ISLAMABAD: The Federal Government has approved transfer of Rs 82.8 million to PSDP-allocated project “1000 industrial stitching units” through Technical Supplementary Grant (TSG).
At a recent meeting of the Economic Coordination Committee (ECC) of the Cabinet, Ministry of Industries and Production (MoI&P) stated that Small and Medium Enterprise Development Authority (SMEDA) was implementing a PSDP-funded project titled “1000 Industrial Stitching Units all over Pakistan” at a cost of Rs 350.545 million which was approved by CDWP on January15, 2018.
The project had been envisaged to promote public private partnership to boost value-addition in the field of textile garments by establishing 150 industrial stitching units in phase-I. The project PC-I was conceived by the defunct Textile Division with SMEDA as an executing agency. Later on, when Textile Division was merged and converted into Ministry of Commerce, the project was transferred to Development Wing of Ministry of Commerce.
The project was reviewed by Development Wing and it was observed that executing agency, i.e., SMEDA, was an autonomous organization working under administrative control of Mol&P and sponsoring agency of the project was Ministry of Commerce. This “unreasonable” arrangement led to a slowdown in the pace of the project’s implementation. Therefore, to synergize the financial and administrative responsibilities to effectively manage the project, Ministry of Commerce proposed that project may be transferred to Ministry of Industries and Production (MoIP).
After getting the consent of Ministry of Planning, Development and Special Initiatives (M/OPDESI) and Mol&P, Ministry of Commerce in the Departmental Development Working Party (DDWP) meeting held on September 24,2020 approved the transfer of the administrative and financial control of the project from Ministry of Commerce to Ministry of Industries and Production without any change in cost and scope of the project with the direction to expedite the transfer process.
Ministry of Industries and Production noted that during CFY 2020-21, MoPD&SI had allocated an amount of Rs 103.500 million to the project in the portfolio of Commerce Division. Out of the total allocation, an amount of Rs 20.700 million had been released by Ministry of Commerce to SMEDA in the first quarter of CFY 2020-21. Moreover, Ministry of Industries took up the matter with MoPD&SI for shifting of the PSDP allocation of the project from Commerce Division to Mol&P enabling the Ministry to release funds of the second, third, and fourth quarters for smooth execution of the subject project by the executing agency.
Commerce Division had surrendered the balance amount of allocation of Rs 82.800 million under Demand No.154 – FC22D08 Development Expenditure of Commerce Division for the year 2020-21 in respect of approved project titled “L01405 1000 Industrial Stitching Units” in favour of Industries and Production Division under Demand No.189-FC12C32 Capital Outlay on Industrial Development during CFY. MOPD&SI advised Industries Ministry that Ministry of Commerce vide surrender order No.F.1(2)TID-16-PC- 111 of November 9, 2020 had already surrendered balance allocation of Rs 82.800 millions in favour of Ministry of Industries and Production development grant, therefore, Mol&P may take further action as per policy/procedure. Finance Division supported the proposal.
Ministry of Industries and Production requested the ECC for approval of Technical Supplementary Grant of Rs.82.800 million from PSDP which approved the transfer for allocation. Later on, the Federal Cabinet, in its meeting held on January 26, 2021, ratified the decision of the ECC.