Penalty on projects


IMPLEMENTATION of projects either PSDP or donor funded has always remained a major issue in our country which speaks volume of the bad governance.

For this the country has also paid a heavy price not only in terms of shooting up the cost of projects but also the penalty.

It has been learnt that Pakistan paid approximately $ 100 million for failing to implement a certain number of donor funded projects during the last fifteen years.

The ADB imposed 0.15 percent as commitment charges on signed projects if the executing agencies failed to deliver on implementation of projects within the stipulated time-frame and the signed loan amount was not disbursed.

At the same time, both the federal and provincial governments every year reportedly fail to utilize the allotted development funds. This is the reason that most of our areas lack basic amenities be it water, sanitation or sewerage.

Whilst hearing a case on Tuesday, a two-member bench of the Supreme Court headed by Chief Justice of Pakistan Gulzar Ahmad very rightly pointed out that the situation is so bad that we cannot ever build gutters.

Indeed, a serious course correction is required and those sitting in the ministries need to wake up from the deep slumber, if we really are interested in bringing some change in the country for the betterment of the people.

Our economic woes will continue to worsen, if the bureaucracy continued to sit on files and did not fulfil its responsibilities in an honest manner. Whilst taking a lesson from the past, we will suggest the PTI government to pay special attention towards the full utilization of the PSDP envisaged for the current fiscal year.

Current economic situation, especially the price hike, also warrants generation of economic activity in order to enhance the income levels of the people so that they can cope with the current situation.

A mechanism should also be developed under which the executing agencies should be held responsible and a penalty imposed on them if they fail to carry out the assigned project in the stipulated period.

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