SAP funding: SIFC rules no more doling out of funds to lawmakers

ISLAMABAD: Ahead of general elections, the Special Investment Facilitation Council (SIFC) has approved the capping of all projects of Prime Minister’s initiatives at current levels and stopping further authorization of Sustainable Development Goals (SDGs) Achievement Program (SAP).

The last PDM-led government had released whole allocated funds for the controversial SAP program before the completion of its term.

Out of the Rs90 billion allocation for the SAP program for the current fiscal year, the government authorized Rs61 billion and utilization of funds stood at Rs27.153 billion in the first four months (July-October) period during the current fiscal year. After almost six and half months, the SIFC decided to stop further authorization of the SAP program and capping of PM’s initiatives at current levels.

Top official sources confirmed to The News on Wednesday that the Special Working Group (SWG), set up by the SIFC Apex Committee on firming up implementation modalities for closure/transfer of provincial nature projects, has finalized its proposals.

“The provinces have divergent views as they do not agree to the closure or transfer of provincial projects,” said the official and added that the SIFC got a briefing on the summary for the National Economic Council (NEC) barring inclusion of provincial projects in the federal Public Sector Development Program (PSDP) except for least developed districts or regions.

In the 8th Apex Committee of the SIFC, the decision has been taken that the development projects with zero financial progress would not be implemented. Pending NEC’s decision, ministries/divisions would not make any expenditure on such projects.

“No further authorization to SDGs Program would be made by Planning Division. The Cabinet Division would prioritize completion of ongoing schemes within already authorized amount,” the SIFC decided and added that the projects under PM’s Initiatives would be capped at current expenditure levels. Pending NEC’s decision, sponsoring agencies would not create contractual obligations beyond authorized amount.

Being provincial nature projects, all provincial governments may take up these projects as per their priority. All ongoing projects would be completed to avoid waste of public funds which were already made or committed keeping in view legal/contractual issues. Since approval is not required for their continuation, authorization of allocated funds to be made to ensure their timely completion. The projects of newly merged districts will not be included in ambit of these decisions.

The sources said that an inter-ministerial working group has been established and the Ministry of Planning was assigned for coordination for preparation of drafting infrastructure development plan. The tentative cost of road, rail connectivity and water supply is Rs351 billion. The cost of power supply will be firmed up after feasibility study. The infrastructure development plan will be finalized in consultation with RDMC (Reko-Diq Mining Company).