Health, education, energy sectors: IMF says possibility of cooperation will be considered

International Monetary Fund delegation ensured the Punjab Finance Minister that co-operation in health, education and energy sectors would be considered. The delegation, headed by senior representative of IMF Mansoor Dailami, expressed those views during a meeting with Punjab Finance Minister Mujtaba Shuja-ur-Rehman held here on Friday, disclosed an official.
Other members of the delegation included Jeffrey Franks, Ferhan Salman, Asghar Shahmoradi, Ms Sonali Das, Enrique Flores, Abdullah Al-Hassan and Ms Daniela Gressani. Punjab Finance Secretary Tariq Bajwa, Joint Secretary Finance Division Naveed Alauddin and high ranking officers were also present.
The delegation pointed out that International Monetary institutions were interested in extending co-operation in education, health and energy sectors, and co-operation and investment in those sectors was being considered. They also appraised the efforts of the Punjab government regarding reforms in tax collection, it concluded.
On the occasion, the Punjab Finance Minister said in the budget 2013-14 tax had been levied only on affluent segments while there was also a proposal to impose tax on agriculture sector, adding that agriculture tax would be implemented in phases and provincial income would be increased due to reforms to be introduced in tax collection system.
He said property tax, motor vehicle tax and tax on services were the major sources of provincial income. He said district governments would be given Rs 239 billion, while solar energy operated tube-wells would be given to the cultivators and a sum of Rs 7.5 billion would be spent for that purpose. "The provincial government is also paying special attention to energy sector and a sum of more than Rs 20 billion will be utilised on development projects in this sector."
He said education, health, energy and economic development were priorities of the provincial government and asked the International Monetary institutions and donor agencies to extend co-operation in that regard. He said the government was determined to steer the country out of energy crisis and a comprehensive strategy was being evolved for that purpose.
According to him, in order to curtail expenditures, simplicity and austerity campaign would be continued and the expenditure of Chief Minister Office had been curtailed by 30 percent while that of provincial departments by 15 percent. A sum of Rs 244 billion has been allocated in the new budget for the education sector, which is 26 percent of the total budget. Similarly, an amount of Rs 102 billion will be utilised on the provision of health facilities, which is 10.9 percent of the total budget.
The Minister said a ban had been imposed on the purchase of new government vehicles while furniture grant for the residences of provincial ministers and their discretionary grants had also been abolished. He said besides hydle and thermal, utilisation of alternative sources, including coal, windmill and biogas, was also being considered for power generation.