Khyber Pakhtunkhwa integrated health services project: Dar forms body to resolve duration of federal funding

Finance Minister Senator Ishaq Dar has constituted a committee under the chairmanship of Secretary Finance to resolve duration of federal funding for integrated health services project of Khyber Pukhtunkhwa, well informed sources told Business Recorder.
The project envisaged integration of health services by providing Minimum Health Service Delivery Package (MHSDP) with special focus on maternal, newborn and child health, Lady Health Workers (LHW)Programme, and expanded programme of immunisation and nutrition. This was part of an ongoing vertical health programme at a total cost of Rs 22.851 billion with FEC of Rs 8.92566 billion to be extended by DFID and AusAid in the shape of grant in-aid. The project would require adequate and continuous resources to meet its objectives and achieve millennium development goals (MDGs).
According to sources, after devolution all vertical health programmes were being executed/implemented at country level by the respective provincial/area governments and Federal Government was providing funding for the same as per decision of the CCI on April 28, 2011 during currency of seventh NFC Award (2015). CDWP in its meeting held on December 26, 2013 recommended the project for consideration of the Ecnec with the following observation: Federal Government would continue to finance vertical health programmes for the subject PC-I as per share of KP Government in accordance with the decisions of the CCI.
Details of consultancies would be separately cleared by Ministry of Planning, Development & Reform. The sponsors would provide FEC cost as per preceding month's State Bank's floating average exchange rate before issuance of authorisation. The sources said in compliance with the CDWP's decision, the sponsors provided the required information and the project cost was revised on the basis of the bank's floating average exchange rate ie (GBP= 173.005 PKR, Aus$ = 100.273 PKR for November) and FEC component was calculated as Rs 8.925 billion.
The project was submitted for approval of the Ecnec with the recommendations that (i) Federal Government would provide funding through Federal PSDP as per Government of KP's share for vertical health programmes (LHW, MNCH and EPI) in accordance with decisions of the meeting of the CCI held on April 28, 2011. Rest of the amount demanded will be met by the Government of KP through its own resources; and (ii) details of consultancies would be separately cleared by Ministry of Planning, Development & Reform.
At a recent meeting of the Ecnec presided over by Finance Minister, a view was expressed that the Federal Government funding for the proposed project should not be confined to the duration of seventh NFC Award (2015). Instead, the funding should continue till the completion of the project. It was, however, observed that the Federal Government funding for the vertical health programme should be in line with the spirit of the decision of the CCI.
The meeting approved the project and constituted a committee under the chairmanship of the Secretary, Finance Division with the Secretaries Inter Provincial Co-ordination, Planning, Development and Reform Divisions and Chief Secretary, KP to resolve the issue of period of financing the project by the Federal Government. However, in case the issue remains unresolved, it would be brought back to the CCI. The Planning, Development and Reform Division will provide secretariat support to the committee.