APCC Approves Federal PSDP Of Rs 900 Bn For FY22

The Annual Plan Coordination Committee (APCC) approved on Friday allocation of Rs 900 billion including foreign aid of Rs 101 billion for the federal Public Sector Development Programme (PSDP) 2021-22

ISLAMABAD, (UrduPoint / Pakistan Point News - 28th May, 2021 ) :The Annual Plan Coordination Committee (APCC) approved on Friday allocation of Rs 900 billion including foreign aid of Rs 101 billion for the Federal Public Sector Development Programme (PSDP) 2021-22 .

The proposed PSDP 2021-22 is 38 percent higher than the current fiscal year PSDP of Rs 650 billion.

The meeting presided over by Deputy Chairman Planning Commission Jehanzeb Khan, was informed that sufficient allocation of funds were made for the projects which were likely to be completed by June 2023 and high impact employment generating projects besides earmarking adequate funding for new schemes.

The allocations proposed by the ministries and divisions were considered and adjusted based on sectoral and regional balance and alignment with broad sectoral policies.

The APPC recommended to National Economic Council (NEC) a policy for financing of provincial projects in order to assist Provincial Governments in achievement of Sustainable Development Goals (SDGs) and its socio economic agenda.

The meeting was informed that 57 percent of total allocation has been proposed for Infrastructure sector, to ensure modern infrastructure and to attract foreign investment.

Within infrastructure, the proposed allocation is Rs265 billion (29% of the total size), water Sector allocation is Rs 100 billion (11%) as per commitment made under National Water Policy, Energy Sector's proposed allocation is Rs103 billion (11 percent of the total size), Physical Planning and Housing proposed allocation is Rs 41 billion (5 percent).

The regional equalization programme with proposed outlay of Rs 133 billion is being initiated, to improve quality of life of general masses.

Similarly within social sectors, health's proposed allocation is Rs 28 billion and Rs 42 billion has been proposed for education sector.

The proposed allocation for the Ten Billion Tsunami Programme is Rs 14 billion, while allocation of Rs 74 billion is proposed to achieve sustainable development goals and ensure development at grass root level.

Likewise an amount of Rs. 54 billion has been allocated for Merged Districts of KP in order to bring them at par with other areas of country.

The proposed outlay for Science & IT is Rs 29 billion, whereas proposed outlay for production sectors (industries, Food & Agriculture) is Rs 15 billion.

An amount of Rs 62 billion have been earmarked to make Viability Gap Funding to encourage private sector investment in infrastructure.

It is estimated that in addition to PSDP financing of Rs900 billion in FY 2021-22, an investment of about Rs60 billion would be made in various sectors through innovative financing (PSDP+) on Build Operate Transfer (BOT) and Public Private Partnership (PPP) modes.

The government has also proposed some special Initiatives including regional equalization program. The Government has initiated Special Development Packages to ensure the development of the backward areas to bring them at par with other developed regions of the country. Projects in the PSDP in different sectors shall be financed under these packages.

Meanwhile addressing the meeting, Deputy Chairman elaborated that APCC is the millstone of the development budget approval process.

Although formal and informal consultations on development where federal government, provinces and regions collectively review development proposal, for the coming year as well as performance of the out-going year.

He pointed out that the recent PSLM Survey has identified massive verticals and regional inequalities across regions and we need to ensure that the development framework is people centric and focused on improving the life of the common man.

He said that Planning Commission is mandated to be the lead advocate for a balanced and equitable growth framework. In this regard, PSDP allocations in a given fiscal year is one part of driving this growth agenda while major and complementing contributions has to come from provincial governments and the private sector.

Deputy Chairman has highlighted major achievements of the current year on economic front and said that Pakistan's provisional growth of GDP is estimated at 3.94% for the year 2020-21 as against contraction of 0.47% in 2019-20. This V-shaped recovery is evenly contributed by all three major sectors agriculture, industry and services sector which grew by 2.8%, 3.6% and 4.4%, respectively, he added.

He highlighted the key features of present government package of growth revival in agriculture sector through price incentivization of important crops, which posted growth by 4.6% on the back of historic highest ever production of wheat, rice and maize while sugarcane registered second highest ever production.

Higher production of food crops is an effort to make the country food secure. Farmer's prosperity will further trigger economic activity and spill-over demand in the country which will enhance the prospects of growth next year.

He apprised the meeting that the size of the economy increased from US$263 billion last year to $296 billion this year which implies an increase of $33 billion in a single year which is the highest ever.

The national income as measured by GNP, which also includes remittance flows, grew even faster rate by 6.5 percent which is highest ever since 2004-05.

He said the targeted 4.8 percent for 2021-22 is anchored upon ensuring quality growth without triggering fiscal and external sector imbalances and maintain single digit inflation. Both the SBP and the Ministry of Finance endorsed this growth outlook.

Chief Minister Gilgit Baltistan highlighted Government social attention for uplift of Gilgit Baltistan and appreciated Minister Planning and the Planning Commission for realising the vision of Prime Minister Imran Khan through unprecedented allocation of development schemes.

Finance Minister Balochistan echoed the sentiments expressed by CM GB and thanked Prime Minister, Minister Planning and the Planning Commission for record allocations and selections of schemes for uplifting deprived areas of the Province.

Minister of Finance, KP Taimur Saleem Khan Jhagra thanked the forum for paying attention to the genuine requirements of the Province and allocating balanced funds to the projectsThe Sindh Minister Nisar Ahmed Khuhro attended the APCC meeting online and said that the province requires more focus and priority