ISLAMABAD: The National Economic Council (NEC) on Saturday approved consolidated Public Sector Development Programme (PSDP) of Rs 730 billion for next fiscal year, with the government admitting that double-digit inflation and stagnation in per capita income has pushed up poverty in the country.
The NEC meeting presided over by Prime Minister Syed Yousaf Raza Gilani and attended by provincial representatives, Gilgit Baltistan and AJK also approved macroeconomic framework for the next fiscal year and gave approval in principle to the Economic Growth Framework.
Finance Minister Dr Abdul Hafeez Sheikh and Deputy Chairman Planning Commission Dr Nadeem ul Haq told media at a news conference after the meeting that the NEC has approved Rs 300 billion federal and Rs 430 billion provincial PSDP for the next fiscal year. In reply to a question, Nadeem ul Haq said double-digit inflation and stagnation in per capita income, has certainly increased poverty in the country but he was not able to give exact number as to how much it had increased during the last four years.
He said annual growth of about 7 to 8 percent would be required to create new employment opportunities and turn the cities into engine of growth by implementing the envisaged growth framework. The Planning Commission, in the growth strategy framework had stated that inflation remained in double-digit and per capita income has not increased during the last four years. The NEC has increased federal PSDP for the next fiscal year to Rs 300 billion from the proposed Rs 280 billion by the Annual Plan Co-ordination Committee (APCC).
Hafeez said development budget for the next year has been increased by 58 percent from Rs 196 billion so far released in the outgoing fiscal year. He said last year PSDP was revised to Rs 180 billion from original allocation of Rs 280 billion while provincial PSDP was also reduced to Rs 266 billion from the budgetary allocation of Rs 424 billion in 2010-11.
Out of Rs 300 billion federal PSDP for next year, Hafeez Sheikh said Rs 268 billion has been allocated to complete the ongoing development projects and preference would be given to the projects,, which are near completion. He said internationally funded projects would be given priority along with those critical for national economy.
The minister said that Rs 155 billion has been allocated for infrastructure related projects, Rs 122 billion for social sectors and Rs 23 billion for other projects. Hafeez said along with stabilisation, steps will be taken for economy growth. In reply to a question, he said Rs 55 billion have been allocated for energy related projects in the PSDP whereas Wapda and Pepco would also undertake Rs 83 billion additional projects in power sector.