Allocation of foreign loans to bureaucracy under KP Rural Investment Project raises concerns

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has allocated a massive amount to address bureaucratic needs, procure vehicles, and provide allowances under the Rural Investment and Institutional Support Project (KP-RIISP) being launched in collaboration with international financial institutions.

The financial burden of the KP-RIISP, estimated at a total of 110 billion rupees, will be partially borne through a loan exceeding 80 billion rupees from the World Bank, with the remainder funded by the provincial government. The project aims to enhance infrastructure and administrative facilities across tribal districts, with separate units established to ensure efficient monitoring.

A substantial portion of the allocated funds, totaling 2.39 billion rupees, has been earmarked for bureaucratic incentives, procurement of vehicles, and the establishment of upscale offices. Additionally, 240 million rupees have been set aside for staff salaries and project management, including the monthly wage of the project director amounting to three million rupees. Apart from this, 420.4 million rupees have been kept for vehicles, traveling allowance, POL, seminars, and other office supplies and equipment.

Moreover, substantial allocations have been made for the purchase of office equipment, vehicles, and hiring staff for the Project Management and Coordination Office (PMCO), with a total expenditure of 590.1 million rupees. The PMCO will oversee various aspects of project implementation, including technical coordination, procurement, and financial management.

Furthermore, 680.2 million rupees have been set aside for the establishment of the project office at the local government department and for staff salaries, allowances, and procurement of office supplies, while other departments such as Agriculture, Irrigation, and Public Health Engineering will also receive funds for developmental projects.

Currently, the KP government has accumulated debts amounting to a staggering 630 billion rupees from international financial institutions, with additional agreements worth 970 billion rupees already signed.

Aziz Buneri
Aziz Buneri
Author is a senior journalist and working in the field of journalism since 2004. He covers Financial, Social, Political and regional issues for Pakistan today and Profit. He can reached at [email protected]

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