ISLAMABAD: The National Economic Council (NEC) has approved the recommendations of the Apex Committee of the Special Investment Facilitation Council (SIFC) with respect to the development budget for the ongoing fiscal year.
The SIFC said to have recommended that projects with zero financial progress would not be implemented and Ministries/Division would not make or initiate any expenditure on such projects. The meeting was informed in detail about the overall economic situation of the country.
The NEC meeting presided over by the caretaker Prime Minister Anwaar ul Haq Kakar was also presented priorities and guiding principles for the national development budget for the fiscal year 2024-25 for approval.
Development: NEC approves ‘megabudget’
The meeting was told that as per new guiding principles, the development fund in the budget will be allocated on a priority basis for the completion of such national development projects on which 80 per cent of the work has been completed and only 10 per cent funds will be allocated for new projects of national nature.
The NEC directed that while including new projects in the development budget, it should be determined that only such new projects are included which are based on concrete development results.
The meeting was further informed that instead of inclusion of provincial projects in the national development budget of the next fiscal year, only the development projects of the newly-merged districts (former FATA) and 20 backward districts will be part of the federal development budget.
The caretaker prime minister directed that the criteria set for compiling the list of backward districts should be re-examined and improved so that all the backward districts of the country are included in this list.
The NEC also directed that the development goals of the newly-merged districts and backward districts should be met on a priority basis and their economic development should be ensured by providing employment to the people there.
In the meeting, progress on ongoing development projects under the federal PSDP (2023-24) was also reviewed.
In this regard, the recommendations of the Apex Committee of the SIFC were presented to the meeting.
The NEC, while approving the recommendations of the Apex Committee of SIFC, directed that the prime minister’s programme for youth development, especially the Skill Development Program and the Youth Endowment Scholarship for Talented Students, should be continued and funded in the national development budget.
The NEC was also informed about the priorities of the thirteenth five-year development plan.
The meeting was told that under the 13th Five-Year Development Plan, the development of different areas across the country, environment and climate change, tourism, agriculture, industry, energy, governance, foreign investment, facilitation of small and medium-level businesses, governance to the improvement of governance and execution of delivery of government affairs full attention will be given to the technology.
While approving the focus on these sectors in the thirteenth five-year Development Plan, the Council directed that the draft be finalised and submitted for approval.
The meeting was also presented reports on Public Investment Management Assessment (PIMA) and Climate PIMA which were prepared in collaboration with International financial department. The meeting was also informed about the recommendations made in the context of the report.
While approving the action plan, the council directed to develop a strategy on modern and international lines to prevent the harmful effects of climate change and combat natural disasters.
The NEC also reviewed the development indicators in the current financial year. The meeting was told that the overall economic growth rate in the first quarter was 2.1 per cent to achieve the target of 3.5 per cent annual growth rate set for the current financial year.
The meeting was further informed that due to the caretaker government’s concrete measures of economic recovery, the country’s economy is improving and the trade deficit has decreased.
The meeting was further informed that in the first six months of the current fiscal year (July to December 2023), the Federal Board of Revenue (FBR) collected more than its target while the measures were taken to combat illegal trading and smuggling of foreign currency. As a result, the value of the rupee stabilised and remittances from overseas Pakistanis also increased.
The NEC expressed satisfaction over the measures taken to achieve the economic goals and directed to speed up these measures.
The report of the NEC sub-committee on Sustainable Development Goals (SDGs) was also presented to the meeting. The council directed that only such projects should be included in the upcoming national development budget.
The meeting was attended by the caretaker federal ministers, Dr Shamshad Akhtar, Sami Saeed, Shahid Ashraf Tarar, chief ministers Justice (retired) Maqbool Baqir, Justice (retired) Syed Arshad Hussain Shah, Sardar Ali Mardan Domki, and senior officials participated in the meeting.
The caretaker prime minister directed that the development of communication infrastructure, hydropower and reservoirs, agriculture, industry, information technology as well as manpower, especially the youth, should be given special importance in the development budget. He further stated that the NEC is the largest constitutional body comprising the provinces and the federation for economic decision-making in the country. The federal government gives key importance to the consultation of provinces in decision-making regarding development projects, added the caretaker prime minister.
He maintained that in the short period of the caretaker government, considerable success was achieved in achieving the national development goals.
He added that despite numerous economic challenges, it is possible to achieve national development only by completing public welfare projects on a priority basis.
Copyright Business Recorder, 2024
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