PSDP - an analysis

Since the inception of Pakistan, a number of plans and policies have been made to formulate a sustainable developmental programme where no obstructions could hinder the development process. Economic development process is highly dependent upon the resources, if a fewer resources are available, development process may be halted.
However, in case of Pakistan, there are certain other factors, which are responsible for slow and broken development programme, such as instability and insecurity, that divert the focus of development budget to other heads.
Almost similar maltreatment is observed with Public Sector Development Programme (PSDP) for the year 2010-11. Following a long debate on the PSDP, which was started from the Finance Division's recommendation, then went under Annual Plan Co-ordination Committee observance and finally reached at a decision of National Economic Council, which approved Rs 663.0 billion for the PSDP 2010-11. Out of which, the size of federal PSDP is Rs 280.0 billion, provinces' size is Rs 373.0 billion and Rs 10.0 billion are fixed for Earthquake Reconstruction and Rehabilitation Authority (ERRA).
The PSDP 2010-11, being ambitious, will follow the nine-point economic agenda, which aims at attaining objectives of wide-ranging growth, reduction in poverty, balanced development of backward areas, education for all, provision of food and water, and basic health facilities. Our finance minister has asserted that a realistic approach will be adopted and so timely releases will be made for early and timely completion of ongoing projects. Therefore, the ongoing projects have been allocated around 88% of resources to ensure their completion in time.
Conversely, in fiscal year 2009-10, an amount of Rs 621 billion was approved for the PSDP, wherein Rs 421 billion was allocated to the federal development programme. Owing to financial constraints, the PSDP for 2009-10 was revised down to Rs 594 billion, where the federal PSDP was squeezed to Rs 300 billion with reduced allocations to all ministries/divisions. Although the PSDP was rationalised by keeping in view the needs of the developmental projects, yet it is bright and clear that how many ongoing projects, could be affected when 30% resources are clutched back.
Another tragedy faced by the PSDP is the sluggish or halted release of allocated funds to projects as the government could barely release Rs 250 billion out of revised PSDP allocations of Rs 300.0 billion during 2009-10, which added fuel to the fire. The cut imposed on resources/finances and delayed releases encroach the process of project cycle. Likewise, the problem of cost escalation emerges additionally. Other concerns are also involved such as, the expected economic benefits receive from the projects may protrude over planned time period as well as the project completion period may be extended over the premeditated time period.
Excluding the planning and financial ambit, some sort of cock-and-bull story has also taken the way in the PSDP. The 18th Amendment in Constitution has strengthened the political and administrative position of provinces. Similarly, the financial position has also been strengthened by historic 7th NFC award, which has ended a long tussle of resource distribution between the provinces and the federal government. However, a number of provincial projects related to some particular cities are still reflecting in the federal PSDP. Projects centering southern Punjab/Multan city, Badin, Larkana, Benazirabad, Kohlu, Hyderabad, and Dera Bugti have grasped the undue allocations, which could be allocated to Higher Education Commission (HEC), education, health sectors etc. The government, particularly the Planning Commission must take into account the emerging needs of education sector. Financial resources, being the only tool of Higher Education Commission have now been constricted and have put the efficiency of the HEC on stake.
Anyone can ask that, why these projects belonged to only some particular regions. Are these cities really underdeveloped, backward, and poorest? Development projects from Dadu, Ghotki, Gujrat, Rahimyar Khan or from any other city can be included. Hence, inclusion of illogical and futile projects causes snatching of money from deserving projects.
After the NFC award, provinces have been able to pursue provincial nature subjects under their own Annual Development Programme. Since provinces have got an ample size of development budget, amounting Rs 373 billion, around Rs 79 billion more than that of the previous year. In addition to this, Rs 30 billion has been granted to People Works Programme, through which the ministers can initiate the development programmes in their constituencies.
We all know the bureaucratic system of Pakistan, which is being politicised, whether deliberately or forcefully. Forced inclusion of non-economic and superfluous projects ought to have an inevitable debt on the government, which only serves to protect the political seats in assemblies.
Hasty allocations against several projects without involving concerned ministries and without knowing the significance of various projects have dispirited the purpose of the PSDP. It is observed that a few schemes have been allocated funds irrationally, which has disturbed the allocations of other projects too. The government's capital and efforts are involved in planning and printing the PSDP, but the abovementioned errors may demand the revision of the PSDP in coming months.
The government should grow up now and show a mature behaviour devoid of prejudice. All people and all cities of Pakistan are equal with the exception of some affected areas. It is high time the concerned authorities could maintain an open and equal policy even in formulating a year-long development programme.
(The writer is the Research Officer in the Planning Commission)