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Work stops on 1,300 projects as funds dry up
The expenditure on public sector development projects in the first nine months of the current fiscal year has totalled Rs112 billion, about four per cent less than during the same period last year, bringing more than 1,300 projects to a standstill.
Compared to the same period of the 2007-08 financial year, the spending under the PSDP dropped by more than 71 per cent from Rs192 billion.
During the first nine months of the last financial year (2009-10), the development projects had received only Rs117 billion.
According to figures released by the Planning Commission, the resource allocation of Rs242 billion announced in the 2010-11 budget has been cut by about 40 per cent to Rs150 billion, severely affecting hundreds of development projects and resulting in cost escalations.
The commission said that 409 infrastructure projects for which Rs106 billion had been allocated were given only Rs41 billion in the first nine months.
In the remaining three months, these projects would get another Rs22 billion. The total cost of these projects is estimated at Rs3 trillion.
In the social sector, 1,266 projects of Rs850 billion were allocated Rs128 billion that has now been slashed to Rs84 billion.
In the first nine months (July-March), the government released only Rs68 billion for the projects.
As a result of financial constraints, more than 765 projects in communications, education and power sector have come to a complete halt because these projects did not receive any fund during the first nine months.
Another 548 projects have been provided a maximum of Rs5 million during the period.
The commissions report said that not a single project in the road sector or higher education project was currently in the implementation stage.
Rs45 billion had been allocated in the budget for 99 projects in the communications sectormostly roads, highways and bridges but none of them received even a single rupee in nine months.
Likewise, the government had allocated about Rs16 billion in the budget for 205 development projects and for hundreds of scholarships for students to study but no funds were released.
Similarly, thousands of small development schemes under the Peoples Works Programme for which Rs30 billion had been allocated did not get any funds.
A total of 1,822 projects were included in the current years federal budget and the cost of the projects had been estimated at Rs4.079 trillion.
It may eventually take more than 27 years to complete all these projects if the current expenditure trends continue and by the time of their completion most of the projects would become redundant.
Interestingly as the country faces prolonged loadshedding, 41 of the 43 in the power sector did not get any funds although over Rs12 billion had been allocated for them in the federal budget.
The Bhasha dam was an exception and it got Rs1.3 billion in the first nine months, followed by Rs100 million for small transmission lines in the power sector.
The water sectors 86 projects of Rs28.5 billion were included in the current years development programme but 30 of them could not get any funding in the nine months.
Similarly, six of the nine projects of local government and rural development have been dropped from the current years development programme and 32 of 108 in the science and technology division have not received any funds so far this year.
Ironically, a Rs8 billion project for supply of clean drinking water to people has also been stalled.
Similarly, funds for six of seven projects for remote areas of the States and Frontier Regions have been blocked.
Another 35 of 105 projects in the housing and works sector have been dropped.
Ten cabinet divisions 28 projects have also been dropped from the development programme, while two of seven projects of commerce ministry have been shelved for the time being.
Work stops on 1,300 projects as funds dry up | Newspaper | DAWN.COM
The expenditure on public sector development projects in the first nine months of the current fiscal year has totalled Rs112 billion, about four per cent less than during the same period last year, bringing more than 1,300 projects to a standstill.
Compared to the same period of the 2007-08 financial year, the spending under the PSDP dropped by more than 71 per cent from Rs192 billion.
During the first nine months of the last financial year (2009-10), the development projects had received only Rs117 billion.
According to figures released by the Planning Commission, the resource allocation of Rs242 billion announced in the 2010-11 budget has been cut by about 40 per cent to Rs150 billion, severely affecting hundreds of development projects and resulting in cost escalations.
The commission said that 409 infrastructure projects for which Rs106 billion had been allocated were given only Rs41 billion in the first nine months.
In the remaining three months, these projects would get another Rs22 billion. The total cost of these projects is estimated at Rs3 trillion.
In the social sector, 1,266 projects of Rs850 billion were allocated Rs128 billion that has now been slashed to Rs84 billion.
In the first nine months (July-March), the government released only Rs68 billion for the projects.
As a result of financial constraints, more than 765 projects in communications, education and power sector have come to a complete halt because these projects did not receive any fund during the first nine months.
Another 548 projects have been provided a maximum of Rs5 million during the period.
The commissions report said that not a single project in the road sector or higher education project was currently in the implementation stage.
Rs45 billion had been allocated in the budget for 99 projects in the communications sectormostly roads, highways and bridges but none of them received even a single rupee in nine months.
Likewise, the government had allocated about Rs16 billion in the budget for 205 development projects and for hundreds of scholarships for students to study but no funds were released.
Similarly, thousands of small development schemes under the Peoples Works Programme for which Rs30 billion had been allocated did not get any funds.
A total of 1,822 projects were included in the current years federal budget and the cost of the projects had been estimated at Rs4.079 trillion.
It may eventually take more than 27 years to complete all these projects if the current expenditure trends continue and by the time of their completion most of the projects would become redundant.
Interestingly as the country faces prolonged loadshedding, 41 of the 43 in the power sector did not get any funds although over Rs12 billion had been allocated for them in the federal budget.
The Bhasha dam was an exception and it got Rs1.3 billion in the first nine months, followed by Rs100 million for small transmission lines in the power sector.
The water sectors 86 projects of Rs28.5 billion were included in the current years development programme but 30 of them could not get any funding in the nine months.
Similarly, six of the nine projects of local government and rural development have been dropped from the current years development programme and 32 of 108 in the science and technology division have not received any funds so far this year.
Ironically, a Rs8 billion project for supply of clean drinking water to people has also been stalled.
Similarly, funds for six of seven projects for remote areas of the States and Frontier Regions have been blocked.
Another 35 of 105 projects in the housing and works sector have been dropped.
Ten cabinet divisions 28 projects have also been dropped from the development programme, while two of seven projects of commerce ministry have been shelved for the time being.
Work stops on 1,300 projects as funds dry up | Newspaper | DAWN.COM
