NEC prioritises uplift goals for merged districts, backward areas in upcoming budget
Pakistan
NEC prioritises uplift goals for merged districts, backward areas in upcoming budget
ISLAMABAD (APP) – The National Economic Council (NEC) issued directives on Monday, emphasising that development targets for all newly merged and backward districts must take precedence with appropriate financial allocations in the upcoming budget.
The meeting, chaired by caretaker Prime Minister Anwaarul Haq Kakar, included federal ministers Dr Shamshad Akhtar, Sami Saeed, Shahid Ashraf Tarar, and chief ministers Justice (r) Maqbool Baqar, Justice (r) Syed Arshad Hussain Shah, Sardar Ali Mardan Domki along with high-level officials.
The NEC was briefed that in the next financial year, instead of incorporating provincial projects in the national development budget, only projects from newly merged border districts of erstwhile FATA [federally administered tribal areas] and 20 backward districts would be included. Proper financial allocations for these areas, it was noted, would ensure job provision and economic progress.
Prime Minister Kakar directed a review of the standards for compiling the list of backward districts to ensure the inclusion of all such areas. During the meeting, he emphasised that tax money belonged to the people, and the focus of all development projects should prioritise the welfare and well-being of the people.
The prime minister urged acceleration of work on national-level development projects and ordered their completion within stipulated timelines. He expressed satisfaction that the caretaker government achieved substantial success in securing development targets during its short tenure. Despite significant economic challenges, the prime minister highlighted that national progress could only be ensured by completing public welfare projects on a priority basis.
The prime minister stated that the National Economic Council, comprising the federation and provinces, was the highest constitutional body for economic decision-making. He stressed the federal government's commitment to consulting with provinces when deciding on development projects.
Regarding the development budget, the NEC decided to give special importance to the progress of basic communication infrastructure, hydel projects, water reservoirs, industry, information technology and the development of human resources, particularly youth.
The overall economic situation of the country was thoroughly reviewed.
In reviewing the six-point agenda, the meeting presented priorities and guiding principles for the national development budget 2024-25 for approval.
According to the new guiding principles, projects of national importance that were 80 percent complete would receive priority allocation, while new projects of national significance would be allocated only ten percent of the budget.
The NEC directed that new projects included in the development budget should be chosen based on their solid developmental value.
The meeting also reviewed the pace of current development projects under the Public Sector Development Programme [PSDP] 2023-24.
The prime minister, while approving the recommendations of the apex committee, directed that the Youth Development Programme, especially the Skill Development Programme and Youth Endowment Scholarship for Talented Students, should be robustly continued in the federal development budget, with ensured funding.
The forum was informed about the priorities of the 13th five-year development programme, focusing on the development of different areas of the country, environment, climate change, tourism, agriculture, industry, energy, governance, foreign investment, incentives to small and medium enterprises, improvement in governance and the use of technology in government affairs and service delivery.
While giving assent for renewed focus in these areas, the Council directed that the draft for the five-year programme should be finalised and presented for approval.
Reports of the Public Investment Management Assessment and the Climate Investment Management, prepared in collaboration with international financial institutions, were presented, and recommendations prepared in line with these reports were discussed.
The NEC directed that the approved strategy for protection against the adverse effects of climate change and tackling natural disasters should be improved according to new international standards. The growth targets for the current financial year were also reviewed, with the meeting apprised that in the first quarter, the rate of economic growth was 2.1 percent against the yearly target of 3.5 percent.
Due to the caretaker government's solid steps for economic revival, the national economy was improving and the trade deficit was reduced. The Federal Board of Revenue (FBR) collected more tax than its target in the first six months of the financial year from July to December 2023. The value of the rupee stabilised due to actions against the illegal business of foreign currency and anti-smuggling, and remittances from overseas Pakistanis increased.
While expressing satisfaction at the steps taken for achieving economic targets, it was reaffirmed that measures for economic growth should be intensified.
The report of the sub-committee of the National Economic Council on Sustainable Development Goals was presented, underscoring a focus on climate finance, as Pakistan is among the countries most affected by climate change.
The Council directed that a multiple indicator cluster survey should be held in collaboration with the provinces for a true depiction of the projects of public welfare and economic progress in the country.
