December 05, 2008	Friday	Zilhaj 6, 1429

PESHAWAR, Dec 4: Scarcity of resources has paralysed development activities in the Federally Administered Tribal Areas because of less-than-budgeted releases of funds by the federal government during the last two quarters of the current financial year, officials said.

Sources said dearth of funds had almost brought uplift activities to a standstill in the seven tribal agencies and six frontier regions as the area entirely depended on federal government’s grants.

“The federal government has not been meeting our demands for funds since the beginning of the current financial year,” said an official, adding: “Reduction in the inflow of resources has virtually suspended execution of development work in the tribal belt.”

The federal government had allocated Rs8.662 billion for 1,073 schemes in different sectors in Fata under the current Public Sector Development Programme (PSDP). The Fata Secretariat had allocated 28 per cent of the Annual Development Programme funds for construction of roads in the region.

As per the allocation, the official said authorities in the Fata Secretariat had placed a demand of releasing 35 per cent fund of the total allocation in the first quarter of the current financial year, but the federal government released only 15 per cent of the amount.

Similarly, the centre again released 15 per cent funds of the total allocation against the demand of 25 per cent placed by the secretariat, the official maintained.

Sources said contractors had suspended work on different schemes because the secretariat had yet to clear their bills.

“Two quarters of the current financial year have passed and the federal government has released a meagre amount to the secretariat for development activities in the region,” said an official.

He said development activities were already moving at snail’s pace due to the deteriorating law and order situation in Fata and shortage of funds would further aggravate the situation.

He said apart from the ADP schemes, security situation had also affected donor-funded projects in the tribal area, particularly after the murder of USAID worker Stephen D. Vance in Peshawar on Nov 12. In some areas like Kurram, Bajaur, parts of Mohmand and Darra Adamkhel, work on development schemes had been suspended due to lawlessness, he added.

“Like last financial year the federal government may divert funds from the current ADP to the army for construction of strategic roads and other projects in the border areas,” the official said. The government, he said, had engaged the military in the development sector in Fata. He said economic recession was one of the factors why the federal government had withheld funds allocated for the development sector.

During the last quarter of the previous financial year, on the directives of NWFP Governor Owais Ahmad Ghani, over Rs330 million was handed over to the army apparently for construction of strategic roads.

The secretariat had to delay execution of 80 projects in the social sector after shifting of funds from the ADP to the military and these schemes were included in the current year’s programme.