nwfp-whitepaper 2009-10

GOVERNMENT OF NWFPFINANCE DEPARTMENT

2009-10

WHITE PAPER

17TH June, 2009

FOREWORD

White Paper presents overview of the financial position of the Provincial

Government. It provides summary position of revenues from all sources (revenue and

capital) and estimated expenditure of all departments, inclusive of bulk transfers to

districts. Besides it presents analysis of the income and expenditure, by major functions,

sectors and major objects of income and expenditure. It also presents a comprehensive

analysis of the estimates for the Financial Year 2009-10 with those of Financial Year

2008-09 along with detail analysis of the Annual Development Programme.

The document provides information about macro level public finance, policy

initiatives, programmes and strategies. Overview of the issues pertaining to National

Finance Commission and Net-profits from Hydel Power Generation, revenues generated

from oil & gas explored in the province and local governments’ financing has been

included in this paper. Financial reforms like introduction of Medium Term Budgetary

Framework (MTBF) and Performance Based Budgeting (PBB) have also been introduced

in the document. The two reforms would enable the Provincial Government to link

input with output and ensure value for money and control over all fiscal deficit over the

medium term of three to five years.

I am thankful to the Chief Minister NWFP, AMEER HAIDER KHAN HOTI and

Minister for Finance NWFP, MUHAMMAD HUMAYUN KHAN for their valuable

guidance and support at different stages of budget preparation.

This time bound heavy task of budget preparation (2009-10) has been made

possible with the hard work and unrelenting support of all the officers and staff of

Finance Department. I avail this opportunity to acknowledge their dedication and

support in preparing the budget for Financial Year 2009-10 in time.

ABDUS SAMAD KHANSecretary Finance

Government of N.W.F.P

17th June, 2009

TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE

General Abstract of Revenue & Expenditure for the Year 2009-10

i

Budget at a Glance ii

Summary Position of Revenues for the Year 2008-09 & 2009-10

iii

Summary Position of Expenditure for the Year 2008-09 & 2009-10

iv

1 Current Revenue Expenditure 1

2 Provincial Revenue Receipts 19

3 Capital Receipts and Expenditure 27

4 Socio-Economic Indicators of NWFP 33

5 Revenue Distribution through NFC Awards 43

6 The Issue of Profits From Hydel Power Generation 48

7 Revenues from Oil and Gas Production 55

8 Revenues Transferred to District Governments 62

9 Subsidy on Procurement of Wheat 65

10 Hydroelectric Power Potential 69

11 Medium Term Budgetary Frame Work 73

12 Performance Based Budgeting 80

13 The Malakand Catastrophe 88

14 Annual Development Programme 90

ANNEXURES DESCRIPTION PAGE

I CDL Liabilities as on 01-07-2009 140

II Foreign Exchange Loan Liabilities as on 01-07-2009 141

IIIDisbursement of On Going Foreign Loans Against Allocated Share as on 01-07-2009

143

IV General Revenue Receipts 145

V Current Revenue Budget 148

VI Development Budget 150

VII Potential Hydel Power Generation Sites 154

VIII Annual Development Programme since 1970-71 160

IX State Trading 161

XGrowth in Provincial Current Revenue Budget & Total Current Revenue Receipts since 1973-1974

162

XIEstimated Resources to be transferred to Local Governments for the year 2009-10

164

(Rs. in million)

Head Budget

Estimates 2009-2010

Head Budget

Estimates 2009-2010

A-General Revenue Receipts A-Current Revenue Expenditure

Federal Tax Assignment 67,808.026 General Public Service 19,357.658

1/6th of Sales tax/2.5% GST on Sales Tax 7,861.533 Transfer to District Governments 34,895.500

Straight Transfers 7,549.003 Public order and Safety Affairs 11,487.139

GST on Services (Provincial) 2,110.364 Economic Affairs 6,118.510

Special Grant (Grant-in-Aid) 14,822.500 Environmental Protection 12.403

Provincial Own Receipts 7,537.200 Housing and Community Amenities 28.130

Profit from Hydel Power Generation 6,000.000 Health 2,989.963

Recreation, Culture& Religion 244.152

Education Affairs& Services 3,942.963

Social Protection 923.582

Total (A) 113,688.626 Total (A) 80,000.000

B-General Capital Receipts B-Current Capital Expenditure

Account I (Non- Food) 400.000 Account I (Non- Food) 3,266.785

Total (B) 400.000 Total (B) 3,266.785

C-Development Receipts C-Development Expenditure

Provincial ADP 32,546.412

Districts ADP 1,341.735

Population Welfare Programme 574.000 Population Welfare Programme 574.000

Special Dev: Federal Grant (PSDP) 10,050.485 Special Funded Programme PSDP 10,050.485

Foreign Project Assistance 6,644.324 Foreign Project 6,644.324

Total (C) 17,268.809 Total (C) 51,156.956

Total (A+B+C) 131,357.435 Total (A+B+C) 134,423.741

Net Deficit(-)/Surplus(+)Account I (3,066.306) (3,066.306)

D-General Capital Receipts Account II (Food)

79,757.381 D-Capital Expenditure Account II (Food)

79,757.381

Grand Total(A+B+C+D) 211,114.816 Grand Total(A+B+C+D) 214,181.122

Total Deficit(-)/Surplus(+) (Account I+ II) (3,066.306)

GENERAL ABSTRACT OF REVENUE AND EXPENDITURE FOR THE YEAR 2009-10

i

BudgetEstimates2008-09

RevisedEstimates2008-09


General Revenue Receipts 100,088.746 96,323.728 113,688.626 Revenue Expenditure 67,300.000 75,600.000 80,000.000Net Current Revenue Budget (Deficit ( - )/Surplus (+) 32,788.746 20,723.728 33,688.626

General Capital Receipts 400.000 400.000 400.000Current Capital Expenditure 4476.988 2,919.946 3266.785Net Current Capital Budget (Account-I) (Deficit ( - )/Surplus (+) -4,076.988 -2,519.946 -2,866.785

Receipts 13,178.738 11,647.118 17,268.809Expenditure 41,544.935 39,000.603 51,156.956Net Development Budget (Deficit ( - )/Surplus (+) -28,366.197 -27,353.485 -33,888.147D - CAPITAL BUDGET (Account-II)General Capital Receipts 57236.950 41,930.852 79,757.381Current Capital Expenditure 57,236.950 41,930.852 79,757.381 Net Capital Budget (Account-II) (Deficit ( - )/Surplus (+) 0.000 0.000 0.000Total Resources (A+B+C+D) 170,904.434 150,301.698 211,114.816Total Expenditure (A+B+C+D) 170,558.873 159,451.401 214,181.122Net Deficit ( - )/Surplus (+)) 345.561 -9,149.703 -3,066.306Revenue Deficit (-) / Surplus Account (+) 4,422.549 -6,629.757 -199.521Capital Account Deficit (-) / Surplus (+) -4,076.988 -2,519.946 -2,866.785

C - DEVELOPMENT BUDGET

ii

BUDGET AT A GLANCE

Rs.In Million

A - GENERAL REVENUE BUDGET

B - CURRENT CAPITAL BUDGET (Account-I)

Budget Revised BudgetEstimates Estimates Estimates2008-09 2008-09 2009-10

A-General Revenue Receipts

Federal Tax Assignment 59,684.257 56,099.975 67,808.026

Straight Transfers (less GST on services) 4,429.463 5,085.483 7,549.003

GST on services 766.568 747.471 2,110.364

Special Grant (Grant-in-Aid) 14,432.225 13,183.310 14,822.500

1/6th of Sales tax for District Government & Contt Boards 7,332.031 7,098.409 7,861.533

Provincial Own Receipts 7,444.202 6,427.252 7,537.200

Net Hydel Profits 6,000.000 6,000.000 6,000.000

Extra Budgetary Grants (Non Development) 1,681.828

Total General Revenue Receipts (A) 100,088.746 96,323.728 113,688.626

B-General Capital Receipts

Account I (Non- Food) 400.000 400.000 400.000

Total General Capital Receipts (B) 400.000 400.000 400.000

C-Development Receipts

Special Dev: Federal Grant PSDP -

Special Fedral Grant PSDP (i+ii+iii) 8,093.544 2,959.551 10,050.485

of which: i Grants 7,257.576 2,520.169 9,835.570

ii. Loans 237.085 439.382 214.915

iii. Unspent Balances of Previous years 598.883

Population Welfare Programme 468.000 419.535 574.000

Extra Budgetary Grant - 3,178.431 -

Foreign Project Assistance 4,617.194 5,089.601 6,644.324

Total Development Receipts (C) 13,178.738 11,647.118 17,268.809

Total Receipts (A+B+C) 113,667.484 108,370.846 131,357.435

D-General Capital Receipts Account-II (Food) 57,236.950 41,930.852 79,757.381

Total Resources (A+B+C+D) 170,904.434 150,301.698 211,114.816

iii

SUMMARY POSITION OF REVENUES FOR THE YEAR 2008-09 & 2009-10

Rs.In Million

Description

A-Current Revenue Expenditure

General Public Service 16,499.020 16,932.405 19,357.658

Transfer to District Governments 31,030.000 32,852.000 34,895.500

Public order and Safety Affairs 8,010.289 11,144.914 11,487.139

Economic Affairs 5,684.406 6,487.389 6,118.510

Environmental Protection 9.423 12.075 12.403

Housing and Community Amenities 56.669 102.937 28.130

Health 2,704.293 2,610.013 2,989.963

Recreation, Culture& Religion 195.847 264.593 244.152

Education Affairs& Services 2,791.688 3,070.148 3,942.963

Social Protection 318.365 2,123.526 923.582

Total Current Revenue Expenditure (A) 67,300.000 75,600.000 80,000.000

B-Current Capital Expenditure (Account-I)

Financial & Fiscal Affairs (Non-Food) 4,235.488 2,678.446 3,213.585

of which Foreign Debt Management 2,613.745 613.745 697.419

of which Domestic Debt Management 1,621.743 2,064.701 2,516.166

Transfers (Others) 241.500 241.500 53.200

Total Current Capital Expenditure (B) 4,476.988 2,919.946 3,266.785

C-Development Expenditure

Provincial ADP 27,148.197 29,286.300 32,546.412

Districts ADP 1,218.000 1,245.615 1,341.735

SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2008-09 & 2009-10Rs. in million

Description Budget

Estimates2008-2009


BudgetEtimates2009-10

iv

Special Federal Progamme PSDP (i+ii+iii+iv) 8,093.544 2,959.552 10,050.485

of which: i Grants 7,257.576 2,520.170 9,835.570

ii Loans 237.085 439.382 214.915

iii Unspent Balances of Previous years 598.883

Population Welfare Programme 468.000 419.535 574.000

Foreign Project Assistance 4,617.194 5,089.601 6,644.324

Total Development Expenditure (C) 41,544.935 39,000.603 51,156.956

Total Expenditure (A+B+C) 113,321.923 117,520.549 134,423.741

D-Current Capital Exp. Account-II (Food)

Domestic Debt Management (Food) 8,300.000 1,500.000 2,500.000

State Trading (Food) 48,936.950 40,430.852 77,257.381

Total Current Cap. Exp. Account-II (Food) (D) 57,236.950 41,930.852 79,757.381

Total Expenditure (A+B+C+D) 170,558.873 159,451.401 214,181.122

i. GRANTS 9,835.570

Special Programme (PWP-II) 4,062.000

Establishment of RHS - A Center (Population) 32.707

Education 194.282

Agriculture 1,887.476

Environment 325.246

Finance Sector 2,549.172

Health 19.687

Water 765.000

ii. LOANS 214.915

DERA 120.000

A.J.P 94.915

TOTAL (i+ii) 10,050.485


BudgetEtimates2009-10

Special Federal Programme(PSDP)

Description Budget

Estimates2008-2009

v

Rs. in million

1

Chapter 1: Current Revenue Expenditure

CURRENT REVENUE EXPENDITURE

NWFP has very limited tax base and relies for 92% of its revenues on the

Federal Government. All the vital socio-economic indicators of the Province are lowest

among the other Provinces. The Province is also confronted with war on terror, causing

huge losses to human life, business and property. The Provincial Government is

making all out efforts to economize on expenditure and give priority to social sector

spending.

