Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

CPI Preview: Inflation to fall below 14% YoY in May

Govt releases Rs 15.4 bln for development projects

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Aug 18, 2019: The federal government has so far released Rs 15.4 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2019-20, as against the total allocation of Rs 701 billion.

Under its development program, the government has released an amount of Rs 10.2 billion for federal ministries, whereas Rs 4.6 billion for special areas, according to a data released by Ministry of Planning, Development and Reform.

Out of these allocations, the government released Rs 4.4 billion for Higher Education Commission out of its total allocation of Rs 29 billion.

Under annual development agenda, the government also released Rs 4.27 billion for Pakistan Atomic Energy Commissionfor which an amount of Rs 24.4 billion was allocated under PSDP 2018-19.

Similarly, Rs 750 million were released for Communication Division (other than NHA) as the government earmarked Rs 9.8 billion in its PSDP 2019-20.

SUPARCO received Rs 365.8 million out of its total allocation of Rs 6.03 billion whereas Revenue Division received Rs 198.15 million out of total allocation of

Rs 1.9 billion.

The government also released Rs 4.6 billion for Azad Jammu and Kashmir (AJK) block and other projects out of its allocations of Rs 27.26 billion.

The Planning Commission of Pakistan follows the specific mechanism for release of funds. During first quarter (July-September) it releases 20 percent of development funds, in second quarter (October-December) 20 percent, third quarter (January-March) 30 per cent and fourth quarter (April-June) 30 percent.

Meanwhile the Planning Commission has clarified that a news item published in certain sections of media regarding authorization of PSDP funds during 2019-20 that the Ministry of Planning, Development and Reform has processed all demands received for authorization till August 16, 2019 against PSDP allocation.

In a statement, the Planning Commission said “As per Release Strategy issued by the Finance Division on July 15, 2019, 20 percent of the PSDP allocation has to be authorized for PSDP funded projects”.

Accordingly, Ministry of Planning, Development and Reform has to authorize Rs. 89 billion during the first quarter which is 20% of Pak rupee earmarked in current PSDP.

Out of this demand of Rs. 56 billion was received from all federal entities. This Ministry has authorized Rs. 22.6 billion to different ministries/division which meet SOP/codal formalities for release authorization. The remaining was not authorized mainly due to non-fulfillment of codal formalities.

The amount would be released as soon as Ministries fulfill the formalities. It would not be out of place to highlight that during last financial year Ministry of Planning, Development and Reform authorized releases of 97% of PSDP 2018-19.



Posted on: 2019-08-18T15:20:00+05:00