Punjab to receive Rs132 billion from foreign donors

Buzdar administration plans to spend the money on development projects

LAHORE:

Marred by a financial crisis, the Usman Buzdar administration in Punjab is all set to receive billions from foreign donors.

According to details, the provincial government will receive Rs132 billion, which it plans to use for development projects.

Details available with The Express Tribune suggest the Punjab government will spend the money on 19 development projects across the province.

Money received from the World Bank, a Washington D.C.-based lender, will help the cash-strapped provincial government bankroll the Pakistan Housing Program, the Punjab Urban Land System, and rural water and sanitation projects.

Similarly, the funds received from the Asian Development Bank will allow the government to spend on infrastructure projects and agriculture. The Asian Infrastructure Investment Bank will provide cash for a water and waste management project in Lahore. For tourism and the Lahore Fort, the French development agency will provide funds to the provincial government.

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Denmark’s Ministry of Foreign Affairs will provide financial support for the construction of the Eastern Wastewater Treatment Plant in Faisalabad City.

The cash-strapped provincial administration plans to inject Rs97.66 billion in the social sector, Rs77.86 billion in infrastructure development, and Rs17.33 billion in the production sector. Similarly, the Buzdar administration plans to spend Rs45.38billion on the services sector, Rs47.50 billion for special programs, and Rs25 billion on public-private partnerships.

The most populous province in the country has struggled to make ends meet. At one point, insiders revealed the government did not have money to pay its employees. The provincial coffer appears to be dry due to limited revenue collection this year. The financial crisis was exacerbated by the coronavirus pandemic, which has gripped the province for more than three months. The health crisis, experts believe, has brought the provincial economy to a grinding halt.

Spending cuts

In the process of cutting corners, the Buzdar administration has slashed the education fund for students from Balochistan.

In this year’s fiscal budget, students from Balochistan, who decide to study in Punjab, will not receive the same financial benefits as those from last year.

According to details available with The Express Tribune, the funding for students from Balochistan was reduced by Rs.30 million. The provincial kitty has allocated Rs1 billion for students from the largest province. More than 300 students from Balochistan are receiving education at universities and other institutions in Punjab.

Published in The Express Tribune, July 7^th, 2020.