2. Budget for the year 2009-10 as a standard practice has been segregated

into three parts i.e Welfare, Administration & Development Budget. 82.32% of the

current budget and 50 % of total budget has been allocated to welfare departments.

The detail is given as below:-

Table 1.1

(Rs. In million)

S.No Type of Budget

Revised Estimates 2008-09

% age Revised

Estimates 2008-09

Budget Estimates 2009-10

% age Budget

Estimates 2009-10

1 Welfare Budget

59,603.435 52 65,857.204 50

2 Other Budget 15,996.565 14 14,142.796 11

3 Development Budget 39,000.603 34 51,156.956 39

Total 114,600.603 100 131,156.956 100

3. The province intends to maintain the current expenditure at the level of

61% of total expenditure during financial year 2009-10 and the development

expenditure at 39% of the total expenditure. 68% of the current budget goes to the

wage bill (Pay & Pension) which is continuously increasing with the creation of new

infrastructure. 10% of the current budget has been allocated for debt servicing, 3% each

for wheat subsidy and government investment for creating pension and GP funds and

2


Establishment Charges

59%

Govt. Investment

3%

Subsidies3%

Debt Servicing10%

Pension9%

O & M16%

thus only 16% of the current budget is left for O&M of the entire Provincial & District

infrastructure as well as many unforeseen expenditures. The comparative position is

depicted in the following table and pie graph:-

Table 1.2 (Rs. In million)

S.No Expenditure Head Budget

Estimates 2008-09



1 Establishment Charges 40,400.503 42,868.152 48,159.577

2 Pension 5,777.418 6,184.227 7,172.089

3 O & M 12,530.995 18,256.536 12,560.302

4 Debt Servicing 6,591.084 6,291.084 8,108.032

5 Subsidies 2,000.000 2,000.000 2,000.000

6 Govt: Investment 1,350.000 1,350.000 2,000.000

Total 67,300.000 75,600.000 80,000.000

MAJOR HEADS OF CURRENT EXPENDITURE

(Budget Estimates 2009-10)

3


4. The outlay for government investment has been made to save money for

meeting future deferred liabilities of pension and GPF. It is prudent to invest the funds in

profitable schemes to generate funds for growing expenditure requirements of the

future. Investment funds of Government of NWFP at the moment include General

Provident Investment Fund, Pension Fund and Hydel Development Fund.

5. For financial year 2009-10 Current Revenue Expenditure has been

estimated at Rs. 80.00 billion, as against Rs. 67.30 billion for the current financial year

2008-09 showing an increase of 18.87%. Brief analysis of the Current Budget is as

follows:-

Table 1.3

(Rs in million)

S.No Description Budget

Estimate 2008-09

Revised Estimate 2008-09

Budget Estimate 2009-10

Salary: 40,400.503 42,752.496 48,159.577

a) Provincial 14,202.503 14,752.496 18,659.577 1

b) Districts 26,198.000 28,000.000 29,500.000

Non Salary: 9,130.995 196,984.000 11,485.300

a) Provincial 5,713.995 15,437.196 7,646.300 2

b) Districts 3,417.000 12,020.196 3,839.000

Maintenance & Repairs: 1,025.000 1,585.000 1,075.004 a) Road, Highway & Bridges

(Repair) 825.000 1,020.000 825.000 3

b) Buildings & Structure (Repair) 200.000 565.000 250.004

4 Pension 5,777.418 6,184.227 7,172.089

5 Wheat Subsidy 2,000.000 2,000.000 2,000.000

6 Government Investment 1,350.000 1,350.000 2,000.000

7 Debt Servicing 6,591.084 6,291.084 8,108.032

Total 67,300.000 75,600.000 80,000.000

4


EEDDUUCCAATTIIOONN

6. Quality education is vital for economic development of a nation. The

Provincial Government is making all out efforts for the promotion of education. It’s the

largest department having staff strength of 1,82,707 employees (both elementary and

higher education sectors). Professional and technical streams of educations are in

addition to this. Budget for the higher education department has been separated from

the ensuing financial year 2009-10. However its budget and revised estimates for the

current financial year 2008-09 have been jointly reflected with elementary secondary

education department against the existing grant No.12. All the 27,471 schools under the

Elementary & Secondary Education Sector are funded through the District Budget. The

Provincial Department comprises of the Secretariat, Directorate, RITEs and PITE. The

budget of education sector has shown cumulative growth rate of 14.36% over the past

seven years. Revised Estimates of Education budget (current) from financial year 2002-

03 to 2008-09 are as follows:-

Table 1.4

Financial year Revised Estimate

% change

2002-03 10,090.637

2003-04 11,423.444 13.21

2004-05 13,134.273 14.98

2005-06 15,614.621 18.89

2006-07 17,606.510 12.76

2007-08 19,710.142 11.95

2008-09 22,173.910 12.50

7. Over the last four years (2005-06 to 2008-09), total numbers of schools

have increased from 26,243 to 27,471 (including primary, middle, high and higher

5


secondary schools). Similarly enrolment has increased from 3.28 million students to

3.70 million. Table given below elaborates the position:-

Table 1.5

No. of Schools Enrollment School Type

2005-06 2006-07 2007-08 2008-09 2005-06 2006-07 2007-08 2008-09

Primary 22,183 22,281 22,730 22,881 2,413,228 2,625,627 2,758,656 2,881,962

Middle 2,443 2,437 2,527 2,617 217,121 210,850 206,792 205,349

High 1,379 1,500 1,618 1,692 484,933 516,324 544,076 535,118

Higher 238 261 272 281 169,378 181,827 192,752 194,782

Total 26,243 26,479 27,147 27,471 3,284,660 3,534,528 3,702,276 3,817,211

(Source: NWFP EMIS Report)

8. During the current financial year 2008-09, the following schools/colleges

have been established / upgraded:

Table 1.6

S.No. Schools/Colleges Number of Schools/Colleges Posts created

i. Govt: Primary Schools. 106 322

ii. Govt: Middle Schools. 53 431

iii. Establishment of High Schools. 2 30

iv. Upgradation of Middle to High status.

48 342

v. Upgradation of High to Higher Secondary level.

5 85

vi. Establishment of Degree Colleges. 7 285

vii. Starting of Post Graduate Degree Colleges.

5 33

viii. Creation of posts for Hostels. 8 23

Total 1551

9. For the next financial year 2009-10 the following schools/colleges/offices

are proposed to be established/upgraded, involving creation of 357 additional posts:-

6


Table 1.7

S.No Schools/Colleges Numbers of

Schools/ Offices/Colleges

Posts to be created.

i. Primary Schools 14 41

ii. Middle Schools 18 145

iii. High Schools. 15 113

iv. Higher Secondary Schools 2 28

v. Additional Posts for existing Colleges 0 8

vi. Dy: District Offices 2 12

vii. Elementary & Secondary Education Department 0 10

Total 357

10. Against the Revised Estimates 2008-09 (provincial budget) amounting to

Rs.1876.410 million, a provision for Rs.2246.910 million has been made in Budget

Estimates 2009-10 both for Elementary & Higher Education Sectors, showing an

increase of 19.75%. District Government figures of Education for financial year 2009-10

are not available at the moment, therefore, projected figures, based on the

proportionate share of education in the Revised Estimates 2008-09, have been taken.

Total allocation for the financial year 2009-10 for Education Sector is Rs. 24,554.579

million which shows an increase of 13% over the Budget Estimates for Financial Year

2008-09.

11. Detail of Budget proposed to be earmarked for Elementary & Secondary

Education Department for next Financial Year 2009-10 (Provincial Budget) is as under:-

7


Table 1.8

Budget Estimates 2009-10 S.No Function

Budget Estimates 2008-09 Salary Non Sal Total

1. RITEs 91.894 103.316 104.957 104.957

2. Directorate/Administration 20.586 22.850 25.771 25.771

3 Training Institutes 125.858 51.219 53.077 53.077

4 Secretariat 23.954 28.741 112.595 112.595

Total 262.292 206.126 90.274 296.400

HIGHER EDUCATION 12. There are 144 colleges (97 Male and 47 Female) in the Province with a

gross enrolment of 1,09,952 (73,386 Male and 36,566 Female). The staff strength of

colleges sector is 8,004, out of which 4,256 is teaching staff and 3,748 is non-teaching

staff. Current budget allocated for the sector during 2008-09 was 1588.240 millions.

Allocation for 2009-10 is Rs. 1873.736 millions (Male Rs. 1417.985 and Female Rs.

455.751 millions) which is 15.2% higher than the previous year. Per student expenditure

is Rs. 17,041 per annum (Male Rs. 19,322 and Female Rs. 12,465). Over all teachers

student ratio is 1:26.

13. Detail of Budget earmarked for Higher Education, Archives & Libraries

(Provincial) for next Financial Year 2009-10 is as under:-

Table 1.9

Budget Estimates 2009-10 S.No Function

Budget Estimates 2008-09 Salary Non Sal Total

1. Secretariat 33.246 45.471 3.086 48.557

2. General colleges 1588.240 1751.886 121.850 1873.736

3 Archives & Libraries 20.111 22.338 5.879 28.217

Total 1641.597 1819.695 130.815 1950.510

8


HEALTH

14. The Provincial Government is committed to provide quality healthcare

services to the people of NWFP and in this connection has pursued the policy of

reforms to strengthen the health care system. Main emphasis has been on improving

the infrastructure, human capital and governance with a view to improve the healthcare

services delivery. At the same time Maternal and Child Health care and prevention of

communicable diseases (TB, Malaria, Hepatitis, HIV/AIDS, etc) have been the priority

areas.

15. As regards tertiary health care, the process of autonomy has been

strengthened by appointing full time Chief Executives, after transparent competitive

process. Specialized institutions have been established in the disciplines like Child

Health and Emergency Services. As promised by the Government, the project of

Emergency Ambulance Services “Rescue 1122” has been approved and will be

implemented soon. The same will be replicated in a phased manner. Hostels have been

constructed for Doctors and Nurses in Khyber Teaching, HMC and LRH to resolve the

issues of accommodation.

16. A sum of Rs. 4,024.780 million has been allocated in the budget 2009-10

for Health Sector, which shows an increase of 13.87 % over the Budget Estimates

2008-09. Allocation for the District Level Devolved health setup is about Rs. 3219.810

(projected @ 10%) during the 2009-10 which shows an increase of 10 % over the

Budget Estimates 2008-09.

17. Besides the regular budgetary allocations the following interventions have

been funded separately:-

9


i. A sum of Rs. 266.970 million has been allocated for purchase of Medicine

for BHUs.

ii. Performance Based Budgeting has been piloted in selected BHUs, Civil

Dispensaries and Mother & Child Health Centre in 10 districts. A sum of

Rs. 63.85 million has been allocated during 2009-10 for PBB activities in

10 pilot districts.

18. 1108 posts have been created from the next financial year 2009-10,

through SNE (Fresh), which includes 529 posts for the Provincial offices/institutions and

579 for the offices/institutions devolved to the District Governments.

