PSDP funds: IMF for maximum utilisation: Umar

Planning and Development Minister Asad Umar Friday said the International Monetary Fund (IMF) has emphasized maximum utilization of development funds and the government is targeting to utilize Rs701 billion allocated under Public Sector Development Programme (PSDP) for 2019-20.

Briefing media, he said that the government is preparing framework for third party participation in China Pakistan Economic Corridor (CPEC) as China has no objection over inclusion of a third party in CPEC. Umar said that IMF mission visited the ministry on Friday and held meeting with respect to the 2nd review under the $6 billion Extended Fund Facility (EFF). "The IMF team has not asked for a cut in development budget but emphasized on its maximum utilization," he added.

He said that special initiatives have been taken by the Planning Ministry and framing growth strategy 2020-21 to 2022-23. Basic objective of the growth strategy is staying within the bounds of IMF agreement what are the step needs to be taken to return to a sustainable growth. There is IMF framework which covers many essence of the economic policy and it will be supplementing that framework, he added.

He said that energy policy will be one of the integral parts of the strategy. He said under growth strategy, the area of focus would be the private sector as the sector would be fully involved in the government's growth policies.

About the prevalent coronavirus issue, the minister said that it was too early to comment on the impact of the virus on the pace of the CPEC projects.

He said that authorization of Rs 429 billion has been issued of which Rs 188 billion has been spent during the July-January 2019-20 under the PSDP so far.

Giving breakup of previous years, Umar said that during the years 2014-15, 2015-16, 2016-17, 2017-18, and 2018-19, the expenditures ratio remained 96%, 86%, 92%, 66% and 83% respectively.

During first six months of the above mentioned years, the flow of funds by the government to the relevant ministries or departments remained 25%, 28%, 22%, 25%, and 21% whereas during same period of current year 27% of the total allocated funds had been released. At present, development expenditures are improving over the past years. The Departmental Development Working Party (DDWP) option has been increased from Rs 60 million to Rs 200 million so that they can work on projects quickly. Further the CDWP's margin has increased from Rs 3 billion to 10 billion.

Secretary Planning Zafar Hassan said that out of 1034 projects, 171 projects were due to be completed by the end of current fiscal year.

Replying to a question, the minister said that the CPEC railway project of ML-1 was of extreme importance but owing to involvement of huge amount of around $9 billion, the project got delayed as various factors of the project were being closely reviewed.

He said that the project is being reviewed by the World Bank and by the end of February they would be in position to decide about its final structure. He hoped that during the upcoming meeting of Pak-China Joint Coordination Committee on CPEC in April this year, a major breakthrough was expected.

The ministry is also planning to revamp the system to ensure project development, monitoring and evaluation besides enhancing focus on Sustainable Development Goals (SDGs).

He said that a construction industry development board would be established to boost industrial sector besides it would also fully operationalise the Public Private Partnership Authority. The Planning Commission, he said would also be revitalized to ensure proper planning in government sectors.

With respect to CPEC, the minister pointed out that the planning ministry would constitute a new Joint Working Group on Science and Technology while it was also planning to establish Gwadar Expo 2020 to highlight the development works, done under the CPEC.

He said that work on Special Economic Zones (SEZ) Act was also underway to provide incentive packages to the industrialists.

With respect to Islamabad Master Plan for Development of Capital City, Umar said consultants would be hired to develop the Plan. He said for Islamabad Bulk Water Supply Project RFP had been issued for hiring of International consultants who would prepare feasibility and develop detailed design.

Secretary said about completed projects during first six months of current fiscal year, he said 26,000 acres of additional irrigated land has been added by Kachi Canal phase-1 in Sui district of Balochistan and by June 2020, further 25000 acres will be added.

He said Makhi-Farash link canal to supply water for Thar coal, in Sindh, earthwork has been completed and was presently supplying 20 cusecs and will supply 200 cusecs of water by July 2020 while two small dams in Sindh were completed in Nangar Parker district - water scarce area to mitigate water crises in Thar.

Additionally, Havelian Mansehra section of KKH Phase-2(Thakot-Havelian) was completed and inaugurated by Prime Minister of Pakistan in November, 2019 whereas Sukkur-Multan motorway (392 km) was opened for traffic in November, 2019, he added.

Responding to a question about development projects in Karachi, Umar said the metropolis was city of Pakistan Tehreek-e-Insaf and the impression that PTI government was fast tracking the projects in Karachi under pressure of MQM was completely wrong.

He said no doubt MQM was PTI's allied party but PTI was much more concerned for the socio economic development of people of Karachi where hundreds of thousands of PTI voters were living.