Latest news with #AnnualDevelopmentProgramme
Express Tribune
7 hours ago
- Business
- Express Tribune
WASA Lahore secures biggest budget share
The Water and Sanitation Agency (WASA) Lahore has emerged as the primary beneficiary in Punjab's development outlay for the water and sanitation sector in fiscal year 2025-26, securing the lion's share of funds under the Annual Development Programme (ADP). According to the budget document presented by Punjab Finance Minister Mian Mujtaba Shujaur Rehman in the Punjab Assembly, a total of 94 ongoing schemes worth Rs58.13 billion have been allocated across five WASA agencies. Of these, Lahore alone accounts for 59 projects with an estimated cost of Rs24.83 billion, highlighting a sharp imbalance in the distribution of development funds. The remaining four agencies — Faisalabad, Gujranwala, Multan, and Rawalpindi — have been allocated a combined total of only 35 schemes valued at Rs33.29 billion. Critics have pointed to this disparity as a sign of systemic neglect toward cities outside the provincial capital. In terms of new schemes, WASA Lahore again topped the list with 24 new initiatives for the upcoming fiscal year. WASA Gujranwala received only two new projects — valued at Rs5.9 billion and Rs1.51 billion respectively — with budgeted allocations of just Rs.122 million and Rs.13 million for the next year. Despite submitting hundreds of new proposals, agencies such as WASA Multan, Faisalabad, and Rawalpindi were left out of the new development portfolio altogether. Senior officials from these agencies, speaking on condition of anonymity, expressed frustration over the exclusion, warning that millions of residents, especially in Faisalabad — the textile hub of Pakistan — will remain deprived of clean drinking water. For ongoing projects, WASA Faisalabad received funding for 17 schemes worth Rs19.5 billion, while WASA Multan secured four schemes totalling Rs5.17 billion, and WASA Rawalpindi was granted five projects amounting to Rs6.38 billion. However, actual fund allocations for 2025-26 remain meagre: Rs126 million for Faisalabad, Rs365 million for Multan, and Rs.166 million for Rawalpindi — figures that stakeholders say are insufficient to meaningfully advance the existing work.
Business Recorder
a day ago
- Business
- Business Recorder
Punjab sports-related initiatives highlighted
LAHORE: Provincial Minister for Sports & Youth Affairs Malik Faisal Ayub Khokhar said the Punjab government aims to engage youth in positive activities through sports and sports-related initiatives and youth empowerment plans included in Punjab's Annual Development Programme (ADP) 2025–26. Speaking at a news conference here Thursday, Malik Faisal Ayub Khokhar stated that a budget of Rs7.6 billion has been allocated for the Sports and Youth Affairs Department this year. He emphasized that the Punjab government's top priority is to provide opportunities to the youth and ensure the development of modern sports infrastructure. He informed the media that under last year's 'Khelta Punjab' programme, more than 120,000 athletes participated. This year, the initiative is being expanded further with talent hunt events being organized across districts, and significant work is already underway to rehabilitate and improve existing sports infrastructure. The Provincial Minister also shared that the first phase of the Chief Minister's Internship Programme has been successfully completed, benefiting 6,000 youth with a monthly stipend of Rs25,000. In Phase Two, the number of interns will be increased to 10,000, and the stipend will be raised to Rs60,000 per month. He further revealed that for the first time in the province's history, a Sports Endowment Fund has been established, under which athletes are being supported with funds of Rs30,000, Rs50,000, and Rs70,000. A Self-Sustaining System is also being introduced to address salary-related issues of sports department employees on a permanent basis, he added. He also highlighted that under the up-gradation of Punjab Stadium, Nishtar Park, Lahore, increasing seating capacity from 6,000 to 10,000. Scheme of Construction of a 102-room hotel/hostel at Nishtar Park Sports Complex at a cost of Rs800 million also approved. He also briefed about schemes of development of an Indoor Sports Arena for table tennis, snooker, board games, indoor rowing, revival of the International Boxing Arena, construction of a baseball ground in Lahore, rehabilitation and construction of Velodrome, Swimming Pool, Indoor Volleyball Complex, construction of Padel Tennis Courts in Lahore, Multan, and Sialkot while multipurpose Sports Facilities will be established along Rahim Yar Khan, Muridke, and Narowal Road. The Minister emphasized that the Punjab Government is working to revive traditional sports like Kabaddi, reconnecting the youth with cultural roots. He said that more projects will be included in the upcoming fiscal year and equal sports opportunities will be provided in every district of the province. Malik Faisal Ayub Khokhar concluded by stating, 'Our goal is not just to build infrastructure but to ensure its sustainable and autonomous management.' Under the vision of the Chief Minister, every possible step is being taken to empower youth, promote sports, and prepare future champions. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
An appraisal of provincial budgets