19. The Government is providing regular Grant-in-Aid to the Autonomous

Health Institutions. They are allowed to retain and utilize receipts realized by them

which forms part of the institutions’ funds. Detail of Grant-in-Aid provided during the

current Financial Year 2008-09 and the granted proposed for the next financial year

2009-10 is given as under:-

Table 1.10

S.No Institution B.E. 2008-09 R.E.2008-09 B.E. 2009-10 1 Lady Reading Hospital. 555.318 684.483 614.713

2 Khyber Teaching Hospital. 388.628 472.519 439.155

3 Khyber Medical College. 126.600 195.866 150.128

4 Khyber College of Dentistry. 40.193 79.561 59.878

5 Hayatabad Medical Complex. 204.983 296.074 231.920 6 Post Graduate Medical Institute 216.109 297.039 280.329 7 Ayub Teaching Hospital. 207.439 255.822 234.619

8 Ayub Medical College. 142.557 204.191 159.036 Total 1881.827 2485.555 2169.778

20. The existing infrastructure of health facilities has been upgraded and is

being further strengthened at all levels ranging from Basic Health Units (BHU) to

Secondary and Tertiary Health Care Institutions with a view to improve the quality and

10


to provide both preventive and curative services to the people of NWFP at their

doorsteps. Provision of generators and ambulances has been ensured for all the

Hospitals in NWFP by making the system more responsive to the challenges of the

Health service delivery.

21. Besides the above, grants-in-aid for the following purposes has been

provided:-

Table 1.11

S.No Institution/Purpose 2008-09 2009-10

1 Endowment Fund. 100,000,000 100,000,000

2 Provision of Emergency Drugs for poor & wounded patients.

100,000,000 100,000,000

3 Cardiology Unit, Lady Reading Hospital. 40,000,000 40,000,000

4 Cardiovascular Unit, Lady Reading Hospital, Peshawar.

20,000,000 20,000,000

5 Khyber Medical University 50,000,000 50,000,000

6 Fatimid Foundation 2,000,000 2,000,000

7 Paraplegic Centre Hayatabad. 14,000,000 20,000,000

8 Hamza Foundation. 1,000,000 1,500,000

9 Health Regulatory Authority. 0 20,000,000

Total 327,000,000 353,500,000

22. A sum of Rs. 450 million has been allocated so far, for the Endowment

Fund established under the NWFP (Medical Relief) Endowment Fund Act 2003. The

Funds are invested in banks and the revenues generated on that account are used for

the purchase of heavy diagnostic machinery/equipment like MRI & CT Scanners etc.

11


POPULATION WELFARE DEPARTMENT.

23. The Directorate and districts’ setup of the Population Welfare Department

is funded by the Federal Government, through PSDP. The Provincial Government is

providing budget to Secretariat only and the position of budget allocated for the

secretariat is as under:-

Table 1.12

(Rs. in million)




6.188 8.690 6.670

POLICE

24. The wave of extremism and terrorism in NWFP has turned in to

insurgency. Taliban have challenged the writ of the government, killing hundreds of

innocent citizens and causing heavy losses to business and property. The menace of

terrorism is on the rise, which is challenging for the integrity and security of the country.

This situation has increased the expenditure on law & order manifolds. Despite limited

resources, adequate funds have been provided to Police Department for meeting its

urgent needs. In the said backdrop, there is a sharp increase in the budget of Police as

evident from the following table:-

Table 1.13 (Rs. in million)

Year. Budget Estimates % Increase

2005-06 3692.708 7.00% 2006-07 4527.282 22.60% 2007-08 5141.126 13.56% 2008-09 6558.418 27.57% 2009-10 9677.150 48.00%

25. The total sanctioned strength of executive personnel of police stands at

52,650 with 2,363 ministerial staff. Budget Estimates for 2009-10 have shown a record

increase of 48% over Budget Estimates 2008-09. Sizeable amount has been spent on

12


improvement of mobility, communication, arms and ammunition during 2008-09 and

significant allocation has been made in budget estimates 2009-10 for the same. Main

reasons for the 48% extraordinary increase are as follows:-

i. Creation of 2657 posts for establishment of Special Elite Force for

combating terrorism effectively.

ii. Grant of Risk Allowance to executive personnel, equal to Basic Pay,

creating a liability of Rs. 2117.014 million.

iii. Rs. 442 million on account of Incentive Allowance @ Rs. 775/- per month

to Constables, Head Constables and ASIs.

iv. Compensation to the tune of Rs. 1.5 million paid to the heirs of Police

Shuhada; and allocation for compensation of injured personnel.

26. Same is the position with regard to Home and Tribal Affairs Department

where exceptional increase of Rs. 802.140 million has been made in Revised Estimates

2008-09 in comparison to Rs. 273.661 million Budget Estimates 2008-09, showing an

increase of 193%, which is mainly due to the allocation made for compensation for the

affectees of the bomb blasts. The Revised Estimates includes Rs. 340.000 million

received from Federal Government for payment as compensation to the affectees of the

bomb blasts. Further more Rs. 50.000 million has been kept in Budget Estimates 2009-

10 for creation of an emergency fund, facilitating prompt and immediate payment of

compensation to the affectees of bomb blasts.

27. The present wave of terrorism in the NWFP has shot up since 2007. 359

terrorist incidents were reported during that year. The number increased to 524 in 2008.

The number of casualties from suicide bombings, for instance, was highest in the world

surpassing Iraq and Afghanistan. In the four months period of the current calendar year

2009, a total of 274 terrorist attacks have taken place. Police casualties during 2007

were 62, which went up to 117 in the year 2008 and 46 during the first four months of

2009.

13


Table 1.14 TERRORIST INCIDENTS FROM 2004 TO MAY 2009

Persons Killed Persons Injured YEARS No. of Cases

Registered Forces Civilian Total Forces Civilian Total

2004 27 9 4 13 13 58 71

2005 1 0 0 0 0 0 0

2006 38 18 55 73 24 121 145

2007 359 156 253 409 423 592 1015

2008 524 194 408 602 430 885 1315

Upto 15.5.2009

274 89 124 213 237 398 635

Total 1223 466 844 1310 1127 2054 3181

28. A concerted and sustained campaign is under way to apprehend the

terrorists and foil their evil designs. A total of only 9 cases were registered in the year

2006 under the Explosives Act. The figure went up to 75 in 2007 and 94 cases in 2008.

In the year 2009, 24 cases have been registered till 15-05-2009. A lot of arms and

ammunition have been seized during 2008 and 2009. Action against the proclaimed

offenders has broken their nexus with terrorists and narco-mafia

FFOORREESSTT 29. N.W.F.P is home to some of the most important natural resources in

Pakistan, particularly forests. The N.W.F.P contains 40% of Pakistan’s forests (of which

three quarters are in the northern mountains) with about 2.1 million hectares of

rangelands. For financial year 2009-10 a sum of Rs. 444.4500 million has been

provided for forestry sector against the Revised Estimates for financial year 2008-09 of

Rs. 488.374 million. The deficiency is usually met during the revision of the budget

estimates in January every year.

14


AAGGRRIICCUULLTTUURREE 30. Agriculture has been the backbone of the economy of N.W.F.P. In 2002-

03, it contributed about 20% of the Provincial GDP and provided employment to an

estimated 44% of the labour force. Agriculture sector has vital role in fostering the

economy of the province. About 80% rural population of the province is dependent for

their livelihoods on this sector. Primary goal of this sector is to ensure food security,

alleviation of poverty and to generate employment opportunities, by achieving higher

growth rate in this vital sector of the economy. Agriculture can easily attain the status of

big industry in the province if proper care and patronage is extended to it.

31. Keeping in view, this important factor, the provincial government has

initiated certain reforms for the development of this sector. Advanced technology is

being used to precisely level the farms on scientific patterns, for economical use of

water resulting in increased crops production. Farm Services Center, established at

District and Tehsil level provides improved varieties of seeds and other agricultural

inputs alongwith educating the farmers in modern techniques of agriculture and

livestock breeding. Similarly, interest free loans are provided to farmers. The

government is also providing incentives for attracting investment in the livestock sector.

32. Due to the gradual revival of Agriculture Engineering Wing, its offices have

been opened in various districts. This Wing provides bulldozers for land levelling,

bringing barren land under cultivation. Apart from this, the Wing also provides modern

instruments of farming like tractors and technical know how for repair and maintenance

of agricultural machinery and instruments. The district level offices and workshops also

provide repair services to private Tube Wells.

33. For the financial year 2009-10 the budget of Agriculture Department has

been fixed at Rs. 627.176 million while for the current financial year the budget

estimates were Rs. 500 million. The budget for the next financial year 2009-10 is

25.44% higher than the budget estimates of the current financial year 2008-09. This

15


increase is due to revival of the offices of Agriculture Engineering at Mardan and

repatriation of 194 persons of various categories to provincial side from the districts.

HAJJ AND AUQAF 34. The Provincial Government every year sends low paid government

servants for performance of Hajj. The number of Government employees sent for Hajj

upto 2008 was 115, whereas during 2009-10, it has been increased to 135 persons and

a sum of Rs. 27.091 million has been initially allocated in the budget for the purpose.

The, funds will be released on actual need basis.

IRRIGATION

35. The economy of Pakistan largely depends on agriculture being agrarian.

The share of agriculture sector in the country’s GDP is about 24%. NWFP is a food

deficient province. Since agriculture is the major water harvester, therefore sustainability

of this sector directly depends on timely and adequate availability of water. To meet the

growing food demands, there is a need to exploit the available water resources in the

most efficient and effective manner. Total cultivable land in NWFP is 6.55 million acres,

whereas irrigated area is only 2.27 million acres, which is only 34.65 % of cultivable

area. Due to lack of industrial development in the province, the importance of

agriculture is crucial, which mainly depends on effective Irrigation system. The annual

wheat requirements of NWFP is about 3.7 million M.tons out of which its domestic

production is hardly about 1.118 million M.tons. It is thus facing wheat shortage of

nearly 2.615 million tons this year which is met from PASSCO/TCP and open market

purchases from Punjab.

36. NWFP has a network of Irrigation Canals, substantiating the agriculture

production. Trend in the budgetary provision for Irrigation Sector, (Current Budget) is

reflected in the following table:-

16


Table 1.15 (Rs. in million)

S.No Year Establishment Electricity O&M Total

1 2006-07 706.000 305.926 309.481 1320.516

2 2007-08 936.283 303.727 39.579 1279.589

3 2008-09 809.000 253.029 413.193 1475.005

4 2009-10 818.000 255.275 361.463 1434.510 (Revised Estimates 2006-07 to 2008-09 & Budget Estimates 2009-10)

37. Budget Estimates 2009-10 for Irrigation sector shows an increase of 3%

over the budget estimates of Rs. 1391.995 million of the current financial year 2008-09.

TECHNICAL EDUCATION

38. Technical education and manpower training is playing key role in the

development of the economy. It caters for the needs of both public and private sectors

by providing technical and vocational training along with education in commerce. This

objective is accomplished through a network of polytechnic institutes, commerce

colleges and vocational training centres, spread over the province.

39. The Directorate of Technical Education & Manpower Training, NWFP is

imparting training skills under the financial assistance of National Vocational &

Technical Education Commission (NAVTEC), a Prime Minister’s Programme. The

existing 26 Technical & Vocational Centers (male/female) are engaged in providing

training in the trades of welding, plumbing / pipe fitting, carpentry, auto, tailoring.

electronics, CAD/CAM, civil draftsman, mechanical draftsman, surveyor (Civil), repair of

house hold appliances, food technology, embroidery, dress making & designing, fancy

leather work, office automation fabric printing, hand and machine knitting, etc. The

trainees are paid stipend @ Rs. 1000/- per month during three month short-term

vocational training.

