Minister for Planning and Development Ahsan Iqbal on Monday confirmed that funding shortfall compelled the federal government to shut more than 118 different projects worth Rs1,000bn.

During his interaction with the media following the Annual Plan Coordination Committee (APCC) meeting in Islamabad, Iqbal said: “Today, [we] have to make difficult decisions about limiting the ongoing projects.”

He said it was difficult to accommodate projects from all ministries within a limited budget of Rs1,000 billion.

“Now, we have to make decisions in the national interest,” Iqbal added.

Only key projects can be prioritised due to limited funds, the planning minister said, adding that the provincial-level projects should now be completed by the provinces themselves.

“Provinces have far more resources than the federation,” he added. The minister said that everyone must play their part in national development.

Shedding light on the upcoming budget, the minister said that the economic size target for next year had been set at Rs129 trillion.

“This year's development budget has been set at Rs1,000 billion,” he added.

The minister said that Rs150bn had been allocated for the social sector and Rs70bn for KP’s merged districts in the next budget.

"GDP growth target for the next fiscal year was set at 4.2%,” Iqbal said, adding that the target for exports was set at $35bn.

Earlier, giving a blueprint of the annual PSDP for the next fiscal year at the APCC meeting, he said that fiscal space will be provided in the next PSDP for the projects of strategic importance envisioned under Uraan Pakistan.

He mentioned that these projects include the Diamer Bhasha Dam, Sukkur Hyderabad motorway project, N-25 in Balochistan and Karakoram highway phase two.

The minister emphasised the need for greater synergy between the development projects of the Centre and the provinces for the early completion of national priority projects.

Iqbal said that projects with a foreign component and those nearing completion have also been prioritised in the PSDP.

The minister elaborated that the said allocations for special regions such as AJK, Gilgit-Baltistan and the tribal districts have also been prioritised.

The minister further said that an effort has been made to align the development budget with national priorities while staying within limited resources.