Govt considers dropping 137 non-starter projects to save Rs116bn

The government is contemplating the removal of all 137 non-starter projects with zero financial progress from the Public Sector Development Program (PSDP) 2023-24.

This move aims to conserve an allocation of Rs116 billion in the current fiscal year. Sources reveal that there is also a possibility of transferring provincial projects funded by the federal PSDP to their respective provinces.

According to insiders, provincial projects have been encroaching on the federal PSDP at the expense of federal nature projects.

Currently, provincial projects claim 33 percent of financial resources in the federal PSDP 2023-24, with an allocation of Rs314 billion. Due to resource constraints, critical national strategic projects are not receiving funding, leading to cost and time overruns and hindering accrued benefits.

Despite resource limitations, substantial funding is being provided to Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts of Khyber Pakhtunkhwa, in line with federal responsibilities and commitments.

The summary of provincial nature projects, costing Rs1,373 billion, includes Punjab at Rs195 billion, Sindh at Rs327 billion, KP at Rs69 billion, merged districts at Rs4 billion, Balochistan at Rs317 billion, and an umbrella/block allocation of Rs390 billion, with Rs90 billion for the Special Development Goals (SDGs) Achievement Program under the Cabinet Division.

Sources suggest that the government is contemplating various measures. These include dropping 137 non-starter projects to save Rs116 billion and withholding further funds from the SDGs Achievement Program to conserve Rs29 billion.

Additionally, there is a plan to shift projects with 0-20 percent financial progress to respective provinces for financing through their Annual Development Programs (ADP), while prioritizing the completion of projects with 80 percent or more progress through re-appropriations/adjustments. 

The government also intends to critically review 150 projects with financial progress between 21-80 percent, subject to resource availability, including provincial contributions.