40. Under the Special initiative of the Prime Minister of Pakistan, 12 Govt.

Technical & Vocational Centres for boys at a cost of Rs.183.863 million are being

established in the uncovered Tehsils of NWFP. These Tehsils are Dargai (Malakand),

17


Samarbagh (Dir Lower), Pabbi (Nowshera), Sawari (Bunair), Boomi (Chitral), Takht-e-

Nasrati (Karak), Paharpur (D.I.Khan), Baffa (Mansehra), Dassu (Kohistan), Lachi

(Kohat) and Bathkhela (Malakand). Under this project 8640 trainees will get Vocational

Training in 11 different trades. The trainees will be paid monthly stipend @ Rs. 2000/-

during the three month training. After completing their training, tool kit in the relevant

trade is also being provided to them.

41. The Technical Education Directorate is responsible for education and

training, having a network of 81 institutes. Overview of the different types training

institutes with staff strength is tabulated as follows:-

Table 1.16

TECHNICAL INSTITUTES BY TYPE

S. No Category No. of Institutes Staff

1 College of Technology 13 1510

2 Polytechnic Institutes 06 284

3 Colleges of Commerce and Management 20 1015 4 Technical and Vocational Centers 39 1270 5 Advance Technical Center 01 27 6 Teacher Training Technical Center 01 35

7 Skill Development Center 01 06

Total 81 4145

42. A sum of Rs. 632.600 million has been allocated for Technical Education

during the financial year 2009-10 which shows an increase of 5.01% over the Budget

Estimates 2008-09.

WORKS & SERVICES DEPARTMENT 43. Works & Services Department has been mandated the task of

construction of Roads, Highways, Buildings, Water Supply & Sanitation Schemes and

other civil works within the province. In addition to the above, repair and maintenance

responsibilities are also assigned to the Department. Works & Services Department

18


also executes the construction of buildings for Schools, Colleges, Health facilities and

other works of other Line Departments.

44. Communication plays vital role in the economic development. There is a

road network of 24611 Kms in the province, which is being expanded and improved

continuously. Detail of the roads network is as follows:-

Table 1.17

ROAD NETWORK OF NWFP

Motor Ways (M-I) 89 Km

National Roads 1720 Km

Provincial Roads 1622 Km

District Roads 8556 Km

Irrigation Roads 1993 Km

Local Area Authorities 631 Km

Total Length 14611 Km

45. For Financial Year 2009-10 a sum of Rs. 1216.214 million has been

earmarked which includes Rs. 825.000 million for Repair & Maintenance of Roads,

Highways & Bridges (Provincial). Detail of the allocation for the W&S sector has been

shown in the following table:-

Table 1.18

(Rs. in million)

Head Revised

Estimates 2008-09


Works and Services (Operational Budget) 137.000 123.584

Roads Highways & Bridges (Repair) 1,020.000 825.000

Building & Structure (Repairs) 565.000 250.000

Public Health Engineering 36.680 17.630

Chapter 2: Provincial Revenue Receipts

19

PROVINCIAL REVENUE RECEIPTS

On revenue side, the Government has geared up its machinery by

adopting Out of Box Strategy containing five elements: i.e. horizontal expansion of

revenue, vertical growth of revenue, addressing factors of production, improving

governance and granting incentive to tax collecting departments. This policy will

alleviate common man miseries through improved procedure of tax mechanism.

2. The Provincial Receipts during financial year 2009-10 are estimated at

Rs. 7537.200 million, comprising Tax Receipts of Rs. 3881.500 million (51.5%) and

Non-Tax receipts of Rs 3655.700 million (48.5%). Tax Receipts includes 31% direct

taxes and 69% indirect taxes. The details of direct and indirect taxes are as under:-

DIRECT TAXES 3. Direct taxes include taxes on Agriculture, Property, Land Revenue and

business etc. The Revised Estimates of receipts from direct taxes during 2008-09 is Rs.

903.140 million as compared with the Budget Estimates 2009-10 of Rs. 1203.166

million, showing an increase of 33%.

INDIRECT TAXES 4. Indirect taxes include Provincial Excise, Motor Vehicle Tax, Stamp Duties

and other taxes. Revised Estimates for financial year during 2008-09 from indirect

taxes is estimated at Rs. 2135.440 million as compared with the Budget Estimates

2009-10 of Rs. 2678.334 million registering an increase of 25%.

5. The table below indicates trend of taxes under Provincial Tax Receipts

since 2004-05 to 2009-10. Most of the heads incorporated in the following table show

up-ward trend in growth rate since 2004-05 to 2009-10 while a few have registered a

negative trend as well.


20

TABLE 2.1 TTRREENNDD OOFF TTAAXXEESS SSIINNCCEE 22000044--0055 TTOO 22000099--1100

(Rs. in million) Actuals Estimated

2004-05 2005-06 2006-07 2007-08 Budget

2008-09 Revised 2008-09

Budget 2009-10

DIRECT TAXES Tax from Agriculture (A.I.Tax) 46.933 18.145 19.819 19.707 90.000 18.623 90.000

Urban Immovable Property Tax (Net) 31.609 31.702 57.499 56.091 116.630 67.580 92.000

Tax on Transfer of Property (Registration)

42.416 44.968 55.656 67.476 150.000 112.899 150.000

Land Revenue 375.018 429.949 562.216 603.992 758.166 621.038 758.166

Tax on Profession, Trades & Callings 48.682 65.535 71.193 84.170 173.225 83.000 113.000

Total Direct Taxes 544.658 590.299 766.383 831.436 1288.021 903.140 1203.166

INDIRECT TAXES

Provincial Excise 20.357 19.679 25.836 31.370 54.980 25.000 33.000

Stamp Duty 333.113 352.374 441.396 411.504 701.834 534.440 701.834

Motor Vehicle Tax 546.766 603.937 687.153 667.494 1137.923 851.000 1104.500

Entertainment Tax 3.504 5.159 19.988 4.731 15.000 3.000 4.000

Others/ Hotel Tax 13.927 12.804 15.133 16.392 40.000 24.000 34.000

Tobacco Development Cess/KDF

205.999 313.382 219.052 205.419 186.000 278.000 381.000

Electricity Duty 183.131 121.416 97.968 33.490 450.000 420.000 420.000

Total Indirect Taxes

1306.797 1428.751 1506.526 1370.400 2585.737 2135.440 2678.334

Total Provincial Taxes

1852.055 2019.050 2272.909 2201.836 3873.758 3038.580 3881.500

NON TAX REVENUE

66. Non-tax Revenue for the financial year 2009-10 are estimated at

Rs.3655.700 million. These are based on the following heads:-

a) User Charges.

b) Income from Civil Administration.

c) Interest and Dividend.


21

a) User Charges

7. Detail of user charges is as under.

Table 2.2

(Rs in million)

BE 2008-09 RE 2008-09 BE 2009-10

I. Community Services

1 Buildings 72.000 85.000 100.000

2 Communication 110.000 129.000 131.630

3 Public Health 110.000 130.000 156.000

Total (I) 292.000 344.000 387.630

II. Social Services 1 Education 143.550 143.600 160.700

2 Tech. Education 10.000 11.000 10.000

3 Health 198.500 209.330 231.500

4 Man Power 5.500 6.000 5.500

Total (II) 357.550 369.930 407.700

III. Economic Services 1 Agriculture 116.500 83.600 115.120

2 Fisheries 15.000 11.500 15.000

3 Live stock and Dairy Development

31.600 35.000 38.000

4 Forests 584.640 584.640 584.640

5 Irrigation 575.000 350.000 395.000

6 Industry-Excise Duty 40.000 30.000 40.000

7 Printing Stationery 30.000 30.000 30.000

8 Industries 2.500 2.500 2.500

Total (III) 1395.240 1127.240 1220.260

Grand Total (I+II+III) 2044.790 1841.170 2015.590


22

b) Civil Administration

8. The Civil Administration includes receipts from Home & Tribal Affairs

Department, Law and General Administration Departments. Department wise RE 2008-

09 and BE 2009-10 is as under:-

Table 2.3 (Rs in million)

S.No Name Of Department BE 2008-09 RE 2008-09 BE 2009-10

1 Home & Tribal Affairs 510.580 571.080 620.090

2 Law Department (Registrar Peshawar High Court)

91.000 91.000 91.000

3 General Administration 87.000 87.000 93.000

Total 688.580 749.080 804.090

c) Interests & Dividends

9. During the year 2008-09 the target was Rs. 140.000 million while for the

next financial year 2009-10 the target is Rs. 160.000 million.

TABLE 2.4

GENERAL ADMINISTRATION AND LAW & ORDER (Rs. in million)

Actual

2004-05 Actual

2005-06 Actual

2006-07 Actual

2007-08 BE

2008-09 RE

2008-09 BE

2009-10

General Administration

41.943 53.065 61.992 78.194 87.000 87.000 93.000

Administration of Justice

52.495 54.336 66.465 53.429 91.000 91.000 91.000

Police 138.634 135.634 185.632 206.931 399.500 460.000 500.000

Jails 12.771 3.624 3.524 7.347 11.000 11.000 20.000

Total: 245.843 246.659 317.613 345.901 588.500 649.000 704.000


23

10. Examination fees, receipts-in-aid of superannuation and receipts under

the Weights and Measures and Trade Employees Act are covered under the General

Administration whereas general fees, fines and forfeitures, receipts from record rooms

and collection of payments for services rendered are part of the Administration of

Justice. Receipts from Police include charges for force supplied to the Federal and

Provincial government departments, fees and forfeitures. Receipts from jails accrue

from sale of manufactured goods, and reimbursements from the federal government

comes under the Civil Defence. Receipts under these heads are showing persistent

growth over time.

COMMUNITY SERVICES 11. The composition of receipts from Community and Social Services is as

under:

a) Tolls on roads and bridges.

b) Sales of tender forms.

c) Registration fee for contractors.

d) Confiscation of earnest money.

e) Payments for services rendered and recovery of departmental charges by Public Health Department.

SOCIAL SERVICES

a) Education.

b) Health.

c) Manpower Management.

d) Housing and Physical Planning.

e) Receipts under the Wild life (birds and Animals) Protection Act.


24

TABLE-2.5 RECEIPTS FROM COMMUNITY AND SOCIAL SERVICES

(Rs. in million)

Actual 2004-05

Actual 2005-06

Actual 2006-07

Actual 2007-08

BE 2008-09

RE 2008-09

BE 2009-10

Works 95.215 132.060 155.233 185.386 182.000 214.000 231.630

Public Health 51.893 44.368 60.419 96.788 110.000 130.000 156.000

Education 106.105 73.596 37.353 83.948 143.550 143.600 160.700

Health 127.898 73.966 59.094 55.924 198.500 209.330 231.500

Manpower Management

3.129 2.640 2.991 1.716 5.500 6.000 5.500

Total 384.240 326.630 315.090 423.762 639.550 702.930 785.330

12. The Receipts from tolls are now being diverted to Roads Maintenance

Fund. Similarly reason for decline in receipts from Health is due to retention of receipts

by the Teaching Hospitals due to the financial autonomy given to the said hospitals.

