In contrast to the Pakistan Tehreek-i-Insaf’s (PTI) claim of bringing about change in Khyber Pakhtunkhwa’s governance system, the party-led coalition government has continued the legacy of its predecessors by allocating the maximum share of the provincial development budget to home districts of the powerful elite.

Official statistics show that the highest amount of Rs57.78 billion — 47 per cent of the total annual development programme — has been spent in Peshawar district during FY2016-17 whereas the lowest funds of Rs411.8 million were consumed in Tank, one of the most neglected district in southern KP.

The data negates the KP government’s tall claims of spending the provincial development budget equally in all districts. Expendi­tures from ADP across the districts exhibit great variations in terms of allocation and actual releases before end June 2017.

The total amount released for ADP development projects in 25 districts was Rs123.04bn against a projected target of Rs157bn in 2016-17. The amount, which was actually utilised before end June 2017, was Rs111.06bn. This does not include the funds released to local governments for carrying out uplift projects in three-tiers of local government —district government, tehsil and village/neighbourhood council.

The KP finance department’s data also reveals massive variations in terms of the provincial ADP’s spending in selected districts. It shows that seven districts — where most of the influential political elite reside — have received 74pc of the total ADP funds. These districts are Peshawar, Nowshera, Mardan, Swabi, Charsadda, Swat and D.I. Khan.

The other major recipients of the uplift funds are: Haripur, Abbottabad, Lower Dir, Kohat, Mansehra, Chitral, Malakand, Upper Dir.

Districts with the lowest shares are: Tor Ghar, Tank, Hangu, Kohistan, Buner, Lakki Marwat and Battagram.

An analysis of the data further reveals that the most effective use of the development funds has also been witnessed in the seven ‘elite districts’. The other districts have suffered due to delay in the release of funds, besides other political, institutional, operational and technical impediments.

The sectors which received more attention in terms of allocation and utilisation in the provincial ADP are health (Rs12bn), elementary and secondary education (Rs18bn), roads (Rs25.8bn) and drinking water (Rs9.6bn). Over 90pc funds have been utilised in these four sectors.

This data, however, does highlight the political will of the provincial government in prioritising key sectors such as education and health.

KP Chamber of Commerce and Industries President Zahid Shinwari criticised the provincial government for making no allocation for the development of industries in the province. He said no funds had been allocated in the past budgets as well to improve the infrastructure in order to attract investment.

Mr Shinwari said the delay in the execution of projects was mainly because of the provincial government’s decision to appoint consultants and conduct e-tendering before the project reaches the execution stage.

The KP chamber’s president stated that while the provincial government should have prioritised projects that could help revive closed industries, infrastructure projects and ensure uninterrupted energy supply to the industries in the province; it had allocated funds for other, less important, projects.

He regretted that the main focus of the KP government for job creation remained in the public sector, instead of the private sector. He also expressed concern over the government’s slow pace in the implementation of newly promulgated legislations needed to uplift the province economically.

It has been observed that no centralised record is being maintained at the KP finance department regarding allocation and utilisation of funds in umbrella projects. These projects continue to reside in a grey area that needs transparency.

Published in Dawn, The Business and Finance Weekly, October 16th, 2017