Provincial budgets for Punjab, Sindh, and Khyber Pakhtunkhwa for the fiscal year (FY) 2025–26 reflect a precarious balancing act between growth ambitions and fiscal realism, raising critical questions about their long-term sustainability, administrative capacity, and inclusivity. While presented with the usual optimistic overtones, the budgets also carry signals of policy inertia, revenue dependency, and structural inefficiencies that continue to inhibit Pakistan's provincial autonomy and economic self-reliance. The critical scrutiny of these documents not only reveals political economy underlying fiscal planning in each province but also highlights fundamental concerns about the federation's economic route vis-à-vis fiscal federalism. The Punjab government, presenting its budget on June 16, 2025, announced a massive total revenue target of Rs 4,890.4 billion, an ambitious 18.6 percent increase in transfers from the Federal Divisible Pool and a staggering 24.5 percent growth in provincial tax revenues. The projections are structurally flawed, relying on idealistic assumptions that dismiss the historical underperformance of revenue agencies and tax resistance from powerful local lobbies. Reliance on property and agricultural income tax reforms, both fraught with entrenched political resistance, indicates an overestimation of administrative capacity and political will. The failure to meet revised estimates for FY 2024–25, which were already 10.7 percent below initial projections, casts serious doubt on the credibility of these new targets. An estimated collection of Rs 333.5 billion in sales tax on services, up 22 percent from the revised estimate of Rs 273.7 billion in the outgoing years, is particularly doubtful given the economic uncertainty and enforcement limitations. Non-tax revenue scenario is equally concerning, with estimates for FY 2025–26 set at Rs 273 billion, a 37 percent decline from Rs 432 billion in FY 2024–25. The sharp fall is attributed to reduced inflows from the Cash Management Fund (CMF), a strategic but now underperforming instrument that had previously earned Rs 213 billion. Reduction to Rs 30 billion in CMF returns highlights both the volatility of this revenue stream and the province's lack of a diversified non-tax income portfolio. The expenditure side is dominated by an extraordinarily high allocation of Rs 1,240 billion for the Annual Development Programme (ADP), a 47.3 percent rise from the previous year's budget and an 11.8 percent increase over revised estimates. The dramatic surge in development outlay raises serious concerns about Punjab's absorptive capacity, given chronic issues in project planning, delays in execution, and cost overruns. The risk of low-impact politically motivated spending, looms large particularly in the absence of institutional reform, robust audit mechanisms, and performance-linked budgeting. The move may also undermine federal fiscal consolidation efforts, as Punjab's ability to generate provincial surplus appears jeopardized by such aggressive development financing. The current expenditures present a paradox, as some critical heads see a reduction despite rising service delivery demands. Allocation for public order and safety affairs, at Rs 299 billion, is 14 percent lower than the revised figures for FY 2024–25, a reduction that appears disconnected from the province's growing population and evolving internal security challenges. The housing development budget alarmingly slashed from Rs 94 billion to just Rs 10.2 billion, and the health sector allocation, cut from Rs 292 billion to Rs 267 billion, reflect a misalignment between policy rhetoric and actual resource commitment. Reductions in areas that directly impact citizen welfare, undermine the government's claim of inclusive growth signaling a return to discretionary rather than needs-based budgeting. The budget also contains a slew of rhetorical initiatives around digitization, climate resilience, and strategic growth, which while theoretically commendable, lack operational clarity, institutional alignment, and performance benchmarks. Failure of similar past programmes owing to bureaucratic ineptitudes and poor accountability—offers a cautionary tale. The absence of structural reform in public procurement, service delivery decentralization, and tax net expansion continues to limit the province's development despite higher fiscal outlays. The Punjab budget, while expensive, risks becoming yet another exercise in political signaling rather than transformative governance. The Sindh government, by contrast, has adopted a more calibrated yet still expansionary fiscal posture, presenting a budget with a projected fiscal deficit of Rs 38.46 billion. The total receipts lean heavily on federal transfers, which account for 62% of the provincial inflows, with Rs 2.095 trillion expected under various heads including National Finance Commission (NFC) Award share, straight transfers, and Octroi and Zila Tax (OZT)-related grants. Overdependence on federal allocations not only limits fiscal autonomy but also exposes the province to macroeconomic fluctuations and federal transfer delays, which have historically disrupted cash flows and hindered implementation. Provincial tax revenues, estimated at Rs 676 billion, represent a modest attempt at internal resource mobilisation. Of this, Rs 388 billion is expected from sales tax on services, while other provincial taxes contribute Rs 288 billion. The low non-tax receipts of just Rs 52.6 billion further reflect a narrow fiscal base and underutilised potential for asset monetization, public-private partnerships, and service-based revenue generation. The structural rigidity of Sindh's revenue architecture has persisted despite years of reform narratives, and this budget does little to change that trajectory. The current expenditures, estimated at Rs 2.15 trillion, have increased 12 percent year-on-year, driven largely by public sector salaries, pensions, and operational costs in health, education, and law enforcement. The size