FEC releases of PSDP reach 121pc of total allocation.
Islamabad -- The releases of Foreign Exchange Component (FEC) of the Public Sector Development Programme (PSDP) have reached to 121 percent of the total allocation while releases against rupee component are 52 percent of PSDP allocation.
Out of the total PSDP releases of Rs 449.26 billion, a 66.55 percent of Rs 675 billion, the share of rupees component is Rs 274.704 billion (51.76 percent) while the Foreign Aid component were Rs 174.56 billion (121 percent), said an official documents.
It is pertinent to mention here that out of the total PSDP of Rs 675 billion, the rupee component is Rs 530.695 billion while the foreign exchange component is Rs 144.304 billion. The release of rupee component is less than the release criteria while that of foreign aid component is higher than the total allocation.
Out of the total rupee component of Rs 530.70 billion, the releases was only Rs 274.704 billion (51.76 percent) while Rs 174.56 billion were released against the foreign exchange component of Rs 144.304 billion which is around Rs 30 billion higher than the allocation. Regarding the over and above releases of the foreign exchange component, the source said that the main reason for around 21 percent extra release of the FEC is the depreciation of Pakistani rupee and the government commitment to the donor countries.
However the source said that the planning ministry is not releasing the fund as its only issue authorization of releases and the funds are released by finance division.
As per the fund release criteria during the first quarter (July to September) and second quarter (October to December) the ceiling is 20 percent each of the allocated amount. While the third and fourth quarters (from January to June) the ceiling is 30 percent of the allocated amount.
The PSDP releases have reached to 66.5 percent and will further increase as the Ministry of Planning, Development and Reforms has abandoned the use of Project Monitoring and Evaluation System (PMES), official source told The Nation.
After dismal PSDP releases scenario the government has directed the Ministry of planning to grant release to the funds allocation without following the Project Monitoring and Evaluation System (PMES), the source added.Project Monitoring and Evaluation System (PMES) is a system for PSDP projects information management. All the ministries and divisions have access to the PMES and update it regularly about spending, project implementation as well as it helps to collect, consolidate and analyze/report overall performance of whole PSDP portfolio.
The quarterly PSDP releases is based on the performance of the project, as provided by the concerned ministries/departments in the PMES. If the planning consider the information satisfactory then it issues releases authorization or otherwise it will be declined.
For the past around two weeks the planning ministry has stopped following the PMES and therefore the PSDP releases
The total allocation during the PSDP for the FATA ten years plan (federal contribution) was Rs 10 billion however no release was made during the first 9 months. Similarly out the Rs 27 billion allocations for the federal programmes, no releases were made. Out of Rs 33.5 billion allocated for the Special Federal Development Programme and Temporarily Displaced Persons (TDPs) only Rs 4.8 billion or 14.4 percent were released. Similarly Rs 971 million of Rs 7 billion allocated for Prime Minister's Youth and Hunarmand Programme were released.
For the project of security enhancement Rs 11.89 billion or 35.5 percent of the total allocations of Rs 33.5 billion was released.
For aviation division Rs 1.39 billion of the total allocation of Rs 3.65 billion was released. Out of the total allocation of Rs 6.9 billion for the ministry of Planning, Development and Reforms, Rs 4.1 billion was released. For Water Resource Division, the total allocation was Rs 63.65 billion while 48 billion were released.