May 3, 2006	Wednesday	Rabi-us-Sani 4, 1427

ISLAMABAD, May 2: The Planning and Development Division has proposed that provincial nature projects should not be financed or co-financed from the federal PSDP from next fiscal year.

An official told Dawn on Tuesday that the proposal was submitted to the Executive Committee of the National Economic Council (Ecnec) in its meeting held recently.

The official said that the meeting headed by Prime Minister Shaukat Aziz took note of the proposal regarding financing, sharing of cost of provincial projects through federal PSDP with reference to new NFC award. However, no final decision was taken in the meeting, added the official.

According to the minutes of the meeting, the ECNEC was informed that the enhancement in provincial resources was estimated at Rs51 billion or so by next year, which would ultimately result in reducing the federal resources.

The planning division informed the meeting that in view of the trend for financing the projects from the federal PSDP in respect of those located in the provinces and an increase in the share of provinces from the federal divisible pool, the CDWP decided that no provincial nature project would be financed from the federal PSDP from next fiscal year.

However, on-going commitments for financing/sharing of cost of provincial projects from the federal PSDP would continue.