THE Pakistan Tehreek-i-Insaf’s promise of ‘change’ is not matched by its development performance in Khyber Pakhtunkhwa.

The provincial government could utilise only Rs54bn, or 38pc, of its Rs139.8bn annual development programme (ADB), with the financial year 2014-15 closing this month.

This under-spending in the second consecutive year reflects ‘a lack of capacity’ and sluggish implementation of development schemes by the PTI-led coalition government

While June generally witnesses hurried utilisation, much of the Rs85.8bn in leftover development funds is likely to lapse in the remaining 30 days of the outgoing financial year.

On the other hand, the provincial government has utilised close to 70pc of the allocated funds for current expenditure.

Provincial government spokesperson Shaukat Yousufzai said his government did not initiate any new project and instead focused on ongoing projects started by the previous government. However, he did not have much to say in support of his claim because the budget documents show detailed project-based allocations.

As per the budget document, the current ADP has 611 ongoing and 378 new projects, of which 209 are supposed to be completed in this fiscal year.

The bottlenecks in the efficient management of public funds are noticeable at each stage of the development process, including project planning, selection, implementation, and monitoring and supervision

The PTI-led coalition government, which often talks about reducing dependency on foreign aid, had raised the component of external funds for its development outlay. For FY2014-15, it had projected Rs39.75bn as foreign assistance, up from Rs21.06bn in FY2013-14.

There has also been a lack of disbursement of funds from the centre. The provincial government has incessantly complained to the federal government about the delayed disbursement of outstanding dues. The transfer of resources is also squeezed owing to the huge shortfall in revenue collection by the Federal Board of Revenue.

It has also been alleged that the centre harbours a hostile attitude towards KP, as some expected provincial projects still await approval from the Central Development Working Party and the Executive Committee of the National Economic Council.

But the province is partly to be blamed as well. It has failed to mobilise resources, including provincial tax revenues.

The bottlenecks in the efficient management of public funds are noticeable at each stage of the development process, including project planning, selection, implementation, and monitoring and supervision. Meanwhile, the implementation agencies lack the technical staff as well as a vision to properly see the job through. In most cases, non-technical officers who usually only have administrative experience, have occupied key positions in various provincial development agencies.

The procedural hurdles in the preparation of development plans lead to a delay in their execution, and ultimately cause significant cost overruns. For instance, the approval of a PC-1 takes around eight months, but it can go as long as a year if the federal government’s approval is required.

The appointment of consultants, e-tendering and other administrative steps requires at least six months before the project could reach the execution stage. The high number of stakeholders does not add value to the projects, but causes undue delays.

Meanwhile, seasonal factors are also responsible for the delays. There are around 10 to 12 districts in the province where development work cannot be carried out from September to March because of snow and excessive rainfall. Development activities only pick up momentum between March and June.

Despite all that, the core problem remains to be inefficiency, mismanagement and a wastage of resources, which hampers the progress of a development project.

The focus of development projects should be industrial revival, infrastructure development and energy supply enhancement. However, it is other way around, and the funds are mostly utilised on less important sectors.

Successive governments have failed to create jobs for the jobless youth. KP is beset with the flight of capital, rising unemployment, terrorism and energy shortage. Joblessness is on the rise, forcing Pakhtuns to search for jobs in other provinces or abroad.

While it is good that the provincial development budget has increaed over the past few years, the capacity of the implementation agencies remains limited. There is also a need for authorities and developers alike to make full use of the funds earmarked for their projects for the betterment of the people.

Published in Dawn, Economic & Business, June 1st, 2015

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