TABLE- 2.6 RECEIPTS FROM ECONOMIC SERVICES

(Rs. in million) Actual

2004-05 Actual 2005-06

Actual 2006-07

Actual 2007-08

BE 2008-09

RE 2008-09

BE 2009-10

Agriculture 58.241 71.412 59.913 117.120 116.500 83.600 115.120

Fisheries 3.388 6.338 7.394 11.119 15.000 11.500 15.000

Live stock and Dairy Development

22.513 27.373 27.408 31.573 31.600 35.000 38.000

Forests 420.341 350.175 566.596 547.572 584.640 584.640 584.640

Irrigation 236.828 251.147 270.749 268.156 575.000 350.000 395.000

Other Mine & Quarries

184.458 240.805 265.511 336.923 400.000 400.000 400.000

Printing 28.841 23.429 36.640 27.693 30.000 30.000 30.000

Industries 3.073 2.225 2.344 2.205 2.500 2.500 2.500

Total: 957.683 972.904 1236.555 1342.361 1755.240 1497.240 1580.260


25

IRRIGATION

13. It consists of the following:

(i) Abiana (ii) Farmers Organizations

(i) Abiana

14. The Provincial Government collects water charges from the farmers who

avail irrigation system facility. Water charges are collected during Kharif and Rabi

seasons. Besides Canals, water is supplied through tube wells, Irrigation channels,

gravity and lift irrigation schemes and dams. The expenditure incurred to run the system

is charged in the shape of Abiana which is always less than the actual expenditure.

Reforms are being carried out for beneficiary participation and improved utilization of

water resources, with the help of the World Bank, through National Drainage

Programme.

(ii) Farmers Organizations

15. Under the reforms, farmer organizations have been established under

Mardan Area Water Board to run the system on pilot basis. Farmer organizations have

been empowered to collect abiana with transfer of O&M responsibility of minor channels

and water courses. Six farmer organizations have been given the responsibility to

collect Abiana and look after the water courses. In order to run the system effectively

farmer organizations have been allowed to retain 40% of the Abiana collected.

ENERGY & POWER

16. On establishment of Energy & Power Department, the electricity duty has

been separated and assigned to this new Department. Electricity duty is collected by

WAPDA on behalf of the Provincial Government. It has been noticed that WAPDA is not

crediting the electricity duty to Provincial Government and it has also been observed

that the said duty is adjusted at source by the Federal Govt. / WAPDA on account of

electricity bills, usually of local governments.


26

3,619

4,6254,242

4,7745,323

3,322

-

1,000

2,000

3,000

4,000

5,000

6,000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

FORESTS

17. NWFP has been blessed with huge and precious forests. It’s a great

source of revenue as well as water shading. About 48% of the total forests are in

NWFP. The forests are mainly located in the Swat, Dir, Chitral and Hazara Division. The

Government has banned cutting of forest to conserve and economically use this

precious resource. The Government is making attempts to plant more forests and

protect the existing. The revenue targets are based on the Government policy regarding

wind fall and cooperative forestry.

18. Detail of total provincial receipts (targets & actual realization) during the

last six years is depicted in the following table and graph:-

TABLE- 2.7 (Rs in million)

S.No Years Budget Estimates Actual recovery

1. 2003-04 3752.089 3619.226 2. 2004-05 4064.614 4624.614 3. 2005-06 4474.166 4242.219 4. 2006-07 5200.000 4773.667 5. 2007-08 6220.000 5322.875 6. 2008-09 7444.202 3322.162*

(*Figures are up to April 2009)

Actual Receipts Recovery

27

Chapter 3: Capital Receipts and Expenditure

CAPITAL RECEIPTS AND EXPENDITURE

CAPITAL RECEIPTS

The capital receipts of the Provincial Government includes recovery of

loans and advances from Local Councils, Municipalities, Co-operative Societies,

Industrial Estates, Autonomous Bodies, Agriculturists and Government Servants.

2. Table 3.1 as below contains the budgetary position of capital receipts of

the Province for financial year 2008-09 (Budget and Revised) and 2009-10 (Budget).

Table 3.1

(Rupees in million)

S. No

Nomenclature Budget

Estimates 2008-09



1 Recoveries of Loans and Advances

400 400 400

TOTAL: 400 400 400

CURRENT CAPITAL EXPENDITURE

3. The current expenditure on Capital Account includes the following: -

(a) Repayment of Federal Loans.

(b) Repayment of Foreign Loans.

(c) Loans to Provincial Government Employees.

(d) Writing off the Loans advanced to Provincial Government

Employees.

(e) Loan to Banks for SMEs.

4. The position in respect of the above components of current expenditure on

Capital Accounts for 2008-2009 (Budget and Revised) and 2009-10 (Budget) is shown

in table 3.2:-

28


Table 3.2 (Rupees in Million)

S. No Nomenclature Budget

Estimates 2008-09



i Repayment of Federal Loans 2613.745 613.745 697.419

ii Repayment of Foreign Loans 1621.743 2064.701 2516.166

iii Loans to Provincial Government Employees.

40.000 40.000 40.000

Iv Writing off Loans to Provincial Govt. Employees

1.500 1.500 1.500

v Loan Scheme for SMEs 200.000 200.000 11.700

TOTAL 4476.988 2919.941 3266.785

I. FEDERAL LOANS AGAINST THE PROVINCE

5. In order to finance its development programme, Government of N.W.F.P

relies on different types of borrowings. Loans from Federal Government is one of them.

In the past, Federal Government has provided Cash Development Loans (in pak rupee)

to the provincial government for financing its Annual Development Programmes. These

loans were repayable over a period of 25 years on the following terms and conditions:-

a. Five years grace period, during which only interest is payable.

b. Repayment in 20 years.

c. Markup rate determined by the Federal Govt. on yearly basis.

d. Recovery on monthly basis by the Finance Division, at source, from Federal Tax Assignment.

6. The outstanding debt liability of the provincial government on account of

federal loans (Cash Development Loans) as on 1st July, 2009 is Rs 15083.404 million.

29


II. FOREIGN EXCHANGE LOANS

7. All foreign exchange loans are handled by the federal government. These

loans are used for the financing of specified developmental projects with an agreement

between the respective governments. The relending terms and conditions of the loans

to the provincial government are the same as agreed with the loan-giving agency. The

terms and conditions of loans by different agencies are as under:-

World Bank (IDA)

Service Charges 0.75% to 1.5%

Repayment period 25 years

Grace period 10 years

Asian Development Bank

Service Charges 1 % t o 2%

Repayment period 15 – 30 years

IFAD

Markup rate 1% to 4%

Repayment period 40 years & 30 years

8. The details of outstanding liability on account of these loans against the

Government of NWFP is Rs. 55954.376 million as on 1st July 2009 are given at

Annexure-II.

9. The confirmation of outstanding balances of a number of foreign loans are

under verification between provincial and federal governments as the disbursements in

respect of these loans have not yet been stopped and are being made to the project

executing agencies. The details of outstanding balance/amount disbursed upto

30.6.2009 is Rs. 63916.084 million against the allocated share of NWFP are given at

Annex-III.

30


10. Total outstanding debt against the Provincial Government as on 1st July,

2009 is Rs.134,953.864 million as detailed below: -

Federal Government Loans Rs. 15083.404 million

Foreign Exchange Loans Rs. 119870.460 million

Total Rs. 134953.864 million

III&IV. LOANS AND ADVANCES/ WRITING OFF OF LOANS TO PROVINCIAL GOVERNMENT EMPLOYEES

11. Provision under these heads are made to provide loan facility to the

employees of provincial government for construction/purchase of houses, motor cars,

motor cycles and bicycles, etc. Waiver of these loans is given in case of death of a

government employee during service before the full recovery of principal amount of loan

outstanding against the deceased employee. The criteria for waiving off the outstanding

principal amount is as under:-

(i) In case of Government servants BS-I to BS-15, full outstanding amount is waived off; (ii) In case of Government servants BS-16 & above, the outstanding amount is waived off on the following formula:-

Outstanding amount Extent of write off

1. Upto Rs.20,000/- Full outstanding amount

2. Beyond Rs.20,000/- Rs.20,000/- plus 50% of residual liability

subject to total relief not exceeding

Rs.1.5 lac (inclusive of Rs.20,000/-)

31


V. LOAN TO BANKS FOR SMEs

12. The Government of NWFP has constituted a Working Group for economic

revival & investment in the province and to look into the reasons for poor performance in

various sectors of the economy with the following terms of reference (TORs):-

• Boosting development initiatives in the province.

• Initiating specific interventions for marginalized areas.

• Improving investment environment to raise investors confidence.

• Identification of areas for fast track development.

• Promoting growth of mines, minerals and hydel power sectors.

• Enhancing interaction with private sector through SCCI, etc.

• Initiation of activities for work on poverty alleviation and employment

generation.

• Implementing the concept of Reconstruction Opportunity Zones

(ROZs).

13. Besides the above mentioned Working Group another initiative taken by

the Provincial Government is advancing a credit line of Rs.200 million to the Banks on

competition basis at a markup rate of 6% which will be further provided to the business

community at a rate of 9% for establishment of small and medium enterprises/ units.

Necessary allocation in this regard has been made in the current budget 2008-09.

14. The debt servicing liability places two-fold burden on the provincial

resources on account of repayment of principal and payment of mark up of loans. The

payment/repayment during the current and next financial years on account of

internal/external debt is given in Table 3.3:-

32


TABLE 3.3 (Rs. in million)

Budget 2008-2009 Revised 2008-2009 Budget 2009-2010 Nomenclature Mark up

charges Repayment of Principal

Mark up Charges

Repayment of principal

Mark up charges

Repayment of principal

A-INTERNAL DEBT

i) C.D.Loans 2035.512 2613.745 2045.472 613.745 1945.190 697.419

ii) Un-Funded Debt

1750.000 -- 1900.000 -- 2250.000 --

iii) Other Floating Debt

329.626 -- 176.626 -- 400.000 --

Sub-Total (A) 4115.138 2613.745 4122.098 613.745 4595.190 697.419

B – Loans From Foreign Agencies

640.366 1621.711 1252.641 2064.669 1112.751 2516.133

C – Counterpart Fund Loans

0.002 0.032 0.002 0.032 0.001 0.033

D – Other Debt Servicing

1835.578 -- 916.343 -- 2400.090 --

Sub-Total (B,C&D) 2475.946 1621.743 2168.986 2064.701 3512.842 2516.166

Total (A+B+C+D) 6591.084 4235.488 6291.084 2678.446 8108.032 3213.585

Chapter 4: Socio-Economic Indicators of NWFP

33

SOCIO-ECONOMIC INDICATORS OFN-W.F.P.

The total area of Pakistan is 796,096 sq. Kilometers, of which the North-

West Frontier Province (NWFP) spreads over an area of 74,521 Sq. Km, which is 9.4%

of the total area of Pakistan. The last census in Pakistan was carried out in 1998; which

is taken as the basis for preparation of various estimates. Based on 1998 census,

population of NWFP is 17.744 million, that is 13.4% of the total population of Pakistan

and 13.82% among the four provinces. Population density of the province is 238 per

sq.km as against 166 per sq. km at the national level. Majority of its populace that is

83.1% lives in the rural areas, whereas only 16.9% lives in the urban areas.

Table 4.1AREA & POPULATION (1998 CENSUS)

Population (in million)Area Total Urban Rural

(Sq. Km) Total Male Female Total Male Female Total Male Female

Density(Per

Sq. Km)

Pakistan 796.096 132.352 68.874 63.478 43.036 22.752 20.284 89.316 46.122 43.194 166

Islamabad 906 0.805 0.4,34 0.371 0.529 0.291 0.238 0.276 0.143 0.133 889

Punjab 205.345 73.621 38.094 35.527 23.019 12.071 10.948 50.602 26.023 24.579 359

Sindh 140.914 30.440 16.098 14.342 14.840 7.905 6.935 15.600 8.193 7.407 216

NWFP 74.521 17.744 9.089 8.655 2.994 1.589 1.405 14.750 7.500 7.250 238

Balochistan 347.190 6.566 3.506 3.056 1.569 849 719 4.997 2.657 2.340 19

FATA 27.220 3.176 1.652 1.524 85 46 39 3.091 1.606 1.485 117

(Source: Statistical Supplement – Economic Survey 2007-08)

2. The above figures are based on the 1998 census. However, a more recent

estimation fact sheet of the same conducted by Federal Bureau of Statistics shows the

population of NWFP as 21.95 million, projected @ 2.81% growth rate, whereas the

population of the country is 159.57 million.


