Key Points
- Pakistan to fund dams and hydropower projects on priority
- Stronger-performing ministries will receive greater funding support
- Public-private partnerships urged in infrastructure development
- Meeting reviews the upcoming Public Sector Development Programme
ISLAMABAD: Pakistan’s government has decided to prioritise water storage and hydropower projects in its upcoming federal development budget, as Prime Minister Shehbaz Sharif shifts focus on projects with “guaranteed results” and stronger economic impact.
The decision was taken during a high-level review meeting in Islamabad on Monday on the current year’s Public Sector Development Programme, or PSDP.
The meeting under the Prime Minister also considered Pakistan’s main federal development and infrastructure spending framework, and planning for the next fiscal year’s budget allocations.
According to the Prime Minister’s Office, Sharif said ministries demonstrating stronger implementation performance would receive priority funding for development schemes.
“The Prime Minister requires a results-based approach to future public spending,” the Finance Ministry officials said.
The meeting reviewed proposed development projects and financing requirements for the next fiscal year.
The meeting paid particular attention to large-scale water reservoirs and hydropower schemes that are said to be critical for Pakistan’s long-term energy and water security.
Planning and Finance officials briefed the Prime Minister on progress in the construction of major national infrastructure projects, including the Dasu Dam, Diamer-Bhasha Dam and Mohmand Dam.
Pakistan has increasingly prioritised dam construction in response to rising electricity demand, water shortages and climate-related stress on its agricultural economy.
Hydropower projects are also viewed as a means of reducing reliance on imported fuel for electricity generation.
Sharif called for maximum mobilisation of public-private partnerships in development projects.
According to the PM, the government wants to attract more private capital into infrastructure and public service delivery amid continuing fiscal constraints.
The prime minister also praised Finance Minister Muhammad Aurangzeb over the recent successful launch of Pakistan’s Panda bonds.
The Panda bond is a yuan-denominated sovereign debt instrument issued in China’s domestic financial market that received an unprecedented response. The launch of the Panda bond is a government’s endeavour to diversify external financing sources.
During the meeting, Sharif commended the performance of the ministries overseeing railways, information technology and power, according to the official statement.
