ISLAMABAD: “The Ministry of Planning, Development and Special Initiatives strongly rebuts the news item, titled “PSDP projects hamstrung by lack of funds”, appearing on the main page of Business Recorder, dated: 25 August 2021. Both the title and the facts mentioned in the news item are misleading and contrary to the facts. Neither is there any shortage of funds nor is the government trimming the development portfolio to create fiscal space.

“The Ministry of Planning indeed takes pride in spending Rs. 684 Billion (105%) against an allocation of Rs. 650 Billion, during the last financial year, ending on 30th June 2021. For current year’s PSDP (2021-22), as per release strategy approved by Finance Division, the Ministry of Planning authorized release of 20% of funds upfront in early July 2021. Besides, the government also decided to release another 30% of funds for development projects, which are being formally released in few days.

The fact of the matter is that the National Economic Council (NEC) while approving PSDP 2021-22, inter-alia directed to prioritize the PSDP portfolio in consultation with the provinces and the federal ministries / division for appropriate phasing and timely completion of all development projects. It was in this regard, this ministry initiated the exercise of rationalization to focus on timely completion of projects through providing adequate financial resources to the fast moving schemes and those nearing completion.”—PR

Copyright Business Recorder, 2021