KARACHI, May 28: The National Economic Council (NEC) is due to meet on Thursday at Islamabad to discuss a Rs157 billion Public Sector Development Plan (PSDP) for the year 2003-04. Prime Minister Zafarullah Khan Jamali will preside over the meeting in which chief ministers of all the four provinces with their team of finance, planning and development ministers and senior bureaucrats are attending.
Also attending the NEC meeting are the federal finance minister and the senior bureaucrats of finance and planning and development ministries.
The NEC is supreme constitutional body to decide on yearly allocation of development and non-development expenditures of the federal and the provincial governments.
The Annual Plan Coordination Committee (APCC) in its meeting last Saturday (May 24) had proposed a PSDP of Rs152 billion which has now been increased to Rs157 billion for consideration of the NEC.
“We can expect some fireworks on Thursday because politicians are participating in the NEC after four years,” a senior bureaucrat remarked who pointed out that the last NEC attended by elected representatives was held in June 1999. The NECs held during the years 2000, 2001 and 2002 were attended by handpicked ministers of the military setup and their team of bureaucrats. There were some heated discussions on setting aside of a few projects or on other issues, but by and large the NEC debates remained a tame affair.
This year, the NEC is being attended by chief ministers who, barring the NWFP chief minister, all belong to the ruling coalition in Islamabad. But the National Finance Commission (NFC) issue now dominates provincial politics. Two provincial assemblies—Sindh and NWFP—have come out unanimously with strong resolutions on the sharing of resources. The Balochistan chief minister and his cabinet colleagues have on many occasions spoken out on being deprived of what they feel is their legitimate share, particularly in respect of oil and gas development surcharge. Punjab too is unhappy about the present resources distribution arrangement and is expected to voice its resentment in the NEC meeting.
Besides the NFC issue, the proposed distribution of Rs157 billion PSDP among the federal ministries and provinces also offers ample room for acrimony. For example, the share of federal ministries in development funds has been increased from Rs47.7 billion in 02-03 to Rs59 billion, a straight 23.6 per cent rise. In sharp contrast, the provinces are being given only Rs47 billion for the next fiscal year as against Rs44 billion in the current fiscal. It shows an increase of only 6.8 per cent.
The federal government corporations are being given 32.2 per cent more resources next year, amounting to Rs34.5 billion as against Rs26.1 billion.
The federal government is moving on the fast track to complete the controversial Greater Thal Canal project. An allocation of Rs1.5 billion is being provided for this project. The first reach of Right Bank Outfall Drainage (RBOD) is now in the final stages of completion and Sindh had asked for Rs4 billion before taking up the second reach. The APCC had proposed Rs1.5 billion, but the government has now cut it down to Rs1 billion for the NEC.
The PSDP proposes a Rs4.4-billion Tameer-e-Pakistan programme which is in fact a federal government-sponsored programme for the MNAs. Every MNA is being given a chance to prepare a Rs5-million development scheme for his constituency. But it appears as if the provinces will have to finance these schemes.
The federal government has drastically cut down the Drought Emergency Relief Programme (DERA) from Rs6 billion in 02-03 to only Rs1 billion. There is no allocation for the devolution plan. The current PSDP for 02-03 provided Rs1 billion.
Sasti Basti (low cost housing) is the new development programme being proposed in the PSDP for which Rs500 million has been earmarked. There is no explanation of provincial share.
The Sindh chief minister is expected to take a long list of projects for which funds were promised by President Pervez Musharraf and Prime Minister Zafarullah Khan Jamali but which have been ignored by federal government planners.
Khaleeq Kiani from Islamabad adds: Rs40.6 billion have been allocated for public works, human development and poverty alleviation in the proposed PSDP. Under this head, Rs34.2 billion were earmarked in the current fiscal year.
Infrastructure development is to receive Rs46.3 billion as against the current year’s Rs37.7 billion.
