The government has decided to cut further portfolio of development projects to create a financing space for 33 projects costing over Rs 600 billion, which the Executive Committee of National Economic Council (Ecnec) approved on Thursday. Talking to Business Recorder, Deputy Chairman Planning Commission Dr Nadeem-ul-Haq said Prime Minister Syed Yousuf Raza Gilani had accorded approval to slash PSDP 2010-11 from Rs 280 billion earmarked in budget to Rs 140 billion.
He further said that government had cut the portfolio of development projects worth Rs 500 billion. "Portfolio of development projects will be reduced further to carry out projects approved by Ecnec," he maintained. Meanwhile according to statement, Ecnec met here with the Federal Minister for Finance, Economic Affairs and Planning & Development, Dr Abdul Hafeez Shaikh in the chair.
The Ecnec approved 33 projects costing about over Rs 600 billion including foreign exchange component of Rs 130 billion. The meeting was attended by Federal Ministers, Dy Chairman Planning Commission, Governor State Bank of Pakistan, Special Assistants to Prime Minister on Water and Social Sector. Provincial Ministers for Finance and Planning & Development and representatives from Gilgit-Baltistan, AJK, representatives of the sponsoring agencies.
Approved projects are in the sectors of transport and communications, irrigation, food and agriculture, education and health, energy, information technology and cities development. To overcome power shortage, five projects of energy costing Rs 81.5 billion including Power Distribution Enhancement Investment Programme, Phase-II, National Compact Florescent Lamps, Addition of 500 & 220 kV Substations into NTDC System and Combined Cycle Power Plant of 320 MW to be gifted by UAE were approved. These projects will help enhance the existing capacity in the system through conservation and efficient distribution efforts.
Four projects of Transport & Communication sector costing Rs 96.2 billion comprising 'Procurement of (US Origin) 150 Diesel Electric Locomotives' 'Improvement, Widening and Construction of Kohlu-Sibbi Road Project (Length 162.5 Km)' 'Improvement and Widening of Jaglot-Skardu Road (S-I) (167 Km)' and 'Extension of Motorway (M-4) from Khanewal to Multan 57 km'.
To ensure food security in the country, three projects of Agriculture Sector approved by ECNEC included 'Punjab Economic Opportunities Program (PEOP)' 'Pak. China National Project for Controlled Atmosphere (CA) and advanced Ventilated Cold Storage' and 'National Project for Enhancing Existing Capacity of Grain Storage'. The projects will help to reduce poverty in the rural areas and enhance existing food grain storage capacity.
To provide Primary Health Care and to achieve the MDGs Goals, important projects of Health Sector were also approved. These were 'Prime Minister's Program for Prevention and Control of Hepatitis (Prime Minister's Emergency Action on Hepatitis)' 'Expanded Programme on Immunisation (EPI), and 'National Programme for Family Planning & Primary Health Care (NP-FP & PHC), "The Lady Health Workers' Programme" (LHWP) - Phase-II'.
In his opening remarks, Dy. Chairman Planning Commission, Dr Nadeem-ul Haq informed about the need for rationalising the portfolio in line with resource availability.
He also emphasised the need for balance between new and ongoing projects and the optimisation of available resources. In his concluding address Dr Abdul Hafeez Shaikh asked the Planning Commission to present a detailed plan in the next ECNEC with a rationalised portfolio reflecting balanced regional growth and focus on completion of projects to provide maximum benefits to the citizens. He also emphasised the need for improving the monitoring and evaluation of projects to ensure transparency and best utilisation of national resources.