Inadequate budget allocations: NHA carry forward accumulates to Rs 1.104 billion – Pakistan

ISLAMABAD: National Highways Authority (NHA) deferral has accumulated to Rs 1.104 billion, due to inadequate budget allocations contrary to actual demands, which is severely hampering/delaying the execution of projects, it is learned.

Official documents have revealed that the annual demand for NHA funds over the past few years has remained in the range of 300-350 billion rupees, while allocations in the range of only 105-115 billion rupees have been made available. provision, which represents less than a third of the actual demand. , resulting in the accumulation of huge back locks in the form of a forward throw.

The NHA plans and executes road infrastructure projects in accordance with the government’s vision and strategy to stimulate the country’s economic growth. Based on the priorities set by the government, allocations are proposed in the Public Sector Development Program (PSDP) in accordance with the phased financial plan approved by the Central Development Working Group (CDWP) and the Executive Committee of the Economic Council (ECNEC) while approving PC-I projects.

Due to the non-allocation of funds in accordance with the financial phasing plan approved and committed in the letter of authorization issued by the Planning Commission, the execution of the projects has been severely hampered/delayed. Due to inadequate budgetary allocations contrary to the actual demands, the carry-over has accumulated in the amount of Rs 1,104 billion.

Official sources said the current pace of approval of new NHA projects is unsustainable and ongoing or new projects cannot be completed on time with available funds. The budget allocations well below the approved financial phasing plan and committed in the letter of authorization not only delayed the completion of the projects, but also led to the filing of financial claims by the contractors.

The implementation of any project is 100% dependent on the availability of financing needs in accordance with the financial phasing plan approved by the CDWP/Ecnec in the PC-I of the project. ASN has the capacity to deliver and complete the projects well within the stipulated time frame, provided funds are made available in a timely manner in accordance with approved funding requirements. Therefore, the planning and execution of the project is totally dependent on the availability of fund allocations and the timely release of funds.

The demand for the next three to four years is around 300 billion rupees per year. If this funding is made available, then the NHA will be able to complete all the projects on time/expected. Ongoing projects are given priority in order to avoid any delay in implementation. NHA undertakes projects approved by relevant forums namely DDWP, CDWP and Ecnec, the official added.

Copyright Business Recorder, 2022

James V. Hayes