Planning Commission to track on projects report

Islamabad: Planning Commission (PC) has asked the provinces, all the federal divisions and their subordinate organisations to finalise progress reports on mega projects to identify slow-moving and fast-track schemes.

Sources told Business Recorder on Tuesday that this exercise was being carried out to save the fast moving projects from any cut in the 2007-08 Public Sector Development Programme (PSDP). According to the sources, President Pervez Musharraf will also be briefed on the implementation status of 176 mega projects.

The total number of development projects both small and big being executed under the PSDP is well over 2,000. In infrastructure sector, which includes development schemes in water, energy, communication, railways, physical planning etc, the total mega projects are 38. These projects have the allocation of rupees five billion or above. The number of mega projects in other sectors is 138.

However, the allocations for these projects is rupees one billion and above. The PC is geared up to save the fast moving projects from any cut in development budget. According to the sources, first priority of the PC is to save all the development projects in infrastructure sector. In this regard, the PC is considering various options.

There are special allocation of Rs 35 billion for Earthquake Rehabilitation and Reconstruction Authority (Erra) in the current fiscal year. Some circles are of the view that since the Erra had not come up with any major scheme except New Balakot City project of Rs 12 billion, the federal government could transfer this allocation to other channels.

The Erra will not have any major demand for the current fiscal as the New Balakot City Project will be implemented in around five-year time. The PC had forecast the operational shortfall of Rs 35 billion in Rs 520 billion government-funded PSDP. If these allocations were re-adjusted, then the other sectors could avoid any heavy cut, according to the sources.

According to estimates finalised after the first quarter of the current fiscal year, nearly 40 projects in infrastructure sector were declared slow moving. In other sectors, the rate of slow-moving projects was over 30 percent. The allocations for such projects could also be re-adjusted, the sources added.

The sources said that till the end of first quarter of the current fiscal, almost all the development projects in Balochistan and Fata are slow moving due to security reasons. The allocations for some of these projects can also be re-adjusted. Sources said that if the allocations for such projects are readjusted, there would be only marginal effect on fast-moving and crucial development schemes.