ISLAMABAD, May 22: The Annual Plan Coordination Committee (APCC) on Saturday recommended a Public Sector Development Programme (PSDP) of about Rs190 billion for fiscal year 2004-05, up by 18.75 per cent from current year's Rs160 billion, official sources told Dawn.

The sources said that APCC was presented a PSDP of Rs180 billion finalized by the Priority Committee but the APCC was given a fiscal space to increase it to Rs190 billion. The Rs10 billion worth of projects would be firmed up in the next two days on the basis of discussions and views of the participants.

The ministries and divisions had demanded a total of Rs197.6 billion for the PSDP 2004-05 which is expected to be accommodated by the National Economic Council (NEC) to be held on June 3.

No allocation has been made for any new mega development project in the water sector like Kalabagh or Bhasha dam as widely anticipated except for a minor allocation of Rs12.8 billion for Kurram Tangi dam.

The APCC was inaugurated by Finance Minister Shaukat Aziz and was later presided over by deputy chairman planning commission Dr. Akram Sheikh. It was attended by the ministers for finance and planning of the four provinces, AJK and relevant secretaries.

The meeting also reviewed performance of the national economy during the outgoing fiscal year and development programme and firmed up recommendations for NEC to be presided over by Prime Minister Zafarullah Khan Jamali.

Sources told Dawn that the meeting noted with concern the slow utilization of PSDP-2003/04 which was even lower than last year. The actual expenditure during July-March of the current fiscal was Rs54.9 billion or 48.6 per cent of the total allocation including a foreign aid of Rs12 billion.

The expenditure of 48.6 per cent is less than the development expenditure of 58 per cent incurred during the same period of last year, "owing mainly to the short-fall in foreign aid disbursement, which was only Rs12 billion against the provision of Rs27 billion", official record shows.

The meeting was, however, informed that expenditure was likely to pick up in the last quarter of the current financial year as the projects authorities reported that they would be able to consume their entire allocated amount of Rs113 billion because water, power and transport and communication sectors are likely to consume their entire allocation.

The Rs190 billion PSDP was most likely to include Rs136 billion for federal projects and Rs54 billion for the provincial projects. The government is expecting to get Rs55.8 billion asforeign aid component during the next fiscal year to finance these projects.

The top priority has been given to the social sector and poverty related expenditure which would get 27 per cent of the total allocation, to be followed by transport and communication sector at 26 per cent of total allocation. The power sector is third on the priority list with 17 per cent allocation, followed by water sector at 11 per cent allocations.