ISLAMABAD: Focusing on energy, transport and communication sectors, the government has announced Rs1.67 trillion Public Sector Development Programme (PSDP) for the fiscal year 2016-17.

The allocation is around 10pc higher than the current year’s programme of Rs1.514tr.

The federal component size in the next year’s PSDP is Rs800 billion, including foreign aid of Rs143bn whereas the Planning Ministry will administer Rs655bn. Moreover, the amount of provincial Annual Development Programmes (ADPs) is Rs875bn, with total foreign aid of Rs86bn.

Similarly, the next year’s provincial share in the PSDP is Rs61bn higher than that of the current year.

In PSDP FY17, the emphasis is on the completion of ongoing projects, for which 96pc funds were allocated.

The highest priority has been given to the power sector, followed by transport and communication sectors.

Sector-wise allocations indicated that Rs157bn has been proposed for the power sector, Rs260bn for the transport and communication sector, Rs32bn for the water sector, Rs18bn for physical planning and housing, Rs29bn for education (including higher education), Rs30bn for health and population, Rs20bn for Sustainable Development Goals and Rs11bn for other social sector projects.

Some other important aspects includes Rs1bn Green Pakistan Programme to mitigate the effects of climate change, Prime Minister’s Youth and Hunarmand programmes at a cost Rs20bn, setting up of Gas Infrastructure Development Fund of Rs25bn, and resettlement of temporarily displaced people at a cost of Rs100bn.

Announcing the federal budget 2016-17, Finance Minister Ishaq Dar said the PSDP has been instrumental in developing infrastructure, improving connectivity and social uplift in the country.

He said the programme responded to the emerging needs, creating an enabling environment required to attract private and foreign investments to achieve the growth targets.

“Despite the financial constraints, the government proposed the highest ever allocations in PSDP in the history of the country to keep the engine of growth and development working to take country into top 25 economies of the world under its roadmap Vision-2025,” he claimed.

SOCIAL SECTOR: An allocation of Rs89bn is made for social sector projects in health, population, higher education, education and training. Important initiatives in this sector include Prime Minister’s Youth and Hunarmand Programme.

An amount of Rs33bn has been allocated for water sector projects and Rs28bn for financing the ADPs of the special areas, including Azad Jammu and Kashmir, Gilgit-Baltistan and Federally Administered Tribal Areas.

The Higher Education Commission has been allocated a record Rs21bn for its 167 projects.

Separate funds for the laptop project and Afghan scholarship scheme will be provided outside the PSDP.

Important initiatives in 2016-17 include scholarships schemes for training of faculty, infrastructure development of universities, implementing the 10,000 PhD scholarship scheme under the Pakistan-US working group on education, science and technology, providing higher education campuses at the district level, setting up skill universities across the country, promoting industrial linkage with universities, setting up a tech park at the National University of Sciences and Technology, faculty development programme and setting up women universities in Islamabad.

ENERGY: The development of indigenous energy resources, such as coal, hydro, alternative and renewable sources are critical for sustainable economic growth, as envisaged in the Vision-2025.

Some 74pc of the total China-Pakistan Economic Corridor (CPEC) projects are energy projects, which include coal, hydro and wind. Around 5,304-megawatt power projects are expected to be completed by the end of the next fiscal year.

The PSDP sets aside Rs61bn for Neelum–Jhelum Hydropower Project, Rs32bn for Diamer-Bhasha Dam, Rs42bn for Dasu Dam, Rs19bn for a new coal-fired power plant, Rs16bn for Tarbela’s fourth-extension hydropower projects, etc.INFRASTRUCTURE: In the infrastructure sector, Rs4.5bn has been allocated for Lowari Tunnel, Rs2bn for Jaglot-Skardu Road, Rs3bn for the construction of road network of new Islamabad International Airport, Rs5bn for dualisation of Indus Highway, Rs19bn for Multan-Sukkur section of Karachi-Peshawar motorway and Rs34bn for Lahore-Abdul Hakeem section of Peshawar-Karachi motorway.

CPEC: The PSDP earmarks Rs22bn for Burhan-Hakla (DI Khan Motorway), Rs5bn for Gwadar-Turbat-Hoshab section, Rs4bn for Hoshab-Nag-Basima-Surba section, Rs1.1bn of DI Khan-Mughal Kot section of the western route of CPEC. Moreover, Rs4.6bn has been set aside for the construction of Burhan-Havelian Expressway, Rs16.5bn for Thakot-Havelian.

In the Gwadar component of PSDP, Rs4.7bn has been allocated to East Expressway, Rs1.5bn for New Gwadar International Airport, Rs1bn for necessary facilities for fresh water treatment, water supply and distribution, etc.

MEGA PROJECTS: Furthermore, Rs1bn has been earmarked for Greater Karachi Water Supply Scheme, Rs700 million for Greater Karachi Sewerage Plant, Rs400m for Khyber Institute of Child Health and Children Hospital, Rs650m for Jalozi Campus of the NWFP University of Engineering and Technology, establishment of University of Swat, establishment of University of Turbat, establishment of University of Loralai and establishment of Fata University.

EDUCATION AND HEALTH: New initiatives include establishment of a centre for haematology disorder at the Pakistan Institute of Management Sciences, Islamabad, provision of equipment for four cancer hospitals of the Pakistan Atomic Energy Com­mission in Bahawalpur, Karachi and Lahore, national education reforms initiatives, PhD scholarship programme under US-Pak knowledge corridor, establishment of University of Central Asia and Pakistan, establishment of women university campuses at Swat, Pishin and Khuzdar, upgradation of Bannu University, provision of Academic Block at Khushal Khan Khattak University in Karak, establishment of University of Balochistan campus in Zhob, establishment of Technical and Medical College in Gilgit, establishment of Federal Uni­versity in Hydera­bad, and centre of excellence under the CPEC.

Published in Dawn, June 4th, 2016