ISLAMABAD: The first meeting of the reconstituted National Economic Council (NEC), presided over by Prime Minister Nawaz Sharif on Monday, remained divided over two major issues.

According to sources, the centre informed the provinces that about Rs67 billion worth of small and medium development projects in the provinces previously funded from the federal resources would no more be on that portfolio.

“The provinces were asked to take over these projects and finance them from their own sources so that financial burden on the federal government could be reduced,” an official said. The provinces were also told that since their resources had gone up following their increased share out of the federal divisible pool, there was no reason for the federal government to continue execution of projects whose benefits were restricted to provinces.

As the provincial governments protested, the prime minister decided that a special committee on review of the PSDP, comprising the chief ministers, should also deliberate on the issue to identify the projects and decide how to move forward.

The federal government also informed the provinces that a block allocation of Rs115bn for its ‘new development initiatives’ would be available for federal projects and the provinces would not be given any share.—Staff Reporter

More From This Section

FO rejects UK criticism on rights

FO rejects the criticism by UK's Annual Human Rights and Democracy Report that marks Pakistan as a country of concern.

Govt urges S. Arabia to hike Pakistani job quota

Govt has formally requested the Saudi govt to increase Pakistani workers' quota in the ongoing projects in the kingdom.

US, Pakistan see ties with India improving

US hopes for improvement in Indo-Pak trade ties after elections in India, which would increase bilateral trade to $10bn.

700 shops suspected of selling fake drugs

LAHORE: The Federal Investigation Age ncy suspects that 700 medical stores and pharmacies in Lahore keep spurious...


Comments are closed.
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Cartoons
E-PAPER
Front Page