PSDP disbursements during 9MFY12 – Alfalah Securities Limited

Karachi: The government has disbursed PkR 144.3 billion (63.17%) during 9MFY12 out of the total allocations of PkR 228.4 billion under the Public Sector Development Programme (PSDP) for FY12.

According to Alfalah Securities Limited, out of the total disbursed amount, PkR 77.9 billion were released for infrastructure projects, PkR 62 billion for social sector projects, PkR 3.2 billion were released for earthquake rehabilitation and PkR 1.3 billion for projects in other sectors. The government had allocated a cumulative amount of PkR 730 billion under the PSDP budget FY12 comprising of PkR 300 billion for Federal programs and PkR 430 billion for allocations to Provincial governments which was later revised down to PkR 410 bn. The Federal PSDP budget also included a foreign aid amounting up to PkR 38 billion and funds worth PkR 33 billion for special programs.

Moreover, the Planning Commission has stated that the government may increase the allocations for Federal PSDP by PkR 50 billion to PkR 350 billion and the cumulative PSDP budget may reach up to PkR 800-825 billion for FY13. An amount of PkR10 billion is likely to be specifically allocated to Earthquake Reconstruction and Rehabilitation Authority (Erra), PkR15 billion for Fata and PkR 20 billion for Azad Jammu Kashmir and Gilgit-Baltistan. Alfalah Securities Limited believes an increase in PSDP allocation would bode well for the economy and particularly for cement manufacturers as their local off-takes would increase. Therefore, Alfalah Securities Limited remains bullish in cement sector stocks for longer term.

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