Development budget: Ministry decides to ban allocation of fund for ERRA

ISLAMABAD: Ministry of Planning, Development and Special Initiatives has decided to ban allocation of funds for Earthquake Reconstruction and Rehabilitation Authority (ERRA) from development budget in future, well informed sources told Business Recorder.

Shahid Mahmood Sandhu, Assistant Chief, Planning Division, in a letter to Deputy Chairman, ERRA, said he had been directed to refer to ERRA’S letter of March 20, 2024 and in partial modification of Planning Ministry’s Office Memorandum (OM) of December 29, 2023 on this issue and convey that Ministry of PD&SI recommends balance allocation of Rs 1.028 billion through adjustment in PSDP 2023-24/ TSG (Technical Supplementary Grant)for clearance of liabilities of PSDP projects of ERRA in line with approval/decisions of ERRA Council of November 24, 2021.

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According to Planning Ministry, the requisite funds amounting to Rs 1.028 billion would be surrendered from provision of Project Liabilities (lB9595) budgeted under the development grant of M/o PD&SI in favour of ERRA’s development grant to process TSG of the said amount without any further delay as per procedure and undertake expenditure after completion of all codal formalities required for development spending under PSDP including strict observance of procedure approved by ECNEC on 10.05.2023 for clearance of project liabilities.

ERRA will ensure disposal of all liabilities immediately. The Planning Commission extended all possible support and will not be responsible for any delay and no further funding will be provided to ERRA from the development budget, in future.

Meanwhile, Ministry of Maritime Affairs, has referred OM of March 19, 2024 on “adjustment in PSDP 2023-24: provision of fund to ERRA” and stated that the project having PSDP No.837 titled “provision of electricity to Free Zone North and South from National Grid” was reflected in Ministry of Energy (Power Division) during its meeting held on October 19, 2023 and the same has to be executed/implemented by the Qesco (not GPA), hence, Power Division/ Qesco can better comment on utilisation of funds and explain the timelines. GPA has assured full cooperation and necessary assistance for earliest possible completion of the project as it is already too late and is important for the operationalisation of the port and the industries already established in Gwadar Free Zones.

Any further delay may not be in national and public interest, therefore, top priority and personal attention should be given by higher offices.

Copyright Business Recorder, 2024