To redirect the funds for flood affectees, the federal government has decided to cut Rs150 billion from the Public Sector Development Program (PSDP).
The redirected funds would be utilized for rehabilitation and reconstruction of flood-affected areas.
Pakistan needs more than $10 billion to cover up the losses incurred due to catastrophic flooding. The coalition government has been struggling for fiscal space for diverting funds to flood-affected areas.
The development funds of up to Rs150 billion would be diverted to those areas where the possibility of development projects was minimal in the current scenario of devastation. Relevant ministries and departments would be consulted while the Ministry of Planning has started identifying such projects.
According to a media report, Ministry of Planning’s Secretary Syed Zafar Ali has said that the assessment of relief and damage was being worked upon. Whereas according to an office memorandum, the ministry’s strategy for the release of development funds was being revised.
The memorandum has stated that the fund release strategy shall be applied to each demand for grant and appropriation for development budget included in the schedule of authorized expenditure for the fiscal year 2022-23.
It has also stated that the funds shall be released and uploaded on AGPR’s server for grant and appropriations at the maximum level of 10 percent for quarter 1, 20 percent for quarter 2, 30 percent for quarter 3 and 40 percent for quarter 4 of the approved budget.
