The Ministry of Planning, Development and Special Initiatives (PD&SI) has decided to stop allocating funds for the Earthquake Reconstruction and Rehabilitation Authority (ERRA) from the national development budget. This move raises concerns about ERRA’s future funding.
According to sources, PD&SI will provide a one-time allocation of Rs 1.028 billion to ERRA through a Technical Supplementary Grant (TSG) to clear existing liabilities on PSDP (Public Sector Development Program) projects. This amount will be reallocated from PD&SI’s own development budget.
The release of these funds is conditional. ERRA must follow strict procedures for project spending as outlined by the Economic Coordination Committee (ECNEC) on May 10, 2023. Additionally, ERRA is responsible for ensuring the immediate settlement of all outstanding liabilities.
The Planning Commission has emphasized that this is a one-time measure and no further funding will be provided to ERRA from the development budget in the future.
Meanwhile, the Ministry of Maritime Affairs raised concerns about another project (PSDP No. 837) related to electricity provision for Gwadar Free Zones. The project was initially assigned to the Ministry of Energy (Power Division) but may require involvement from Qesco (not GPA) for execution. The Ministry of Maritime Affairs is requesting clarification on the utilization of funds and project timelines from the Power Division and Qesco.
Given the importance of the Gwadar Free Zone project for port operations and established industries, both ministries are urging swift action to avoid further delays.
