Progress on Punjab projects slows

Review shows some crucial development schemes falling behind schedule

ISLAMABAD:

Chief Minister Usman Buzdar-led government of Punjab has failed to show progress on foreign-funded projects in areas of environment, tourism and agriculture that are close to the development programme of Prime Minister Imran Khan.

The Ministry of Economic Affairs has conducted a review of two dozen foreign-funded projects being implemented in Punjab and found that some crucial projects that are close to the social and economic development plan of PM Khan are falling behind the completion deadlines.

Federal Minister of Economic Affairs Omar Ayub Khan emphasised the need for timely completion of foreign-funded projects in the province, according to a statement issued by the ministry on Friday.

The economic affairs ministry said that the government of Punjab was implementing 24 foreign-funded development projects amounting to $6.1 billion.

Out of the 24 projects, the progress on 17 was rated as satisfactory, four were rated as partially satisfactory, whereas three projects were identified as problematic, it added.

The cost of the seven problematic projects was $1 billion and due to slow progress, the disbursement of $700 million is being delayed by international creditors.

Project financing is a relatively cheaper source of foreign funding but due to delay in execution of the schemes, they often fall behind schedule, which also delays the disbursement of loans.

Many projects in the areas that are close to the PM’s development agenda are also facing delays, according to the review carried out by Omar Ayub this week.

The press statement showed that the Punjab Tourism for Economic Growth project worth $50 million was facing delay of at least two years due to slowdown in implementation of activities for upgrading Lahore and Taxila Museums.

Similarly, the $300 million Punjab Agriculture and Rural Transformation Programme is facing delay of about one and a half year due to the pending decision on withdrawal of wheat subsidy.

The Punjab Green Development Programme costing $200 million is another problematic scheme, which is facing delay of about two years. The project is aimed at strengthening environmental governance and promoting green investment.

A project initiated to reduce poverty in southern Punjab 11 years ago, is also a manifestation of poor governance in the province.

Different governments of varying political parties from (2011 to 2022) could not professionally execute a small scheme of $40 million, which was aimed at increasing incomes of 80,000 poor households by enhancing their employment potential and increasing crop and livestock productivity and production.

Chief Minister Usman Buzdar himself hails from southern Punjab.

The economic affairs ministry stated that the public-private partnership project was also progressing very slowly and despite the lapse of almost four years, no project had been initiated yet.

The Asian Development Bank (ADB) has provided $100 million in loan and the FCDO-UK has committed $19.6 million in grant for this project. Pakistan is now paying penalties on the idle money to the ADB.

“The committee also showed its serious concern over the slow progress on the water resource project in Faisalabad.” French Development Agency (AFD) “committed $112 million for the project in 2019 but no disbursement has been made yet,” said the press statement.

The committee also deliberated on the partially satisfactory projects including Punjab Agriculture and Rural Transformation Programme worth $300 million, Punjab Green Development Programme worth $200 million, which were funded by the World Bank, and Punjab Intermediate Cities Improvement Investment Project costing $200 million and Punjab Urban Development Project costing $15 million, funded by the ADB.

Under the Punjab Intermediate Cities Improvement Investment Project, urban services including water supply, waste management, streets, parks and bus terminals will be upgraded and augmented in Sialkot and Sahiwal.

It was informed that under phase-II, preparation for sub-projects in seven other cities of Punjab, ie Bahawalpur, Dera Ghazi Khan, Multan, Muzaffargarh, Rahim Yar Khan, Rawalpindi and Sargodha were under process.

The minister for economic affairs directed the line departments to strictly follow the timelines for expeditious implementation of development projects.

He emphasised that the development projects must be executed in a timely and efficient manner so that people could benefit from them without any delay.

Omar Ayub asked the provincial government to enhance the capacity of project management units and prepare a plan for effective monitoring of the schemes, according to the official statement.

Published in The Express Tribune, February 19^th, 2022.

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