ISLAMABAD: Giving a new orientation to the economic policy of the country, the National Economic Council (NEC) approved on Thursday a Rs36bn initiative for stengthening national unity and the federation by removing disparities in development between the developed and under-developed parts of the country.

Under the initiative, Rs15 billion will be invested in Balochistan, Rs8bn in Sindh, Rs4bn each in KP and Fata, Rs3bn in Azad Kashmir and Rs2bn in Gilgit-Baltistan.

A meeting of the council, presided over by Prime Minister Nawaz Sharif and attended by all chief ministers, the prime minister of Azad Kashmir, the governor of Khyber Pakhtunkhawa and ministers for finance and development from federal and provincial governments, also approved federal and provincial development plans of Rs1.175 trillion, a marginal increase of 1.7 per cent over Rs1.155trn for the outgoing year.

It okayed macro-economic framework for the next fiscal year, envisaging 5.1pc growth in gross domestic product, to be supported by a 3.3pc growth in agriculture, 6.8pc in industrial output and 5.2pc in the services sector.

The framework put exports target of $27 billion for the next year, investment at 15.7pc of GDP, savings at 14.6pc of GDP and current account deficit at 1.1pc of GDP or $2.8bn.

Rs1.175 trillion uplift plan approved

Under the development programme, the federal government has earmarked Rs525bn against current year’s allocation of Rs540bn, showing a decline of about 2.8pc. The four provincial governments will, however, spend Rs650bn against combined allocation of Rs615bn for the current year – an increase of 5.7pc.

In addition to federal and provincial budgets, the power sector organisations like Wapda and the National Transmission and Dispatch Company will spend another Rs135bn out from their own resources.

The power sector has been given top priority with the highest allocation of Rs260bn. Power generation sector has been given a lion’s share of Rs155bn – Rs84bn for hydropower, Rs23bn for thermal power and Rs48bn for nuclear power. Another Rs105bn will be spent on improvement and expansion of transmission lines.

Some of the key power projects are Diamer Bhasha dam, Karachi Coastal Power Project, Dasu hydropower project, Neelum-Jehlum hydropower project, Chashma Nuclear, Jamshoro power project, Tarbela Extension IV project, Nandipur power project and Chichon ki Malyan power project.

The prime minister said the allocations showed the seriousness and commitment of the government to tide over the power scarcity.

The transport and communications sector got second priority position with an allocation of Rs163bn, including Rs114bn for the National Highway Authority and Rs40bn for rehabilitation and revival of Pakistan Railways.

Some of the important infrastructure projects are Lahore-Karachi Motorway, Hasanabdal-Havelian-Mansehra road project, Peshawar Northern Bypass, Raikot-Islamabad project, Gwadar airport, Gwadar Free Economic Zone and construction of a jetty and infrastructure development at Gadani Power Park.

The prime minister said Rs53.5bn was the cost of land acquisition for the Lahore-Karachi Motorway project and of that Rs25.5bn had already been released.

The federal government will continue supporting education, health and population welfare projects throughout the country, despite these being devolved subjects with an allocation of Rs51 billion.

While discussing development projects in his province, Balochistan Chief Minister Abdul Malik Baloch pointed out delays and corruption in the Quetta water supply scheme. He said Rs10bn had been spent, but there was no visible progress.

The prime minister ordered an inquiry into the matter and asked the chief minister to monitor the projects himself.

The NEC approved five cancer hospitals – four to be set up in the provincial capitals and one in Islamabad. Mr Sharif said a plan should be prepared for one cancer hospital each in Gilgit-Baltistan, AJK and Fata.

Senior Minister Khyber Pakhtunkhawa Sirajul Haq raised the issue of delay in completion of Lowari Tunnel project due to paucity of funds.

The prime minister said he would look into the matter and would visit the project area along with the chief minister and the governor of KP to see the situation on ground.

The KP governor is reported to have complained about lack of development funds for tribal region affected by the war on terror. Mr Sharif said that special attention should be given to Fata in overall development strategy.

The Balochistan chief minister raised the issues of funding for transmission lines in far-flung areas in his province and power shortage and a water supply scheme for Gwadar.

The prime minister said vast resources of solar energy should be tapped and a feasibility report should be prepared for installing solar power panels in Balochistan.

Published in Dawn, May 30th, 2014