Finance Division urged to enhance IBC for PSDP-funded projects by Rs200 billion.

ISLAMABAD -- The Planning Ministry has requested Finance Division to enhance the indicative budget ceiling (IBC) for the Public Sector Development Programme funded projects by Rs200 billion to Rs900 billion from the earlier recommended Rs700 billion for the upcoming fiscal.

The request, if approved, will take the total PSDP allocations to Rs 1100 billion which includes Rs 900 billion PSDP funded projects and Rs 200 billion Viability Gap Fund (VGF) for public private partnership (PPP) projects, for the upcoming Public Sector Development Programme (PSDP 2023-24), official source told The Nation.

Initially the Planning Ministry has received an indicative budget ceiling of Rs 900 billion, including Rs200 billion Viability Gap Fund (VGF) for public private partnership (PPP) projects, for the upcoming PSDP 2023-24. The total IBC is Rs 900 billion provided by Finance Division which includes Rs 700 billion for PSDP funding of the federal ministries/divisions projects, while Rs 200 billion as Viability Gap Financing (VGF) for the PPP mode projects, the official said.

The source said that the IBC of Rs 700 billion for the Ministries/Divisions is almost 4 percent less than the allocation of development funds for the ongoing fiscal year; however, the IBC for the VGF allocation has been enhanced by Rs 127 billion from Rs 73 billion during the ongoing fiscal to Rs 200...