No approval needed to extend outsourced services for ADP

The interim government has withdrawn a requirement for outsourced personnel to renew approvals for working in annual development programmes (ADP).

The Ministry of Finance issued a circular on Tuesday, saying approval renewals from the ministry were not required for outsourced services as the government sought to expedite implementation of such projects.

In order to properly implement existing ADPs, the government took the decision, said the circular.

According to a guideline on availing outsourced services, the tenure of outsourced service would have to be two years, which can be extended only through approvals from the Ministry of Finance.

Economists are urging the government to ensure the timely and efficient execution of development projects as it helps boost the private sector and create jobs.

However, implementation of the ADP in the first two months of the current fiscal year reached its lowest in at least 16 years, with about Tk 5,715 crore being spent during the period.

This means just 2.36 percent of the total outlay for FY26 was used during the July–August period, according to data from the Implementation Monitoring and Evaluation Division (IMED).

Although the political situation this year has been much better than in the first two months of the previous fiscal year, implementation was 20 percent behind the same period last year.

Amid this situation, the government eased processes so that ADP implementation could be expedited.

The slowdown comes in spite of the government rolling out a shortened, austerity-focused ADP for the current fiscal year.

Last month, Planning Adviser Wahiduddin Mahmud expressed concern over the implementation rate.

On this ground, the IMED has put forward a reform package to ensure the timely and efficient execution of development projects.

Key proposals include creating a pool of skilled project directors and offering performance-based incentives.