PESHAWAR, June 21: The NWFP government has projected gross domestic product (GDP) to grow at 6.6 per cent during the 2005-06 financial year anticipating substantial increase in its revenue.

The NWFP government’s medium term budgetary framework (MTBF), unveiled here on Monday, anticipates consistent growth in the size and ratio of provincial GDP during the next five financial years.

The MTBF, mandatory under an agreement with the World Bank, stipulates 6.6 per cent provincial GDP growth rate for 2005-06 financial year, 6.9 per cent for 2006-07, 7.2 per cent for 2007-08, 7.5 per cent for 2008-09 and 7.5 per cent for the 2009-10 fiscal year.

In this way, the total size of the provincial GDP is expected to grow from Rs687 billion in 2005-06 to Rs775 billion in 2006-07, Rs877 billion in 2007-08, Rs996 billion in 2008-09 whereas in 2009-10 the total size of the provincial GDP has been expected to be Rs1,130 billion.

Total revenue and grants of the provincial government to grow at -0.5 per cent during the 2006-07 financial year in comparison with the next financial year. From 2007-08 to 2009-10 growth rate has been projected at 11.6 per cent, 11.9 per cent and 12 per cent, respectively.

For the five-year period the growth rate in respect of current expenditure of has been stipulated at 10.9pc in 2006-07, 11.1 per cent in 2007-08, 10.4pc for 2008-09 and 9.8 per cent in 2009-10.

While the provincial government has projected Rs8 billion under net hydel profit for 2005-06 financial year, the MTBF puts the likely receipts at Rs6 billion for the same period.

Officials said that the government had selected to reflect the net hydel profit’s projection at a higher side in its next financial year’s revenue receipts due to its ‘high expectations’ from the federal government.

“The provincial government is optimistic about convincing the federal government to raise the net hydel profit from Rs6 billion to Rs8 billion during the 2005-06 financial year,” said an official source.