CDWP stalls $40 million World Bank project over high costs, spending on non-essential items

The federal government has deferred approval of a $40 million World Bank-funded Public Resource Mobilisation project after raising concerns over proposed spending on equipment, furniture and consulting services, The Express Tribune reported. 

The Central Development Working Party (CDWP) withheld clearance of the project and constituted a review committee to examine the cost structure and procurement plan.

Officials said a significant portion of the project budget was allocated to non-development expenditures, including laptops, desktops, office furniture and consultancy services, prompting objections during the review process.

Project documents indicated that consulting services accounted for 38% of the total cost, while goods and information systems made up 36%, bringing the combined share to 74% of the project’s funding.

The procurement plan included items such as laptops priced up to $3,000 each, desktops, telecommunication equipment, and furniture, including office tables, chairs and sofa sets.

The proposal also included hiring personnel with salaries ranging from Rs105,000 to Rs875,000 per month, along with allocations for software development, data systems and consultancy services.

Planning Minister Ahsan Iqbal directed that the project be reassessed, stating that foreign financing should not be used for expenditures that can be managed through domestic resources.

The review committee, led by the vice chancellor of the Pakistan Institute of Development Economics, will evaluate the justification of costs and recommend revisions before the project is reconsidered.