ISLAMABAD: The National Economic Council (NEC) has approved 2.1 percent growth target for the next fiscal year and Rs1,325 billion national development outlay with Rs109 billion reduction in provincial development outlay.
As for the first time, perhaps, no official numbers of the GDP growth target and national development outlay were released in the press release issued by the Prime Minister's Office after the meeting. Sources said that in the Annual Plan Coordination Committee (APCC) meeting a Rs783 billion development outlay for the provinces was approved, however, the NEC was presented Rs674 billion provincial PSDP to the meeting presided over by Prime Minister Imran Khan to review the state of economy during current fiscal year 2019-2020 and the outlook for fiscal year 2020-2021 on Wednesday.
The press release stated that the meeting approved GDP growth target along with sectoral growth projections of agriculture, industry and services for fiscal year 2020-2021.
Macroeconomic Framework for proposed Annual Plan 2020-2021 was also approved by the NEC.
The NEC reviewed, in detail, Public Sector Development Programme for fiscal year 2019-2020 and the proposed a development outlay for fiscal year 2020-2021.
Sources said that 2.1 percent GDP growth target for the next fiscal year was based on favourable weather conditions and post-Covid-19 economic recovery as well as consistency in economic policies.
The GDP growth target of 2.1 percent for the next fiscal year is premised on 2.8 percent growth in agriculture sector, 0.1 percent in industrial sector, and 2.6 percent growth in services sector.
Sources added that the meeting approved Rs70 billion for the Covid-19 response projects, Rs25 billion for Diamer-Bhasha Dam, Rs6 billion for ML-1 as well as Rs48 billion for development of erstwhile FATA, Rs25 billion for Gilgit-Baltistan and Rs32 billion for the AJK.
Sources maintained that the meeting also approved Rs118 billion for National Highways Authority, Rs3 billion for the ERRA and Rs39 billion for the National Transmission and Dispatch Company (NTDC).
The meeting noted that the upward trajectory of economy, made possible after huge efforts of the present government, was severely affected by the COVID-19 pandemic.
The NEC was informed that this is the first time that the PSDP includes only those projects that have already been approved by the relevant forums, which is strictly in accordance with the best practices of planning.
This will ensure fast implementation of the PSDP projects and optimum utilization will be ensured leading to economic growth.
While reviewing the progress of the PSDP 2019-2020, it was noted that various initiatives taken by the federal government have contributed towards expediting the development process by timely implementation of critical development schemes.
These initiatives include, among others, enhancing the sanctioning powers of Departmental Development Working Party (DDWP) from Rs60 million to Rs2 billion, the Central Development Working Party (CDWP) from Rs3 billion to Rs10 billion and ECNEC above Rs10 billion, quarterly authorizations without originating demand, real-time information on expenditures through SAP system and establishment of Public-Private Partnership Authorities to facilitate involvement of private sector in complementing the development process.
It was informed that 149 projects costing Rs827 billion would complete/expected to complete by 30th June, 2020.
The meeting was informed that the PSDP projects for fiscal year 2020-2021 are especially focusing on development of less-developed areas of the country including Balochistan, merged areas of Khyber-Pakhtunkhwa, Gilgit-Baltistan and Azad Jammu and Kashmir.
The prime minister stated that in the wake of corona pandemic, the government was prioritizing those sectors, which promised job opportunities to the youth, agriculture sector and up-gradation of public health system in the country.
The prime minister emphasized upon the need for ensuring close and seamless coordination between the federal and provincial governments during finalisation and implementation of the development projects.
The PM also underscored the need for employing technology to monitor the progress of the ongoing projects.
In this context, the prime minister stressed upon the need for ensuring public participation in the development process through provision of real-time information and getting their feedback on implementation status of the projects.
The meeting approved constitution of NEC Sub-Committee to provide strategic guidance, maintain oversight and ensure inter-provincial coordination on Sustainable Development Goals.
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