ISLAMABAD: The government may drop all 137 non-starter projects with zero financial progress from the PSDP 2023-24 to save allocation of Rs116 billion in the current fiscal year.

Sources said that the federal government may also explore the possibility of transferring provincial nature projects funded from federal PSDP to the respective provinces.

They added that the provincial projects have made inroads into the federal PSDP at the cost of federal nature projects. Presently, 33 per cent of financial resources are claimed by the provincial projects in the federal PSDP 2023-24 with allocation of Rs314 billion.

Jul-Oct 2023-24: Rs300.9bn authorised for projects under PSDP

Due to resource constraints, funding is not being provided to the important national strategic projects which are facing cost/ time over-run depriving accrued benefits.

Being the federal responsibility and commitment, substantial funding is being provided to the AJ&K, GB, and merged districts of KP despite the resource constraints.

The NEC in 2021 approved the policy for financing the provincial projects in exceptional cases on cost-sharing basis which was further reiterated in 2023.

The summary position of provincial nature projects costing Rs1,373 billion included Punjab Rs195 billion, Sindh Rs327 billion, KP Rs69 billion, merged districts Rs4 billion, Balochistan Rs317 billion, and umbrella/ block Rs390 billion including Rs90 billion allocations for SAP funding under Cabinet Division.

Sources said it is being considered that (i) all 137 non-starter projects with zero financial progress may be dropped from the PSDP 2023-24 to save allocation of Rs116 billion during the current fiscal year; (ii) no further release to SDGs achievement program (SAP) to save balance allocation of Rs29 billion; (iii) all 49 projects having financial progress front 0-20 per cent may be considered for shifting to respective provinces for further financing through respective ADP postponed. This would save allocation of Rs29 billion; (iii) 20 projects with 80 percent plus progress may be completed during current fiscal year on priority through re-appropriations/adjustment; (iv) as many as 150 projects having financial progress between 2I-80 percent may be critically reviewed by provinces and may be completed subject to availability of resources including provincial contribution.

Copyright Business Recorder, 2023