Islamabad Chamber of Commerce & Industry has shown great concerns over the government move to make a big cut of Rs.121 to Rs.143 billion in the Public Sector Development Program (PSDP) bringing it down from Rs.421 billion to Rs.275 billion or to Rs.300 billion and urged the government to reverse this decision as it will retard the country’s economic progress.

Zahid Maqbool, President, ICCI said that the other countries are enhancing spending on development ventures to accelerate and sustain their economic growth and Pakistan should also make heavy investment in development projects to improve the poor infrastructure, create more jobs and to stimulate the economy.

However, he said that such a large scale reduction in development expenditures will go against the larger national interest as it will slow down the economic revival and adversely affect government’s efforts aimed at job creation and poverty alleviation.

He said government has many options to cope with fiscal constraints and one good option for it is to bring marked simplicity in its lavish lifestyle along with cutting all non-essential & non-developmental expenditures to avoid any cut in PSDP, which will dampen growth prospects of the country.

He said the country is already passing through a sluggish economic performance translating into shortfall in projected tax revenue. In this situation, reduction in development budget will take a heavy toll on a number of mega infrastructure projects including power generation, transport, urban development and irrigation sectors etc. which are vital for sustainable growth of the economy.

Zahid Maqbool said that cut in PSDP will severely affect the industrial, manufacturing and agriculture sectors as these sectors are in need of improved infrastructure for development. It will also impede government’s efforts to achieve the projected economic growth of 3.3 percent.

He called upon the government to revise this decision and enhance expenditure on developmental activities so that the country could come out of current economic problems and could provide jobs to its teeming millions because in these days finding a job has become one of the most difficult task for youngsters, endangering social peace of the country.