Whither priorities

Pakistan is at risk of default unless serious cash injection is secured says government

The incumbent government has been consistently stating that the country is at the risk of default unless serious cash injection through a multitude of sources is secured immediately. In line with this, it is not surprising that the government has released far fewer funds than in last year.

According to the PSDP data, Rs182 billion have been released in the first five months of the ongoing fiscal year, which also includes the time the caretaker government was holding the reins. This amount is around 40 per cent less than what was released during the same period last year, which was Rs305 billion. The released amount accounts for just 27 per cent of the total revised PSDP allocation of Rs675 billion. This is down from the last year’s PSDP allocation of Rs800 billion.

The distribution of this money presents a curious study. Most of the amount was released to the government ministries and divisions, territories and major corporations. All 39 federal ministries and divisions got Rs71 billion, or around 24.4 per cent of their Rs291.5 billion annual allocation. This was only marginally down from Rs71.14 billion released in the same period last year. The territories of AJK and G-B were provided with slightly more money at Rs10.7 billion and Rs7.8 billion respectively, up from the Rs8.56 billion provided to AJK and Rs7.44 billion to G-B during this period last year.

Corners were cut on in the development sector with the National Highway Authority and the power sector getting Rs90 billion, down from the Rs130 billion released in the same period last year, but only because the programmes are winding down. By contrast, just Rs1.23 billion were released for developing a settlement for internally-displaced persons and for enhancing their security, the Prime Minister’s Youth Programme and the gas infrastructure programme. No money was released for development of erstwhile Fata. These numbers belie the government claims of focusing on the youth, providing essential services to the masses and developing the tribal region. Instead, these numbers show how the government is pandering to bureaucrats, and completing old projects with an eye on the upcoming elections in AJK and G-B.

Published in The Express Tribune, December 12^th, 2018.

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