National Assembly Standing Committee on Industries and Production headed by Asad Umar on Tuesday, rejected "wish list" of over four dozen ongoing and new development projects proposed by the Ministry of Industries and Production (MoI&P) for PSDP 2018-19.
MOI&P, in its presentation to the committee stated that it has proposed 55 projects at a total cost of Rs 32.604 billion for PSDP 2018-19 of which Rs 8.323 billion are sought for next financial year; and 13 ongoing projects have been included in the PSDP 2018-19 at a total cost of Rs 10.7 billion of which Rs 1.126 billion have been proposed for 2018-19.
The approved projects with no allocation are 42 at a cost of Rs 21.882 billion of which Rs 7.203 billion is proposed for 2018-19. The committee was informed that the Planning Division evaluates the proposed projects and prioritises them for funding.
However, Chief Planning Division informed the committee that Finance Division gives an indicative budget ceiling for each Ministry for development projects but no such approval has been conveyed to the Planning Division so far. Asad queried if the Planning Division is responsible for prioritising allocations then what was the objective of making such a large unrealistic list? "Why don't you exercise your own judgment and prioritise projects," Asad Umar stated disconcerting Additional Secretary Incharge of MoI&P.
When you submit a huge laundry list then it is possible that the projects approved are the least important for MOI&P, he added. The MOI&P official failed responding difficult queries of the Standing Committee members and changed his stance by saying "it's an initial list, we have multiple meetings during the year with Planning Division in which priority projects are finalized".
MoI&P prepared a list of 55 proposed projects for financing from Public Sector Development Program (PSDP) 2018-19. Qaiser Ahmad Sheikh who is also Chairman National Assembly Standing Committee on Finance, Revenue and Economic Affairs said, first of all MOI&P should be aware of the total funds, that are likely to be allocated to it for development projects in 2018-19, then it should prioritize projects keeping in view the ceiling.
His viewpoint was applauded by Chief Planning Division, who deals with PSDP projects of MOI&P. "MOI&P should first prioritise its projects including new ones so that Planning Division can allocate funds from the allocated indicative budget ceiling. The priority should be on ongoing and near completion projects, followed by approved new projects and those which are yet to be approved should be placed at the end of the list," he continued.
The committee was informed that development of Export Processing Zone at Gwadar was approved by the Department Development Working Party (DDWP) on April 3, 2017 at a total cost of Rs 5.4 billion and Rs 1.117 billion for the project was requested in 2017-18 but the Planning Division did not release any amount. The Ministry has now proposed Rs 300 million for 2018-19. The project was also submitted to the CDWP and ECNEC. However, the CDWP in its meeting on Oct 19, 2016 deferred the project.
The Planning Division's refusal to allocate funds is based on the fact that Special Industrial Zone (SIZ) is being established in Gwadar under CPEC and therefore there is no need for the project. The Planning Division representative stated that it has proposed to the Export Processing Zone Authority (EPZA) to look for a joint venture with the private sector on Build- Own- Operate - Transfer (BOOT) basis.
Standing Committee discussed the Public Sector Development Programme (PSDP) for the financial year 2018-2019 of the MOI&P and its attached departments. The Committee recommended that Planning Division should give output regarding the said projects and also suggested that the projects recommended during Standing Committee's previous meetings should be given priority. Besides others, the meeting was attended by Asad Umar, MNA (Chairman); Syed Imran Ahmad Shah, MNA; Abdul Hakeem Baloch, MNA; Sajida Begum, MNA; Qaiser Ahmad Sheikh, MNA and Iftikhar-ud-Din, MNA.
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