PSDP gets the smallest bite of the cherry


Giving a belated priority to the energy and power sector projects, the government has allocated Rs 68 billion for them in the next fiscal year Public Sector Development Programme (PSDP) while the Water and Power Development Authority (WAPDA) will mobilize own resources of Rs 115 billion for its projects to overcome chronic energy shortages.
According to the decision of the National Economic Council for the PSDP next fiscal year the projects nearing completion will be fully funded, foreign aid would be fully utilized, and protection would be given to development packages and projects of less developed areas. The national development outlay of Rs 350 billion for the next fiscal year also includes a foreign aid of Rs 167 billion, out of which Rs 100 billion is for PSDP projects while the rest for provincial projects.
The increase was made as during the current fiscal year the foreign aid component, initially estimated at Rs 39 billion increased to Rs 90 billion due to higher inflow of project aid. Consequently a corresponding reduction in rupee component of PSDP was made to accommodate the foreign aid. Till mid May 2012, 97 percent or Rs 290 billion were released for the current fiscal year PSDP of Rs 300 billion. As the government has prioritized some of the development projects for timely completion as a result 174 projects costing over Rs 100 billion are likely to complete during the current fiscal year.
After implementation of the devolution, the government has worked out the PSDP 2012-13 with more emphasis on allocation of resources to sectors, which fall under its jurisdiction. Even though the federal ministries, NHA, Railways and PAEC were of the view that the size of PSDP at Rs 350 billion is not sufficient to meet their critical requirements. Provincial governments also pointed out low allocation for important projects in their respective provinces.
Power and energy sector remain top priority of the government for the development projects next fiscal year. An allocation of Rs 35 billion has been made for Chashma Nuclear Power Projects units three and four while Rs 8 billion is allocated for Diamer Bhasha dam land acquisition and for conservation and augmentation of water resources an amount of Rs 48 billion an allocation for water sector projects. Important projects include allocation of Rs 6 billion for Mangla Dam Raising Project, Rs 2.4 billion for RBOD-II, Rs 2 billion for Darwat dam, Rs 2 billion for Naigaj dam, Rs 2.4 billion for Kachi canal and Rs 2 billion for Rainee canal.
Transport and Communication sector has been allocated an amount of Rs 82 billion including Rs 51 billion for the National Highway Authority and Rs 23 billion for the Railways during the next fiscal year. This will help provide connectivity for economic integration and regional development. An amount of Rs 10 billion has been kept for promotion of science and technology in the country. For the security of federal capital Rs 2.7 billion allocation set for Safe City Islamabad during the next fiscal year.
To implement the decisions of the Council of Common Interests an allocation of Rs 21 billion is made for Population and Health Sector vertical projects, including Rs 3.5 billion Population Welfare, Rs 2.8 billion for EPI, Rs 11 billion National Programme for Family Planning and Primary healthcare and Rs 2.4 billion National Maternal Neonatal and Child Health Programme. Education sector will receive Rs 20 billion including an allocation of Rs 16 billion for HEC.
For the first time, the government has allocated Rs 33 billion for FATA, Gilgit Baltistan and AJK for speedy development in these special areas. The parliamentarians have been accommodated by an allocation of Rs 27 billion under the Peoples Works Programme I and II.
According to the National Development Programme for 2012-13 the water sector projects under Ministry of Water and Power have been allocated Rs 47.1 billion, PAEC Rs 39.1 billion and Railways Division Rs 22.8 billion. WAPDA allocated Rs 29.6 billion and NHA Rs 50.6 billion.