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Wednesday June 19, 2024

Gandapur seeks PM’s intervention on removal of 91 projects from PSDP

Gandapur urged that violation of SIFC and NEC decision will certainly jeopardize development trajectory of KP

By Arshad Aziz Malik
June 10, 2024
This combo of images shows Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur (left), and Prime Minister Shehbaz Sharif. — PPI/Online/File
This combo of images shows Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur (left), and Prime Minister Shehbaz Sharif. — PPI/Online/File

PESHAWAR: Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur has expressed serious concerns over the exclusion of 91 important projects of KP from PSDP.

He urged that the violation of the SIFC and NEC decision will certainly jeopardize the development trajectory of Khyber Pakhtunkhwa.

He has sent a letter to Prime Minister Shehbaz Sharif in this regard.

Ali Amin sought PM’s urgent intervention to address the genuine demands of the KP government.

“I implore your kind consideration and urgent intervention to address the genuine demands of the government of KP. Your decisive action in this matter will undoubtedly catalyze the realization of our shared vision for a prosperous and inclusive Khyber Pakhtunkhwa,” he wrote.

The two pager letter said economic disruptions and overall contraction of the economy have posed significant challenges, particularly in the allocation of resources under the Federal Public Sector Development Program (PSDP) to the provinces.

Ali Amin said it is with regard to the disappointing decision of the Annual Plan Coordination Committee (APCC) taken in the meeting held on May 31 for the fiscal year 2024-25. The matter is, exclusion of 91 significant projects with an estimated throw forward of Rs1,327,529.93 million, from the draft PSDP 2024-25 which was shared two hours prior to the APCC meeting.

“This decision is undoubtedly contrary to previous decisions reached in the SIFC Apex Committee meeting which said all ongoing projects would be completed to avoid waste of investment already made and legal/contractual issues,” the letter said.

The CM said since approval is not required for their continuation, authorizstion of allocated funds be made to ensure their timely implementation and the National Economic Council meeting also endorsed that all ongoing projects may be completed to avoid waste of investment already made and due to possible legal/contractual issues.

Gandapur said violation of SIFC and NEC decisions will surely jeopardize the development trajectory of Khyber Pakhtunkhwa. It was decided by SIFC Apex Committee and NEC that no new project will be included in the PSDP. In compliance to this decision, the provincial government did not pitch any new project for the PSDP 2024-25 while in violation of the said decision, a total of 279 new projects of worth Rs2,917 billion with an allocation of Rs63.9 billion have been included in the PSDP.

Furthermore, the allocation disparity between the provincial government’s approved budget and the federal government’s Indicative Budget Ceiling (IBC) for Merged Districts ADP and MA-AIP exacerbates the situation. The federal government has indicated the same old ceiling of Rs26 billion for MA-ADP while Rs31 billion for MA-AIP against the provincial budgeted allocation of Rs30 billion and Rs40 billion respectively. Thus, historical underfunding persists, hindering the execution of vital projects crucial for the development of the area.

A comprehensive review of the proposed budgetary allocations and inclusion of omitted projects in the final PSDP 2024-25 are paramount to ensure equitable development across the nation.