Pace of release of PSDP funds further declines in November

ISLAMABAD-The pace of release of Public Sector Development Program (PSDP) funds has further declined in November as the Ministry of Planning has issued an authorisation of only Rs1.73 billion to the Ministries/Divisions for the developmental projects during the month. 
However, the utilization of funds by the Ministries/Divisions have increased by Rs 41.238 billion, reaching Rs 117.240  billion in November from Rs 76.002 billion during July to October period of the ongoing fiscal year, official documents revealed. Despite the increase in the expenditures during the month of November it is still just 12.34 percent of the PSDP allocation of Rs 950 billion, during the first five months of the ongoing fiscal year, while the big chunk (25 percent) of the expenditures had been utilized for the parliamentarian schemes.
It is worth noting that during the first four months (July to October) of the fiscal year 2023-24, of the PSDP funds allocation of Rs 950 billion, the Ministry of Planning, Development and Special Initiative has authorized the release of Rs 300.904 billion, official data revealed. However, in the month of November, the authorization was very slow and a release of only Rs 1.73 billion was authorized by the Planning Ministry. The total authorization during the first five months (July to November) was Rs 302.633 billion, which is 31.86 percent of the total allocation of Rs 950 billion. The federal government has allocated Rs 950 billion for the PSDP 2023-24, including the rupee component of Rs 875 billion and Rs 75 billion foreign exchange components. Of the authorized Rs 302.633 billion, 276.383 billion was rupee component, while Rs 26.250 billion was foreign exchange component. A big chunk of expenditures was incurred by the parliamentarians schemes worth Rs 29.429 billion under SDGC, followed by the provinces and special areas Rs 26.512 billion, and the remaining Rs 61.3 billion by the entire ministries, divisions, corporations, and Prime Minister Initiatives.
For the Prime Minister Initiative Rs 250 million of the allocated amount of Rs 80 billion have been authorized and utilized. Similarly, for the corporations including NHA, NTDC/PEPCO only Rs 61.344 billion have been authorized, while the utilization was mere Rs 15.308 billion. For the provincial and special areas out of the allocation of Rs 166.750 billion, the Planning Ministry has authorized Rs 43.265 billion, while the utilization was Rs 26.512 billion. Out of the allocation of Rs 90.120 billion for the parliamentarians schemes under SDGs, Rs 61.282 billion were authorized, while Rs 29.429 billion were utilized during the first five months of FY 2023-24.
For the Water Resources Division release of Rs 38.675 billion was authorized, while the utilization was only Rs 16.123 billion. For the Railway Division, a release of Rs 11.557 billion, against the allocations of Rs 32.690 billion, has been authorized, while the utilization was only Rs 11.442 billion. According to the release strategy, the Planning, Development and Special Initiatives (PD&SI) Division will release funds for the development budget out of the Public Sector Development Programme (PSDP) allocation for the current fiscal year 2023-24 for approved projects at 15 percent for 1st quarter, 20 percent for 2nd quarter, 25 percent for 3rd quarter, and 40 percent for 4th quarter.

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