90% of development projects facing cost, time overruns: Planning Commission

The overall release of funds during the 1st quarter amounted to Rs94.1 billion which included Rs63 billion of rupee component, Rs30.66 billion in foreign exchange and stood at 14 5 of the revised PSDP, said the secretary

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ISLAMABAD: Over 90% of development projects were facing cost and time overruns highlighting faulty planning, the Planning Commission told on Thursday.

A team of planning ministry headed by additional secretary Ali Reza informed a Senate panel that the commission had released only Rs94 billion for development projects during the first quarter (July-September) of FY19 against the stipulated 20%, reports Dawn.

Mr Reza informed the Senate Standing Committee on Planning and Development said the government’s decision to slash the public sector development programme (PSDP) had contributed to delay in the release of funds in the current year.

The meeting was chaired by the Chairman of the Committee, Senator Agha Shahzaib Khan Durrani and the secretary apprised them the government had cut PDSP to Rs675 billion for FY19, including Rs531 billion of local funds and Rs144 billion of foreign exchange component instead of budget allotment of Rs1,001 billion.

The overall release of funds during the 1st quarter amounted to Rs94.1 billion which included Rs63 billion of rupee component, Rs30.66 billion in foreign exchange and stood at 14 5 of the revised PSDP, said the secretary.

However, the committee expressed anger over the continued absence of Minister for Planning and Development Makhdoom Khusro Bakhtiar and Secretary in-charge Zafar Hassan over missing 6-8 such successive meetings.

The committee issued a stern warning saying they would take appropriate action against both ministry officials under Article 66 of the constitution.

While discussing the Gwadar Master Plan, the committee was informed that the residents were having serious problems due to prolonged delay in the city master plan since they weren’t provided NOCs for construction of their houses.

Mr Kauda Babar asked as to why Rs25 billion assigned for Gwadar hadn’t been released in last fifteen years from the planning ministry.

In response, the planning ministry officials stated the federal government had to disburse funds to the Balochistan government to implement the devised projects under the ambit of Gwadar Business Plan.

The committee was informed by Senator Mir Kabeer Ahmad that the people of Gwadar didn’t have access to potable water and were living miserable lives.

The members of the committee believed the plan had been formulated by a steering committee without taking locals into confidence.

They said public representatives from the province should be provided due representation on the Committee, so the project planning is in conformity with their will and wishes.