optimization. He expressed optimism about project outcomes by 2028. The chairperson inquired about cross-checking funding allocations, and the officers assured that a third party and the World Bank oversee the finalization.

The meeting also discussed and scrutinized the working of the climate division, commerce division, and revenue division. The members raised concerns over the projects that are included in PSDP but are not developmental in nature.

In attendance were Senator Attaur Rehman, Senator Zeeshan Khanzada, Senator Shahadat Awan, Senator Khalil Tahir, Senator Afnan Ullah Khan, Secretary, Planning, Development & Special Initiatives, and senior officers from the Ministry and Planning, Aviation Division, and Federal Board of Revenue (FBR).