34

Table 4.2Area and Population Density by Province

2003 (E) 2005 (E) 2006 (E) 2007 (E)Province/ Region

Area (Sq. Km).

Pop. (per Sq.

Km.)

Den. (per Sq.

Km.)

Pop. (per Sq.

Km.)

Den. (per Sq.

Km.)

Pop. (per Sq.

Km.)

Den. (per Sq.

Km.)

Pop. (per Sq.

Km.)

Den. (per Sq.

Km.)Pakistan 796,095 149.03 187 153.96 193 156.77 197 159.57 200

Punjab 2006,250 82.71 403 85.65 417 86.26 420 88.95 431

Sindh 140,914 34.24 243 35.41 251 35.86 254 36.47 258

NWFP 74,521 20.17 271 20.64 277 21.39 287 21.95 295

Balochistan 347,190 7.45 22 7.63 22 8.00 23 8.39 24

FATA 27,220 3.42 126 3.69 136 3.62 133 3.81 140(Source: FBS Islamabad)

3. According to Pakistan Social & Living Standard Measurement Survey

(PSLM) 2006-07, average household size in NWFP is 7.5 members, as compared to

6.3 at the national level. The average size of NWFP household is highest among the

four provinces.

Table 4.3AVERAGE HOUSE HOLD SIZE BY PROVINCE

2004-05 2005-06 2006-07

Urban Rural Overall Urban Rural Overall Urban Rural Overall

Punjab 6.6 6.5 6.6 6.5 6.4 6.5 6.3 6.4 6.3

Sindh 6.6 6.6 6.6 6.5 7.6 7.0 6.2 6.4 6.3

NWFP 7.7 7.6 7.6 7.6 8.0 8.0 7.3 7.5 7.5

Balochistan 7.1 6.9 6.9 8.4 7.3 7.5 7.4 7.3 7.3

Overall 6.7 6.7 6.8 6.7 6.9 6.8 6.4 6.6 6.5(Source: PSLM 2006-07)

4. The Housing indicator, based on the 1998 Census, also reflects high

density of 8.0 persons per housing unit for the NWFP as compared to 6.80 for Pakistan.

The same is also on the higher side as compared to the other provinces. Access to other

essential daily life amenities like gas, electricity and water etc are also not at par as

compared to the national level or with other major provinces. The data given below is

based on the 1998 census and might not reflect the correct picture on ground.


35

Table 4.4HOUSING INDICATORS - 1998 CENSUS

Indicators Pakistan NWFP FATA Punjab Sindh Balochistan Islamabad

Total Housing Units 19,211,738 2,211,236 341,114 10,537,127 5,022,392 971,116 128,753

Persons Per Housing Unit 6.80 8.00 9.30 6.90 6.00 6.70 6.20

Persons Per Room 3.13 3.34 2.91 3.04 3.37 3.07 2.16

Single Room Housing Units (%)

38.11 27.71 13.04 31.97 56.94 42.77 16.01

Two Rooms Housing Units (%)

30.54 34.50 25.91 33.54 23.87 25.18 29.47

Pucca Housing Units (%) 54.64 56.15 36.73 62.00 46.69 14.19 87.97

Owned Housing Units (%) 81.19 80.61 90.08 82.97 76.90 86.64 47.75

Housing Units having Electricity (%)

70.46 72.19 61.97 72.49 70.08 46.62 91.39

Inside 28.08 27.19 12.39 24.34 37.17 25.31 57.28

Outside 4.18 12.27 6.92 2.18 4.53 4.33 6.05

Housing Units using Gas for cooking (%)

20.19 9.80 1.28 17.67 32.43 9.84 71.93

Housing Units with Separate Kitchen (%)

32.70 33.01 56.37 31.48 34.60 22.71 62.70

Television 35.32 24.60 28.10 36.70 41.87 15.34 61.30

Radio 23.94 27.40 92.20 18.00 29.75 39.72 43.10

(Source: Population Census Organization)

5. Poverty has always been a source of concern for the NWFP, as it

has experienced upward trends in the last two decades. Poverty in NWFP persistently

remained higher than rest of the country as a whole, in both urban and rural areas.

According to the World Bank estimates, Poverty Headcount for NWFP is 46% as

compared to 37% for Pakistan in 2001-02 (for calculating poverty headcount, World

Bank has used PIHS data and its own poverty line). The Social Policy and Development

Center (SPDC) has worked out Incidence of Poverty for the year 2005 on the basis of

HIES 2005-06, using official poverty line. According to those calculations, Incidence of

Poverty in NWFP has declined from 39.9% in 2001-02 to 33.6% in 2004-05 (i.e. 6.3

points). However, due to the recent inflation, the purchasing power has gone down,

bringing more people below poverty line. The percentage of people living below poverty

line has risen to about 46% based on the assumption that one percent increase in the

food prices means a half percent rise in poverty.


36

Table 4.5POVERTY TRENDS IN THE LARGER PROVINCES

(PERCENT OF POPULATION)

Urban Rural Overall

Province 1998-99 2001-02 1998-99 2001-02 1998-99 2001-02

Punjab 27 27 35 37 32 34

Sindh 19 24 37 51 29 40

NWFP 31 35 47 48 44 46

(Source: NWFP Economic Report)

POPULATION BELOW POVERTY LINE

(Source: NWFP Economic Report)

Punjab Sindh NWFP

% P

opul

atio

n

34%40%

46%


37

Table 4.6INCIDENCE OF POVERTY BY PROVINCE

Different Estimates (%)Change

(% points)

1998-99 2001-02 2004-051998-99 to

2001-022001-02 to

2004-05Punjab

Government/CRPRID 31.6 32.2 25.0 0.6 -7.2

World Bank 29.8 29.7 28.6 -0.1 -1.1

SPDC 0.0 34.2 30.8 0.0 -3.4

Sindh


World Bank 26.2 36.5 21.9 10.3 -14.6

SPDC 0.0 35.0 25.0 0.0 -10.0

NWFP


World Bank 40.8 40.8 38.1 0.0 -2.7

SPDC 0.0 39.9 33.6 0.0 -6.3

Balochistan


World Bank 22.1 36.1 31.8 14.0 -4.3

SPDC 0.0 49.2 33.7 0.0 -15.5(Source: Special Development in Pakistan, Annual Review 2006-07(SPDC))

6. Literacy is an important indicator of education because its improvement is

likely to have an impact, in the longer run, on other important indicators of welfare.

Literacy rate (10 years and older) in NWFP, according to Pakistan Social and Living

Standards Measurement Survey (PSLM) 2006-07 is 47% as compared to 55% at

national level. In females, it is 28% whereas male literacy rate is 67%. Literacy remains

much higher in urban than rural areas and much higher in men. Similarly adult literacy

rate (15 years and older) is 42% in NWFP as compared to 52% at national level. In

females it is 22% as compared to 38% at national level whereas in males it is 63% as

compared to 65% at national level.


38

Table 4.7LITERACY

2004-05 PSLM 2005-06 PSLM 2006-07 PSLM

M F T M F T M F T

Literacy rates aged 10 yrs and older

Overall 65 40 53 65 42 54 67 42 55

Punjab 65 44 55 66 47 56 67 48 58

Sindh 68 41 56 67 42 55 67 42 55

NWFP 64 26 45 64 30 46 67 28 47

Balochistan 52 19 37 54 20 38 58 22 42

Adult literacy Rates aged 15 years and older

Overall 63 36 50 64 38 51 65 38 52

Punjab 63 40 52 63 42 52 65 43 54

Sindh 68 38 54 67 40 54 66 39 54

NWFP 61 22 40 62 26 43 63 22 42

Balochistan 49 14 33 52 15 35 54 17 37

(Source: PSLM, 2006-07)

7. Health indicators in the NWFP have shown some marginal improvement

but not so significant if it is compared with national level and other provinces. From

2004-05 to 2006-07 there has been an increase in the number of children who are

reported having received full immunization. According to PSLM 2005-06, 64% children

(65% male & 62% female) aged 12 – 23 months were immunized. This number

increased to 76% (79% male and 73% female) according to PSLM 2006-07. In this area

NWFP has shown considerable improvements. The incident of diarrhea cases has

shown a downward trend over the period from 2004-2006 in the NWFP as compared to

rest of the country.


39

Table 4.8PERCENTAGE OF CHILDREN IMMUNIZED-AGED 12 - 23 MONTHS

2004-05 PSLM 2005-06 PSLM 2006-07 PSLM

M F T M F T M F T

Full immunization (based on recall and Record)

Overall 78 77 77 72 71 71 77 75 76

Punjab 85 84 84 75 76 76 84 83 83

Sindh 74 72 73 70 71 71 65 65 65

NWFP 77 76 76 65 62 64 79 73 76

Balochistan 64 60 62 56 43 48 56 52 54

Diarrhoea (under 5 years)

Overall 16 15 16 13 12 12 11 11 11

Punjab 16 15 15 15 14 14 11 11 11

Sindh 18 18 18 9 7 8 12 12 12

NWFP 16 15 15 15 14 15 8 8 8

Balochistan 13 13 13 4 5 4 8 7 7

(Source: PSLM 2006-07)

8. Access to safe drinking water and sanitation are important domains of

Government priority areas. Most of the household in the rural areas of the NWFP does

not have proper access to safe drinking water. According to SPDC’s Social

Development in Pakistan, annual review 2006-07, 47% of households in NWFP have

tap water connections. NWFP has the best rural water supply amongst the provinces in

terms of tap water. As far as access to sewerage and sanitation is concerned, 60.8%

households had such an access during 2004 in NWFP.


40

Table 4.9ACCESS TO DRINKING WATER

Percentage of Households with tap water connections

ACGR(%)

1996 2001 20061996 to

20012001 to

2006

Punjab 19 20 27 0.9 7.8

Sindh 43 30 43 -5.8 9.4

NWFP 40 39 47 -0.4 4.8

Balochistan 30 25 36 -3.0 9.3

(Source: Social Development in Pakistan, Annual Review 2006-07)

Table 4.10PERCEIVED ACCESS TO SEWERAGE AND SANITATION

2002 2004

Punjab 55.3 66.3

Sindh 48.1 60.7

NWFP 48.0 60.8

Balochistan 23.5 32.1

Pakistan 51.4 66.3

Source: Social Development in Pakistan, Annual Review 2006- 07

9. According to the Government of Pakistan, in 2006-07, 36.34% of NWFP’s

total population falls in civilian labour force out of which 32.88% is employed. On the

other hand, at national level, 45.18% of population is in civilian labour force, of which

42.78% is employed. On the basis of this, rate of unemployment in NWFP is 3.47% as

compared to 2.41% at national level. Similarly if daily wages of construction workers in

different cities of Pakistan are compared, NWFP ranks the lowest.


