Releases of development funds come to standstill

No authorisation for releases has been issued by Planning Ministry during the past three months

ISLAMABAD   -  The releases of Public Sector Development Programme (2023-24) funds for the development projects have come to a standstill as no authorization for the releases has been issued by the Planning Ministry during the past three months (February to April).

During the last month of the caretaker government and first two months of the incumbent PML(N) government, no authorization of PSDP funds has been issued, official data revealed. During the first seven months of the ongoing fiscal year 2023-4 (July to January), the ministry of mlanning had issued the authorization for the release of Rs 507.980 billion, however, since then (February to April) no release has been sanctioned, the documents revealed.

The Planning Ministry has issued an authorization of 54.04pc of the PSDP allocations during the first 10 months of the ongoing fiscal. The utilization of funds was only Rs 353.087 billion or 37.55 pc of the total allocated amount of Rs 940 billion during the first ten months (July 2023 to April 2024). It is worth to note that the pace of Public Sector Development Programme (PSDP) funds authorization had accelerated during the caretaker government as sanction for the release of Rs 202 billion during the month of January, which is equivalent to 40 percent of the releases, was authorized during the first 10 months of the Fiscal Year 2023-24.

The pace of expenditure is very slow as just 37.55 percent of the PSDP allocation of Rs 940 billion has been utilized during the first 10 months of the ongoing fiscal year. The utilization of funds by the Ministries/Divisions is below the mark and remains only Rs 254.759 billion during the first 10 months of the FY 2023-24.

The Ministry of Planning has issued an authorization of Rs 507.980 billion during the first 10 months (July to April) of the ongoing fiscal year 2023-24, the official data revealed. The Planning Ministry has authorized the release of Rs 372.655 billion for Federal Ministries/Divisions, Rs 127.067 billion for corporations, and Rs 8.228 billion for PM initiatives and ERRA. The total utilization of funds by the Federal Ministries/Divisions, corporations, PM initiatives and project liabilities were Rs 353.087 billion. The Ministries/Divisions utilized Rs 254.759 billion, Corporations (NHA, NTDC/PEPCO) utilized Rs 96.509 billion, PM initiatives & ERRA Rs 1.819 billion, while there was no utilization under the head of project liabilities.

Initially, the PSDP allocation was Rs 950 billion which included Rs 875 billion of rupee component, while Rs 75 billion was FEC component. However, now the rupee component has been slashed by Rs 10 billion to Rs 865 billion, which has resulted in a reduction of PSDP allocations to Rs 940 billion. The cut of Rs 10 billion has been imposed on the Prime Minister Initiatives, reducing it to Rs 70 billion from the earlier allocation of Rs 80 billion. A big chunk of expenditures of Rs 55.278 billion was incurred by the provinces and special areas, followed by Rs 57.708 billion by NHA, Rs 52.235 billion by water resources, Rs 43.563 billion by the parliamentarians schemes under SDGs, Rs 38.8 billion by NTDC/PEPCO and the remaining by the entire ministries, divisions, and Prime Minister Initiatives.

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