ISLAMABAD: Ministry of Planning, Development, and Special Initiatives has sought the approval of Rs9.990 billion as rupee cover for the utilisation of foreign aid during the current fiscal year (2023-24) in order to enhance Pakistan’s resilience to natural disasters.
Sources said that the Economic Coordination Committee (ECC) of the Cabinet has given approval of the summary of the Ministry of Planning, Development and Special Initiatives for technical supplementary grant for budgetary allocation/ rupee cover for utilisation of foreign aid for the fiscal year 2023-24.
The meeting was informed that the government has established National Disaster Risk Management Fund (NDRMF) as a not-for-profit public-owned company under Section 42 of the Companies Act, 2017. The company is non-banking financial intermediary fully-owned by the Government of Pakistan.
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The main objectives of NDRMF are; (i) to finance eligible projects that will enhance Pakistan’s resilience to natural disasters; (ii) serve as a vehicle for donor alignment and coordination; (iii) provide a common window to pool various contributions from a diverse base of bilateral and multilateral development partners; and (iv) provide assistance for fighting against natural hazards and pandemics. To achieve its given objectives, government of Pakistan received loan, as well as, grant financing from International development partners namely, Asian Development Bank (ADB), World Bank (WB), Government of Switzerland, Australia, and Norway.
The government of Pakistan has also signed a Subsidiary Grant Agreement, with its Section II, clause 2.1 prescribing that the government will provide funding to the NDRMF to carry out its aforementioned objectives.
As per the cabinet’s decision dated 12th February 2021, the administrative control of the Fund has been entrusted to the Ministry of Planning, Development and Special Initiatives via Cabinet Division dated 12th February 2021.
Planning Ministry added that Finance Division has allocated Rs1 billion for fiscal year 2023-24 for NDRMF. The meeting was further told that the NDRMF Board of Directors has approved NDRMF budget of Rs10.978 billion for disbursement against loans and grants for fiscal year 2023-2024. Therefore, the NDRMF has requested for the allocation of its Rs9.91 billion for rupee cover budgetary allocation during fiscal year 2023-24.
The proposal of Technical Supplementary Grant has been examined in Finance Division and Finance Division has agreed to provide the required foreign exchange as per following mechanism: (i) 50 per cent of the approved TSG shall be released in January 2024; (ii) 25 per cent shall be released in February 2024; (iii) and the remaining 25 per cent shall be released in March 2024.
The ECC of the Cabinet is requested to approve a Technical Supplementary Grant of Rs9.990 billion for the fiscal year 2023-24 as budgetary allocation/ rupee cover for NDRMF under demand of the Ministry of Planning, Development and Special Initiatives.
The approval of the ECC is solicited for the proposal at para-7 ante of the summary.
The minister for Planning, Development and Special Initiatives has seen and authorised submission of the summary.
Copyright Business Recorder, 2024
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