Rs8b set to lapse over slow utilisation of Fata funds

PESHAWAR: The annual development programme (ADP) for Federally Administered Tribal Areas (Fata) falls only two-months short of expiration as the secretariat looks to lose at least Rs8 billion due to the slow utilisation of funds.

The background briefings and official documents indicate that despite securing Rs11.95 billion out of the total Rs24.5 billion, the Fata secretariat managed to capitalise Rs8.2 billion on projects across the tribal areas.

The sluggish performance led to a budgetary cut slapped by the federal government when it refused to release Rs2.85 billion off allotted Rs6 billion on March 12. Consequently, a policy was drafted where the fate of the remaining amount for third quarter and full amount [Rs8 billion] for fourth quarter would depend on the utilisation of released funds.

It would be a miracle for Fata to first secure the balance funds of around Rs12.4 billion from the federal government, let alone utilise the full allocation for the year amounting to Rs24.5 billion. Moreover, the utilisation of funds has barely reached double figures with 10 months almost over.



Another worrisome trend identified was the slow pace of approval of new schemes. The total number of unapproved schemes is 168 out of the initial B status new schemes of 444. With regards to the recent directions of the Election Commission, no expenditure can be incurred on any scheme which is approved after April 1.

The Election Commission has clamped a ban on appropriation of funds. Therefore, it will be impossible to divert funds from slow pace to fast pace projects in Fata.

The total funds allocated for New Schemes was Rs6.4 billion for the fiscal year.

Almost one-third of the new the schemes are still unapproved. Therefore, the funds allocated for these schemes will neither be consumed by these 168 schemes even if Fata secretariat approves them nor will be diverted to other approved or ongoing schemes. Moreover, at least Rs2.6 billion will go to waste, explained one official.



Official sources privy to the development said that the funds utilised in agriculture extension are Rs2 billion against Rs5.9 billion, which turns out to be 35 percent of the total annual allocation. Similarly, Rs280 million stands utilised against Rs740 million at 39 percent in the livestock sector.   Agriculture and livestock is a main source of livelihood for the tribal people and it also seems to be in peril particularly for the recently returned displaced people.

The worst statistics were of Housing (Rs240 million utilised out of Rs1 billion), Public health Engineering (Rs410 million out of Rs1.9 billion) and Rural development (Rs210 million out of Rs812 million), the corresponding percentages standing at 22 percent, 21 percent and 25 percent respectively, according to the documents.

However, the real problems lie in the education and health sector. The secretariat’s utilisation of funds are a mere Rs490 million out of Rs1.6 billion which turns out to be 29 percent. Hospitals will be without repairs, equipment, medicines, staff, funds sanctioned for vector management, said another official.



With regards to the education sector, the utilisation stands at Rs1 billion with slow utilisation or lapse of funds in these sectors. This means the children of fata will go without basic facilities, he concluded.

According to the provisions of the General Financial rules the responsibility of financial management which in the case of Fata is the Additional Chief Secretary. However, his office put the blame on the Finance Division, a spokesperson for the Fata secretariat told The Express Tribune.

The source added that the approval for new schemes were not subjected to release of funds and will be utilised if the finance Division will relax the ban on re/appropriation of funds imposed by them.

The Fata secretariat also said that Election Commission will be approached for relaxation of their directives, with special reference to funds utilisation as a special case because of the war on terror, which needs special treatment by all the concerned.