Islamabad, June 2, 2025: Federal Minister for Planning and Development Ahsan Iqbal announced on Monday that more than 118 development projects, valued at over Rs1,000 billion, have been scrapped due to limited financial resources.
Speaking to the media after chairing the Annual Plan Coordination Committee (APCC) meeting in Islamabad, the minister said, “Today, we are faced with tough decisions regarding the scaling down of ongoing development initiatives. It is no longer possible to accommodate projects from all ministries within a constrained budget of Rs1,000 billion.”
Iqbal emphasized that in the current economic climate, only projects of strategic and national importance can be prioritized. “We must now take decisions that serve the national interest. Provinces, which have more financial resources than the federation, should take the lead in executing provincial-level projects,” he asserted.
The minister urged all stakeholders to contribute to the country’s development efforts, stating, “Everyone must play their part in steering Pakistan towards progress.”
Outlining key figures ahead of the federal budget, Iqbal revealed that the target size of the economy for the next fiscal year has been set at Rs129 trillion. The GDP growth target stands at 4.2%, while the export target has been fixed at $35 billion. Additionally, Rs150 billion has been earmarked for the social sector, and Rs70 billion allocated for the merged districts of Khyber Pakhtunkhwa.
Presenting the framework of the upcoming Public Sector Development Programme (PSDP), the minister said that fiscal space will be created for strategically significant projects under the “Uraan Pakistan” initiative. These include the Diamer Bhasha Dam, Sukkur-Hyderabad Motorway, the N-25 highway in Balochistan, and Phase II of the Karakoram Highway.
Iqbal highlighted the importance of better coordination between the Centre and the provinces to ensure timely completion of high-priority national projects. He also noted that projects nearing completion and those with foreign funding components would be prioritized in the upcoming PSDP.
Special allocations have also been set aside for underdeveloped regions including Azad Jammu and Kashmir, Gilgit-Baltistan, and the newly merged tribal districts, he added.
In conclusion, the minister said that the development budget had been carefully aligned with national priorities while staying within the constraints of available resources.
