By Staff Reporter
ISLAMABAD: Despite the official book having been already published, the Ministry of Planning is still making last-ditch efforts to include around 60 development projects in the Public Sector Development Program (PSDP) for the next budget 2022-23, the IP learned on Wednesday.
The inclusion of development schemes in the PSDP list becomes of immense importance in the wake of the thin majority of the government under the existing ruling coalition of Pakistan Democratic Movement (PDM).
According to top official sources, the Public Finance Management (PFM) Act bars the Ministry of Planning from including unapproved development projects in the PSDP.
Initially, efforts were made to include development projects through seeking concept clearance approval but the Planning Ministry officials shared in writing that the technical approval was required along with PC-1 otherwise it would be considered as unapproved projects.
The Ministry of Finance also raised objections over inclusion of unapproved projects into PSDP for 2022-23. However, top officials, when contacted, said that the National Economic Council (NEC) granted approval to the Planning Ministry for inclusion of all those development schemes which would be approved till June 30, 2022.
Now the Ministry of Planning is directing all ministries/divisions and attached departments to prepare PC-1 in haste and present before the Central Development Working Party (CDWP) for clearing all development projects for inclusion in the PSDP.
The CDWP meetings are expected to be convened in the next few days to pave the way for the inclusion of more projects in PSDP by diverting resources from one project for making adjustments and allocating resources for other new projects.
The Planning Ministry wizards played some new tricks like for some projects the allocations were made on the higher side in PSDP to create fiscal space for sparing resources for other projects that would be inserted now into the PSDP list.
The government has allocated Rs800 billion for PSDP in the budget including Rs725 billion from its own resources and remaining in the shape of public private partnership.
The government issued an Office Memorandum (OM) on May 31, 2022, stating the Prime Minister of Pakistan being the Chairman National Economic Council (NEC) is pleased to grant a one-time special dispensation for relaxation in the deadline set by NEC i.e., March 31, 2022, for facilitating the submission of PC-1, PC-II of new projects to the Planning Commission for inclusion in the PSDP for 2022-23.
Federal sponsoring ministries/divisions can upload new projects on the Intelligent Project Automation System (IPAS) for the next fiscal year. This may be disseminated to all attached administrative departments under relevant controlling ministries/divisions.
Now by using this OM, an exercise is underway to include more development projects to accommodate ruling allies.
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