Dar to present Rs3.8 trillion budget tomorrow

 

ISLAMABAD: The government is all set to present its second federal budget with an outlay of about Rs3.864 trillion for the fiscal year 2014-15 before parliament on Tuesday (tomorrow).
A special budget session of parliament (National Assembly and Senate) has already been summoned by the president.Finance Minister Senator Ishaq Dar will lay the budget proposals for the financial year 2014-15 in the House, sources said adding these budget proposals will be presented first for approval before the federal cabinet in its special session to be chaired by Prime Minister Nawaz Sharif.

The national budget for the upcoming financial year (2014-15) envisages revival of the economy and overcoming the challenges. “Overcoming the energy crisis, stabilisation of the economy, cutting down the non-development expenditure, enhancing productivity through new growth strategies, reducing the fiscal deficit and inflation, enhancing revenue collection and welfare of the people will feature as priorities in the upcoming budget,” they added.

The budget will also focus on social sector development and revenue enhancement, besides reforms will also be introduced for improving governance and boosting the private sector investment.

The National Economic Council (NEC), with Prime Minister Nawaz Sharif in the chair, has already approved the Annual Plan 2013-14 and proposed the Annual Plan for 2014-15 and Vision-2025.

The NEC has also approved the allocations for the Diamer Bhasha Dam, Karachi Coastal Power Project, Dasu Hydro power project, Neelum Jehlum hydro power project, Chashma NPP, Jamshoro power project, Tarbella Extension IV project, Nandipur power project, Chichon-ki-Malyan Power project, Gomal Zam project, Kurram Tangi Dam and Golan Gol hydro power 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 construction of a jetty and infrastructure development at the Gaddani Power Park also received the approval of the NEC.

The government has already approved Rs53.5 billion for land acquisition cost of the Lahore-Karachi Motorway of which 25.5 billion have already been released. As part of decent democratic traditions in Pakistan, the opposition parties are given maximum time to take the floor and freely express their point of view on budget allocations in the House. The valuable proposals and suggestions from either sides are taken care of by the finance minister while winding up the debate.

Apart from diplomats and other dignitaries, the President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman, Zonal Chairman PFCCI Munawar Mughal, Saarc Chamber of Commerce and Industry Pak Chapter VP Iftikhar Ali Malik have also been invited for the first time by Dar to witness the budget session proceedings.Annual budget sessions of the Punjab, Balochistan, Sindh and Khyber Pakhtunkhwa provincial assemblies will be convened soon after presentation of the national budget.Security arrangements have been beefed up in and around the Parliament House.

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.