ISLAMABAD: Minister for Planning and Development Ahsan Iqbal has expressed fear of a likely cut of Rs200-400 billion in development allocation for the current fiscal year due to the International Monetary Fund (IMF) programme as the Fund is not ready to give any relaxation in conditions.
The meeting of the Senate Standing Committee on Planning, Development, and Special Initiatives was presided over by Senator Quratul Ain Marri on Friday.
The meeting thoroughly reviewed the progress of the required projects under the Public Sector Development Program (PSDP) 2024-25, and the minister while briefing to the committee said that their hands are tied due to the IMF as the Fund is not ready to give any relaxation in conditions.
Transfer of PSDP projects to provinces discussed
This has been the reason the ministry did not released any PSDP fund so far in the first quarter and is looking up to the Finance Ministry for advice as to how much PSDP funds will be available, added the minister. He said that key of the increase in the size of the PSDP economic stability lies in implementation of structural reforms.
The minister said that after successful implementation of structural reforms under three-year IMF programme will enable to increase development outlay and there is no fiscal space available in the ongoing fiscal year as managing funds for the ongoing mega development projects is an issue.
Iqbal said that external account is major challenge and this can only be overcome by increasing exports for which peace, political stability and continuity of polices and continuous reforms are prerequisite.
The minister asked the senators to also reflect on whether devolution in 2010 under 18th Constitutional amendment was successful or not because Pakistan tops in the regions in terms of hepatitis, diabetes and lowest in literacy rate and all these subjects were transferred to the provinces.
The country cannot develop by spending on infrastructure and motorways but real development can be achieved by spending on health and education as the committee expressed concerns over not constructing Sukkur-Hyderabad portion of the motorway. The minister told the committee the government has been trying to get it included in China-Pakistan Economic Corridor (CPEC).
The Cabinet Division briefed the committee on Sustainable Development Goals Achievement Programme (SAP) under the PSDP. The Committee chairperson expressed concern over the slow pace of progress. She emphasised that the fiscal year ended on June 30, 2024, and yet no meetings on said project have been convened thus far. She suggested that officials ensure accountability in the relevant sectors and proceed with the completion of projects
The committee inquired about the need for construction of swimming pool in Karachi with a cost of Rs574 million.
Secretary (MoPDSI) gave update on the status of the Post-Flood 2022 Reconstruction Programme and stated that the funding for the project, amounting to Rs13,809.544 million, has been secured through a loan from the World Bank.
The committee expressed concerns regarding the land acquisition for the installation of a 1,200 MW solar power plant at Sher Garh, Tehsil Chubara, District Layyah.
Copyright Business Recorder, 2024