NEC allocates Rs730 billion for development: Hafeez Sheikh

KARACHI: Finance Minister Dr. Abdul Hafeez Sheikh has said that the National Economic Council (NEC) has set aside Rs730 billion for development in the budget for the fiscal year 2011-12, while Rs430 billion has been allocated for the provinces while the federal apportionment would be Rs300 billion.

"Out of total PSDP-2011-12 allocations approved by the NEC the Federal share is Rs300 billion while 430 billion will be the provincial share which is 58 percent higher than last fiscal year,” he disclosed.

Talking to the media at the NEC briefing on Saturday, the finance minister said that a provision of Rs155 billion would be made for the Public Sector Development Programme (PSDP) in the new budget while the growth rate of GDP will be 2.5 percent.

He said we are on the path of stabilisation following the floods and the incidents of attacks in the country.

He said that the prices of petroleum products including oil have also increased.

Hafeez Shiekh said, “We have to reduce government expenditure and think of ways to increase income,” adding, “We are trying to rely on external sources for help.”

He said, there has to be growth in the economy including opportunities for the young labour force.

Sheikh said, the role of the Planning Commission is to plan the path of growth in economy, adding, “We will have to increase the growth rate by 7 percent while the development works will be increased by 98 percent.”

He said Diamer-Bhasha dam will be given priority.

The finance minister said that cities are engines of growth in the world and we have to make our cities engines of growth as well.

Talking about the Public Sector Development Programme Hafeez Sheikh said that the role of the PSDP is to provide hardware for growth and increase productivity of cities, coporations and agricultural lands.

He said that the provincial and district governments have a role to play and we need to talk to them in this regard.

Copyright Business Recorder, 2011