NEC earmarks Rs1155 billion for Pakistan development budget

ISLAMABAD: National Economic Council (NEC) in a meeting held under the chair of Prime Minister of Pakistan, Mian Nawaz Sharif, has approved a development budget of worth Rs1155 billion, Geo News reported.

“Of this total the federation will be allocated Rs540 billion, whereas provinces Rs615 billion”, said Federal Minister for Planning and Development, Ahsan Iqbal briefing media after the meeting.

The NEC meeting, held at the Prime Minister's Office, also decided to constitute a committee led by Minister for Planning and Development with Chief Ministers of the Provinces as its members to deliberate on issues and to chalk out a policy having clear guidelines, which were consistent with the functional responsibilities under the constitution.

Iqbal told media that energy projects would be the first thing the government would undertake going forward, adding a massive Rs107 billion had been earmarked for the same.

“The government will spend Rs118 billion on Pakistan Electric Power Company (Private) Limited (PEPCO) projects. Furthermore an amount of Rs17 billion has been set aside to purchase land for the Diamer-Bhasha Dam, while Rs8.2 will be used to bankroll the construction of the dam”, said he.

For Neelum-Jhelum hydroelectric power project some Rs25 billion had been apportioned, whereas Rs14 billion would go into Tarbela Dam expansion.

The National Economic Council authorized the aforementioned committee to also streamline the process of release of funds to the provinces.

According to minutes of the meeting, the NEC also authorized Ministry of Planning and Development for making adjustments within the approved Public Sector Development Programme (PSDP) size as decided by the committee.

In his opening remarks, Prime Minister Muhammad Nawaz Sharif congratulated the Chief Minister on their assumptions of office and completion of smooth transition.

The Prime Minister reiterated the mandate of the people would be respected.

The Prime Minister expressed the hope that the provincial governments would undertake the development projects with sincerity ensuring the funds were not only used judiciously as the government was entrusted with nation's money.

“We will not tolerate any breach of the national trust. Funds should be utilized for the purpose they are intended that too honestly”, emphasized the Prime Minister.

The Prime Minister said that the biggest issues facing the country were loadshedding, extremism, and sectarianism.

"These issues have a direct bearing on the country’s economy. We need peace for economic activities. We have to eliminate corruption and plug loopholes and leakages to increase revenue" ,said he.

The present quantum of revenue collection, and size of the development programme was a shame for a country of the size and status of Pakistan, PM Nawaz Sharif added.

The Prime Minister said that the government could collect the targeted revenues provided the tax collection machinery was purged of corrupt elements.

He observed that this pathetic situation was unacceptable.

“No one involved in corruption will be spared.”

The Prime Minister directed the Minister for Planning & Development to review the ongoing schemes reportedly amounting to nearly Rs3 trillion and come up with recommendations by July 31, 2013 so that a road-map on their implementation could also be finalized.

The PM also directed the Minister for Water & Power Khawaja Muhammad Asif to find a way to provide additional electricity to Balochistan in view of the urgent requirement of water for the crops.

The direction was issued in response to the request made by the Chief Minister Balochistan, Dr Abdul Malik Baloch, who informed the Prime Minister that Pakistan's largest provinice was presently receiving two hours of electricity only, which would adversely impact the standing crops.

The Prime Minister ordered the Ministry of Finance to come up with recommendations for improvement in revenue collection including structural reforms.

The Chief Ministers of Punjab, Sindh, KPK, Balochistan, Giligit Baltistan and President AJ&K congratulating the Prime Minister on the assumption of his office assured him of their unconditional support to his program of revival of economy for the country.

The meeting was attended by Chief Minister of Punjab, Shahbaz Sharif, Chief Minister of Sindh, Mr. Qaim Ali Shah, Chief Minister of Khyber Pakhtunkhwa Chief Minister Balochistan Dr. Abdul Malik Baloch, Chief Minister Gilgat Baltistan Syed Mehdi Shah, GovernorKhyber Pakhtunkhwa Eng. Shaukat Ullah, Prime Minister of Azad Jammu and Kashmir, Chaudhry Abdul Majeed, Advisor to Chief Minister of Finance, Syed Murad Ali Shah Senior Minister for Finance, Siraj ul Haq, Minister for Water and
Power, Khawaja Muhammad Asif, Minister for Planning and Development, Ahsan Iqbal, Chief Secretaries of all provinces and senior officials participated in the meeting.