PSDP projects hamstrung by lack of funds

ISLAMABAD: In just the second month of the current fiscal year, the federal government is facing shortage of funds for development projects under Public Sector Development Programme (PSDP) 2021-22 and it has written letters to concerned ministries and departments to exclude nonessential projects approved by Central Development Working Party (CDWP).

Well-placed sources told Business Recorder on condition of anonymity that the Ministry of Planning, Development and Special Initiatives has written letters to ministries to exclude non-essential development projects from the Rs900-billion PSDP budget.

They said that the ministries have held meetings to review, prioritize, and exclude their nonessential development projects approved by CDWP and submitted their revised proposals to the Ministry of Planning.

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They said Ministry of Water Resources has already excluded five development projects in Balochistan.

Sources further revealed that the Ministry of Planning, Development and Special Initiatives will now consolidate and prepare a summary in this regard and submit it to the Prime Minister for approval.

It may be recalled that Finance Minister Shaukat Tarin had stated while presenting Rs8.48 trillion federal budget for fiscal year 2021-22 (FY22) in the National Assembly that out of the total Rs 900 billion federal PSDP, the government has earmarked Rs 628.224 billion for federal ministries, Rs 183.235 billion for corporations, Rs113.75 billion for National Highway Authority, Rs69.82 billion for Pepco, Rs70 billion for Covid-19 response and other natural calamities programmes, and Rs 61 billion for VGF for public-private partnership projects.

Muhammad Asif Sheikh, Advisor/Consultant on Development Budget, was not available for comments.

Copyright Business Recorder, 2021