ISLAMABAD: The PML-N government, which appears to have entered the election mode, announced on Wednesday that it would focus next year’s development spending on implementation of the party’s manifesto.

“Come up with your proposals for next year’s PSDP (Public Sector Development Programme) which are linked with Vision-2025 and fulfillment of manifesto of the government,” Planning and Development Minister Ahsan Iqbal asked all principal accounting officers, federal secretaries and heads of ministries, divisions and related entities.

Presiding over a meeting held to prepare development budget for the fiscal year 2016-17, he expressed concern over sluggish utilisation of funds allocated for the current financial year.

On the completion of eight months of the fiscal year 2015-16, the minister noted that Rs353 billion releases, almost half of the Rs700bn allocation, were dismal and needed to be re-appropriated to gear up utilisation.


Minister expresses concerns over slow utilisation of funds


He asked all the ministries to present assessment of their ‘unutilised’ allocation portfolio within this month so that funds for slow or problematic projects could be diverted to other areas or else substantial funds would lapse on June 30.

He asked the federal secretaries and heads of corporations not to come up with projects which were not on the government’s priority list. “The government will entertain only those projects which are aligned with the future growth roadmap and will have a higher development impact.”

Mr Iqbal also explained what those priority areas are. “The present government is giving top priority to energy and China-Pakistan Economic Corridor projects, leaving it with limited resources to finance other development projects,” he said, adding that this required the ministries to present high priority projects.

He also asked the ministries to formulate proposals for next year’s PSDP by keeping best management practices in mind and in line with sustainable development goals, which the government declared as Pakistan development goals. The ministries should improve their capacity for effective utilisation of allocated funds and preparation of project documents which are technically and financially sound.

Mr Iqbal said that due to financial constraints, the ministries should work out plans to encourage public-private partnership and BOT (build-operate-transfer) model for development schemes to attract private investment in infrastructure projects.

He asked the ministries to come up with proposals which would provide relief to the masses in line with the PML-N manifesto. “The present government has completed half of its constitutional tenure and will ensure to fulfill the promises made in its manifesto through its development agenda in the rest of the period.”

He said the proposals should be prepared in such a way that it gave a new look to the public sector development portfolio.

He also called for classification of project management in terms of utilisation of funds to award grades to the best and poor performing ministries.

Published in Dawn, March 17th, 2016

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