AGL 38.26 Increased By ▲ 0.56 (1.49%)
AIRLINK 141.00 Increased By ▲ 6.43 (4.78%)
BOP 5.44 Decreased By ▼ -0.03 (-0.55%)
CNERGY 3.84 No Change ▼ 0.00 (0%)
DCL 7.60 Increased By ▲ 0.17 (2.29%)
DFML 46.19 Increased By ▲ 0.72 (1.58%)
DGKC 77.50 Decreased By ▼ -0.50 (-0.64%)
FCCL 29.28 Decreased By ▼ -0.01 (-0.03%)
FFBL 56.50 Increased By ▲ 0.50 (0.89%)
FFL 8.60 Increased By ▲ 0.05 (0.58%)
HUBC 98.69 Increased By ▲ 1.45 (1.49%)
HUMNL 14.10 Decreased By ▼ -0.09 (-0.63%)
KEL 3.83 Decreased By ▼ -0.07 (-1.79%)
KOSM 7.39 Increased By ▲ 0.60 (8.84%)
MLCF 36.70 Increased By ▲ 0.40 (1.1%)
NBP 68.90 Decreased By ▼ -0.80 (-1.15%)
OGDC 169.50 Increased By ▲ 2.50 (1.5%)
PAEL 25.40 Increased By ▲ 0.07 (0.28%)
PIBTL 6.56 Decreased By ▼ -0.18 (-2.67%)
PPL 131.00 Increased By ▲ 0.50 (0.38%)
PRL 25.11 Decreased By ▼ -0.28 (-1.1%)
PTC 15.64 Increased By ▲ 0.39 (2.56%)
SEARL 58.00 Increased By ▲ 0.30 (0.52%)
TELE 6.90 Increased By ▲ 0.11 (1.62%)
TOMCL 35.24 Increased By ▲ 0.45 (1.29%)
TPLP 7.73 Increased By ▲ 0.13 (1.71%)
TREET 14.10 Increased By ▲ 0.19 (1.37%)
TRG 44.69 Decreased By ▼ -0.31 (-0.69%)
UNITY 25.41 Increased By ▲ 0.33 (1.32%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,152 Increased By 84.1 (0.93%)
BR30 27,234 Increased By 208.3 (0.77%)
KSE100 85,840 Increased By 579 (0.68%)
KSE30 27,234 Increased By 222.5 (0.82%)

ISLAMABAD: Ministry of Planning, Development and Special Initiatives (MoPDSI) has issued guidelines for the Public Sector Development Projects (PSDP) 2023-24, with the advice to concerned authorities that since resources are constrained, a rational approach be adopted to attract private sector to achieve the overall long-term development goals.

The process of PSDP 2023-24 formulation and its projections for 2024-25 and 2025-26 has been initiated to give considerable time to the sponsoring and executing Ministries/ Division/ Agencies to deliberate and prepared their respective development portfolios with consultation and due diligence.

Planning Commission has issued following broader guidelines/ instructions, requesting them to adhere to them while preparing the project-wise budgetary proposals for the PSDP 2023-24.

Reason behind cut in PSDP disbursement identified

i- All Federal Ministries/ Divisions and provincial Governments should thoroughly scrutinize the approved portfolio to determine whether the proposed projects fall under overall development objectives set under National Development Framework and policy of the government.

ii- The proposed program of the Ministries/ Divisions should have a basic logic of intervention for achieving the high-level sectoral objectives by optimizing limited PSDP resources (inputs) to produce maximum outputs (high visible impact projects) which contribute to outcomes and eventually to high level development goals/ SDGs.

iii- Ministries/ Divisions should also focus on core projects with tangible deliverables that may be undertaken on priority with adequate funding for early completion during next year.

iv- As per Public Finance Management Act, 2019, no new project which has not been approved would be made part of the development budget.

v- The floods and torrential rains of monsoon 2022 have adversely affected the people of Pakistan. Therefore, projects for rehabilitation of the flood-affected areas and uplift of socioeconomic conditions of the affected people may be given due priorities.

vi- As Pakistan is facing economic challenges like trade imbalance, current account deficit and limited FDI; therefore, the relevant Ministries like Commerce, Industries & Production, National Food Security & Research, Science & Technology, IT& Telecom, Board of Investment, etc., should take extra measures to improve competitiveness, innovations, ease of doing business with objective to enhance production, exports and FDI, etc., through private sector investment. For this purpose, viable projects may be geared up for financing/ co-financing through federal PSDP.

