ISLAMABAD - The government is likely to cap ongoing development projects that are facing inordinate delay and is also considering setting up three years’ timeline for the completion of schemes funded from Public Sector Development Programme, starting from next fiscal year.
While chairing a high level meeting, Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal emphasized the timely completion of the development projects, particularly ongoing initiatives, which should ideally be finalised as per time frame mentioned in PC-1. He directed that sufficient funding be allocated to these projects to avoid delays, while new projects must have budgetary provisions that span their stipulated timelines to prevent execution hurdles.
Ahsan Iqbal, who also serves as the Deputy Chairman of the Planning Commission, reviewed the first quarter progress of the Public Sector Development Programme (PSDP) 2024-25. The meeting is part of a series of sessions aimed at assessing the performance of various ministries in implementing development projects.
During the session, key ministries and divisions, including the Ministry of National Food Security and Research, National Health Services, Regulations and Coordination Division, National Heritage and Culture Division, Pakistan Atomic Energy Commission, Petroleum Division, and SUPARCO, presented updates on their respective PSDP projects.
The meeting was informed that the planning ministry had authorized Rs155 billion funds for the first quarter to ministries and divisions under the PSDP framework. The planning minister stressed the importance of ensuring these funds are utilized effectively, with a focus on achieving tangible outcomes.
The minister also highlighted the need for reallocating funds from projects with zero expenditure to expedite those currently under implementation. “No lapses in project execution are affordable,” he said, underscoring the urgency of maintaining momentum in development work. In a firm message on fiscal prudence, Ahsan Iqbal stated that duplication of projects must be avoided, given the government’s limited financial resources. “Each penny must be spent vigilantly, ensuring maximum impact for national development,” he added. The meeting is part of a broader initiative to enhance accountability and transparency in the utilization of PSDP funds. Ministries and divisions are being scrutinized for their spending patterns, with a focus on aligning projects with national priorities. The planning minister further reiterated that the outcomes of these reviews would guide future allocations and policy adjustments, ensuring that development projects contribute meaningfully to Pakistan’s economic and social growth. The minister directed the ministries/divisions to bring the updated status of the projects that are facing inordinate delay. If the project is near completion, its funding will be enhanced and if it is on an early stage it will be capped, a source privy to the meeting said. According to the source, to avoid delay and cost escalation the government is also considering setting up three years’ timeline for the completion of projects starting from next fiscal year.
