Public Sector Development Slows to 18% Amid Financial Crunch, IMF Pressure

The Prime Minister-led Federal Government has slowed down the pace of development activities due to the financial crunch and pressure from the International Monetary Fund (IMF).

The Planning Commission issued details on the releases of PSDP funds on Wednesday during the first five months of the current fiscal year. According to the details, only 18 percent of PSDP funds were spent during the first five months of the current fiscal year.

The report shows that Rs. 130.63 billion were spent in five months out of the total Rs. 727 billion budgeted amount for the Public Sector Development Program for the current fiscal year.

The Planning Commission further informed that Rs. 34 billion were spent on different projects by the National Transmission and Dispatched Company and PEPCO during the five months out of the total allocated amount of Rs. 43 billion of the current fiscal year.

The National Highway Authority spent Rs. 21 billion out of Rs. 117 billion, the Water resources spent Rs. 20 billion out of Rs. 264 billion, the Provinces and Special Areas (Previously under FD/KA&GB) spent Rs. 18.38 billion out of Rs. 138.63 billion during the first five months of the current fiscal year.

The Aviation Division has spent Rs. 366 million out of a total budgeted Rs. 2.48 billion, the Board of Investment has spent 22 million out of Rs807 million, Cabinet Division spent Rs. 11 billion out of Rs. 87.058, the Commerce Division has spent Rs. 100 million out of Rs. 1.174 billion, the Communications (other than NHA) has spent Rs.16 million out of the total budget amount of 180 million, the Defence Division has spent Rs. 234 million out of Rs. 2.232 billion, the Defence Production Division has spent Rs. 222 million out of Rs. 2.2 billion and Establishment Division has spent Rs. 69 million out of Rs. 900 million during the five months of the current fiscal year.

The climate change ministry is also facing a lack of resources to initiate or complete its development projects despite the calamities of climate change. The data shows that the Climate Change Division could only spent Rs. 1.9 billion out of Rs. 9.5 billion during the five months of the current fiscal year.

The Federal Education & Professional Training Division has spent Rs. 844 million out of the total budget development allocation of Rs. 7.239 billion, Finance Division has spent Rs. 15 million out of Rs. .1.66 billion, the Higher Education Commission spent Rs. 3.15 billion out of Rs. 44.72 billion, the Housing & Works Division has spent Rs.  2.16 billion out of Rs. 18.23 billion, the Human Rights Division has spent Rs. 23 million out of Rs. 184 million, the Industries & Production Division has spent Rs. 387 million out of Rs. 2.85 billion, the Information & Broadcasting Division has spent Rs. 68 million out of Rs. 2.0 billion, the Information Technology & Telecom Division has spent Rs. 3.5795 billion out of Rs. 6.33 billion, the Inter-Provincial Coordination Division Rs. 503 million out of Rs. 3.472 billion, the Interior Division has spent Rs. 471 million out of Rs. 8.093 billion, the Law & Justice Division has spent Rs. 135 million out of total Rs. 1.814 billion during the five months of the current fiscal year, the data shows.

The Maritime Affairs Division has spent Rs. 71 million out of Rs. 3.465 billion, the Narcotics Control Division has spent Rs. 41 million out of Rs. 208 million, the National Food Security & Research Division has spent Rs. 1.125 billion out of Rs. 13.33 billion, the National Health Services has spent Rs. 1.91 billion out of Rs. 12.65 billion, the National Heritage & Culture Division has spent only Rs. 4.8 million out of Rs. 200 million, the Pakistan Nuclear Regulatory Authority has spent Rs. 50 million out of Rs. 290 million, the Petroleum Division has Rs. 19 million out of Rs. 1.48 billion, the Planning, Development Division has spent Rs. 902 million out of Rs. 16.976 million, the Poverty Alleviation & Social Safety Division has spent Rs42 million out of Rs. 500 million during the five months of the current fiscal year, the data shows.

The Railways Division has spent only Rs. 3.2 billion out of Rs. 32.65 billion, the Religious Affairs & Inter Faith Harmony Division has spent Rs. 112 million out of Rs. 600 million, the Revenue Division has spent Rs. 1.227 billion out of Rs. 3.188 billion and the Science &Technological Research Division has spent Rs. 504 million out of Rs. 5.7 billion during the five months of the current fiscal year.

Sources told ProPakistani that the Finance Ministry has indicated to the IMF to reduce the Federal PSDP size from Rs. 727 billion to Rs. 350 billion to secure the loan program which is almost stalled. The IMF team is pressuring the Finance Ministry to reduce the budget deficit at a reasonable rate despite the flood-related spending in the affected areas.

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