The Ministry of Planning, Development, and Special Initiatives strongly rebuts the news item, titled “PSDP projects hamstrung by lack of funds”, appearing on the main page of Daily Business Recorder, dated: 25 August 2021.

Dated : 25 August 2021

The Ministry of Planning, Development, and Special Initiatives strongly rebuts the news item, titled “PSDP projects hamstrung by lack of funds”, appearing on the main page of Daily Business Recorder, dated: 25 August 2021. Both the title and the facts mentioned in the news item are misleading and contrary to the facts. There is no shortage of funds nor the government trimming the development portfolio to create fiscal space.

The Ministry of Planning indeed takes pride in spending Rs. 685 Billion (105%) against an allocation of Rs. 650 Billion, during the last financial year, ending on 30th June 2021. During the current financial year (2021-22) the government significantly enhanced the development budget by 38% i.e. Rs. 650 to Rs. 900 Billion and also resolved to fast track the projects spending from the beginning of the financial year. Therefore, as per the release strategy, duly approved by Finance Division, the Ministry of Planning authorized the release of 20% of funds upfront in early July 2021. Besides, the government also decided to release another 30% of funds for development projects, which are being formally authorized to various ministries in few days.

The fact of the matter is that the National Economic Council (NEC), while approving PSDP 2021-22, inter-alia directed to prioritize the PSDP portfolio, in consultation with the provinces and the federal Ministries / Division, for appropriate phasing and timely completion of all development projects. It was in this regard, this ministry initiated the exercise of rationalization to focus on timely completion of projects through providing adequate financial resources to the fast-moving schemes and those nearing completion.