Engineering Post Report
Ministry of Planning, Development and Special Initiatives/ Planning Commission faced a number of challenges in the formulation of the Public Sector Development Program (PSDP) for the financial year 2023-24.
According to the information now available from official sources, major challenges faced during the PSDP formulation included
1) Rs 240 billion liability rollover from 2021-22 due to zero release in 4th quarter
2) Low PSDP allocation and rising throw-forward
3) Inflationary impact on projects
4) Skewed release strategy of Finance Division
5) Accommodating additional demands of important projects over and above IBCs
6) rising burden of provincial nature projects on Federal PSDP
7) Growing allocation for Sustainable Development Goals (SDGs)
8) Big demand for rupee cover against foreign exchange /foreign aid component
9) Increasing number of new schemes particularly of Departmental Development Working Party (DDWP) level.
10) Charge of CDL n PSDP
11) Providing adequate funding for emerging needs of post-flood 2022 rehabilitation and five new initiatives by the incumbent federal government.
Furthermore, the sources added, certain projects faced issues of delay in transferring of federally released funds to provincial executing agencies by Provincial Finance Departments and non-compliance with Asaan Assignment Procedure regarding provincial nature schemes and non-provision of funds.