Centre eyeing provincial kitty for ‘strategic projects’

After drying up the provincial project financing from the national kitty in January, the federal government is pushing financing of national ‘strategic nature projects’ jointly by the federal and provincial governments besides the creation of synergies among the provinces through an integration of provincial projects.

“Federal and provincial projects in sectors such as health, education, infrastructure, urban services, agriculture, industries, etc., are generally implemented in isolation. There is no cross-learning between provinces and federal government and between provinces themselves that, reduces the efficiency of such investments when viewed with a lens focused on national economic growth goal,” says a working paper for the upcoming meeting of the National Economic Council (NEC) ahead of next year budget.

It notes that projects of similar nature and types are sometimes implemented using varied methodologies, with different funding sources and amounts. “Integration of such projects can help the provinces achieve economies of scale and optimise public investment spending,” it argued. This could do away with the need for revisiting the National Finance Commission (NFC) award floated by certain quarters now and then.

The draft National Development Framework (NDF) to be taken up by the NEC in about two months on another front makes a pitch for the financing of national strategic projects as a common responsibility of the centre and the provinces. This is a step forward from the January decision of the NEC that decided to stop federal financing of provincial projects.

“This is high time to take only national level projects of strategic nature for national economic growth. Such projects should be identified by the technical experts having good knowledge of development practices from the federal, provincial and area governments,” it said, adding that once identified strategic projects should be equally contributed by all governments and efforts be made for their implementation.

The NDF also advocates better understanding and implementation of the devolution introduced through the 18th Constitution Amendment and 7th NFC Award almost one and half a decade back in true spirit and essence enshrined in articles 29 to 38 of the constitution, generally encompassing equal opportunities to all segments of society, and Article 156, the NEC, were the appropriate instrument and institution to ensure that through NDF in respect of financial, commercial, social, and economic policies.

“At the federal level, a national development outlay may be prepared comprising the federal PSDP (Public Sector Development Programme) and provincial ADPs (Annual Development Plans) highlighting the main sectoral strategies and priorities as well as flagship projects. It advised that the provinces should present success stories of mega projects worth over Rs10bn, approved by the Executive Committee of the National Economic Council (Ecnec) but financed through provincial resources.”

Good practices may be shared with all stakeholders for the creation of synergies, it said, adding that the synchronisation between provincial development priorities and National Strategic Priorities can become attainable only if National Strategic Priorities are defined in very specific and measurable terms.