ISLAMABAD: Government is mulling a proposal to strengthen financial empowerment of line ministries in allocation of project funds, in a move to ease workload of the Central Development Working Party (CDWP) and Executive Committee of National Economic Council (Ecnec), planning minister said on Thursday.
Minister for Planning, Development and Reform Makhdum Khusro Bakhtyar said there is a need to further streamline the process of approving projects.
Bakhtyar was talking to Advisor for Institutional Reforms and Austerity Ishrat Hussain in a meeting to discuss the proposal and reforms in the planning commission.
The meeting was told that the proposal is under consideration to delegate more financial powers to the line ministries whereby their projects’ sanctioning limit will be enhanced. The CDWP and Ecnec will only take up mega projects to save time and reduce burden under the proposal.
“Monitoring and evaluation of projects will rest with the Planning Commission with its representation at Departmental Development Working Party,” an official statement said.
In December last year, the government approved transferring of some multimillion dollars’ projects to line ministries at the centre and provincial levels from the economic affairs division as devolution of tourism, education, health, environment and social protection administrations completed in the aftermath of 18th amendment into the constitution.
After establishment of line ministries, the cabinet division moves fresh summary before the federal cabinet for transferring of functions from EAD to line ministries related to devolved projects. Previously, the EAD was empowered to discharge certain functions on behalf of line ministries, but now the provinces and the center established all required line ministries.
The CDWP or ECNEC could not convene any meeting in the first six months since elections in May last year, resulting into choking of dollar inflows during the current fiscal year.
In February last year, Pakistan had to pay around $1 million commitment charges on $380 million component of a loan program of the Asian Development Bank approved in
2015 to deploy advanced metering infrastructure. The ADB’s $990 million multi-tranche financing facility has been stalled for the last four years.
Minister Bakhtyar said reform is mandate of the present government, (which) is committed to restructure the public sector to make it more productive and efficient.
The minister said reform measures are also being taken to make the Planning Commission more efficient in planning and developing economic programs for effectively achieving development objectives.
Meanwhile, the planning minister said the government is focusing on transforming conventional economy to knowledge-based economy to ensure sustainable development in the country.
“Technology development is crucial in this regard,” the minister said, addressing a conference.
The planning minister said the government allocated Rs117 billion in areas of smart governance, incentives for industry for enhancing IT exports, citizen services, freelancing and telecommunication in the next five-year plan.
“Serious structural reforms are needed and there is a need to balance the expenditure and revenue sides to put the economy on sustained growth trajectory,” the minister was quoted as saying in a separate statement.
Bakhtyar emphasised the need to enhance tax-to-GDP ratio to have more fiscal space for socioeconomic development. Ease of doing business is another priority area of the government to unlock economic potential.
“The government is undertaking measures in this regard,” he said. “We are working on district-wise poverty mapping to help monitor and make policy interventions for poverty reduction.
The planning minister said the Prime Minister would unveil a robust framework for poverty alleviation in the coming days. “The government is committed towards introducing much-needed governance reforms for enhancing productivity and efficiency.”
