Rs 912 billion provincial ADPs: NEC to approve development outlay of Rs 1.837 trillion

The National Economic Council (NEC) is to approve national development outlay 2019-20 of Rs 1,837 billion including provincial Annual Development Plans (ADPs) of Rs 912 billion. Federal Public Sector Development Plan (PSDP) envisages Rs 675 billion outlay including foreign aid of Rs 127 billion.
The NEC meeting will also authorize Ministry of Planning, Development and Reforms to make adjustments in the detailed PSDP during the currency of the fiscal year for optimum utilization of PSDP funds while remaining with the approved size of PSDP 2019-20. There are chances of fiery debate on allocations by the Chief Ministers of Sindh and Balochistan. Projects with 80 per cent plus expenditure have been fully financed for completion by June 30, 2020 so that people benefit from the investment. Appropriate funding has been made to other on-going projects with less than 80 per cent expenditure within the available fiscal space.
The proposed PSDP 2019-20 has been formulated by adopting inclusive, consultative and participatory approach. Ministry of Finance has conveyed Indicative Budget Ceiling (IBC) for PSDP 2019-20 to the Ministry of Planning, Development and Reform. Meetings/ consultations were held with Ministries to prioritize respective portfolios during March and April 2019. As a result, the respective portfolios were rationalized and the size of PSDP 2019-20 was kept at Rs 675 billion including Rs 100 billion for programs being managed by Finance Division (Rs 65 billion for IDPs and security enhancement, Rs 10 billion for Prime Minister's Youth Skill Development Initiative, Rs 22 billion for merged areas ten year development plan, Rs 2 billion for Clean-Green Pakistan Movement and Rs 1 billion for Gas Infrastructure Development Cess ). Further, it has been planned that an investment of Rs 250 billion will be made through alternate mode of financing like PPP and BOT during the next fiscal year.
The provincial governments have also shared the respective size of ADPs 2019-2220. The overall proposed National Development outlay is as follows: (i) federal PSDP, Rs 548 billion- Rs 127 foreign aid- total 675; m(ii) provincial ADPs, Rs 802 billion- Rs 110 billion foreign aid- total Rs 912 billion. This implies that out of total 1587 billion National Development outlay Rs 1350 billion is from domestic funding whereas 237 billion will be foreign aid. With addition of Rs 250 billion alternate financing mode, out of total National Development outlay of Rs 1837 billion, Rs 1600 billion will be local funding while Rs 237 billion is foreign aid.
Infrastructure sector has been allocated 64 per cent or Rs 575 billion meant for Ministries/ Divisions. Highest priority has been accorded to transport and communications sector with an allocation of Rs 200 billion. This includes Rs 160 billion for national highways, Rs 16 billion for Railways and Rs 24 billion for other projects including Aviation schemes.
As per National Water Policy minimum allocation to water sector should be 10 per cent of PSDP size. For this sector, Rs 70 billion is being proposed against its share of 67 billion.
Financing of water sector projects benefiting one province will be discouraged from the federal PSDP except financing of small dams in Balochistan. As a matter of policy and settlement cost will be borne by the provincial government. To fully benefit from such public investment, the provincial government will ensure development of command area. Kachhi canal phase-1 project will be completed during next 2-3 years.
Energy sector has been accorded due priority where investment of Rs 120 billion is planned. Of this, around Rs 80 billion has been proposed from the budget while Rs 40 billion will be invested by NTDC/ Gencos/ Wapda from their own resources on transmission and distribution system. Inter-connection of isolated Makran Network via Nag Basima Grid Station from Panjgoor will be completed during the next three years.
For fast tack development in AJK and GB, Rs 40 billion has been allocated and for merged district of KP, Rs 46 billion is being proposed including Rs 22 billion for merged areas ten year development plan.
An amount of Rs 32 billion has been allocated for education programs including higher education.
Prime Minister's initiatives like Youth Skill Development initiative and others will continue with a proposed allocation of Rs 10 billion. Tsunami program is being proposed with an allocation of Rs 8 billion. Additional funds will be made available for clean green Pakistan movement. For development of Islamabad Capital Territory (ICT), special intervention has been planned for the first time in history. For this purpose, a special package of about Rs 10 billion is being launched to improve sewerage and sanitation, water supply and roads in ICT. A special allocation of 13 billion has been made for projects identified by the task force on knowledge economy.