Tag: PSDP

  • APCC likely to propose Rs900-1,000 billion macroeconomic framework for budget 2023-24

    APCC likely to propose Rs900-1,000 billion macroeconomic framework for budget 2023-24

    The Annual Plan Coordination Committee (APCC) is poised to recommend a substantial macroeconomic framework and the size of the federal development outlay amounting to approximately Rs900-1,000 billion for the fiscal year 2023-24. This recommendation comes ahead of the upcoming budget and is expected to shape the economic policies and priorities of the country for the next fiscal year.

    In an effort to address the Sustainable Development Goals (SDGs), the government plans to allocate Rs90 billion for the controversial Sustainable Development Goals Achievement Programme (SAP) specifically designed for parliamentarians. This proposed allocation is a significant increase from the revised estimates of Rs111 billion allocated in the outgoing financial year.

    Moreover, the government is currently working towards raising the allocation of the SDG Achievement Programme even further, aiming to reach Rs116 billion for the ongoing fiscal year. Notably, parliamentarians from Balochistan and Sindh provinces have primarily presented flood-related schemes under this program during the current fiscal year. The World Bank and Asian Development Bank (ADB) are also contributing $3 billion in loans for flood-related initiatives, highlighting the need to establish mechanisms that prevent overlap and ensure optimal utilization of funds.

    A substantial portion of the development schemes in Sindh and Balochistan, ranging from 50 to 60 per cent, focused on flood-related projects during the outgoing financial year. However, concerns have been raised about one political party, a significant ally of the ruling coalition, demanding that funds on behalf of their parliamentarians be channeled through the party’s political leader for distribution among its members.

    According to The News, the APCC, scheduled to meet today in the Ministry of Planning, will consider approving the macroeconomic framework, which includes a targeted real GDP growth rate of 3.5 per cent and a Consumer Price Index (CPI)-based inflation rate of 21 per cent for the budget of 2023-24. These figures are based on a working paper prepared by the Ministry of Planning and reflect the government’s economic outlook and goals for the upcoming fiscal year.

    The Ministry of Finance has provided an indicative budget ceiling of Rs700 billion for the Public Sector Development Programme (PSDP) in the next budget. However, the Minister for Planning, under the guidance of Prime Minister Shehbaz Sharif, aspires to increase this amount to Rs800 billion. Additionally, a proposed allocation of Rs200 billion for the Viability Gap Fund (VGF) through public-private partnerships (PPP) would bring the total PSDP size to a proposed Rs1,000 billion at the federal level for the upcoming financial year.

    In an effort to address infrastructure needs, the share of the National Highway Authority (NHA) in the proposed PSDP is expected to decrease, ranging from Rs90 billion to Rs100 billion, due to the NHA’s inability to fully utilise the allocated funds in the ongoing financial year. The government is also considering allocations for flood mitigation and reconstruction efforts, as well as the inclusion of the Diamer Basha Dam project in the upcoming budget for 2023-24.

    As the APCC finalises its recommendations and the budgetary process unfolds, the government aims to strike a balance between addressing developmental needs, achieving SDGs, and ensuring efficient utilization of funds for the benefit of the nation.

  • Govt to spend Rs40 billion to uplift 20 backward districts

    Govt to spend Rs40 billion to uplift 20 backward districts

    In order to initiate rehabilitation projects across 20 backward and underprivileged districts over the course of 60 months in four provinces, the Ministry of Planning has announced a special development project worth Rs40 billion.

    The federal and provincial governments are expected to split the project’s estimated cost 50:50. The project has received approval from the Planning Minister Ahsan Iqbal-led Central Development Working Party (CDWP).

    According to DAWN, the project has already been given a budget of Rs18 billion for PSDP 2022–23. Eleven districts from Balochistan, five from Sindh, three from Khyber Pakhtunkhwa, and one from Punjab are among the 20 districts that were chosen based on Multidimensional Poverty Index (MPI) ratings. The recent flood calamity, notably in Balochistan and Sindh, has severely damaged many of these districts.

    Sherani, Kohlu, Jhal Magsi, Barkhan, Killa Abdullah, Zhob, Musakhel, Dera Bugti, Jaffarabad, Ziarat, and Killa Saifullah are among the 11 districts in Balochistan. Sujawal, Thatta, Tharparkar, Kashmore, and Badin are five in Sindh; Torghar, Shangla, and North Waziristan are three in Khyber Pakhtunkhwa; and Rajanpur is one district in Punjab.

    The tentative interventions in these districts will be in the areas of connectivity via roads, access to broadband services and the internet, solarization of off-grid areas, establishment of LPG terminals, development of the agri-livestock and mineral value-chain, tunnel framing, dairy farming, fish farming, etc., establishment of common border markets, investments in skill development, and student scholarships.

    Additionally, the provincial and federal governments will choose sub-projects based on a thorough analysis of the requirements of the marginalised population in their respective regions. These initiatives will be approved by the relevant federal and provincial forums. Steering committees at the federal and provincial levels will oversee the sub-projects.

    “This is the first of its kind project in the economic history of Pakistan where the federal government is undertaking a national intervention to uplift the poorest districts and address the disparity in economic development,” said the planning minister in a statement released on Saturday.

    With the assistance of the UNDP, the MPI survey was finished in 2017–18, allowing for the first time ever to map poverty at the district level nationwide.

    Through targeted investments in infrastructure and the development of human capital in the nation’s poorest regions, the project’s principal goal is to promote inclusive growth and equitable development. One of the main cornerstones of the proposal is investments in human capital development, especially for young people and women.

    According to Pakistan’s MPI estimation for 2017–18, 38.3 percent of Pakistan’s population (87,089,000 people in 2020) will be multidimensionally poor, and a further 12.9 percent will be vulnerable to multidimensional poverty (29,353,000 people in 2020).

    The initiative seeks to significantly contribute to eliminating regional inequality and enhancing national integration and peace in the nation in line with Pakistan Vision 2025 and the Global Agenda for Sustainable Development Goals 2030.

    Prime Minister Shehbaz Sharif’s Youth Development Program, which the project is a part of, was introduced last month.