Over 100 projects, some of them of very critical nature, have either delayed or simply put on back burner due to unavailability of funds as the finance ministry withheld Rs 62 billion of fourth quarter of Public Sector Development Programme (PSDP) 2006-07.
The finance ministry squeezed release of funds of fourth quarter of the current fiscal year to add to the number of ill-fated projects which now stands at more than hundred.
The situation has worsened to such an alarming level that the Federally-Administrated Tribal Area (Fata) administration and the Azad Jammu Kashmir (AJK) government have to approach President General Pervez Musharraf to tell him that injustice was being done in the release of funds allocated for their development projects in the last PSDP, and he should intervene to make sure they get their share in allocation to complete the on-going development projects without delay.
Sources said the projects, suffered due to slowing down the release of funds included acquiring of land for the new water reservoirs, Higher Education Commission''s more than 12 projects, National Highway Authority''s (NHA) at least six projects, including M-1 and M-2 Peshawar-Islamabad and Lahore Islamabad sections of motorway, Mother-Child Care Project, at least 20 projects of social uplift and food security of the federal government, National Clean Drinking Water Project and social sector projects in Fata and Azad Kashmir, which included construction of the new schools, repair of roads and basic health units to cater to the need of the people in those remote areas.
The officials conceded that the finance ministry was not releasing funds and different projects were not progressing as per schedule, but they do not either know or intentionally give the reason of withholding funds by the ministry.
In a bid to introduce good governance culture and ensure the availability of developmental funds in time the government decided at the highest level last year that the finance ministry will release funds to all the federating units on quarterly basis. The agreed procedure was followed for the first three quarters and the finance ministry released Rs 172 billion of PSDP by the end of February.
Then comes bad phase as the finance ministry stopped major portion of releases reminding the federal, provincial, and AJK governments, and Fata of the last years days when they have to literally plead for the release of PSDP funds. Mostly they used to get funds in June just few days ahead of the federal budget.
Sources said the finance ministry was following the June days procedure, but it can not help the government maintain its image of spending record funds for social sector development.