According to newspaper reports, the government has decided to allocate over Rs 250 billion to develop infrastructure in the country, including energy and transportation sectors in budget 2015-16 that would have an overall Rs 600 billion development outlay. After a consultative meeting on budget presided over by Prime Minister Nawaz Sharif, Minister for Planning and Development Ahsan Iqbal said that the parliamentarians have recommended the government to launch projects worth Rs 400 billion as part of the Public Sector Development Programme. Therefore, a committee has been form to select high priority projects proposed by the parliamentarians. According to him the Pakistan China Economic Corridor and energy sector would be given top priority in next year’s budget with an allocation of Rs 250 billion to achieve progress in these areas. However, he says that the allocations will be increased beyond Rs 600 billion.
It is to be noted that the governments often launch ambitious projects, but leave most of them half way with change of their priorities. That is why it is important to concentrate and complete the ongoing projects and then launch new ones. Iqbal says that the Planning Commission is consulting various ministries to make better coordination and complete formalities before launching any unapproved project. Unfortunately, most of the times the government funds allocated for public sector development are allowed to be lapsed without utilisation. This trend must be discouraged. The unutilised funds add burden to the national exchequer as markup on such grants given by donor agencies remains intact. However, it is good to note that the government has timely disbursed funds for the development projects. Some ministries have been told to surrender their savings to use the funds on priority projects. Iqbal says that against an allocation of Rs 545 billion, the PSDP utilisation will touch Rs 500 billion by end of this fiscal year.
Undoubtedly, infrastructure is the basic requirement for economic development which the country lacks in many cities and towns. The young population of the country is an asset and they are out to participate in business and trade activities. Without a road and rail network, it is impossible to coordinate between various sectors of the economy. The country is also facing energy crisis and it is important to produce electricity to the required level if the government wants keep up the pace of development with regard to other economies in the region.
