Ministries asked to ensure maximum funds utilisation

All the ministries have been asked to ensure maximum utilisation of funds allocated for development projects instead of demanding an "ambitious increase" in their respective Public Sector Development Programmes (PSDPs), which are being reviewed for next fiscal year budget.
Sources told Business Recorder here on Monday that the finance ministry wanted all the ministries to get maximum utilisation of funds and completion of projects, which might be the focus for next year's PSDP that is expected to be over Rs 200 billion.
The PSDPs of different ministries are under discussion in connection with the preparation of 2004-05 budget, and the total PSDP would be finalised in Annual Plan Co-ordination Committee (APCC) meeting expected to begin from May 20.
The PSDP, which was Rs 132 billion in 2002-03, was increased to Rs 160 billion in the current fiscal with 45 percent of allocations for water and power.
However, 50 to 55 percent of funds were utilised in the current fiscal, according to the sources.
The finance managers, in a last week meeting, has already asked the ministry for water and power to review its PSDP of Rs 80 billion in which the demand for projects in power sector was around Rs 35 billion.
The power ministry has also demanded Rs 5 billion for Karachi Electric Supply Corporation (KESC). However, it was sent back for review.
In its last meeting, the Executive Committee of National Economic Council (Ecnec) showed its displeasure over delay in the execution of various development projects. The meeting, which was presided over by the Prime Minister Mir Zafarullah Khan Jamali, had directed all the ministries to ensure appointment of project directors.
The Ecnec also directed the ministries to set up monitoring cells for overseeing the projects and prepare their evaluation reports on regular basis.
Around 1000 development projects were launched under the PSDP during 2003-04, after increase in the annual budget and the projects having estimated cost between Rs 40 million and 100 million are around 260.
The sources said that the finance ministry was not opposed to increase in the PSDP size, but it wanted the completion of the projects within time.
The ministry is of the view that all the ministries must prepare a practical plan for launching the development projects and make it a result-oriented exercise.