- Approves Rs2.5 trillion for development budget, sets targeted growth rate at 6 per cent for next financial year
- PM says govt is focusing on energy projects, adding power supply is govt’s priority
- Says growth rate of 5.28 per cent is commendable, adding Pakistan has now emerged as among fastest growing economies
The National Economic Council (NEC) on Friday approved Rs2.5 trillion for the development budget for the fiscal year (FY) 2017-2018, and also set the targeted growth rate at 6 per cent for the next financial year, it was learnt.
The approval was given in a meeting of NEC presided over by Prime Minister Nawaz Sharif where a briefing was given on the country’s economic goals and the development budget for the upcoming fiscal year. The meeting was attended by Azad Jammu and Kashmir (AJK) prime minister, Khyber Pakhtunkhwa (KP) governor, chief ministers of Punjab, Sindh, KP, and Balochistan. The chief minister of Gilgit-Baltistan (GB) and federal and provincial ministers were also present.
The prime minister said Pakistan’s economic indicators have significantly improved and were being acknowledged by international financial rating institutions.
He said the growth rate of 5.28 per cent was commendable, and Pakistan has now emerged as among the fastest growing economies.
He said federal and provincial governments were working in harmony for the development of the country, adding projects under the China-Pakistan Economic Corridor (CPEC) were also on the fast track.
PM Nawaz said during the Belt and Road Forum at China, all chief ministers accompanied him and the world saw that Pakistan was united and unanimous for development. He termed it a very positive message.
“We are focusing on energy projects. Not only power supply is our priority, but we are providing an affordable power supply for consumers,” the prime minister said.
“We are focusing on a balanced mix of sources for energy, including LNG, coal, hydel, solar and wind,” he added.
He said infrastructure is the key to development, and the government was focusing on roads and communication networks. He said development should not be politicised as Pakistan’s development was everyone’s prosperity.
The prime minister said FATA, AJK and GB were as important for the federal government as other provinces. He said rural development projects in health, education and other social sectors were being given special attention.
Sources in finance ministry informed Pakistan Today that the council (NEC) has approved Rs2.5 trillion for the development budget, of which Rs1.001tln will be allocated to the federal government and the remaining to the provinces, while Rs135 billion will be dedicated to special development projects. They said the council also set the targeted growth rate for the next fiscal year at 6 per cent. Furthermore, the approved budget has represented an increase of Rs438bln as compared to last year’s development budget of Rs1.675tn, sources said.
According to sources, the break-up of the federal government’s development budget has disclosed that Rs30bn allocated to Prime Minister’s SD, Rs40bn for special development projects and Rs12.5bn for the energy for all programmes, while Rs12.5bn for the clean water for all projects. Similarly, Rs5bn for completion of development projects under the China-Pakistan Economic Corridor (CPEC), Rs90bn for IDPs (internally displaced persons) and security, while Rs4.34bn for the Aviation Division.
It is also learnt that Rs5bn has been allocated for the Cabinet Division, Rs810.5million for the Climate Change Division, Rs1.2bn for trade industry, Rs13.66bn for the Communications Division, Rs5.305bn for the Defence Division, and Rs4.46bn for the Defence Production Division, whereas Rs270mln for the Establishment Division. The sources also told that Rs2.96bn for the education division, Rs18.93bn for the finance ministry, of which Rs200m will be allocated towards development projects, Rs11bn for the Ministry of Housing and Works and Rs300m for the Ministry of Human Resources.
For the first time in the country’s history, the development budget allocated to provinces had been increased three-fold, the premier said.
Federal Minister for Planning, Development and Reform Professor Ahsan Iqbal, while addressing a press conference after the meeting of NEC, said enhancement of development budget clearly shows the government’s priorities, adding that Rs411 billion would be spent on infrastructure development, Rs43 billion for different projects of Railways, Rs404 billion for energy, while Rs180 billion would be spent on projects related to CPEC.
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