ISLAMABAD, Feb 16: Over 40 per cent development funds are lying unutilized due to 'capacity constraints' of various federal government agencies, including Wapda, the gas companies and local government institutions.

Informed sources told Dawn here on Wednesday that the federal government had directed all the four provinces, authorities of Wapda, SNGPL, SSGPL and local government institutions to immediately go for 'out-sourcing' to help utilize 100 per cent development funds during 2004-05.

A number of new development schemes have recently been identified by MNAs and senators but could not be taken up due to narrow capacity of various federal government agencies.

"Prime Minister Shaukat Aziz has taken a serious notice of slow utilization of development funds and would soon convene a meeting to take a hard look at the issue," a source said.

He added that the prime minister was taking special interest in development schemes relating to rural electrification, gas supply, farm-to-market roads and clean drinking water.

He said that Wapda and the two gas utilities "have been directed" to associate with them the private sector through an out-sourcing plan to provide basic amenities to citizens.

Sources said that the prime minister also wanted effective revival of the Khushal Pakistan Programme with a view to speedily completing development schemes across Pakistan. But the executing agencies in the public sector, they added, were not being able to execute them on time despite approval of resources by the federal government.

"Roughly Rs16 billion have been approved for new development schemes at the request of parliamentarians but these schemes are not being taken up due to insufficient implementation mechanism," another source said.

The provinces have at their disposal Rs8 billion for Khushal Pakistan Programme, the local government institutions have Rs5 billion while the PM secretariat has extended Rs4 billion for the purpose, he added. "But these funds have largely gone unutilized," he said. The sources said that the prime minister had directed the federal and provincial agencies concerned to remove 'bottlenecks' in the way of development.

In this behalf, the lawmakers have made several complaints to the prime minister against Wapda and gas utilities for not completing their development schemes under one pretext or another.

In their recent meetings with the prime minister, several lawmakers expressed the fear that they could face problems in the forthcoming local government elections due to non-completion of their approved development schemes. They exhorted the premier to direct the executing agencies to cooperate with MNAs and senators so that their schemes were completed in time.