June 06, 2007	Wednesday	Jamadi-ul-Awwal 20, 1428

ISLAMABAD, June 5: Many federal ministries and departments have failed to efficiently utilise funds allocated for various development projects until the end of the third quarter (July-March) period of the financial year 2006-07.

As a result, the original allocations for a number of projects were revised downward.

The analysis was announced by the Centre for Peace and Development Initiative (CPDI) just three days ahead of the announcement of the federal budget 2007-2008.

While expressing disappointment over the slow pace of spending, the Islamabad-based civil society organisation urged the government to take immediate steps to ensure that related problems and inadequacies are addressed in an effective manner.

"In the third quarter review, serious concern was expressed on slow progress of the Access to Justice Programme. The law, division was reportedly told during the review that if it was unable to handle the project, the project should be terminated to save the commitment charges that are being paid to the Asian Development Bank (ADB)," observed the CDPI.

In labour and manpower division, the major development project planned for the year 2006-07 was vocational training for skill development involving Rs1,000 million. However, the amount could not be spent and the allocation was revised to Rs488 million during the mid-year review and Rs12.5 million in the third quarter review.

The total original allocation of Rs8,000 million for the interior division was reduced to Rs7,684 million in the mid-year review. Major projects that faced downward revisions included Raising of Balochistan Constabulary (Rs1,000 million to Rs836 million); addition of third and fourth lanes to Kashmir Highway from Peshawar More to Golra More (Rs200 million to Rs5 million) and construction of road from Karal Chowk to Tramri (Rs129 million to zero).

Major projects witnessing downward revisions in the Women Development Division included -- Gender Reform Action Plan (Rs104 million to Rs86 million); Women Centres (Rs73 million to Rs31 million) and Aman Skill Development Centre Alipur, Islamabad (Rs9.4 million to zero) during the third quarter review.

"Progress of 13, out of 17 development projects, was reportedly not satisfactory due to low absorption capacity and ineffective project management," observed the CDPI.

The ministry of local government and rural development had envisaged projects; one of which has failed to show any progress, while the other one also lagged behind.

The ministry could not spend even a penny out of the total allocation of Rs500 million for the Participatory Development through Social Mobilisation Project, and the whole amount was surrendered in the third quarter review.

Whereas, the original allocation of Rs4920 million for the Khushal Pakistan Programme-1 (KPP-1) was revised to Rs2620 million at the third quarter review.

Many projects related to the environment division suffered from delays or slow progress in implementation. By the end of March 2007, the environment division had spent only Rs74 million against the revised allocation of Rs1762 million.

At the end of third quarter, original allocations for several projects witnessed significant downward revisions or surrendering of whole amount.

These included damage control through environmental improvement of polluted Ravi River (Rs125 million to zero), environmental improvement of Swat River (Rs75 million to zero), environmental improvement of other water bodies throughout the country (Rs100 million to zero), indoor air pollution monitoring in Pakistan (Rs17 million to zero) and activity-based capacity development project (Rs68.4 million to Rs39.5 million).

In the Minfal, projects that witnessed slow implementation and, therefore, substantial downward revisions during the third quarter included Land and Water Resources Development Project for poverty reduction in Pakistan (Rs100 million to Rs2 million), National Agricultural Research Programme (Rs400 million to Rs200 million); Special Programme for Food Security and Productivity (Rs300 million to Rs100 million); Water Conservation and Productivity Enhancement through high Efficiency Irrigation System (Rs1,000 million to Rs647 million).

Another project that witnessed delay or slow progress leading to substantial downward revision during the third quarter review is the establishment of Institute of Post-Graduate Studies, Sheikh Zayed Hospital, Lahore (Rs144 million to zero).