The government intends to allocate Rs 319 billion in the medium term development framework (MTDF) in the next fiscal year (2006-07), with major focus on social sector and infrastructure development.
According to official sources, the government has launched a number of projects for the welfare of people and improve their living conditions. The government, they said, was focusing on education, health and social sector development and would increase allocations under MTDF in the next financial year.
The sources added that the government had also launched various development projects in water, road, ports and airports sectors. They added that these projects would help achieve higher economic growth and create more employment opportunities for the people.
"We are nearer to seven percent gross domestic product (GDP) growth during the current financial year", they added. On water sector, they added that the Mangla raising project, launched at a cost of Rs 62 billion, would be completed by September 2007 and under the project, the level of the dam would be raised to 30 feet.
Karachi Water Supply Project (K-3), launched at a cost of rupees six billion, would be completed and operational by the end of this month, they added.
They said that lining of over 85,000 water courses at a cost of more than Rs 60 billion would benefit a larger number of farmers and help enhance agriculture productivity and increase the GDP growth.
The sources added that the government had decided to invest more on the road infrastructure and allocated Rs 24 billion for road projects and so far Rs 18 billion had been spent on the projects.
They further said that the government would ensure that Gwadar was linked with other parts of the country. The railways container yard would be completed by June 2007, they added.
About the priority projects, they said that Lyari Express Way, Karachi Northern Bye-pass, Makran costal Highway, Gwadar-Khuzdar Noumoredaro road, Lowari tunnel, greater water supply scheme, Mirani dam, greater Thal canal, Kachhi canal, and Diamer-Basha dam were some of the priority projects. The work on Lowari tunnel had started and the project would be completed by 2008.
Under the greater water scheme at a cost of rupees eight billion clean drinking water would be provided to people across the country in two years. The utilisation of PSDP allocations until December 2005 stood at Rs 76.178 billion (37.3 percent), which shows improvement in the implementation of development portfolio.
The size of the Federal PSDP, which used be around Rs 90 billion to Rs 100 billion only a few years back, had taken a massive jump during the last three years with Rs 204 billion allocated under the PSDP in 2005-06 financial year.
They said the PSDP-GDP ratio had increased from the previous 2.5 percent - 2.6 percent to current 3.8 percent, as the availability of funds improved owing to better revenue position and the economic momentum, which indicated that the economy was moving in the right direction. The utilisation of PSDP allocations during the last two fiscal years, ie 2003-04 and 2004-05, was 100 percent, they added. An amount of rupees five billion Khushhal Pakistan Fund, aimed at focussing on less developed areas, would be taken to the level of one billion-dollar fund, in which the DFID-UK and the World Bank are expected to contribute significantly.
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