NEC approves Rs1.310 trillion development budget for 2014-15

 

ISLAMABAD: The National Economic Council that met here on Thursday with the prime minister in the chair accorded approval to the country’s largest ever development budget of Rs1.310 trillion for 2014-15 with projected GDP growth of 5.1 percent and an inflation target of 8 percent, a senior official who was part of the meeting told The News.
The supreme economic body also approved the Pakistan Vision 2025 with the prime minister saying that this vision was our development roadmap and Pakistan would grow as this vision would ensure the best usage of our resources as was done by developed countries.

The NEC also approved allocations for the Diamer Bhasha Dam, Karachi Coastal Power Project, Dasu hydropower project, Neelum Jhelum hydropower project, Chashma NPP, Jamshoro power project, Tarbela Extension IV project, Nandipur power project, Chichon-ki-Malyan power project, Gomal Zam project, the Kurram Tangi Dam and Golan Gol hydropower project.

Citing the significant allocations for power projects, the prime minister commented that it showed the seriousness and commitment of the government towards alleviating power scarcity. The PM said that they had released Rs37 billion for the Diamer-Bhasha Dam in one calendar year in order to expedite the project.

Infrastructure projects including the Lahore-Karachi Motorway, Hasanabdal-Havelian-Mansehra Road project, Peshawar Northern Bypass, Raikot-Islamabad project, Gwadar Airport, Gwadar Free Economic Zone and the construction of jetty and infrastructure development at the Gadani Power Park also received approval of the NEC. A feasibility study for the construction of the Havelian-Raikot railway line was also approved. The PM said that the Rs53.5 billion was the land acquisition cost of the Lahore-Karachi Motorway of which Rs25.5 billion have already been released.

The Rs1.310 trillion development budget includes a federal development component of Rs525 billion and provincial component of Rs650 billion with Rs135 billion to be generated by Wapda, NTDC and Pepco for some vital projects, as against the consolidated development budget of Rs1.150 billion for the ongoing fiscal 2013-14.

However, the sources also said that the provincial chief ministers in the meeting said that as far as the provincial share of Rs650 billion in the development budget was concerned, it would have been better to first consult them as they would prefer to fix their development budget keeping in view their fiscal limits.

An amount of Rs40 has been allocated for the Pakistan Railways, Rs48 for nuclear energy, Rs 36 billion for the PM’s initiative for less developed areas that include allocation of Rs15 billion for Balochistan, Rs8 billion for Sindh, Rs4 billion for KPK, Rs3 billion for AJK, Rs4 billion for FATA and Rs2 billion for Gilgit-Baltistan.

The NEC approved allocation of Rs260 billion for the water and power sector (Rs166 billion for the power sector and Rs84 billion for the water sector), Rs1.5billion for MDGs and the community sector, Rs51 billion for education and health, Rs163 billion for transport and communication.

However, for the communication sector alone Rs113.576 billion has been allocated for the ongoing 57 schemes and Rs8.356 billion for new schemes in the communication sector. For the New Islamabad Airport, a new approach road worth Rs16 billion has been approved and an allocation of Rs10 billion for the next financial year and for the ongoing road project for the same airport, Rs2 billion allocation has been proposed.

The NEC also approved the projected GDP growth of 5.1 percent as had earlier been worked out by the National Account Committee (NAC) and then backed by the APCC. The projected target of GDP of 5.1 percent has been worked out keeping in view the projected growth of agriculture by 3.3 percent, industry by 6.8 percent and services by 5.2 percent. Nominal GDP is targeted to grow by 13.5 percent and GNP per capita is projected at Rs160,443.

However, the press release says, Ahsan Iqbal, Federal Minister for Planning, Development and Reform, outlined the seven pillars of Vision 2025 while briefing the NEC.

NEC allowed the Planning Commission to publish the details of this Summary in the form of a document titled “Pakistan Vision 2025” for public information and directed Ministries/Provinces/Special Areas and Public Sector agencies to make concerted efforts in coordination with the Ministry of Planning, Development and Reform to effectively implement the proposed Pakistan Vision 2025. Moreover, the Planning Commission was authorised for regular monitoring of progress to translate the Vision into reality through a Performance Delivery Unit against key performance indicators (KPIs) and approved the framework for the eleventh five year plan within the perspective of Vision 2025.