vii- While processing approval and funding of projects for PSDP 2023-24, the Federal Ministries/ Divisions should also observe the provisions of 18th Amendment, i.e., the division of subjects between the provinces and the federation. Undertaking projects falling in the domain of provinces to be avoided and provisions contained in the policy on financing of provincial nature projects notified by M/o PD&SI on August 16, 2021 as approved by NEC on June 7, 2021 may be strictly followed.

viii- Approved timelines and financial phasing of projects may be assigned priority while allocating resources for ongoing, as well as, new projects. Ongoing projects which have reached an advanced stage of completion should adequately be funded in order to complete such projects during the Fiscal Year 2023-24 on priority. The projects started under CPEC initiative may also be given priority for timely completion to earn the socio-economic benefits of the initiative.

ix- Owing to limited fiscal space and increased level of throw-forward of budgeted portfolio, efforts should be made for undertaking the development projects on innovative financing basis, i.e., Public Private Partnership (PPP) and BOT in terms of co-sharing of cost and responsibility for operation and maintenance of such projects.

x- Pakistan is a signatory for achieving SDGs by 2030. All goals are important; therefore, budgetary proposals should have a clear identified and intended tangible outcome and relevance criteria to the SDGs, i.e., 1 to 17 goals.

xi- Those development programs and projects which mitigate the adverse drastic effects on the climate change may be encouraged for financing during the next fiscal year.

xii- The programs and projects to be proposed for inclusion in the PSDP should be arranged in order of priority within each sector/ sub-sector so that if resources fall short of the demand, low priority schemes may either be dropped/ postponed or allocations be adjusted/ rationalized within respective IBC, accordingly. Due priorities may be given to the ongoing projects of national significance initiated under the regional equalization programs/ packages to ensure regional balanced development in the country.

xiii -Cost of the projects to be financed through foreign aid should be reflected separately with source in Pak rupees indicating the estimated expenditure on import of goods and services. This is necessary because under certain foreign aid agreements, the Government of Pakistan is required to first incur expenditure in local currency and claim re-imbursement thereof later on.

xiv- To maintain fiscal discipline, proposals for re-appropriation/ adjustment of funds may not be entertained during early quarters, i.e., July-December period. Therefore, the concerned Ministries/ Divisions/ Agencies should indicate/ earmark adequate resources to projects/ programs after exhaustive in-house review and deliberations with all stakeholders including Sector Chiefs, M/o PD&SI so that need for re-appropriation / adjustment during early quarters may be avoided.

xv- Project-wise estimated utilization status of federal share in development assistance, provided to the provinces during Fiscal Year 2022-23 and demand for Fiscal Year 2023- 24 should be provided by the Planning & Development Board/ departments of the respective provinces in a consolidated form and not by the line/ attached departments in piece meal.

xv- Provide updated information in requisite columns particularly indicating the correct nomenclature and revised cost, if any, of the schemes/ projects as approved along with name of competent forum, date of approval and date of completion so as to avoid any discrepancy during budget formulation process.

xvii- The schemes being financed on cost-sharing basis between the Federal and Provincial governments or with any other agency, the cost, expenditure, and proposed allocations to be clearly indicated separately, wherever applicable and only federal share of cost worked out to ascertain the exact level of throw-forward at the time of considering allocations against the federal share in PSDP. Regarding cost sharing agency as per NEC guidelines, release of federal share would be subject to matching allocation and release by the agency/ department/ provincial governments concerned.

xviii- Provision for payment of equipment, Interest During Construction (IDC) and Custom Duties, etc., may be adequately reflected separately under the proposed demand. This would assist while considering allocations for such projects under PSDP 2023-24.

xix- The entire development programme may thoroughly be worked out as per guidelines and the requisite information be supplied on the prescribed proforma. All figures in relevant columns may be indicated in Million Pak Rupees only. The foreign component expressed in dollars, if any, may also be converted and indicated in Pak Rupees in line with this Ministry’s circular dated 24th October, 2013.

Planning Commission has also requested Ministries/ Divisions to also provide one pager write-up on PSDP strategy, pertaining to respective sector/ Ministry/ Division for FY 2023-24 covering among others, benefits from the proposed investment, boosting exports, productivity, jobs creation, supporting role to stimulate private sector investment and impact on poverty alleviation. Proposal may contain as to how proposed portfolio would also assist to achieve balanced regional development.

Copyright Business Recorder, 2023

Comments

Comments are closed.