The Sindh government in its guidelines for Annual Development Programme (ADP) for the next financial year explained that the amount for the projects to be financed through foreign assistance should separately be mentioned in rupees, indicating the expenditure on import of goods and services.
This is necessary because under certain aid agreements, the government of Pakistan/Sindh is required to first incur the expenditure in local currency and thereafter the amount is reimbursed by the development partner/foreign donors.
The counter-part funds required for Foreign Projects Assistance must be ensured to be kept in each year's ADP as per commitments made with International Development Partners.
During the current financial year, Rs 51 has been earmarked as the foreign assistance for the projects in ADP, which has been raised to Rs 55 billion in the modified budget for the current fiscal.
Copyright Business Recorder, 2019
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