Social uplift funds being diverted to security expenditures

[Naveed Yaseen]

By Mohammad Ali Khan
THE worsening law and order has started impacting the development activities in the Frontier Province with the cash-strapped government forced to divert funds earmarked for social uplift, to meet the security threats.

The last financial year’s unspent money for the Tameer-i-Sarhad Programme (TSP) has been diverted to procuring urgently required equipment for the police force.

The TSP, an important component of the provincial Annual Development (ADP) was initiated by the former MMA set-up with a total outlay of Rs1.24 billion. Every member of the 124-- member Provincial Assembly (MPA) is given Rs10 million each on yearly basis for executing uplift schemes in his respective constituency.

As per the TSP guidelines, the fund is utilised for social uplift (building or improving the education and health facilities, construction or repair of roads, water and sanitation schemes).

“The diversion of funds will hinder the improvement of social services delivery,” said an official. Under the directives of the Chief Minister, Ameer Haider Khan Hoti, the total unspent funds of Rs52.912 million will be immediately released for purchasing security equipment.

Bashir Ahmad Bilour, the NWFP senior minister, opined that the provincial government has no other option. “We had already approached the centre to provide us funds for strengthening the police and purchase the security equipment, but we are still waiting its response,” said Mr Bilour, adding the provincial government urgently needed equipments for the police force to counter the insurgency.

The government, he said, is planning to recruit 10,000 policemen and equip them with latest weapons and tools. He, however, clarified that the decision would not affect the ongoing TSP schemes covered in the current budget, as diversion of funds has been made only from the inactive projects reflected in the last year ‘s ADP.

The diversion of funds indicates the fragile financial health of the provincial government and economic challenges ahead.

With a weak financial base, the NWFP derives 90 per cent of its budget from the external resources such as federal fiscal transfers, grants and local and international borrowings.

Apart from reforming its civil administration, improving service delivery in social sector and carrying out uplift programmes, arranging maximum resources to improve security situation in the wake of ongoing militancy is becoming a major challenge for the provincial government, said an official. “Peace is prerequisite for development and attracting fresh investment and the provincial government is doing whatever it can, .” the official added.

Cost of security in NWFP is growing like the spread of militancy from adjoining tribal belt to its settled areas. The government has allocated an amount of Rs6.559 billion for police department, which is 27 per cent higher than the allocations of the last financial year. The increase has fallen short and now the government will need even more in the wake of growing attacks on consignments meant for NATO forces stationed in Afghanistan.

But it is ironic that the international community has never extended the financial and technical assistance to the resource-strapped province to cope up with the situation; rather it has reduced its level of cooperation.

For example, the official said, the share of foreign aided projects was 34.88 per cent of the total ADP of NWFP government, which got reduced gradually to 32.65 per cent in 2005-06, 28.84 in 2006-07, 20.21 per cent in 2007-08 and 11.11 per cent in the current financial year.

The militancy is also affecting the work pace on ongoing mega projects. Work is almost at standstill at different hydropower generation projects initiated in the northern parts of the province because of threats to the lives of foreign engineers, particularly the Chinese.

A Chinese engineer, kidnapped from a project site in Dir a few months back, is still in the captivity of militants.

Likewise, uplift work on different schemes in Swat region has been stopped because of lack of access to the project site because of ongoing military operation against militants.

“This will substantially increase the cost of construction in the following years,” said R.D William, a development expert.

The current situation, in his views, demands two pronged strategy, as simultaneously focusing on development and improving security and safety of the people and public infrastructure.

”The immediate impact of law and order on development sector is not so visible, but in the longer run it will have impacts on provincial exchequer when the prices of goods and services will multiply manifolds,” opined Mr William.

http://www.dawn.com/2008/12/15/ebr9.htm