While discussing the development projects in Balochistan, the CM Balochistan pointed out the delay and corruption in the Quetta water supply scheme. He siad that Rs10 billion had been spent but on the ground there was no development. The prime minister directed to hold enquiry into the matter and fix the responsibility. He also asked CM Balochistan Dr Abdul Malik to monitor the projects himself.

The NEC also approved construction of a cancer hospital in Islamabad. The PM directed to prepare plan for constructing a cancer hospital in every provincial headquarters including Gilgit-Baltistan, AJK and FATA.

Senior minister Khyber Pakhtunkhwa Sirajul Haq raised the matter of the delay in the completion of the Lowari Tunnel project due to paucity of funds. The PM assured to look into the matter and directed to specify the required funds for completion of the project. He said that he would personally visit the project along with the governor and chief minister KPK to see the on-ground situation. The PM said that none of the development projects would be ignored. The PM also warned against delays in the projects.

Addressing the query of the governor KPK regarding development funds for Fata, the prime minister said that Fata needed special attention in our development strategy and the development funds for Fata would be rationalised.

Chief minister Balochistan raised the issue of funding of transmission lines for far flung areas, the issue of power shortages in Balochistan and water supply scheme for Gwadar. The PM said that nature had endowed Balochistan with vast resources of solar energy and we needed to tap this energy. He directed to prepare a feasibility for installing solar power panels in Balochistan. It would not only resolve the energy shortage but also provide affordable energy to locals, he added. Prime minister directed to plan the water supply scheme and assured funding by the federal government.

Muhammad Saleh Zaafir adds: While briefing the NEC, Federal Minister Professor Ahsan Iqbal outlined the seven pillars of Vision 2025 including putting people first, Developing Human and Social Capital, Achieving Sustained, Indigenous and Inclusive Growth, Governance, Institutional Reform and Modernisation of the Public Sector, Energy, Water and Food Security, Private Sector-Led Growth and Entrepreneurship, Developing a Competitive Knowledge Economy through Value Addition and Modernisation of Transportation Infrastructure and Greater Regional Connectivity.

Civilian, military leadership on same page for development: PM

Gwadar: Prime Minister Nawaz Sharif said Thursday that the civilian and military leadership was on the same page for development in Pakistan.

During a meeting over a development project, Prime Minister Sharif expressed commitment to turn Gwadar into a free port like Hong Kong and Singapore.

Earlier upon his arrival in Gwadar, Prime Minister Nawaz Sharif was welcomed by Chief of Army Staff General Raheel Sharif.

The prime minister arrived at the PNS Akram Base alongside federal ministers Ishaq Dar and Ahsan Iqbal. Prime Minister Nawaz Sharif was greeted by Chief Minister Balochistan Dr Abdul Malik Baloch and other provincial ministers.

Regional peace prerequisite to economic development: PM

SANYA: Prime Minister Nawaz Sharif has urged the Asian countries to wage coordinated efforts for realization of the goal of economic prosperity.

He was delivering his keynote address at the Boao conference in China's Hainan province Thursday.

Nawaz said top priority should be given to the resolution of disputes as regional peace is a prerequisite to economic development.

The Prime Minister particularly appreciated China's economic revival and growth in the last several years.

Nawaz Sharif said the Asian countries should particularly focus on regional connectivity to strengthen mutual contacts through road, sea, and train links.

He said Pakistan-China Economic Corridor would open new avenues for the development in the region.

The Prime Minister said the Asian countries should take effective steps to tap the energies of their youth.

He said the Pakistani government has started the Prime Minister's Youth Business Loans scheme and announced scholarship for youth to integrate the youth into the national economic mainstream.

Nawaz Sharif said the government is also concentrating on overcoming the energy shortfall to ensure its economic development.

The Prime Minister said Pakistan has emerged from the lengthy war on terror, which has negatively affected its economy, trade and industry.

Chinese Prime Minister Li Keqiang in his speech has called for strengthening of cooperation among the Asian countries.

He stated this while inaugurating the Boao conference in China's Hainan province this morning. It has been organised by Boao Forum for Asia.

The Chinese Premier said that development remains the top priority of the Asian countries.

