ISLAMABAD, Jan 29 : The provinces, Fata/Fana and the AJK have signed agreements with the federal education ministry to confirm the finalization of new procedures for utilization and transfer of funds to the provinces, says a press release.

Sindh Education Minister Dr Anita Ghulam Ali, Minister for Social Welfare Shaheen Attiq-ur-Rehman and the education secretaries of Punjab, Fata/Fana and Azad Jammu and Kashmir signed the agreements in the presence of Federal Education Minister Zobaida Jalal and Federal Education Secretary Tariq Farooq in Islamabad. The Balochistan government signed the agreements in Quetta last week.

Two letters of agreement were signed, one for the additionality of Rs1.579 billion provided in the annual budget (2001-2002) for the implementation of education sector reforms and one of Rs2 billion as additional grant approved by the president for the rehabilitation and optimum utilization of facilities in elementary education.

Out of the additional grant of Rs2 billion, Punjab will receive Rs833.472 million, Sindh Rs335.232 million and the NWFP Rs374.976 million for the federally-administered areas.

The federal education minister, while speaking at the signing ceremony, said the policy for releasing funds to the provinces had been formulated with the condition that the provinces would utilize the funds properly on the development schemes and district governments would prepare schemes with a minimum estimated cost.

She added that the “unconventional” procedure for fiscal transfers had been devised in consultation with the finance ministry with a view to removing the delivery gaps and enhancing the implementation capacity.

The funds provided by the federal government will be passed on by the provincial governments to district authorities within the federal ministry for education.

The district governments will be responsible for the execution of the projects according to their specific needs.

The funds will stand lapsed in case they are not utilized within a specific period.

Individual projects will be cleared at the district level unless their total cost exceeds the district governments financial competence. Provinces are now not required to submit PC-1 to the federal government.

In all schemes, 50 per cent of the provision of educational opportunities will be reserved for girls/women at all levels of education as well as groups at disadvantage and the rural areas.

Each district government will submit an assessment report for each project to the provincial government, which will in turn send them to the federal education ministry by the end of fifth month, following completion of the fiscal year.