Finance Ministry is reportedly facing resistance from provinces on its proposed plan to scrap 137 non-starter projects and transfer 49 projects with up to 20 per cent progress to provinces, well informed sources in Ministry of Planning, Development and Special Initiatives told Republic policy.
This plan, according to sources, has been prepared under the umbrella of Special Investment Facilitation Council (SIFC).
Sharing the details, sources said, on October 26, 2023, Secretary Finance, Imdad Ullah Bosal held a Provincial Secretaries of Finance meeting on the issue of development projects wherein he stated that the provincial nature of schemes accounted for 33% of the total PSDP allocation during CFY, which was not sustainable anymore.
Therefore, he proposed the following arrangements: (i) 137 non-starter projects having zero financial progress to be dropped from PSDP; (ii) funding for the SDGS Achievement Program (SAP) projects to be discontinued; (iii) 49 projects that have made zero to 20% progress to be shifted to the respective provinces; iv) 20 projects with over 80% progress to be completed during CFY through re-appropriation.
Secretary, Planning and Development Division, Awais Manzur Sumra stated that an allocation of Rs. 314 billion had been made for 357 projects of provincial nature in the Federal PSDP for the CFY, including allocation for SDGs and some special projects under the Prime Minister’s initiatives.
He also apprised the meeting that no further funds would be released to the SDGs projects; therefore, no authorisation had been issued by Planning Division for 2nd quarter of CFY.