APCC approves overall development outlay of Rs1,675 billion

 

Balochistan CM walks out over Sui project funds issue,
returns after Centre’s assurance

ISLAMABAD: After staging walkout by Balochistan’s Chief Minister Sanaullah Zehri and finally return back on commitment by Center for increasing their share in allocated amount, the Annual Plan Coordination Committee (APCC) on Friday approved overall development outlay of Rs1,675 billion both for federal and provinces as well as approving GDP growth at 5.7 percent for next budget.

The PTI-led Khyber Pakhtunkhwa (KP), although, raised complaints about shortfall to the tune of Rs56 billion for receiving their share from the Center in outgoing fiscal year, however, provincial Finance Minister Muzzafar Hussain Said told reporters outside P Block that the federal government committed to include their development projects like roads under CPEC initiative and others in the upcoming development budget.

Federal Minister for Planning and Development Ahsan Iqbal in his address at the APCC meeting said that of three Ds (defense, debt servicing and development) the development related D was the smallest in terms of getting its share but it was expected to get its increased share in years to come.

Finance Ministry and Planning Commission converged on macroeconomic targets especially on GDP growth and current account deficit as the Special Secretary Finance told the APCC that they agreed to Planning Commission’s projected growth figure of 5.7 percent for next budget. The current account deficit is projected at $4.8 billion with the expectation of increased imports because of $46 billion China Pakistan Economic Corridor (CPEC). 

“Pakistan is poised towards higher growth trajectory as the APCC approved GDP growth at 5.7 percent for next fiscal year against 4.7 percent for outgoing financial year mainly because of improved energy supply and $46 billion investment in shape of CPEC,” Federal Minister for Planning and Development Ahsan Iqbal told reporters after concluding APCC meeting here on Friday. The minister said that the government utilised $1 billion for acquiring lands for construction of Basha dam and its ground breaking would be ready by next financial year.

The minister said that they wanted to see all provinces along with them as they removed concerns of provinces on CPEC project.

When CM Balochistan asked the Planning Commission that the province was not getting its due share as no release was made for Sui development project in the outgoing financial year. The Planning Minister replied that the government had approved special development project for Sui area but the provincial government remained unable to table PC-1 for this project.

However, Balochistan’s top official told reporters that the federal government had allocated Rs48 billion for PSDP projects for the province out of which Rs24 billion were released so far in outgoing financial year. For provincial annual development plan (ADP), Balochistan decided to allocate Rs60 billion in the upcoming budget against Rs54 billion for outgoing financial year.

After the APCC meeting, Minister for Planning Ahsan Iqbal said that the meeting reviewed economic progress achieved by the country during the outgoing financial year whereby the GDP grew by 4.7 percent with improved performance of industrial sector but the agriculture sector faced setback mainly because of decline in cotton output. He said that now the country envisaged GDP growth target of 5.7 percent for upcoming budget and this additional 1 percent growth would be materialised with improved energy, investment in shape of CPEC and beefed up agriculture productions.

“The investment will be promoted with the help of CPEC and the envisaged target of 5.7 percent of GDP will be achieved with industrial sector contribution of 7.69 percent, agriculture 3.48 percent and services 5.73 percent,” he added.

The overall development outlay, he said, was allocated at Rs1675 billion with federal Public Sector Development Programme (PSDP) of Rs800 billion and provincial development outlays of Rs875 billion in the upcoming budget 2016-17 against allocated amount of Rs1514 billion for outgoing financial year.

The government, he said, would give priority to CPEC projects, focusing on distribution and transmission system of power sector in a bid to overcome power outages by 2018. The Dasu and Basha hydropower dams would be focused in coming financial year. He said that the government would ensure completion of 3600MW LNG projects till May 2017. 

On infrastructure side, he said that the government would ensure connectivity as they were not fond of constructing roads but it ensured development. Under the western route from Gwadar to Quetta will be completed by December 2016, said the minister and added that Gwadar-Khuzdar and Retodero would be constructed till Jan 2017. For construction of western route from Bhuran to Dera Ismail Khan road, the government allocated amount of Rs128 billion that would be completed till June 2018. The motorway from Peshawar to Karachi will also be completed as well as the government earmarked funds for Indus Highway for Kohat and Bannu areas.

The government allocated Rs40 billion for Pakistan Railways in the upcoming financial year as freight services were already resumed and would be further promoted. 

For Higher Education Commission (HEC), the government allocated Rs21 billion as university campus will be constructed in six districts in upcoming financial year. He said the government decided to produce 10,000 PhDs for science and technology.

To a query, the minister said that the ministries/divisions demanded Rs1800 billion for development schemes but Ministry of Finance indicated ceiling of Rs 655 billion for next budget so it was nightmare to fit in development schemes in such scenario. In the wake of scarce financial resources, the Planning Commission decided to give priority to ongoing projects, ensure projects aligned with Vision 2025, ensure provincial efficiency and making efforts for Sustainable Development Goals (SDGs) envisaged under UN umbrella.

The minister said that the government provided Rs21 billion for HEC in the next PSDP, Rs25 billion for AJK and GB, PAEC Rs27 billion, Railways Rs40 billion, SAFRON Rs21 billion, water sector Rs31 billion, NHA Rs190 billion TDPs Rs100 billion, Wapda Rs130 billion, Ports and Shipping Rs12 billion, PM Youth Programme Rs20 billion and MDGs programme Rs20 billion.

KP’s Finance Minister along with Federal Minister for Planning told that the Center fully knew difficulties being faced by the federating units and they assured us to resolve our problems in next few days before holding of NEC meeting.

The Center and KP agreed for releasing Rs70 billion under signed MoU out of which they were providing Rs25 billion. “We are optimistic that the Center will give us good news now,” he added.