The federal government has announced plans to review the Public Sector Development Program (PSDP) for the 2024-25 fiscal year, focusing on empowering local governments and district administrations, while ensuring the responsible use of Corporate Social Responsibility (CSR) funds. According to informed sources speaking with Business Recorder, this move was made during a high-level meeting chaired by Prime Minister Shehbaz Sharif, attended by senior officials.
A key element of the meeting was the decision to conduct a comprehensive review of the 18th Amendment and the National Finance Commission (NFC) Awards. This review will consider updated census data in accordance with Article 160 of Pakistan’s Constitution. The government also plans to halt the introduction of any new PSDP uplift schemes for the upcoming year.
In addition to these developments, the meeting approved the establishment of National and Provincial Intelligence Fusion and Threat Assessment Centres. This initiative has received support from all provinces, including Gilgit-Baltistan (GB), Azad Jammu and Kashmir (AJK), and Islamabad Capital Territory (ICT). The government is also considering the introduction of a National Counter Violent Extremism Act to address increasing security concerns.
The federal government is taking steps to strengthen its security framework further, including the potential creation of a National Explosive Control Authority, which would operate as a federal subject with necessary legislation to be passed by Parliament. Furthermore, the government has decided to establish Implementation Committees at both federal and provincial levels, along with District Coordination Committees, to improve governance at the grassroots level. Notably, high-profile Pakistan Administrative Service (PAS) officers will be appointed in newly merged districts, following the model set by Balochistan.
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Another significant measure includes enhancing the capacity of police forces and Counter-Terrorism Departments (CTDs) through technological upgrades, training, and the posting of senior officers. The government is also focusing on the de-politicisation of police and civil administration to improve efficiency and transparency.
Security concerns will be tackled by dismantling illegal spectrum activities, addressing the crime-terror nexus, and launching a large-scale anti-encroachment drive targeting illegal settlements, particularly in the suburbs of major cities. In line with these efforts, the government has decided to extend federal jurisdiction over key institutions such as the State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA), and the Anti-Narcotics Force (ANF) in Azad Jammu & Kashmir and Gilgit-Baltistan. Additionally, plans are underway to establish “safe cities” in major urban centers to enhance public safety.
The government is also focusing on strengthening the legal framework to address issues related to violence, social media abuse, and anti-state activities. Strict laws will be enforced to punish perpetrators, and the registration of madaris (religious schools) will be pursued, along with reforms in both madaris and mosques.
Finally, the government has decided to make terrorism a federal subject. As part of this plan, the National Counter Terrorism Authority (NACTA) will be empowered to oversee CTD operations, forming the “Federal CT Force.” While all provinces, except Khyber Pakhtunkhwa (KP), have agreed to this move, KP’s Chief Minister has supported the creation of the Federal CT Force under the province’s Inspector General of Police (IGP). Prime Minister Shehbaz Sharif has tasked the Interior Minister with addressing KP’s concerns to ensure the Federal CT Force remains under central control.
These comprehensive decisions signal the government’s commitment to reforming governance, improving security, and ensuring better management of public resources, particularly in relation to PSDP spending and CSR initiatives. However, the success of these initiatives will depend on the execution of these plans and the ability to overcome provincial concerns, particularly regarding federal control over security operations.