ISLAMABAD: Finance Minister Dr Shamshad Akhtar meeting with the provincial chief ministers on implementation of modalities to rationalise federal expenditure on provincial subjects has been postponed due to the non-availability of two chief ministers and may now be held Friday (Dec 15).

Sources said the meeting scheduled today (Thursday) could not take place because two provincial chief ministers were not available.

They added that the meeting may be held on Friday.

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An official, on condition of anonymity, said that the federal government has also been exploring the possibility of transferring provincial nature projects being funded by the federal PSDP to the provinces.

Additionally, the federal government may drop non-starter projects with zero financial progress from the current fiscal year PSDP with the objective to save finances.

They added that presently, 33 per cent of financial resources are claimed by the provincial projects in the federal PSDP. And owing to resource constraints, funding is not being provided to the important national strategic projects which are facing cost/time over-run depriving accrued benefits.

Additionally, substantial funding is being provided to the AJ&K, GB, and merged districts of the KP despite the resource constraints as these are a federal responsibility.

Sources said it is being considered that non-starter projects with zero financial progress may be dropped from the PSDP which would help the federal government to save a considerable amount and the proposal was that no further release to the SDGs achievement program (SAP) would also yield some saving.

There was also a proposal that all projects having financial progress front 0-20 per cent may be considered for shifting to respective provinces for further financing through respective ADP postponed.

Additionally, the government has also been considering that the projects with 80 percent plus progress may be completed during the current fiscal year on priority through re-appropriations/adjustment; as many as 150 projects having financial progress between 21-80 percent may be critically reviewed by provinces and may be completed subject to availability of resources including provincial contribution.

Copyright Business Recorder, 2023