Islamabad, Jan 17: The Punjab government has formally requested Rs. 150 billion under the Public Sector Development Program (PSDP) to support critical road infrastructure projects, as disclosed by provincial representatives during a Senate Planning Committee meeting. However, officials from the Ministry of Finance revealed that they have yet to receive detailed allocations for these funds in the third quarter of the 2024-25 fiscal year.
The Planning Secretary told the committee that the Planning Minister approved PSDP allocations, and the Finance Ministry will receive the details soon.
Addressing the committee, the chairman called for a temporary halt on new PSDP projects to tackle the mounting backlog of incomplete or ‘throw-forward’ initiatives.
Officials disclosed that the current fiscal year’s development plan includes 170 new projects. However, only 25 have received No Objection Certificates (NOCs) to proceed.
This slow progress has raised alarms about the utilization of allocated funds. Reports from the Planning Ministry revealed that many ministries have spent only a fraction of their budgets. For instance, the Board of Investment and the Ministry of Climate Change utilized a mere 7% and 12% of their respective allocations in the past six months. Meanwhile, ministries such as Narcotics Control and Religious Affairs have yet to expend any funds allocated to them.
The committee urged the Punjab government to ensure that its share of PSDP funding is integrated into project proposals without delay. Additionally, it directed all ministries to submit comprehensive reports on their development spending to address concerns about underutilization and inefficiency.
In a related discussion, the committee requested the Planning Minister to provide a detailed update on the Uraan Pakistan initiative, a national development program aimed at uplifting socio-economic conditions. The initiative has been under scrutiny for its progress and budgetary performance.
The Senate Planning Committee reiterated its commitment to transparency and accountability, emphasizing the need for efficient utilization of development funds to achieve sustainable growth and address pressing infrastructure needs. By tackling inefficiencies and focusing on timely project execution, the government aims to ensure that PSDP allocations deliver tangible benefits for the people of Punjab and beyond.
