The Economic Co-ordination Committee of the Cabinet (Ecnec) met here on Saturday under the chairmanship of Prime Minister Shaukat Aziz and approved 22 projects worth Rs 53.7 billion.
Briefing newsmen about the decisions of the Ecnec, Deputy Chairman of Planning Commission Dr Akram Sheikh said that during its three quarterly meetings this year, Ecnec had approved major projects of infrastructure, education, health and other sectors worth Rs 240 billion, which would accelerate the economic growth and reduce poverty.
He said that the projects approved for improvement of infrastructure in Saturday's meeting included (a) Indus Highway (N-55) Phase III (Rs 6.28 billion ), (b) Bridge over Malir River connecting Shah Faisal Colony with Korangi sector 10 (Rs 1.2 billion), (c) construction of Sohrab Goth interchange on intersection of Shahrah-e-Pakistan and Rashid Minhas Road, Karachi (Rs 580 million), (d) Construction of 140 KM Sibi-Rakhni Road via Maiwand in Balochistan (Rs 1.48 billion), (e) Widening & Remodelling of Islamabad-Rawalpindi roads (Rs 1.22 billion) and (f) Islamabad-Muzaffarabad Road (N-75) Satra (17) Mile to Lower Topa (Rs 8.24 billion).
Akram said that in the health sector, schemes worth Rs 8 billion had been approved, whereas in higher education sector Fullbright Scholarships Support programme (Rs 7.2 billions) has been approved.
He said that other projects include improvement and refurbishing of sewage treatment plants (Rs 2.72 billion), Japanese assisted rural roads construction project phase II (Rs 3.73 billion, Urban water supply scheme phase VI Jacobabad (Rs 1.25 billion), and clean drinking water for all (Rs 7.87 billion).
Prime Minister Shaukat Aziz said that better fiscal management enabled the government to allocate unprecedented amounts for the development projects and the development budget had been consistently increased from Rs 130 billion in 2002-03 to Rs 272 billion in 2005-06. "This is 109 percent increase, resulting in jobs creation, poverty reduction and overall economic uplift," he added.
He said that focus on development was one of the hallmarks of the government pursuing the policy of balanced development with necessary emphasis both on the strengthening of infrastructure and the social sector.
"Whereas the government has allocated funds for the construction of roads, dams, bridges, its top priorities also include improvement in facilities of education, health, sanitation and safe drinking water," he added.
He emphasised that education "is the key to development". Therefore, the government was focusing on improving educational facilities at all tiers.
He said that the new National Finance Commission (NFC) Award would provide additional Rs 52 billion to the provinces in the next budget, so that they could allocate more funds for development projects.
Shaukat said that the development expenditure was instrumental in creation of jobs, decline in poverty and overall economic uplift.
He said that the amount of development expenditure to GDP ratio was enhanced by 3.9 percent this year from 2.6 percent last year, and in the next budget allocation for development projects would be further increased.
He said that all sectors of economy were exhibiting growth, and the government would meet 6-8 percent annual growth target this year. "The Public Sector Development Programme utilisation has shown an upward trend. In the first quarter, PSDP utilisation was 60-65 percent, and by the end of the financial year about 95 percent development funds are expected to be utilised," he added.
Referring to the government's philosophy of deregulation, liberalisation and privatisation, the Prime Minister said that the government wants increased involvement of private sector, particularly in health, education and energy sectors.
He said that the government did not increase oil prices but paid an unprecedented amount of $1 billion as oil subsidy despite the oil prices were going up to $70-75 per barrel.
He said that the Planning Division would be restructured to transform it from a reactive into a proactive organisation, and its monitoring and evaluation wings would be further strengthened to improve implementation of the projects.