ISLAMABAD: The Annual Plan Coordination Committee (APCC) on Friday recommended a development budget of Rs. 710 billion including foreign aid component of Rs.38.44 billion for the next financial year 2011-12 to the National Economic Council (NEC) for approval.
The APCC, which met here with Federal Minister for Finance Dr Abdul Hafeez Shaikh and Deputy Chairman Planing Commission, Dr Nadeem Ulhaq in the chair, recommended 743 developmental projects in various sectors.
Out of the total development budget the federal government share would be Rs 280 billion, including Rs 10 billion for ERRA, while the provincial share in the development budget would be Rs 430 billion.
Talking to newsmen, the Deputy Chairman of Planing Commission said that the committee had recommended Rs. 148 billion for infrastructure development projects, Rs. 118 billion for social sector development and Rs. 14 billion for other projects.
He said that the APCC recommended some 743 developmental projects in different sectors including water and power, health, education and others.
The APCC recommended that despite starting new development projects in the country the work on ongoing projects should be completed besides slashing the projects, which have even been completed by 30 percent.
It also recommended that the work on projects which have been completed by about 80-90 percent should be sped up for early completion, he added.
Dr Haq said that slashing of projects with 30 percent work done, would help save Rs. 70 billion which would be spent on those ones which were near to completion.
The APCC also recommended Rs. 18 billion for Dimer-Bash Dam project, Rs. 11 billion for Nelum Jehlum Hydro Project.
Review of annual plan 2010-11 was also presented before the committee, according to which Pakistan's economy is expected to grow by 2.4 percent as against targets of 4.5 percent during 2010-11.
Agricultural growth is expected to remain at 1.2 percent while manufacturing is expected to post a modest growth on 1 percent.
Services sector is contributing an expected growth of 4.1 percent in GDP. National savings are expected to stand at 21.9 percent of GDP. Foreign Direct Investment from July to March 2010-11 shows a decline of 29.2 percent with portfolio investment of falling by 33.1 percent.
Consolidated budget for 2010-11 was Rs. 3259 billion, 19.2 percent of GDP and revised to Rs. 3297 billion. Consolidated revenue for 2010-11 was at Rs. 2574 billion and revised to Rs. 2485 billion.
During July to April 2010-11, FBR tax collection shows an increase of 12.6 percent at Rs.1156 billion compared to the collection of 1026.5 billion same period of previous year.
During July 1, 2010 to April 30, 2011 M2 grew by Rs.555 billion against the expansion of Rs.414.8 billion corresponding period of previous year.
The Federal Government in March 2010-11 took additional tax measures to achieve the revised revenue collection target for 2010-11. Through these measures, the government intends to curtail expenditure by Rs. 120 billion. These measures have been taken to contain the overall fiscal deficit to around 4.7 percent of GDP which was originally budgeted at 4.0 percent of GDP in 2010-11.
Net foreign assets of the banking system expanded by Rs. 153.2 billion during July to April 2011. Net domestic assets of the banking system expanded by Rs. 402.5 billion. from July 1 2010 to April 30, 2011.
CPI inflation was targeted at 9.5 for 2010-11. It has registered increase of 14.1 percent from July to April 2010-11. A total of 638 companies have been listed at Karachi Stock Exchange as of March 31 2011. Total listed capital of Rs. 920 billion.
The outlook for 2011-12 was also shared with the Committee. Growth of GDP for 2011-12 targeted at 4.2 percent with contribution of agriculture, manufacturing and services sectors of 3.4 percent, 3.7 percent and 5.1 percent respectively. Nominal GDP is targeted to increase by 17.2 percent and GNP per capita would be around Rs. 121,591. Monetary expansion for the year 2011-12 will be in line with the projected GDP growth 4.2 percent and CPI inflation at 13 percent.
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