Need for expeditious utilisation of uplift projects stressed

The ministries/divisions are expediting utilisation of funds released for development projects under the Public-Sector Development Programme (PSDP) 2019-2020 after a recent grilling by Prime Minister Imran Khan, it has been learnt.

According to the sources, a total of 52 percent (Rs230.57 billion) funds have been utilised for development projects against 63.4 percent (Rs444.3b) released.

Total size of the PSDP during the current fiscal year is Rs701 billion out of which Rs424 billion are authorized by the Ministry of Planning, Development and Reform, while Rs149 billion are to be managed and released by the Finance Division whereas the remaining Rs128 billion are part of foreign aid component, which are directly disbursed to the project authorities.

The sources said that under the direction of the prime minister, a series of meetings of various ministries and their departments were being held with the prime minister to discuss the issue of less utilisation of funds for development projects under the PSDP.

The Ministry of Planning, Development and Reform on February 13 told Senate Standing Committee on Planning that the utilisation funds of ministries was less than 20 percent against funds released in the first two quarters of the current financial year.

Officials of the Planning Ministry had told the committee that some departments such as the National Highways Authority (NHA) created hype and got projects approved in the PSDP, but later did not utilised the funds.

The sources said Federal Minister for Planning, Development and Special Initiatives Asad Umar and the secretary of Ministry of National Health Services, Regulation and Coordination on Tuesday held meeting with the prime minister and discussed the issue of utilisation of funds.

They said the Prime Minister expressed resentment on the secretary Ministry of National Health Services, Regulation and Coordination for not utilising funds for establishment of six Basic Health Units (BHUs) in rural areas of Islamabad despite release of funds.

The secretary gave assurance to the prime minister that the six BHUs would be completed and become operational till June 2020.

Federal Minister for Planning, Development and Special Initiatives Asad Umar had also said, while talking to media last Friday that the IMF was also stressing for full utilisation of development budget during the current fiscal year.

Meanwhile, Asad Umar chaired a meeting on Tuesday to discuss the conclusion and outcomes of the recent review of the PSDP projects, carried out by the Planning Commission.

Deputy Chairman Planning Commission, Secretary Planning and other senior officials participated in the meeting.

The minister was informed that the PSDP projects of all the ministries/divisions were discussed in detail during the review exercise.

The ministries submitted their progress reports and their work plan for the remainder of the financial year.