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Contradiction exists between the Ministry of Communications and Ministry of Finance on releasing funds for development projects. The contradiction prevailed between the two ministries in a meeting of the Senate Standing Committee on Planning, Development and Reform which met with Senator Agha Shahzaib Durrani in the chair here at the Parliament House on Tuesday.
The committee discussed the issues pertaining to performance of the Pakistan Planning Management Institute (PPMI), and releasing funds for projects under the PSDP-2019-20 and 2018-19.
While discussing the development projects of National Highway Authority (NHA), Federal Secretary Communication Jawwad Rafique Malik told the committee that the Finance Ministry did not release a penny for development projects for NHA in the last quarter of previous year despite writing several letters in this regard. He said ongoing projects are being delayed due to non-release of funds.
He told that there are bills of Rs 19 billion in the first quarter of current fiscal year but the Finance Ministry released Rs 10 billion where out of the amount, Rs 6.7 billion are actually for NHA while Rs 3.3 billon are released for construction of dams.
While giving warning, the secretary said, "The Finance Ministry will be responsible if cost of the projects increases or there is any damage due to delay of funds."
The Finance Ministry official told the committee that NHA did not demand any release of funds for the development projects during the last quarter of the previous year. "We did not receive any request from the Ministry of Planning, Development and Reform for releasing of funds for the NHA projects in the last quarter."
He said, "We could not release 20 percent funds in first quarter for development projects due to increasing expenditures and budget deficit."
Rafique Malik said, "We had made demands for releasing funds and in this regard the ministry has written several letters."
The committee chairman asked the secretary communication to submit copies of letters which he wrote to the Finance Ministry.
The secretary planning told the meeting that last year's PSDP was initially of Rs 1 trillion and was later rationalized to Rs 675 billion. The PSDP has, like every year, two components; local and foreign. He said that the local component comprises Rs 531 billion and foreign component comprises Rs 144 billion. He said that the actual amount released in the previous financial year was Rs 678 billion i.e. three billion rupees more than the actual PSDP.
The secretary planning told that NHA's allocated budget last year was Rs 188 billion and budget released was Rs 251 billion and hence it was 134 percent of the actual budget. The committee asked the Finance Division to release Rs 3.2 billion to NHA for Khuzdar Khuchlak section of motorway.
He said the total allocation to Ministry of Water was 103 percent. Regarding the four PSDP funded projects, the committee was told that Rs 603 million was demanded by the Power Division whereas only Rs 80 million was released.
The committee decided to call and check the physical and financial progress of the projects to see if the funds released have been used appropriately and if there is any need for more releases.
The committee was given a briefing on the implementation status of the recommendations for PSDP 2019-20 (budget session) made by the committee in June, 2019.
The secretary planning told the meeting that the consultative process starts in March and by the time the committee makes its budget recommendations in June it is too late for them to incorporate them. The secretary suggested having the PSDP recommendations as early as April from next year onwards. The committee agreed to this proposal but also expressed concerns over the addition of 44 schemes without seeking parliamentary approval.
The sub-committee constituted on the matter in the previous meeting will look into this matter in detail.
The committee was given a briefing about the role of Pakistan Planning and Management Institute (PPMI) in capacity building of the officers of the government sector by arranging trainings on different planning and management operations including preparation of project proposals, project monitoring an evaluation and enhancement of skills and expertise of public sector officials.
PPMI DG Dr Muhammad Ali Noor told the meeting that the institute carries out common as well as specialized courses for skill enhancement, project and time management.
The committee members were of the view that most of the courses are being done in duration of 3-5 days and asked how an official can learn making a good project proposal or get his skills enhanced in such a short time. The committee was told that duration of the training is being reduced worldwide but frequency of the refresher courses is being enhanced and the courses are also made concentrated to provide the maximum advantage to trainees. The committee was told that since 2010, a total of 229 courses have been offered and around 10,000 officers have benefited from these trainings.

Copyright Business Recorder, 2019

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