PC seeks increase in PSDP size

Islamabad: Public Sector Development Programme (PSDP) size of Rs 437 billion proposed by the Finance Ministry Priorities Committee might be to Rs 490 billion as the Planning Commission (PC) is seeking the increase in order to ensure the timely availability of resources for ongoing and some important new development projects.

However, the proposed PSDP allocation, which is being distributed among the federal and provincial ministries, stands at Rs 437 billion. In Annual Plan Co-ordination Committee meeting, the PC has sought authorisation from the federal government to make the adjustments in the detailed programme while maintaining sectoral priorities.

The proposed allocation for federal ministries is Rs 188.9 billion in 2008-09, which is 17.8 percent less than 229.8 billion allocation under the same head in the current fiscal. Special areas like Fata, Northern Areas, and AJK, will get Rs 23.2 billion or 9.4 percent more than this fiscal allocation of Rs 21.2 billion.

Rs 26 billion will be allocated for special programmes in the next fiscal or 23 percent less than this fiscal allocation of 34.4 billion in the current fiscal. Corporations will get an allocation of Rs 48.4 billion in 2008-09 or 2.4 percent less than this fiscal allocation of Rs 49.6 billion.

The proposed allocation for provinces is Rs 150 billion, which remained unchanged if compared with the allocation of the current fiscal. The proposed allocations will be approved by the National Economic Council, which will further scrutinise them.

According to details given to the APCC, major emphasis in the proposed 2008-09 development programme is on the infrastructure development sectors with an allocation of Rs 111.4 billion or 38.8 percent of the PSDP. The government will spend Rs 51.9 billion on water resources development, Rs 43.5 billion on transport and communication, and Rs 16 billion on energy.

Social sectors and poverty related expenditure has been proposed at Rs 151.6 billion or 52.8 percent of the PSDP. The allocation for strategic support to the production sectors like agriculture, industry and mineral has been proposed at Rs 24 billion which is 8.4 percent of the total federal programme, which will come to Rs 340 billion if increase of Rs 53 billion demanded by the PC was approved by the National Economic Council (NEC).

The federal allocation proposed by the Priorities Committee, according to the PC, meets only the funding requirement of the ongoing projects. To maintain the momentum of development projects expectations, the size of the PSDP should be enhanced to a reasonable level to make available fiscal space for new projects in line with the government's priorities.

The water and power ministry will be given Rs 51.9 billion for the development of water resources in the next fiscal. The allocation for the same ministry for power sector has been proposed at Rs 15.8 billion.

The ministry's total estimated cost of land acquisition for hydel projects (five big dams) is Rs 158 billion. The proposed allocation for this purpose in 2008-09 is Rs 1.75 billion.

Pakistan Atomic Energy Commission will get Rs 15.8 billion in the next fiscal. Pakistan Nuclear Regulatory Authority will get Rs 0.47 billion, petroleum and natural resources ministry Rs 0.22 billion, communication division Rs 32.79 billion, ports and shipping Rs 0.33 billion and Railway ministry will get Rs 11.05 billion in the next fiscal.

Food and agriculture will get Rs 19.19 billion, interior Rs 5.6 billion, industries Rs 4.58 billion, defence Rs 2.61 billion, housing and works Rs 1.25 billion, law, justice division Rs 2.38 billion, Revenue division 2 billion, defence production division will get Rs 1.3 billion in 2008-09.

Finance division will get Rs 11.77 billion, education division Rs 5.69 billion, Higher Education Commission, Rs 18 billion, health division Rs 18.15 billion, information technology and telecommunication Rs 1.76 billion, science and technology