and rigidity of these obligations reflect the state's expanding administrative footprint, which leaves limited fiscal room for development initiatives. The lack of serious pension reform and growing salary commitments create future liabilities that will constrain discretionary spending and development financing for years to come. The development expenditure, accounting for nearly 30 percent of the total budget, offers some hope, with Rs 520 billion allocated to the provincial ADP and Rs 366.7 billion earmarked as Foreign Project Assistance (FPA). The combined development outlay highlights Sindh's commitment to infrastructure and social investment. However, execution remains a chronic weakness. The efficiency of foreign-assisted projects is often hampered by slow disbursements, procurement bottlenecks, and weak monitoring systems. The development agenda, while commendable in size, remains vulnerable to the province's institutional fragility. The strategic posture of Sindh government is one of cautious ambition aiming to maintain development momentum while handling a manageable deficit. However, long-term resilience of this strategy depends on structural reforms in tax administration, expenditure rationalization, and innovation in public financial management. Continued reliance on federal funds and concessional borrowing, in the absence of productivity-enhancing investments, risks eroding the province's fiscal sovereignty and development dividends. The Khyber Pakhtunkhwa budget for FY 2025–26, structured around Rs 1,754 billion in total outlays, is perhaps the most constrained of the three, owing to the province's demographic pressures, post-conflict challenges, and limited economic base. The revenue projections include Rs 1,212 billion from federal transfers and Rs 93 billion from provincial tax and non-tax sources. The stark gap between total budgetary size and internally generated revenue — merely 5.3 percent of total income — reflects a crippling fiscal dependency that leaves the province highly vulnerable to federal fiscal dynamics and delays in NFC disbursements. The total development budget of Rs 416 billion is split between Rs 120 billion for the Provincial ADP and Rs 296 billion under the Accelerated Implementation Program (AIP) and Foreign Project Assistance. Dominance of externally financed or federally supported development initiatives highlights a fundamental weakness in fiscal autonomy. ADP's modest size relative to the total budget also reflects structural crowding caused by salary, pension, and security issues particularly acute in Khyber Pakhtunkhwa due to its proximity to conflict zones and the burden of displaced populations. The current expenditure, standing at Rs 1,338 billion, continues to be dominated by salaries and pensions, which collectively consume over 70% of recurring expenses. Lack of pension reforms is creating a time bomb that threatens fiscal space for critical sectors like health, education, and infrastructure. The rising cost of debt servicing further puts pressure, as the province increasingly turns to domestic borrowing and overdraft facilities to meet monthly obligations, a practice that undermines fiscal discipline and increases inter-governmental friction. The budget does reflect some rationalization in sectoral allocations, with increased funds for health and elementary education, acknowledging post-pandemic service delivery gaps. The commitment to fund Sehat Card Plus scheme and education infrastructure reflects intention, but execution remains mired in weak provincial monitoring capacity. The fragmented governance structure is divided between regular provincial departments, and the AIP umbrella creates duplication, opacity, and administrative inefficiencies that slow down service delivery inflating project costs. The long-term outlook for Khyber Pakhtunkhwa remains risky unless institutional capacity is strengthened, resource mobilization is improved, and a clear strategy for economic diversification is implemented. Absence of industrial policy, low private investment, and limited natural resource monetization continue to limit province's revenue potential and employment generation capacity. The current budget, while pragmatic within existing constraints, offers little by way of transformative vision. A combined analysis of the Punjab, Sindh, and Khyber Pakhtunkhwa budgets reveals a troubling pattern: overdependence on federal transfers, lack of serious pension and salary reform, weak tax enforcement, and political tokenism in development outlays. The way forward lies not merely in higher allocations, but in structural changes reform of provincial tax codes, modernization of service delivery, investment in human capital, and accountability-led governance. The provincial budgets must evolve from annual rituals into policy instruments that truly reflect the needs, rights, and aspirations of the people. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Health
- Express Tribune
Punjab takes over long-stalled hospital project
