ISLAMABAD: Prime Minister Shehbaz Sharif on Monday reviewed the proposed Rs1.51 trillion Public Sector Development Programme (PSDP) for fiscal year 2026–27, with an emphasis on fully utilising development funds, especially by sectors that were performing satisfactorily.

According to an official from the Planning Division, it was an initial meeting on the PSDP ahead of the forthcoming federal budget, and further meetings will also be held on the matter.

The PSDP will be finalised in an upcoming meeting on the Annual Development Programme (ADP).

The official told Dawn that the prime minister has directed that more funds be allocated to ministries and divisions performing well, while funding for those lagging behind be reduced.

According to an official press release, PM Shehbaz emphasised that public money should be invested in development projects that ensure tangible results. The premier reviewed the current fiscal year’s development budget and proposed projects under the upcoming PSDP for the next fiscal year.

He added that ministries demonstrating better performance would be given priority in the allocation of development funds. He said water reservoir and hydropower projects were among the government’s top priorities in development spending, stressing that projects aimed at enhancing water storage capacity would be accorded high priority.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Ahsan Iqbal, Ahad Khan Cheema and Muhammad Aurangzeb, among others, as well as senior officials.

The prime minister also appreciated Finance Minister Aurangzeb for the successful launch of Panda Bonds and their positive reception in the market.

During the briefing, PM Shehbaz praised the performance of the ministries of railways, information technology and power. He also directed authorities to encourage public-private partnerships in development projects.

The meeting was informed about the progress made on the current PSDP and was also briefed on proposed development schemes and the required funding for the next fiscal year.

The relevant officials also presented updates on major national water storage and hydropower projects, including Dasu Dam, Diamer-Bhasha Dam and Mohmand Dam.

Last year, the government restricted financing for new projects under PSDP to just two per cent for the year, in line with conditions of the ongoing Extended Fund Facility (EFF) of the International Monetary Fund (IMF).