Govt cuts proposed PSDP down to size

Hours before its approval by the National Assembly, the government has decided to cut the proposed Public Sector Development Programme (PSDP) of Rs1.4 trillion by Rs250 billion in a bid to create fiscal space for withdrawing some taxes without jeopardising the expected International Monetary Fund (IMF) deal. Government sources told The Express Tribune that the finance ministry had conveyed its decision to slash the proposed development funds for the fiscal year 2024-25 by a record amount of Rs250 billion. The reduction in the size of the PSDP even before its approval is over 17% of the sum approved by the National Economic Council two days before the budget.