Following years of federal inaction, the Punjab government is set to revive the long-abandoned Rawalpindi Mother and Child Hospital project under its Annual Development Programme (ADP). The revised plan envisions the completion of the facility as a state-of-the-art Children's Hospital, with the project's cost now escalated to Rs9 billion. PHOTO: EXPRESS The long-delayed Rawalpindi Mother and Child Hospital project — under construction for the past 22 years and with its cost rising from Rs1.5 billion to Rs9b billion — has now been transferred from the federal to the Punjab government, which will construct a Children's Hospital instead. The status of the project has been revised, and it has been decided to complete the unfinished building and establish a Children's Hospital instead. The Punjab government has issued a notification to include the project in its Annual Development Programme (ADP) and to prepare a new PC-1 for its execution. The foundation stone of the hospital was laid by two former Prime Ministers, Shaukat Aziz and Imran Khan. In addition, the former Chief Justice of the Supreme Court, Justice Saqib Nisar visited the site just 23 days before the 2018 general elections and announced that the project would be completed under the supervision of a special cell of the Supreme Court. According to the notification issued on June 16 by the Secretary, Specialised Healthcare and Medical Education Department, Punjab, Dr Hina Sattar, Head of Paediatrics at Rawalpindi Medical University, has been appointed as Project Director for the establishment of the Children's Hospital under the ADP. She will coordinate with Assistant Professor Dr Masood Sadiq, the Vice Chancellor of the University of Child Health Sciences, Lahore, to prepare a revised PC-1 for the project. It is worth noting that former federal Interior Minister Sheikh Rashid Ahmed had facilitated the foundation-laying of a 200-bed Mother and Child Hospital by then Prime Minister Shaukat Aziz during the federal government formed after the 2002 elections. At the time, the total estimated cost of the project was Rs1.5b. However, the project remained incomplete during the five-year tenure of that government. While the main structure was constructed, critical work, including finishing, renovation, machinery installation, and recruitment of human resources, was never completed. From 2008 to 2017, the project remained abandoned. Then, on July 1, 2018 — just 23 days before the general elections — then Chief Justice Saqib Nisar, along with Sheikh Rashid Ahmed, visited the site and announced that the SC's special cell would now oversee the project's completion. Later, after the PTI came to power following the 2018 elections, then Prime Minister Imran Khan visited the site once again and reiterated the promise to complete the hospital. Despite significant progress during PTI's three-and-a-half-year tenure, the project still could not be completed. The construction eventually halted, and the partially built structure began to deteriorate due to weather and neglect. Now, the project — previously under federal jurisdiction — has officially been handed over to the Punjab government, which will provide the funding and complete the project as a Children's Hospital under a new PC-1.
Business Recorder
2 days ago
- Business
- Business Recorder
Punjab budget focuses on ‘equitable' economic growth
LAHORE: The Punjab government has outlined a comprehensive and ambitious development agenda for FY2025–26 which focuses on initiatives for inclusive and equitable economic growth, human development & social service expansion, investment on productive and digital infrastructure, and climate resilience and environmental sustainability. Similarly, on the current expenditure side, the focus remains on enhancing spending efficiency and minimizing the burden of recurring costs, while ensuring effective service delivery. As per budget document, the structure of the FY2025–26 budget reflects a deliberate and disciplined realignment of fiscal priorities. While curtailing non-essential current expenditure, the government has expanded development spending through the largest-ever Annual Development Programme (ADP) in Punjab's history, with 43 % increase over previous year's ADP. This expansion has been made possible through robust public financial management reforms, including but not limited to the successful retirement of unsustainable commodity operations debt. As per budget document, the Punjab government has abolished 28,330 vacant posts to rationalize its workforce, aiming to enhance cost savings, boost efficiency, and promote automation in the public sector. The government has implemented the deregulation of commodity operations of wheat which previously was financed through commercial borrowing from the financial institutions. The scheme had accumulated a circular debt of Rs629 billion outstanding at June 2022 due to unfunded general subsidy expenditure. The Punjab government has eliminated this debt from provincial revenues leading to reduction of commodity debt outstanding down to Rs13.9 billion at April 25, which is fully backed by the wheat stock leveraging the saving of future debt service in the range of approximately Rs50 billion per annum. As per budget document, this year's budget reflects a strategic shift from foundational infrastructure to transformative development. While the first year focused on road connectivity and basic service delivery, FY2025–26 marks the next logical step: empowering communities through integrated urban development and rural uplift. Transport has emerged as a key priority with a focus on expanding eco-friendly public mobility options, including the introduction of electric buses to reduce urban congestion and environmental impact. The government has also placed unprecedented emphasis on education expanding access through scholarships, laptops, school meals, and higher education grants. Health remains a cornerstone, with flagship initiatives such as Medical City, Free Medicine, and new centres for Cancer and Cardiac care. Simultaneously, farmer relief through the Kissan Card, Solarised Tubewells and Mechanisation Programmes aim to enhance productivity and rural resilience. New frontiers in IT, affordable Housing, and Climate Action signal the province's ambition to build an inclusive, forward-looking economy. Copyright Business Recorder, 2025
