In Pakistan pace of spending on development schemes remained slow in the first quarter, as the federal government sanctioned Rs169.2 billion or 16.7% of the annual budget. The planning ministry of Pakistan has released the latest data of the budget sanctioned for development spending from July through September of this fiscal year. Official statistics show that the fund released were Rs31 billion less than the limits prescribed by the finance ministry.( The ways and means limits prescribed by the finance ministry allow the planning ministry to authorise up to 20% of the total annual spending during the first quarter. However, at the start of the new fiscal year, the finance ministry had relaxed the 20% condition for the fast moving projects aimed at facilitating the schemes that the incumbent government wants to complete before the next general elections.)
However, two new special initiatives of former Prime Minister Nawaz Sharif – Clean Drinking Water for All and Energy for All – did not receive a penny against their combined annual allocations of Rs24.3 billion. These initiatives had been announced a month before Sharif was ousted by the Supreme Court.
The government also did not authorise any spending for another special initiative worth Rs34 billion – the Special Federal Development Programme, which had been conceived to uplift underdeveloped areas of the country.
While keeping in mind upcoming general elections and the growing requirements of CPEC projects, the federal government has allocated Rs1.001 trillion for Public Sector Development Programme for fiscal year 2017-18.
Due to its political priorities, the federal government has included 420 new projects in this fiscal year’s PSDP despite 582 ongoing projects being pending. The federally-funded PSDP was comprised of 1,022 projects and out of these 420 were new schemes.
Biased approach
The huge allocations for infrastructure schemes have been made at the expense of projects being initiated by other government ministries. For instances, the Ministry of National Health Services received only Rs1.7 billion or 3.5% of its annual budget of Rs48.7 billion.
Overall, the government sanctioned only Rs39 billion for hundreds of developments schemes carried out by 39 government ministries. The amounts were just 12.7% of their combined annual allocations of Rs306.6 billion.
A significant chunk of Rs7.4 billion out of Rs39 billion went to water resources ministry, Higher Education Commission Rs6.5 billion or 18.2% of its total budget and railways ministry Rs8.6 billion.
The Special Federal Development Programme for Temporarily Displaced Persons received Rs14.6 billion or 16.2% of its annual allocation during the first quarter. This head technically does not fall under the category of development spending.