ISLAMABAD (June 05 2009): The National Economic Council (NEC) on Thursday approved Rs 621 billion allocations for Public Sector Development Programme (PSDP) 2009-10 having Rs 421 billion federal and Rs 200 billion provincial component. Prime Minister Syed Yousaf Raza Gilani chaired the meeting that was attended by the chief ministers of provinces, AJK Prime Minister, Chief Secretary Northern Areas (NAs), federal ministers and secretaries.
NEC also approved GDP growth rate at 3.3 percent for the next fiscal year against 2 percent projected GDP growth of the current financial year. The agriculture growth has been targeted at 3.8 percent against 4.7 percent during the current year, manufacturing 1.8 percent, services 3.9 percent for the next fiscal year 2009-10.
The allocation for infrastructure will be Rs 209 billion, social sector Rs 190 billion and allocation for productive sector has been approved Rs 22 billion. NHA will get Rs 45 billion, water sector Rs 60 billion, health sector Rs 26 billion, allocation for education and higher education is Rs 32 billion.
Apart from PDSP, NEC approved Rs 160 billion for Benazir Income Support Programme (BISP), Rs 50 billion for Reconstruction and Rehabilitation of Internally Displaced Persons (IDPs) and Rs 40 billion for industrial sector development, Chairman Planning Commission Sardar Assef Ahmed Ali and Minister told media here on Thursday while addressing a news conference after the meeting.
Minister for Information said that Balochistan share will be Rs 50 billion as well as additional Rs 9 billion for budgetary support and special package. Minister said that Balochistan will also get Rs 21 billion allocation in current year PSDP in the next fiscal year.
He said that the government had to make massive cut in PDSP this year which was reduced from Rs 371 billion to Rs 219 billion mainly because of economic crunch. The minister said chief ministers of Sindh and Punjab underlined the need to accelerate efforts to exploit the coal reserves in Thar and other parts of the country to provide cheap electricity to the people. All the provinces also expressed unity with the people of Balochistan and offered some portion of their funds for the deprived people of the province.
Sardar Assef said that PSDP allocations may exceed Rs 421 billion as Rs 80 billion of Kerrey-Lugar bill would also come to the Planning Commission and most of it would be spent for development programmes in NWFP and Balochistan.
He said that 3.3 percent growth target was the minimum for the next fiscal which could go up to over 4 percent on the back of good performance by two or three crops. He said that so far figures showed 24 million tons wheat crops and he hoped that total wheat output would be around 25 million tons by end of the current fiscal year. He said that agriculture growth was around 4 percent of the GDP because of good crops this year.
The NEC also decided that Basha Dam would be started this year and the PC would meet all the demands of Ministry of Water and Power in connection for acquisition of land. Assef said that estimated cost of the project is $11.8 billion but the PC apprised the government would require only $6 billion as it wanted to complete all the civil works by itself. He said that the idea is to generate electricity from the dam through public-private partnership.
NEC also approved Approach Paper for the 10th Five-Year Plan (2010-15) entitled "Investing in People that would be tabled and presented in Parliament during the budget". The Approach paper gives higher priority to reducing inter-Provincial disparity. It calls for "people-centric" development with the setting of a comprehensive social protection system and delivery of high quality education and health and agriculture and agro-business to be the leading sector of the economy during the 10th Plan period.
Deputy chairman also unveiled other initiatives to be taken during the next financial year that include establishment of technical institute of international repute in 27 districts with a total cost of Rs 7 billion, Revolving fund for housing for the general public and government servants within an allocation of Rs 1 billion, Benazir Tractor Scheme costing over Rs 4 billion, Grain Storage facilities are being increased within investment of Rs 27 billion, Public-Private partnership in the field of Dairy Products with a government equinity of Rs 3.5 billion and SMEs will be promoted through advisory services in the areas of Khadi and leather crafts.