Development budget hits historic low, warns Ahsan Iqbal

Planning Minister Ahsan Iqbal has deplored a massive decline in allocation of funds for development, stunting economic growth and job creation and has linked clearance of new foreign-funded projects to prior certification for availability of additional rupee cover. The minister has conveyed to the Economic Affairs Division (EAD) that no new foreign-funded projects would be acceptable for consideration by the Central Development Working Party (CDWP) or Executive Committee of the National Economic Council (Ecnec) unless the Ministry of Finance (MoF) provides a no-objection certificate (NOC) along with allocation of additional local funds to cover foreign loans. The minister held a review meeting to assess the full-year performance of the Public Sector Development Programme (PSDP) 2024-25, along with the first quarter review of authorisation and expenditures under PSDP 2025-2026.