41

Table 4.11CIVILIAN LABOUR FORCE

CivilianLabour Force %

Employed%

Unemployed%

Not in CivilianLabour Force

%

Pakistan 45.18 42.78 2.41 54.82

Punjab 48.55 41.22 2.66 51.45

Sindh 42.67 45.88 1.45 57.33

NWFP 36.34 32.88 3.47 63.77

Balochistan 43.60 42.47 1.12 56.40

(Source: Statistical Supplement Economic Survey 2007-08)

Table 4.12DAILY WAGES OF CONSTRUCTION WORKERS IN PAKISTAN:

Category of Worker

Cities 2005 2006 2007

Carpenter Islamabad 400 450 525

Karachi 365 402 450

Lahore 338 361 388

Peshawar 275 300 375

Quetta 275 400 500

Mason (Raj) Islamabad 400 450 525

Karachi 365 402 450

Lahore 380 461 491


Quetta 275 400 450

Labour (unskilled) Islamabad 200 250 275

Karachi 230 275 300

Lahore 200 246 250


Quetta 170 250 300(Source: Economic Survey 2007-08)


42

Table 4.13PARTICIPATION AND UNEMPLOYENT RATES BY AGE, GENDER AND AREA

2007-08Labour Force Participation

RatesUnemployment

rates

Male Female Total Male Female Total

PAKISTAN 69.54 19.59 45.17 4.31 8.52 5.2

Rural 71.18 25.58 48.76 3.94 6.92 4.71

Urban 66.6 8.35 38.58 5.02 17.7 6.34

Punjab 70.22 22.81 46.6 4.85 7.69 5.54

Rural 71.15 28.87 49.95 4.41 6.13 4.91

Urban 68.39 10.49 39.89 5.76 16.43 7.14

Sindh 70.98 15.31 45.47 2.41 6.88 3.1

Rural 77.35 26.24 54.26 1.32 4.62 2.04

Urban 64.93 5.42 37.3 3.63 16.81 4.52

NWFP 64.66 15.96 39.81 6.85 15.49 8.62

Rural 64.57 17.79 40.52 6.74 14.1 8.4

Urban 65.07 6.96 36.49 7.36 33.02 9.77

Balochistan 67.35 10.3 41.75 1.86 10.09 2.78

Rural 69.88 11.83 43.95 1.51 7.31 2.21

Urban 59.5 5.72 35.04 3.15 27.33 4.94(Source: Labour Force Survey 2007-08)

10. The above mentioned facts and figures clearly indicates that the NWFP

has the high population growth, low literacy ratings, growing curse of unemployment,

inadequate health facilities and mushrooming menace of poverty. The province is faced

with worst law & order situation in the prevailing war on terror in its northern and

southern regions. The influx of IDP’s from Swat, Bajaur, Dir and adjoining areas has

placed tremendous pressure on the already meager resources of the province. The

situation warrants for allocation of more funds in the social sector, law & order and

creation of more employment opportunities in the province.

Chapter 5: Revenue Distribution through NFC Awards

43

REVENUE DISTRIBUTION THROUGH NFC AWARDS

The distribution of revenues between the federation and the provinces is governed

by Part-VI Chapter-1 of the 1973 Constitution. It provides the basic framework for the

revenues distribution between the federation and the provinces. Article 160 of the

Constitution provides for the setting up of a National Finance Commission (NFC) to

periodically make recommendations to the President as to:-

a) The distribution between the Federation and the Provinces of the

net proceeds of the taxes mentioned in clause (3); b) The making of grants-in-aid by the Federal Government to the

Provincial Governments; c) The exercise by the Federal Government and the Provincial

Governments of the borrowing powers, conferred by the Constitution; and

d) Any other matter relating to finance referred to the Commission by

the President. 2. Distribution of net proceeds of federal taxes (as may comprise the divisible pool)

under Article 160(2)(a) read with clause (3) and Grants-in-aid to the provincial governments under

Article 160(2)(b) read with clause (7) which provides for the making of grants-in-aid to provinces in

need of assistance and such grants are to be charged to the Federal Consolidated Fund.

3. Taxes referred-to above include:-

i) Taxes on income, including corporation tax, but not including taxes on income consisting of remuneration paid out of the Federal Consolidated Fund;

ii) Taxes on the sales and purchases of goods imported, exported,

produced, manufactured or consumed; iii) Export duties on cotton, and such other export duties as may be

specified by the President; iv) Such duties of excise as may be specified by the President ; and

v) Such other taxes as may be specified by the President.


44

CHRONOLOGY OF THE NFC AWARDS

S.No NAME DATE OF CONSTITUTION DATE OF EFFECT

1 NFC, 1974 (1st NFC) 9th Feb, 1974 1st July, 1975

2 NFC, 1979 (2nd NFC) 11th Feb, 1979 Remained inconclusive

3 NFC, 1985 (3rd NFC) 25th July, 1985 Remained inconclusive

4 NFC, 1989 (4th NFC) 23rd July, 1990 1st July, 1991

5 NFC, 1995 (5th NFC) 23rd July, 1995 Reconstituted on 10th Dec, 1996

1st July, 1997

6 NFC, 2000 (6th NFC) 22nd July, 2000 Reconstituted

on 13th Nov, 2003

Remained inconclusive (However population ratio was changed from 1.7.2002). Award issued under Article 160 (6) as Presidential Order No. 1 of 2006 revising Vertical and Horizontal distribution of divisible pool.

7 NFC, 2005 (7th NFC) 21st July, 2005, amended on 26th August 2008

The Commission has been constituted and the Award is expected in near future.

4. The 6th NFC was constituted on 22nd July 2000, re-constituted on 13th

November 2003 by the President of Pakistan which could not reach at a consensus

decision and thus the matter referred to the President of Pakistan for exercising his

powers under Article 160 (6) of the Constitution, who passed an order called

“Distribution of Revenues and Grants-in-Aid (Amendment) Order, 2006”, President

Order No.1 of 2006.


45

5. Share of Provinces in the Divisible Pool is elaborated as follows:-

Table 5.1

S.No Financial Year % Share 1 2006-07 41.50 2 2007-08 42.50 3 2008-09 43.75 4 2009-10 45.00 5 2010-11 & onward 46.25

6. There are different perspectives of the provinces and the Federal Govt.

about the vertical distribution of the revenues. Provinces are demanding 50% of the

divisible pool excluding 2.5% GST. There is also difference of opinion about the

horizontal distribution amongst the provinces, like Punjab is advocating population

based distribution, Sindh wants the distribution on the basis of population,

backwardness and revenue collection in the ratio of 77.5%, 12.0% and 10.5%

respectively. Baluchistan pleads that the revenues may be distributed as 80%, 10% and

5% for population, inverse population density and revenue collection respectively.

Whereas NWFP wants the revenues to be distributed like 80%, 19% and 1% on the

basis of population, backwardness and inverse population density respectively.

7. The economic condition of NWFP is evident from the low vital socio-

economic indicators of the province vis-à-vis other provinces and country average.

Population density in NWFP is 238, which is second highest in the country but it is the

highest if the inaccessible and barren areas of Chitral and Kohsitan are excluded.

Population growth in NWFP is the highest (2.6%), house hold size is the highest (7.5

persons), incidence of poverty or people living below poverty line is 46% which is the

highest and which has further increased due to the recent economic recession, per

capita income is the lowest i.e Rs.746 (SPDC 2000). Majority of the industrial units are

closed or operating below capacity, daily wages are the lowest, unemployment is the

highest, female literacy is the lowest (22%) & dependence on remittances is the highest.

8. In addition to the share in the divisible pool, Provinces are given grant-in-

aid out of the Federal Consolidated Fund. The base amount during the first year of the


46

% SHARE IN THE DIVISIBLE POOL (POPULATION BASIS)

% SHARE IN 1/6TH OF SALES TAX.

Punjab, 57.36%Sindh, 23.71%

NWFP, 13.82%

Baluchistan , 5.11%

Punjab, 50%Sindh, 34.85%

NWFP, 9.93%

Baluchistan , 5.22%

award, 2006-07 was Rs.27.750 billion which increases in line with the growth in net

proceeds of divisible taxes every year. Out of the sum assigned to the provinces, as

indicated above, an amount equal to the net proceeds of 1/6th of Sales Tax (2.5% GST)

is distributed amongst the provinces in the ratio, based on the actual realization of

Octroi and Zilla Tax during the base year 1997-98, when the OZT was abolished. This

amount of 2.5% GST is directly transferred to the District Governments and

TMAs/Cantonment Boards. This allocation is on account of abolition of the Octroi and

Zilla Tax by the Provincial Governments. Ratio of the resource transferred from the

federal divisible pool and straight transfers is as under:-

Table 5.2

SHARE OF PROVINCES IN THE DIVISIBLE POOL

Province % Share in the Divisible Pool

(Population Based)

% Share in the Special Grant

% Share in the 1/6th of Sales Tax

Punjab 57.36 11.00 50.00 Sindh 23.71 21.00 34.85 NWFP 13.82 35.00 09.93

Baluchistan 05.11 33.00 05.22 Total 100.00 100.00 100.00

9. The aforementioned Presidential Order came into force from financial year

2006-07. According to this arrangement, the revenue transfer to the provincial

governments will increase from 45% to 50% over a period of five years. During 2006-07,


47

provincial governments received 45%, which increased to 46.1% and 47.3% during the

financial year 2007-08 and 2008-09 respectively. This year the share has risen to about

49%.

10. Comparative position of the percentage share of the provinces in the total

transfers through the above mentioned three channels, during 2006-07, 2007-08, 2008-

09 and 2009-10 as compared to the transfers during 1996-97 under the 1996 NFC

Award is as follows:

Table 5.3

% SHARE OF PROVINCES UNDER THE NFC AWARD NFC Award 2006-07 %

Province NFC

1996-97 % 2006-07 2007-08 2008-09 2009-10

Punjab 53.9 52.54 52.77 52.87 53.20

Sindh 21.68 25.2 24.99 25.01 24.96

NWFP 15.69 14.91 14.95 14.89 14.78

Baluchistan 8.73 7.35 7.29 7.23 7.05

11. Comparative position of the total transfers to Provinces under NFC

formula for financial year 2009-10 is as follows:-

Table 5.4 FUNDS TO BE TRANSFERRED TO THE PROVINCES DURING 2009-10

(Rs in million) Province %share

Divisible Pool

1/6 Sales Tax

Grant-in-Aid Total %

Share Punjab

% 281,437.653

57.36 39,584.758

50.00 4,658.500

11.00 325,680.912

53.20%

Sindh %

116,333.451 23.71

27,590.577 34.85

8,893.500 21.00

152,817.528

24.96% NWFP

% 67,808.026

13.82 7,861.533

9.93 14,822.500

35.00 90,492.059

14.78% Baluchistan

% 25,072.287

5.11 4,132.649

5.22 13,975.500

33.00 43,180.436

7.05%

Total 490,651.418 79,169.517 42,350.000 612,170.935 100%

48

Chapter 6: The Issue of Profit from Hydel Power Gen eration

TTHHEE IISSSSUUEE OOFF PPRROOFFIITTSS FFRROOMM HHYYDDEELL PPOOWWEERR GGEENNEERRAATTIIOONN

Provision for payment of the Net profits on account of hydel power

generation has been enshrined in the 1973 Constitution, under Article 161(2), which

states that “The net profits earned by the Federal Government, or any undertaking

established or administered by the Federal Government from the bulk generation

of power at a hydro-electric station shall be paid to the Province in which the

hydro-electric station is situated”. Method for calculation of the net profits has

also been explained in the Constitution viz; “For the purposes of this clause “net

profits” shall be computed by deducting from the revenues accruing from the bulk

supply of power from the bus-bars of a hydro-electric station at a rate to be

determined by the Council of Common Interests, the operating expenses of the

station, which shall include any sums payable as taxes, duties, interest or return

on investment, and depreciations and element of obsolescence, and over-heads,

and provision for reserves”.