He emphasized the need for shared interest and common development of the regional countries.

Li Keqiang said Boao Forum is significant for the economic development of Asia.

Govt to spend $34 billion for key infrastructure development: Dar

 

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar on Tuesday said that the government would spend $34 billion in the next four years in various sectors of economy particularly for the expansion of motorways, power transmission lines and development of energy sector.
Talking to Minister of Finance of the Canadian Ontario Province, Charles Sousa, who called on him, Dar said that his government was determined to pursue very aggressive infrastructure development program in the country to help accelerate economic growth.

“The government is determined to pursue the policy of transparency, good governance and zero tolerance for corruption besides fulfilling its election manifesto by prioritising four ‘E sectors’ that include Education, Economy, Energy and Eradication of Extremism,” Dar said.

The finance minister also briefed Sousa about the introduction of 3G and 4G technologies in a transparent process, which would attract massive investments in the telecommunication sector. He expressed his determination to correct the existing energy mix in Pakistan as currently, 75 percent source of energy is furnace oil, due to which per unit cost has become exorbitantly high. Hence, the government intends to give priority to clean energy, he said.

Dar expressed voiced hope that the Canadian companies would invest in hydro projects as they have tremendous expertise in this field. He stated that the government has signed a 2,000MW nuclear power plant agreement with China and was negotiating for additional 3,000MW plant on BOT mechanism. While speaking about the security situation of the country, the Finance Minister underscored the need for giving dialogue a last chance.

The minister said that he will be presenting his second budget in June, 2014, adding although Pakistan’s GDP has been growing at three percent for the past few years, this year the growth is expected to be four percent. However, the target of 6% growth is likely to be achieved in the next few years owing to various economic reforms being undertaking by the present government, he added.

On the occasion, Sousa expressed the hope that by following robust and vigorous economic agenda, the government would certainly overcome economic difficulties, which would, in turn, pave the way for more foreign investments, both by expatriate Pakistanis and foreign companies. He stated that the better economic condition was the best way to give hope to the people, which would help reduce illiteracy and extremism.

Sousa appreciated Pakistan’s positive role in the post 9/11 war against terrorism and deplored criticism against Pakistan in this regard. He said that the Ontario government was pursuing a practical ‘energy mix’ policy adding the 50 percent source of energy was nuclear, followed by hydro and gas while the green energy constitutes only 6 percent.

Sousa stated that the Ontario government greatly admires Pakistani businessmen, entrepreneurs, doctors, engineers, accountants and other professionals, who have been making valuable contributions to the Canadian economy and society.

He said that he will be presenting his second budget as the Finance Minister and to boost the economy and employment the government is proposing to spend C$11.3 billion more than the previous year.

PM for speedy development through best economic decisions

LAHORE: Prime Minister Nawaz Sharif on Saturday directed the government functionaries to take the best economic decision to ensure proper use of each and every penny from the national exchequer.
He was speaking at a briefing regarding Ravi Zone development and conservation of archaeological sites, including Jahngir Tomb, at his Raiwind residence on Saturday.
Chief Secretary Punjab Naveed Akram Cheema, Chairman Planning and Development Department Irfan Elahi, Commissioner Lahore Rashid Langrial, LDA Chairman Ahad Cheema, two Singapore based consultants engaged in conservation of Jahangir Tomb and other senior officials of the government were also present.
The Prime Minister said experts and consultants from the private sector should be engaged in development works to ensure the maximum utilization of available resources and achieving a goal of development in the shortest possible time.
He said the public private partnership could be among the best options for reducing financial burden of big projects on the government and getting an efficient and better outcome.
He said `high end areas' should be developed in big cities, including Lahore, keeping in view models from the developed world for allowing construction of multi-storey buildings.
He stressed the need of adopting the best `commercial leverages' for enhancing value of the government's lands so that the land resources of the public sector could be used in the best interest of the masses.
Talking about residents of poor localities, he directed officials of development authorities to take steps for providing the best organized living facilities to people residing in unorganized areas.
"It is a social obligation to provide the best living facilities to people of unorganized areas and the government would do its best in this regard," he said.
Nawaz Sharif got a detailed briefing on steps to improve water table of Lahore and directed the Lahore Development Authority (LDA) to prepare proposals on economically viable options in this regard.