Work has been stoped on 1,300 projects due to ending of funds.

Work has been stoped on 1,300 projects due to ending of funds.

Islamabad : Pakistan | Apr 11, 2011 at 3:40 AM PDT
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Compared to the similar era of the 2007-08 economic year, the expenditure under the PSDP dropped by more than 71 per cent from Rs192 billion.

Throughout the first nine months of the last economic year (2009-10), the growth projects had received only Rs117 billion.

According to statistics released by the Planning Commission, the resource allocation of Rs242 billion announced in the 2010-11 budgets has been scratch by about 40 per cent to Rs150 billion, harshly affecting hundreds of growth projects and resulting in cost escalations.

The commission said that 409 communications projects for which Rs106 billion had been billed 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 economic constraints, more than 765 projects in infrastructure, edification and power sector have come to a total 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 throughout the period.

The commission’s report said that not a single project in the road sector or higher education project was at present in the completion stage.

Rs45 billion had been allocated in the budget for 99 projects in the communications sector—mostly roads, highways and bridges but none of them received even a single rupee in nine months.

Similarly, 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.

Correspondingly, thousands of small growth schemes under the People’s Works Programmed for which Rs30 billion had been allocated did not obtain any finances.

A total of 1,822 projects were integrated in the current year’s federal budget and the cost of the projects had been estimated at Rs4.079 trillion.

It may finally take more than 27 years to complete all these projects if the current spending trends continue and by the time of their completion most of the projects would become redundant.

Interestingly as the country faces prolonged load-shedding, 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 exemption 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 sector’s 86 projects of Rs28.5 billion were included in the current year’s development programmed 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 year’s development programmed 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 deliver of clean drinking water to people has also been caught up.

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 accommodation and works sector have been dropped.

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Work has been Stopped
Business News.
Muhammad Zahid Iqbal is based in Miānwāli, Punjab, Pakistan, and is a Reporter on Allvoices.
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