Govt plans to allocate Rs400bn for PSDP in upcoming budget

[Naveed Yaseen]

By Mehtab Haider
ISLAMABAD: The government has decided to double allocations for development projects under the Public Sector Development Programme (PSDP) to Rs400 billion in the budget 2009-10 from existing Rs200 billion in the outgoing fiscal year 2008-09, Deputy Chairman Planning Commission, Sardar Asif Ahmed Ali, revealed on Thursday.

Federal share of the PSDP was scaled down from Rs371 billion to Rs200 billion during the current fiscal year owing to resource constraints as well as to meet the fiscal deficit target of 4.3 per cent of GDP in line with the IMF agreement under the $7.6 billion standby facility.

Talking to a select group of journalists at his office in P block, here on Thursday, he said that the donors pledged an additional $5.28 billion for Pakistan which would help bridge the financing gap. “If Pakistan is able to get $3 to $3.5 billion from these pledges and $1 billion from the US under the Kerry-Lugar bill per annum then financing needs can be met,” he added.

To a query, he said that total pledges made by the donors were in shape of grants, soft loans and investment money. Out of total requirements of around $30 billion, Pakistan proposed a certain portion for tackling poverty issues in shape of grants, he maintained. On the issue of growing criticism of the US, he said that on the one side the US and western world were providing multi-billion-dollar funds and on the other a few politicians were against them by ignoring ground realities in the name of ‘national pride’. “What is the national pride where mothers are forced to sell their children owing to starvation,” he said and added that those people must use some kind of wisdom rather than making efforts only for political gains.

He also opposed Punjab’s move for providing subsidised bread (Roti), saying that the provincial government was ignoring rural population where people spent 50 per cent income to manage bread for their kith and kin. The people living in urban areas only spent 20 to 25 per cent income on their bread because other food items were also part of their meal, he maintained.

On issue of PSDP allocations, he said that it could be doubled in the upcoming budget to the tune of Rs400 billion from existing Rs200 billion in 2008-09 owing to improved inflows and macroeconomic situation.

He also said with improved economic situation Pakistan could achieve the GDP growth rate of 6 per cent by the budget. It is relevant to mention here that Pakistan and the IMF estimated GDP growth of 4 per cent by the next financial year.

The PC deputy chairman said the allocation for Benazir Income Support Programme (BISP) would be doubled to Rs68 billion by the next budget from existing Rs34 billion for the current fiscal year. The number of beneficiaries will also be jacked up to 6.8 million households from existing 3.4 million. He said the government had provided 8,000 forms in each constituency of parliamentarians and this number would be increased to 16,000.

“Alone in my own constituency, 2,000 forms were rejected owing to various reasons, which shows level of complete transparency for providing Rs1,000 installments to deserving people,” he added.

Answering a query about allocation for the Basha dam in the next budget, he said the government would allocate funds for Basha keeping in view the requirements being furnished by WAPDA in this regard. The government will also allocate funds for construction of 32 small and medium size dams in the next budget out of which 8 dams will be constructed in each federating units, he noted.

He said the Planning Commission (PC) would introduce alternate development vehicle under which the strategy would be devised to cater to needs of poor segments of the society. Citing an example, he said that the government would launch a pilot project in 400 villages by establishing a complex in each village to look after livestock and providing all kinds of required infrastructure, he said and added that these complexes would be used for producing biogas.

He said the PC also sought $600 million for initiating Human Resource Development (HRD) programme in order to develop skills of Pakistani youth with minimum administration cost of 2 per cent.

To another query about the PC’s Center for Poverty Reduction and Social Policy Development (CPRSPD), which is responsible for conducting a poverty analysis, he said the government would strengthen this institution which currently lacks capacity and human resources to accomplish its task.

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