ISLAMABAD Prime Minister Syed Yusuf Raza Gilani on Saturday urged more allocations for social sector programmes focusing on poverty alleviation and underdeveloped regions including those of Gilgit-Baltistan, AJK and FATA.He was chairing the meeting of National Economic Council, days ahead of the new federal budget and specially convened to chart out future economic map of the country.Gilani called for a “sizeable allocation” for high impact strategic projects such as Diamir Bhasha dam, nuclear power generation and national highways.He said since the NEC meeting was being held in crucial times, it was important for all to take stock of the current economic situation and agree on certain broad directions in which the economy should move.
The Prime Minister said focus in future should be on private sector development by creating an enabling environment and necessary facilitation and hoped the New Growth Framework envisaged by the Planning Commission will play a pivotal role in this regard.
The Prime Minister called for taking measures to put the economy in higher gear so as to provide job opportunities to the youth, raise industrial and agricultural productivity to reduce poverty, and ensure better future for the young generation.
Referring to the next year’s PSDP, the Prime Minister called for focussing on completion of on-going schemes so that people can benefit from development programme without delay.
He urged the provincial governments to accord high priority to completion of on-going projects and not spread the resources thinly on new proposals.
The Prime Minister said that he has been monitoring the performance of various sectors of economy and has been urging the Planning Commission to address regional in-equity and sectoral imbalances.
Gilani hoped that the new financial year PSDP will bring in a new economic upcycle of inclusive growth and directed that the Economic Growth Framework,Annual Plan 2011-12 and PSDP 2011-12 should be in line with government’s policy of balancing economic stabilization with growth.
The Prime Minister said since 2008, the government has faced serious economic challenges and the worldwide economic recession caused a slow down of economic activities. He, however said the Government has been able to restore and maintain economic stability in the country.
He regretted that at a time when the government was looking forward to reap the benefits of economic stabilization and to regain the momentum of economic growth to a higher level, the country was hit by the devastating floods that affected over 50,000 sq. kms and displaced around 20 million people in eighty two districts.
He said the damage and need assessment report by the World Bank and Asian Development Bank estimated an overall loss of around Rs. 855 billion to the economy.
The worst affected sector was agriculture that suffered loss of around Rs.429 billion, followed by housing (Rs. 135 billion), Transport and Communications (Rs. 113 billion) and financial sector (Rs. 57 billion), he added.
The Prime Minister said to provide immediate relief to the affected people the government had to modify its priorities and the government had to enforce a cut of Rs. 100 billion in its development budget.
The provincial governments also managed savings in their respective budgets to provide rescue, relief and rehabilitation work.
The Prime Minister said the floods caused a massive dent to the agriculture sector, with rice and cotton crops being the worst hit. Rice production was down by 30%, while cotton crop recorded a reduction of 11%. The targeted growth rate of agriculture sector dropped from 3.8% to only 1.1%, negatively impacting GDP to grow by only 2.4% against the target of 4.5%.
The Prime Minister said persistent issues like power shortages, subsidies and resultant circular debt, and bleeding public sector enterprises have been another problem.
He however pointed that on the external front some important achievements were made and exports during the current fiscal year are estimated to be around US$ 24.6 billion - the highest level in economic history, besides workers’ remittances of around US$ 12 billion, which is also a record.
He said the government has been able to maintain a stable exchange rate and the current account deficit was estimated to be much lower this year in spite of high oil prices.
Gilani said that these enormous challenges have not deterred resolve to implement the 7th NFC Award in true spirit.
During the current fiscal year we transferred more than Rs. 300 billion additional resources to the provinces by cutting the Federal Government resources.
The Prime Minister appreciated the Council of Common Interest which has been deciding all matters with consensus.
The Prime Minister called for taking measures to put the economy in higher gear so as to provide job opportunities to the youth, raise industrial and agricultural productivity to reduce poverty, and ensure better future for the young generation.
Referring to the next year’s PSDP, the Prime Minister called for focussing on completion of on-going schemes so that people can benefit from development programme without delay.
He urged the provincial governments to accord high priority to completion of on-going projects and not spread the resources thinly on new proposals.
The Prime Minister said that he has been monitoring the performance of various sectors of economy and has been urging the Planning Commission to address regional in-equity and sectoral imbalances.
Gilani hoped that the new financial year PSDP will bring in a new economic upcycle of inclusive growth and directed that the Economic Growth Framework,Annual Plan 2011-12 and PSDP 2011-12 should be in line with government’s policy of balancing economic stabilization with growth.
The Prime Minister said since 2008, the government has faced serious economic challenges and the worldwide economic recession caused a slow down of economic activities. He, however said the Government has been able to restore and maintain economic stability in the country.
He regretted that at a time when the government was looking forward to reap the benefits of economic stabilization and to regain the momentum of economic growth to a higher level, the country was hit by the devastating floods that affected over 50,000 sq. kms and displaced around 20 million people in eighty two districts.
He said the damage and need assessment report by the World Bank and Asian Development Bank estimated an overall loss of around Rs. 855 billion to the economy.
The worst affected sector was agriculture that suffered loss of around Rs.429 billion, followed by housing (Rs. 135 billion), Transport and Communications (Rs. 113 billion) and financial sector (Rs. 57 billion), he added.
The Prime Minister said to provide immediate relief to the affected people the government had to modify its priorities and the government had to enforce a cut of Rs. 100 billion in its development budget.
The provincial governments also managed savings in their respective budgets to provide rescue, relief and rehabilitation work.
The Prime Minister said the floods caused a massive dent to the agriculture sector, with rice and cotton crops being the worst hit. Rice production was down by 30%, while cotton crop recorded a reduction of 11%. The targeted growth rate of agriculture sector dropped from 3.8% to only 1.1%, negatively impacting GDP to grow by only 2.4% against the target of 4.5%.
The Prime Minister said persistent issues like power shortages, subsidies and resultant circular debt, and bleeding public sector enterprises have been another problem.
He however pointed that on the external front some important achievements were made and exports during the current fiscal year are estimated to be around US$ 24.6 billion - the highest level in economic history, besides workers’ remittances of around US$ 12 billion, which is also a record.
He said the government has been able to maintain a stable exchange rate and the current account deficit was estimated to be much lower this year in spite of high oil prices.
Gilani said that these enormous challenges have not deterred resolve to implement the 7th NFC Award in true spirit.
During the current fiscal year we transferred more than Rs. 300 billion additional resources to the provinces by cutting the Federal Government resources.
The Prime Minister appreciated the Council of Common Interest which has been deciding all matters with consensus.
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