The National Economic Council (NEC) on Friday approved Rs2.113 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 Muhammad 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 prime minister Azad Kashmir, governor KPK and chief ministers of Punjab, Sindh, KPK, Balochistan and Gilgit-Baltistan besides federal and provincial ministers concerned.
Sources in finance ministry informed Pakistan Today on condition of anonymity that the council (NEC) has approved Rs 2.113 trillion for the development budget, of which Rs1.001 trillion will be allocated to the federal government and the remaining to the provinces, while Rs 135 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. Further, the approved budget has represented an increase of Rs438 billion as compared to last year’s development budget of Rs1.675 trillion, sources said.
According to sources, the break-up of the federal government’s development budget has disclosed that Rs 30 bn allocated to Prime Minister’s SD, Rs 40 bn for special development projects and Rs 12.5 bn for the energy for all programmes, while Rs 12.5 bn for the clean water for all projects. Similarly, Rs 5 bn for completion of development projects under the China-Pakistan Economic Corridor, Rs 90 bn for IDPs (internally displaced persons) and security, while Rs 4.34 bn for the Aviation Division.
It is also learnt that Rs 5 bn have been allocated to the cabinet division, Rs 810.5 mln for the climate change division, Rs 1.2 bn for trade industry, Rs 13.66 bn for the communications division, Rs 5.305 bln, for the defence division, and Rs 4.46 bln for the defence production division while Rs 270 mln for the establishment division. The sources also told that Rs 2.96 bln for the education division, Rs 18.93 bln for the finance ministry; of which Rs 200 mln will be allocated towards development projects, Rs 11 bln for the ministry of housing and works and Rs 300 mln for the ministry of human resources etc.
Addressing the NEC meeting, the prime minister said Pakistan’s economic indicators have significantly improved and this is acknowledged by international financial rating institutions. He said the GDP growth rate of 5.28pc for the current financial year is commendable, adding, Pakistan is now among the fastest growing economies of the world.
The premier also said that the federal and provincial governments are working in harmony for the development of the country. He said development should not be politicised as it is for the prosperity of every Pakistani and everyone should unite for the country’s development. For the first time in the country’s history, the development budget allocated to provinces had been increased three-fold, the premier said.
Describing infrastructure as key to development, he said the government is concentrating on roads and communication networks. The premier said the government has adopted a people-centric approach for development planning. The government is also focusing on a balanced mix of sources for energy including LNG, coal, hydel, solar and wind, Sharif said.
