The caretaker government would like to put a freeze on the funds released to the districts and intended to be spent through the election season – but can or should it?
By Muhammad Ali
ISLAMABAD: Development funding to the tune of around PKR 30 billion greenlit by the Pakistan Democratic Alliance (PDM) seems on course to slip through all the measures taken by the Election Commission of Pakistan (ECP) to ensure a level playing field for all – although that may change before long.
The government of Prime Minister Shahbaz Sharif doled out approximately PKR 200 billion to parliamentarians belonging to his PDM coalition under the Sustainable Development Goals Achievement Program (SAP).
Of this funding, around PKR 170 billion has already been spent. The remaining amount – about PKR 30 billion – is parked in the accounts of district governments so that work on these projects can continue under the caretaker government and through the election season.
But reliable sources say the caretaker government is poised to order a freeze on this funding.
Each MNA from the then treasury benches received PKR 1 billion or more from this pool. Based on this, it is hard to rule out that the Sharif government adopted this strategy with an eye to the election – nothing like ongoing development projects to canvass votes. But the move can be explained based on other grounds.
A strong case can be made for continuation of public spending amid today’s historic high levels of economic hardship. A weak rupee, skyrocketing energy prices, and runaway inflation have wreaked havoc on the purchasing power of the common Pakistan and decimated jobs. If anything, the situation demands increased public spending.
Another perspective is that the PDM coalition took reins of power at a time when Pakistan was on course to default on external obligations in 2 or 3 months. They knowingly took politically expensive decisions in the national interest, and put the economy on a less precarious footing.
Several PDM leaders are on the record saying they are sacrificing their politics for the state. Based on this, this funding may be a quid pro quo for that unselfish sacrifice, supported by an informal understanding between the various elements of the establishment and the PDM.
It is unclear at this point if the ECP or caretaker government will freeze the accounts of district governments meant to disburse this funding, and if yes, under what law.
The PDM on its part is likely to fight any such move tooth and nail, at least in the political arena – just as their detractors are likely to roll out all the big guns to have these funds frozen.
Under the Shahbaz government, the Cabinet Division authorised a steering committee to take decisions on SAP funds and its meetings had witnessed very interesting and unique episodes during its proceedings.
For instance, in one meeting of the steering committee, some coalition partners tore copies of the meeting agenda after which one coalition partner from Balochistan secured funds for those projects where there were duplications in development schemes on the name of last severe floods.
Another interesting episode unfolded when PM Sharif secured a vote of confidence at the twilight of his tenure.Some coalition partners refused to grant him a vote of confidence unless the funds were released beforehand. At least one MNA is known to have openly refused to vote for Shehbaz Sharif unless the funds were released.
Finally, one former minister intervened, assuring the disaffected MNA to get an official confirmation of the release of the funds. He eventually kept his promise.
In another move that also seems to be politically motivated, the PDM government inserted 161 unapproved development projects in the PSDP list in violation of the Public Finance Management Act (PFM).
The previous government claimed that they had secured a waiver from the National Economic Council (NEC) on the approval of these projects till June 30, 2023. The question however is, how can the NEC waive compliance with PFM, an Act of the Parliament.
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