ECNEC approves 16 projects of Rs 97.9bn

Islamabad: The Executive Committee of the National Economic Council (ECNEC), which met here on Monday under the chairmanship of Prime Minister Shaukat Aziz approved 16 development projects costing Rs 97.9 billion.

This was the third meeting of ECNEC during the current fiscal year 2007-08, in fact, continuation of the earlier two meetings, which were held on September 19, 2007 and October 22.

In earlier two meetings, total 68 projects costing Rs 270.6 billion have been approved. Thus in the three meetings, a total of 84 projects costing Rs 368.6 billion including foreign exchange component of Rs 121.1 billion have been approved. In Monday’s meeting, total 11 new projects were approved costing Rs 80.2 billion with foreign exchange component of Rs 47.4 billion. Five ongoing (revised projects) have been approved with cost of Rs 17.7 billion having FEC Rs 4.3 billion.

In infrastructure sector total eight projects have been approved with cost of Rs 66.3 billion and FEC Rs 46.1 billion. The infrastructure sector included 335 km Karakoram Highway up-gradation project (Raikot to Khunjerab) with cost of Rs 30.911 billion and FEC Rs 25.268 billion. Other important project of the infrastructure sector is Muzaffarabad City Development Project (MCDP), ERRA funded project costing Rs 21.356 billion.

In social sector total seven projects approved with cost of Rs 30.4 billion and FEC is Rs 4.5 billion. One project, Border Security Road Programme (Revised) Phase-I for FATA approved with cost of Rs 1.153 billion having FEC Rs 1.085 billion.

The meeting also approved five revised projects, one for border security programme for FATA. The second one in energy sector, the establishment of 4.8 MW Battar Hydro electric station, district Bagh AJK costing Rs 760.403 million with FEC Rs 280.454 million. Other revised projects are one for HEC and two for transport and communication sectors. The total cost of these projects was increased from Rs 13.7 billion to Rs 17.7 billion with net addition of Rs 4 billion. Addressing journalists, Deputy Chairman Planning Commission Dr Akram Shaikh said recent increase in foreign direct investment (FDI) is in addition to government friendly policies, due to modern infrastructure being developed by the government.

He claimed that a modern network of rail and road was being developed. During 2007-08, Rs 166.6 billion or 50 percent of the total development budget outlay would be spent on development of infrastructure including water storage and its conservation. The government has not neglected social sector, development of this is also necessary to improve the quality of life of people, reduce poverty, make available qualified human resources for speedy development etc. Rs 156 billion or 47 percent of total development outlay is being spent on social sector.

In the last eight years the ECNEC held 27 meetings and approved 649 projects worth Rs 2.4 trillion. The projects approved by ECNECcovered all the sectors of national activity including 403 projects costing Rs 1903 billion in infrastructure and 207 projects in social sector costing Rs 466 billion and 39 other projects costing Rs 72 billion. Akram Shaikh said that half a million jobs were created during the current year’s ongoing developmental projects. Due to shortage of skilled labour force, the government has emphasized on development of vocational training of human capital.