The federal and provincial governments in Pakistan have identified major hurdles such as lack of permanent appointments of Project Directors (PDs), opening up of bank accounts, acquisition of land and inability to establish proper coordination among different agencies for execution of multi-billion funded projects financed by multilateral donors.

The lack of proper planning and execution of donor-funded projects has been resulting into multi-million dollar penalty on account of commitment charges on per annum basis because of slow moving projects despite approval and signing of projects. The commitment charges turns into multi-million dollars in case of Asian Development Bank (ADB) but now renewed efforts are underway to minimise amount of such commitment charges.

Now the Economic Affairs Division (EAD) highlighted all these issues in consultation with the concerned federal and provincial authorities and Prime Minister Imran Khan will be given briefing to resolve all lingering issues in order to avoid hundreds of thousands of dollar penalty in case of making no progress after signing of projects.

https://www.thenews.com.pk/print/709879-pakistan-to-face-huge-penalty-for-not-executing-donor-funded-projects