The utilization of developmental funds has remained very low during the current fiscal year as only 45.3 percent of the allocations in the Public Sector Development Program have been utilized during the first three quarters of the ongoing fiscal year 2021-22.
Of the total allocations of Rs. 900 billion in the PSDP 2021-22, for the ministries/divisions, only Rs. 407.603 billion has been utilized during the first three quarters (July 1, 2021, to March 31, 2022), official documents available with the ProPakistani revealed.
There are two components of the Federal PSDP – the Rupee and foreign exchange.
The expenditure under the Rupee component is far less than the total allocations as only Rs. 325.645 billion, which is just 40.70 percent of the total allocation of Rs. 800 billion of the rupee component of the PSDP 2021-22 which has been utilized so far.
On the other hand, the utilization of funds allocated under the Foreign Exchange Component (FEC) of the PSDP is more than 81 percent. Out of the total Rs. 100 billion, an FEC of Rs. 81.958 billion has been utilized from July 1, 2021, to March 31, 2022.
Utilization against the authorization issued by the Planning Commission is very low as it is just 63.7 percent of the authorization, the documents reveal. The Planning Commission has issued authorization of Rs. 511.138 billion for the release of funds to the Finance Division, however expenditure of Rs. 325.645 billion incurred during the first three-quarters of the current fiscal year.
The utilization of the sanctioned funds by the concerned ministries/division is also low, as only 72.8 percent of the sanctioned funds have been utilized during the first three-quarters of the current fiscal year.
Avi Kerendian | In the first nine months of FY22, only 45% of PSDP funds were utilized. Why is this so?