Prime Minister approves Rs 100 billion cut in PSDP: Balochistan, AJK, Fata, Gilgit-Baltistan excepted

Prime Minister Yousuf Raza Gilani has accorded approval to slash Rs 100 billion from local component of Pubic Sector Development Programme 2010-11 due to financial constraints, which means an accumulative reduction of more than 56 percent," Business Recorder has learnt.
The Prime Minister approved a summary moved by the Planning Commission on Thursday to reduce PSDP from Rs 280 billion to Rs 180 billion, placing cut of Rs 100 billion. The cut will not apply on funds earmarked for Balochistan, Azad Jammu and Kashmir, FATA, and Gilgit-Baltistan. "The other parts of country will face around 85 percent cut in their development allocations," sources added.
"The Planning Commission has directed all ministries and divisions to prioritise the planned projects," sources said, adding that after the cut in PSDP, funds would not be released for the following projects; (i) new projects, and (ii) slow moving projects. The top most projects in the priority list of the concerned Ministries will be released the allocated funds, they added.
Meanwhile, according to a statement issued here on Friday, Finance Minister Dr Abdul Hafeez Shaikh was briefed by Planning Commission of Pakistan on PSDP allocations, its sectoral distribution and how the reduction of Rs 100 billion would affect the development projects. A comprehensive presentation was made by Sohail Ahmed, Secretary, Planning and Development Division along with other senior members of Planning Commission of Pakistan, while Dr Nadeem ul Haque, Deputy Chairman of Planning Commission, Dr Waqar Masood Khan, Secretary, Finance, and Abdul Wajid, Special Secretary, Finance, were also present.
Secretary Planning and Development Division briefed the Finance Minister on Monitoring and Evaluation (M&E) setup operationalised in the Planning Commission for public sector development projects. He elucidated that judicious and efficient utilisation of resources, in financial and physical terms, was of utmost importance; particularly in the backdrop of today's socio-economic circumstances. Monitoring helps in determining the physical and financial health of a project during the implementation stage and evaluation helps to analyse the impact on pre-defined parameters and the national GDP as well. Monitoring and evaluation are vital tools that help in streamlining the execution of projects and identify the bottlenecks that hamper smooth, effective and timely implementation of the projects.
The Projects Wing, constituted within the Planning Commission, is mandated to perform the functions of (i) Monitoring of development projects/programmes, (ii) Evaluation of completed projects to assess their impact on the economy, (iii) Preparation/submission of quarterly progress reports to PM Secretariat on strategic projects, (iv) Analysis of monitoring reports and presentation of findings to the NEC, Ecnec and quarterly review meetings for policy decisions, (v) Implementation of policy decisions regarding implementation of projects, and (vi) Online connectivity through Project Monitoring Evaluation System (PMES).
In line with the general principles, the monitoring and evaluation (M&E) exercise for PSDP projects in Pakistan has resulted in improvement and streamlining the project implementation process. The M&E of projects has sensitised the project implementation authorities towards the major issues and ensuring timely completion of the projects within approved time and cost. The M&E system thus developed has helped in evaluating the impact of the projects on national economy and realises the benefits for the target population.
The monitoring and evaluation carried out by the Projects Wing has helped to identify various bottlenecks in the smooth implementation of the development projects. These issues have also been highlighted in the monitoring reports prepared by the Projects Wing and also referred to the concerned ministries/implementing authorities for redressal and taking necessary corrective measures. During the financial year 2009-10, a total of 618 projects were monitored against a target of 611 projects. In the current financial year, 279 projects have been monitored.
The Planning Commission, besides ongoing regular monitoring of the Federal PSDP projects, also undertakes ex-post completion of the development projects. Specific thrust area is the impact evaluation of development schemes, thereby assisting the higher government quarters in determining true benefit to the population at large and the effect on national economy. A new concept in the evaluation exercise is the introduction of the program and organisational evaluation, aiming at a holistic review and evaluation of the organisations and their project portfolio as a whole.
During the PSDP 2009-10, 26 projects were evaluated by the Projects Wing against the average annual target of 15 to 20 projects. During financial year 2010-11, eleven projects have been monitored so far. The Management Information Section (MIS) section of the Projects Wing is maintaining the latest data on projects and their latest financial and physical progress.
The system has been institutionalised by developing and strengthening the Project Monitoring and Evaluation System (PMES). The system provides online and real time connectivity to the concerned stakeholders and provides effective information for decision making. Four directors of MIS Section are stationed at the provincial headquarters/provincial P&D Departments to assist the provincial P&D departments in online connectivity and gathering relevant information. At present, 23 ministries are online and the 24th ministry will be connected during the next week. A total of 33 ministries will be connected online during the current financial year.
A new initiative, taken under the President's Directive, is the introduction of Non-Destructive Testing (NDT) and enabling mixed technology. Mix technology strategy integrating satellite imagery, real time digital pictures and use of enabling technology gadgets, is proponent of monitoring of development activities and assessment of impact accruing therefrom.
The Finance Minister directed the Planning Commission that while reducing allocations, sectoral priorities should be maintained. He also said that allocations of Balochistan, Azad Jammu and Kashmir, FATA and Gilgit-Baltistan should not be reduced. He further stressed that efforts should be made to complete the projects on time and, in case of delays, reasons should be studied to avoid their future occurrences.