WEDNESDAY MAY 27: Foreign assistance: PSDP to be characterised by increased reliance

ISLAMABAD: The federal Public Sector Development Programme (PSDP) for 2015-16 is proposed to be 10.4 % higher than the budgeted amount for the current fiscal year with reliance on foreign assistance to the tune of 31% reflecting an 11% increase in reliance in foreign assistance for PSDP in comparison to 2014-15. Total federal PSDP is proposed at Rs 580 billion for 2015-16 with a foreign assistance component of Rs 182.7 billion while the total budgeted PSDP for the current year was Rs 525 billion with foreign assistance of Rs 102.2 billion.
The government has proposed Rs 30 billion for special federal development programme - an allocation that was abandoned in the current year's budget though in the first budget presented by the PML-N government in 2013-14 the allocation under this head was Rs 5 billion. The provincial PSDP is estimated at Rs 838 billion with a foreign assistance component of 12 %(Rs 100.67 billion). In the current year total provincial PSDP was Rs 650 billion with a foreign assistance component of 13.8 % (Rs 90 billion).
Ministry of Planning, Development and Reforms proposed Rs 1.42 trillion including a Rs 283.4 billion foreign assistance for development budget for federal and provinces under PSDP-2015-16. The government has proposed Rs 245.8 billion, including Rs 56.7 billion foreign aid, for power sector project for 2015-16.
According to documents exclusively available with Business Recorder, the government proposed Rs 250.75 billion, including a Rs 22.7 billion foreign assistance for federal ministries, excluding Wapda (Power) and National Highway Authority. Despite an increase of Rs 55 billion in the total PSDP allocation proposed for the fiscal year 2015-16 (from Rs 525 billion to Rs 580 billion), Rs 184 billion will be diverted to new development projects. The provinces will have greater ownership of the development initiatives, for 18th Constitutional Amendment has transferred various subjects of development to the federating units.
A total of Rs 110.38 billion have been proposed for hydel projects, including a Rs 19.3 billion foreign assistance, for federal PSDP-2015-16. Only one new scheme, Chitral Hydel Station (addition of 2 MW), was introduced in hydel project and Rs 10 million have been proposed for the next fiscal year. A total of Rs 35.95 billion have been proposed for six on-going projects of Power Generation Companies (GENCOs) while Rs 20 million have been proposed for next fiscal year for one new project Installation of 300 MW Coal Fired Power Plants at Gwadar under China-Pakistan Economic Corridor projects.
Likewise, the government also proposed Rs 60.58 billion, including a Rs 17.87 billion foreign assistance, for National Transmission and Dispatch Company Limited (NTDCL) projects under PSDP-15-16. In this regard, a total of Rs 45.34 billion have been proposed for on-going projects while Rs 15.3 billion were proposed for 13 new projects of NTDL.
The government also proposed Rs 38.85 billion, including a Rs 11.53 billion foreign assistance for the projects of Discos, for next fiscal year. In this regard, Rs 37.25 billion were proposed for on-going projects and Rs 1.61 billion for eight new schemes.
According to documents, the government proposed Rs 200.31 billion, including a Rs 100 billion foreign assistance for Communication sector. For this purpose, a total of Rs 200 billion were proposed for development projects of National Highway Authority (NHA). In this sector, a total of Rs 26.1 billion were proposed for 47 on-going projects. A total of Rs 132.64 billion were proposed for 43 new projects of NHA for next fiscal year 2015-16.
A total of Rs 41.3 billion, including a Rs 25.65 billion foreign aid, have been proposed for three projects for China-Pakistan Economic Corridor (CPEC) for next fiscal year. Three projects are (i) Thakot to Havelian 120 KM (construction) (Phase-I), Rs 28.5 billion(Rs (ii) Thakot to Havelian 120 KM (Land) (Phase-1), Rs 6 billion and Construction of Islamabad-D.I Khan Rout including land acquisition and technical study, Rs 6.8 billion. The government has proposed Rs 30 billion for development projects of water sector under PSDP-2015-16. The government also proposed Rs 30.41 billion for Pakistan Atomic Energy Commission, including a Rs 15.46 billion foreign assistance for next fiscal year 2015-16. In this sector, the government proposed Rs 25 billion for three new projects.