ISLAMABAD: In a move reflecting tighter fiscal control under the International Monetary Fund (IMF) programme, the federal government has curtailed the powers of Departmental Development Working Parties (DDWPs) across ministries, halting their authority to approve new development projects.
According to official sources, the Planning Commission has imposed a moratorium on DDWP-level project approvals, directing that all proposals be routed to the Central Development Working Party (CDWP) for scrutiny and clearance. The decision follows IMF concerns over the lack of transparency and weak appraisal mechanisms at the departmental level.
Previously, DDWPs were empowered to sanction projects costing up to Rs 2 billion, but this limit has now been reduced to Rs 1.5 billion. Projects exceeding that ceiling will now require CDWP’s review, which can approve schemes up to Rs 7.5 billion. Projects above that value will move further up to the Executive Committee of the National Economic Council (Ecnec) for final approval.
The IMF had reportedly flagged instances where ministries and their Principal Accounting Officers approved schemes at the DDWP level without rigorous technical or financial vetting. Such practices, it observed, contributed to project duplication, inflated costs, and the misuse of public sector development funds.
An official from the Planning Ministry confirmed that the new directive was part of a broader effort to “restore fiscal discipline and strengthen project evaluation standards.” The IMF, under its ongoing standby arrangement with Pakistan, had called for centralized project scrutiny to ensure value for money and reduce politically motivated or ad hoc project approvals.
The decision has, however, drawn quiet criticism within the bureaucracy. Several ministries fear that the move will slow down project implementation, especially smaller schemes requiring quick departmental approval. “Routing every project through CDWP will overburden the system and delay even low-cost interventions,” said an official of a technical division who requested anonymity.
Officials also warn that the bottleneck effect could hurt the timely utilization of the Public Sector Development Programme (PSDP) allocations for the current fiscal year, as project pipelines will now need more administrative processing time.
Economic analysts view the moratorium as a double-edged sword. While it enhances fiscal oversight and reduces leakages, it also centralizes decision-making in Islamabad, curbing the operational autonomy of federal ministries. “The IMF’s push for transparency is valid, but Pakistan must balance oversight with efficiency,” said a development economist Dr. Waqar Malik.
The government, meanwhile, maintains that the move is temporary and will be reviewed once a robust monitoring and evaluation mechanism is established within ministries
