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| November 3, 2005 | Thursday | Ramzan 29, 1426 |
Reconstruction to cost about $12bn
ISLAMABAD, Nov 2: Pakistan hopes to meet the $10-12 billion reconstruction cost of earthquake-affected areas in the AJK and NWFP through international and local donations, private sector investment and readjustment of development programme. It will not adversely affect the country’s development and economic growth, a senior government official said on Wednesday.
“The planning commission has estimated about $10-12 billion requirement for reconstruction plan and we hope to meet this challenge without slowing down the overall pace of development and GDP growth rate,” deputy chairman of Planning Commission Dr Akram Sheikh told Dawn.
The government has convened a crucial meeting of all the stakeholders including international donor agencies, AJK and NWFP governments and Relief and Reconstruction Authority on Thursday at the ministry of finance to finalise reconstruction estimates on the basis of on-ground damage assessment.
“Several government agencies and donors have made different reconstruction estimates and we hope to consolidate these into a single rehabilitation plan,” another senior official said.
Dr Akram Sheikh explained the government would not need to make any major diversion in the public sector development programme (PSDP) for the current year. However, normal adjustments would be made like every year by diverting funds from slow moving projects to much needed reconstruction efforts instead of fast moving projects, he said.
“There is always a cushion for re-appropriation and we hope to make necessary adjustments to the tune of about one per cent of the current year’s Rs 272 billion PSDP without slowing down normal development activity and affecting the GDP growth,” he added.
Of the total estimates of $10-12 billion, about 40 per cent would be made available in the public sector and rest of the 60 per cent was expected to be arranged by the private sector mostly in the reconstruction of housing sector.
He said the government was expecting that international community would donate enough funds and the government would need not diversion of major development funds to rehabilitation because this could affect normal development and economic growth rate.
The international community has already pledged $2 billion, the President’s Relief Fund has received more than Rs6 billion and both these heads were expected to keep on growing over the next few months. The government also expects that international community would provide up to $4-5 billion after Nov 19 international donors’ conference in Islamabad.
Another senior planning commission official said the reconstruction activities could not go into full swing until March/April next year owing to bad climatic conditions and hence the current year’s PSDP would broadly remain unchanged.
He said that at least four million people have become shelterless and the reconstruction would have to be launched immediately with all finances from home as well as from the international community.
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