While agreeing to a GDP growth rate estimate of 4.3 percent for the next fiscal year, the National Economic Council (NEC) on Wednesday approved Rs 873 billion development outlay including a federal Public Sector Development Programme of Rs 360 billion the next fiscal year 2012-13.
Prime Minster Syed Yousaf Raza Gillani said the meeting which was attended by the Finance Minister, Governor KPK, Chief Ministers of Sindh, Balochistan and KPK, Prime Minister of AJK and CM Gilgit Baltistan attended the meeting. Punjab Chief Minister skipped the important meeting due to PML-N’s non acceptance of incumbent PM as legitimate after the Supreme Court contempt of court order.
Agenda before the council was to review and approve the Annual Plan 2011-12 and 2012-13, review of PSDP 2011-12 and approval of PSDP 2012-13, implementation plan of framework for economic growth and progress report of the schemes approved by CDWP and ECNEC.
NEC approved growth targets of 4.3 percent as envisaged in the Annual Plan 2012-13 under the Growth Strategy. The targets will be achieved through improvement in productivity and competitiveness, reforms in the markets, promoting cities as regional clusters, improve connectivity, reforming the civil service, institutions and PSEs, harnessing the potential of youth and embarking on result based management. Investment targets. Inflation during 2012-13 will be further brought down to 9.5 percent.
Total national development outlays for the next fiscal year has been proposed at Rs 863 billion, wherein Federal PSDP would amount to Rs. 350 billion. The meeting approved development budget of Punjab at Rs 206 billion, Sindh Rs 188 billion, KPK Rs 78 billion and Balochistan Rs 41 billion.
Federal ministries have formulated their own development priorities while remaining in their approved ceilings and adopting guidelines of the Planning Commission and Finance Division. Emphasis has been placed on completion of on-going priority projects during 2012-13.
New un-approved projects were discouraged as they may cause thin spread resource allocation resulting in time/cost overrun. It was ensured that Foreign Assistance is not underestimated. In the total proposed PSDP 2012-13, the size of FA has been estimated at Rs100 billion.
9. The position of on-going and new projects in PSDP 2012-13 is as under:
During 2012-13, 262 projects are likely to be completed as per following details:
11. Sectoral allocations for 2012-13 as
compared to current year are as under:
It was informed that no reduction in current year’s PSDP size was made to help restore GDP growth. As such, the National Development Outlays 2011-12 remained at Rs 730 Billion. The proposed PSDP 2012-13 has prepared in line with the growth strategy framework to ensure inclusive growth, reducing poverty, achieving MDGs, minimizing wastages, ensuring balanced development, food, water and energy security. The proposed PSDP 2012-13 also articulates the division of subjects between Provincial and Federal Governments after passage of Constitutional 18th Amendment.
While reviewing the Annual Plan 2011-12 and proposed Annual Plan 2012-13, the NEC was informed that the performance of the economy during the current fiscal year was satisfactory. The GDP growth is expected to be 3.7 percent as against 3 percent achieved during the last year.
The size of GDP (mp) has been estimated at Rs 20.7 trillion or $ 232 billion. Total investment as a percentage of GDP will be at 12.5 percent during the current fiscal year, slightly lower than the revised estimates of 13 percent during the last year mainly due to reduction in the national savings from 13.1 percent to 10.8 percent during the same period. On the external front, exports and imports have been estimated at around $ 25 billion and $ 40 billion, respectively with current account balance of negative 1.7 percent.
Tax revenue during the period July-April, 2011-12 is Rs 1246 billion, while workers remittances stands at $ 10.8 billion during the same period. Inflation during July-April 2011-12 has been maintained at 10.8 percent against 13.8 percent during the corresponding period last year. Inflation during 2012-13 will be further brought down to 9.5 percent.