The present portfolio consists of 1,130 projects, of which 888 are ongoing. However, only Rs391 billion has been allocated for ongoing projects, as the Ministry of Finance has not yet indicated the earmarked budget of Rs115 billion for new initiatives. PHOTO: FILE
Despite being the top priority of the prime minister, 143 energy projects costing Rs1.8 trillion cannot be completed before nine years because of lack of resources and capacity constraints, says a top official.
Only those schemes could be completed before eight or nine years that had been initiated in the hope of foreign fund contribution, according to a briefing given by Hasan Nawaz Tarar, Secretary Ministry of Planning and Development, to the Public Accounts Committee (PAC) here on Thursday.
Though energy was the highest priority area, the federal government earmarked just Rs107 billion for 143 energy projects out of allocation of Rs425 billion for 1,130 development schemes in the current fiscal year, said Tarar.
He said the amount of Rs107 billion was in addition to the Rs118 billion that various state-owned entities would arrange from their resources.
“It is shocking to know that the highest priority sector’s projects will be completed in eight to nine years,” observed Syed Naveed Qamar of Pakistan Peoples Party (PPP), who is a member of the PAC.
His party had been accused of expanding the size of development portfolio as many projects were initiated under political compulsions, which ate up the already scarce resources.
With some brief moments of relief, the country has been passing through an acute energy crisis. Sharif has promised to overcome the shortfall, which sometimes widens to half the total demand. However, dearth of resources may hamper his efforts, according to analysts.
The government is trying to arrange loans from China and has signed a memorandum of understanding, which it believes will attract investment of over $20 billion in energy projects in next five years.
Headed by Syed Khursheed Shah of PPP, the PAC had called the planning ministry for a briefing on public sector development portfolio and the reasons that delayed execution of projects.
Akhtar Buland Rana, Auditor General of Pakistan, who is considered arms and eyes of the PAC, did not show up in the meeting again. The committee was told that he was busy, a statement that undermines the supremacy of the parliament’s most powerful body.
According to Tarar, the present portfolio consists of 1,130 projects, of which 888 are ongoing. However, only Rs391 billion has been allocated for ongoing projects, as the Ministry of Finance has not yet indicated the earmarked budget of Rs115 billion for new initiatives. Parliament has approved Rs540 billion development budget for the current fiscal year.
Tarar said the government had undertaken an exercise to find ways how to complete the projects on a fast track. In the first phase, projects costing Rs5 billion and more are being picked up for review. Of 101 such projects, 61 will be completed within the stipulated time and cost while the rest are facing delay.
There were 18 projects whose cost has increased more than 100% while cost of two projects has swelled up to 100%.
He termed the change in project design after approval, poor quality of human resources and consultants, natural calamities and lack of resources as the main reasons for the delay.
Delay in implementation of development projects was causing more losses than any other activity in the public sector, remarked PAC Chairman Syed Khursheed Shah.
PAC sought more details from the Ministry of Planning and did not pass any adverse ruling.
Published in The Express Tribune, February 28th, 2014.
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Corruption and incompetence is a bad combination - it's not unique to Pakistan.