In Pakistan’s pursuit of socio-economic development, the Public Sector Development Programme (PSDP) serves as a critical engine for infrastructure growth and public welfare. However, the efficacy of these projects hinges on rigorous oversight. Recent performance audits conducted by the Auditor General of Pakistan (AGP) and independent bodies have shed light on systemic inefficiencies, revealing gaps between planned objectives and on-ground outcomes. These audits, spanning sectors like energy, transport, and health, underscore the need for stronger accountability to ensure taxpayer funds translate into tangible public benefits.
Persistent Delays and Cost Overruns
Performance audits of PSDP projects between 2020 and 2023 highlight chronic delays and budget mismanagement. For instance, a review of 50 major projects revealed that 65% faced delays of 12–36 months, while 42% exceeded initial cost estimates by an average of 28%. The Lahore-Sialkot Motorway, initially budgeted at ₨54 billion, saw costs balloon to ₨72 billion due to delayed land acquisition and design revisions. Similarly, the Neelum-Jhelum Hydropower Project incurred ₨90 billion in additional costs after geological surprises disrupted timelines.
Common Causes of Delays (2020–2023 Audits)
- Land acquisition disputes (58% of projects)
- Inadequate feasibility studies (45%)
- Weak contractor performance (37%)
- Bureaucratic procurement processes (32%)
Inadequate Monitoring and Accountability Gaps
Audits frequently cite weak oversight mechanisms as a key driver of inefficiency. Only 30% of projects had real-time monitoring systems, leading to unchecked discrepancies. For example, the Karachi Circular Railway revival project, despite receiving ₨25 billion, showed negligible progress due to absent progress reports and irregular site inspections. Moreover, 23% of audited projects lacked third-party evaluations, allowing underperforming contractors to evade penalties.
Monitoring Shortfalls in PSDP Projects
| Issue | % of Projects Affected (2023) |
|---|---|
| No digital monitoring tools | 70% |
| Irregular financial reporting | 55% |
| Absence of impact assessments | 63% |
Sector-Specific Challenges and Public Impact
The energy sector emerged as a focal point for audit criticisms. Of 18 power projects audited, 14 failed to meet timelines, worsening Pakistan’s energy deficit. The Jamshoro Coal Power Plant, delayed by four years, deprived the national grid of 1,320 MW—enough to power 2 million homes. In healthcare, 12 maternal health centers in Punjab remained non-operational post-completion due to equipment shortages, reflecting poor needs assessment.
Pathways to Strengthen Project Outcomes
To address these gaps, auditors recommend:
- Pre-Project Rigor: Mandating comprehensive feasibility studies and community consultations.
- Tech-Driven Monitoring: Implementing centralized digital dashboards for real-time tracking of milestones and expenditures.
- Stakeholder Accountability: Enforcing penalties for underperforming contractors and tying fund releases to progress.
Recent reforms, such as the PSDP Automation Initiative (2023), show promise. Pilot projects using AI-based progress tracking reduced delays by 18% in their first year. However, sustained progress demands political will to depoliticize project selection and prioritize technical merit.
Pakistan’s development ambitions rely on transforming audit insights into actionable reforms. By bridging accountability gaps and adopting adaptive management practices, the PSDP can evolve from a symbol of potential to a beacon of effective governance.
This article was published on PublicFinance.pk.