2. The Net profits are due to the Province since 1973-74 after the

constitutional provision took effect. But no profits were paid upto 1991-92. For the first

time, during March 1978, the then Martial Law Administrator ordered the disbursement

of the profits but with no outcome. The Provincial Assembly has passed several

resolutions against the violation of the constitutional provision and payment of the NHP

but of no avail. First such resolution No. 127 was passed on 3rd March 1986 by the then

NWFP Provincial Assembly. The National Finance Commission considered this issue in

its meeting on 22nd November 1986, and constituted a Committee for computation of the

Net Hydel profits.

3. The said Committee was constituted under the Chairmanship of Mr.A.G.N

Kazi, the then Deputy Chairman, Planning Commission, on 24th November 1986. Report

of the said Committee was placed before the NFC on 14th February, 1988. The Report

was unanimously approved by the NFC, in its entirety and forwarded to the Council of

49


Common Interests (CCI). The CCI approved the methodology in its meeting dated 12th

January, 1991. The AGN Kazi methodology/formula is as under:-

“A . The apportionment of capital cost of Tarbela to be worked out on the basis of

specific works undertaken for power. B. In working out “revenues” the average

system selling rate including normal rate and FAC be taken into account, as this is

what the consumer is actually paying. C. In order to work out revenue at bus-bars

the calculations would be worked backwards from selling price by deducting

transmission and distribution costs. D. Establishment charges relating to

transmission and distribution would be charged on actual cost basis. E. Cost of the

head office would be distributed over generation, transmission and distribution in

accordance with the accepted formula. F. “Net profits” would be worked out by

deducting from revenue establishment charges of the power house, operation and

maintenance cost actually incurred, depreciation, interest and return actually paid on

the net financing obtained for the power house after taking into account funds

available in depreciation and reserve funds. G. Depreciation would be based on the

book value of the cost of items apportioned to power. This is in line with the earlier

decision of Finance Division taken in the meeting dated 12.11.1979. H. Provision for

reserve would be taken as equal to rate of depreciation. I. The figure of 1% would be

used for obsolescence and it would be charged where depreciation is not charged.

J. The date of the use of a tunnel for power should be taken into account for

charging the cost towards power with effect from that date. K. “Suspense” and

“Miscellaneous” head will be charged at the average rate of depreciation for all other

heads. L. Exact amount of interest being paid by Government of Pakistan on the

loans utilized for capital investment in the power sector and also the interest paid on

local currency loans utilized for the purpose would be worked out. M. Depreciation

will be calculated from the date of commissioning of power house and not from date

of take over of powers house by WAPDA i.e 1959. It was further decided that

whatever the power house or any of its equipment had been fully depreciated no

further depreciation will be charged. N. Electricity losses would be accounted for

50


only once, at the point of generation. O. As depreciation is being accounted for,

repayment of principal loans would not be deductible from revenues”.

4. In support of the decision of the CCI dated 12.1.1991, the President of

Pakistan made an order called “The Distribution of Electricity Profits from Hydro-

Electric Stations to Provinces, Order 1991” (President’s Order No.3 of 1991). Para 3

and 4 of the said Order states “ 3. Distribution of net profits from hydro-electric stations -

The net profits from the bulk generation of power at the hydro-electric stations located in

the Provinces shall be paid by the concerned undertaking established or administered

by the Federal Government (i.e Water and Power Development Authority) to the

Provinces. 4. The Federal government shall guarantee payment of net profits to the

Provinces concerned by the above undertaking on a regular basis.”

5. For the first time a sum of Rs. 6 billion Net Hydel Profits was paid during

the ANP-PML (N) coalition government during 1991-92. The said amount has been

capped since then despite the fact that power tariff has been increased manifold. The 6

billion figure is based on the provisional profits of WAPDA calculated for 1990-91. NFC

had recommended increase @ 10% on Rs. 6 billion for future years.

6. In order to address the concern of NWFP about the unbundling or

privatization of WAPDA, the CCI deliberated upon the issue in its meetings of

12.09.1993, 29-05-1997 and 22-12-1998 and ultimately decided that “to provide

categorical assurance to the provinces that the hydel profits payable to them under the

Constitution would not fall below the level which these would have been entitled had

there been no privatization”.

7. Owing to the difference of opinion about the computation of Net Hydel

Profits between the Govt: of NWFP and WAPDA, an Arbitral Tribunal was constituted

on 31st October 2005, to resolve the matter. The Government of NWFP filed its claim of

Rs.595.567 billion before the Arbitral Tribunal, out of which Rs.292.85 billion was the

principal amount and Rs.302.717 billion was the mark-up. This claim was for the period

51


of 1991-92 to 2004-05. During that period an amount of Rs.83.662 billion had already

been paid to the Provincial Government. Claim of the Provincial Government was based

on following grounds:-

(a) According to the AGN Kazi’s formula, the revenues should include all the revenues paid by the consumers, including surcharge.

(b) There will be no effect of unbundling/ privatization of WAPDA on the payment of Net Hydel Profits.

(c) Unilateral capping of the Profits at Rs.6 billion is unconstitutional.

(d) According to the Kazi Committee’s methodology, depreciation should be charged on the useful life of assets and not on straight-line method and that depreciation should be charged on assets related to power, and not assets relating to water.

8. WAPDA opposed the claim of the Provincial Government and proposed

an amount of Rs.72.676 billion as net hydel profits during the aforesaid period against

Rs.83.662 billion already paid to the Provincial Government, and thus claimed an

amount of Rs.10.986 billion as overpayment to the Provincial Government. WAPDA’s

position before the Tribunal was as follows:-

(i) The Surcharge and Additional Surcharge fetching Revenue of Rs.829 billion is not part of the revenue of WAPDA, used for the calculation of Net Hydel Profits.

(ii) Other income/other revenues like late payment surcharge, meter rentals, connection fee, reconnection fee etc amounting to Rs.195 billion may not be considered as part of WAPDA’s revenues to be used for calculating the Net Hydel Profits.

(iii) The A.G.N Kazi’s formula is not according to the Constitution and the CCI has not fixed the rate in accordance with the Constitution.

52


9. The Tribunal agreed with the claim of the Provincial Government and

decided to have a pragmatic, dynamic and progressive approach towards the

calculation of the profits. The Tribunal decided to take the Net Hydel Profit calculated for

the year 1991-92 as the basis for future calculation. It was the year prior to re-

structuring and also no surcharges were levied at that time. An annual growth rate of

10%, as decided by the NFC, was adopted to arrive at the yearly amount of Net Hydel

Profits.

10. The Arbitral Tribunal announced its Award on 9th October 2006, according

to which an amount of Rs.110 billion is payable to the Government of NWFP in five

instalments. The award is mainly based on the commitments of WAPDA about the NHP

made from time to time at different forums. Operational Part of the Award as

unanimously endorsed by all the Arbitrators is as follows:-

a. The Government of NWFP is awarded an amount of Rs.110,101.43 million as net hydel profits payable by WAPDA in five annual equal instalments for the period in dispute, with mark up as per Clause (b) mentioned herein below, the first instalment shall be payable within three months from the date of the Award.

b. The Government of NWFP shall also be entitled to recover mark up at the rate of 10% per annum on the above balance amount of Rs.110,101.43 million from the date of Award till the date of payment or till the date the Court makes this Award a rule of the Court, whichever is earlier.

c. The above amount with the above mark up shall be payable by WAPDA in five annual equal instalments, the first instalment shall be payable within three months from the date of the Award and thereafter each subsequent year by 31st December till the above entire amount with mark up is paid.

(Complete Award is available at the website of Finance Deptt: -- www.nwfpfinance.gov.pk)

53


11. According to the aforesaid decision of the Arbitral Tribunal the payment

schedule of arrears with mark up payable to Government of NWFP is as follows:-

Table 6.1 (Rs in million)

F.Y 2006-07 i. 1st instalment 24,735.116

ii. Principal 22,020.286

iii. Mark up from 9th October, 2006 to 9th January, 2007 2714.830

F.Y 2007-08 i. 2nd instalment 30,611.214


iii. Mark up from 10th January to 31st December,2007 8590.928

F.Y 2008-09 i. 3rd instalment 28,626.372


iii. Mark up from 1st January to 31st December,2008 6606.086

F.Y 2009-10 i. 4th instalment 26,424.343


iii. Mark up from 1st January to 31st December,2009 4404.057

F.Y 2010-11 i. 5th instalment 24,222.315


iii. Mark up from 1st January to 31st December,2010 2,202.029

12. After the announcement of the Award, the Provincial Government

requested WAPDA to make the payment according to the prescribed schedule. The

Federal Government, being the Guarantor, was approached, when the request was not

honoured by WAPDA. Instead of making the payment, WAPDA filed a Civil Suit in the

Court of Senior Civil Judge, Islamabad on 10th December 2006, challenging the validity

and effect of the Award.

54


13. The Award is binding on the parties, according to clause-11 of the terms of

the Agreement. According to the Government of NWFP, it is a dispute between the

Provincial and the Federal Government (as WAPDA is an undertaking of Federal

Government) and in a dispute between two governments, Supreme Court has the

original jurisdiction under Article 184 of the Constitution. The Provincial Government,

therefore, has thus filed a Writ Petition in the Supreme Court of Pakistan under Article

184(1) on 9.1.2007. A second petition has also been filed under Article 184(3) by the

people of NWFP in the Supreme Court of Pakistan on 12.2.2007 on the grounds that

the Net Hydel Profits is the right of the people of NWFP. Both the Petitions have been

admitted by the Supreme Court of Pakistan, pending decision.

14. Meanwhile efforts are continuously been made on the political front as

well. In this regard a Jirga comprising the Cabinet members headed by the Chief

Minister has met the Prime Minister on 18.9.2008, for early resolution of this important

issue. The Prime Minister has constituted a Committee, supposed to submit its report

within two months. The aforesaid joint committee has further constituted a technical

committee for formulation of recommendations. Several informal meetings of the

technical committee have been held and efforts made at different fronts for reaching to

the logical conclusion.

15. The Provincial Government has also decided to transfer 5% share of Net

Hydel Profits receivable from WAPDA/Federal Govt. to the respective districts where

the dams are located. In this regard Report of the committee headed by the Chief

Secretary, for devising a mechanism for utilization of the 5% share has been approved

by the Provincial Cabinet. It shall take effect from Financial Year 2008-09. The said 5%

share will be over and above the Districts’ and Provincial ADP and will be utilized on

Technical Education, Health facilities, Roads, Scholarship for the affectees, water

supply schemes and supply of gas.

Chapter 7: Revenues from Oil and Gas Production

55

REVENUES FROM OIL AND GAS PRODUCTION

Production of oil and gas in NWFP has opened new avenues of economic

development in the province. The province has been blessed with vast natural

resources like water, forests, minerals, gem stones, oil and gas. Huge deposits of oil &

gas have been discovered in southern parts of the Province, including district Kohat and

Karak. As of May 2009, an area of around 250,424.04 square kilometer is under

exploration for oil and gas throughout the country out of which 13,991 square kilometers

i.e. 5.6% of the total is in NWFP as evident from the following table:-

Table 7.1

S.No Operator Block Area (Sq.km) Districts / Area Grant Date Relinquish

ment Date

1. MOL 3370-3(Tal) 3,688.83 Kohat, Karak, Bannu, Adamkhel, North Wazirstan

11-02-1999 31-10-2006

2. MGCL 3271-1(Karak) 2,335.18 Karak, Bannu, North Wazirstan, Mianwali

14-04-2005 13-04-2011

3. 3371-5 (Gurgalot)

346.92 Kohat & Attock 28-06-2000 30-06-2008

4. 3370-10 (Nashpa)

979.69 Attock, North Wazirstan, Mianwali, Kohat, Karak

16-04-2002 21-03-2007

5. 3370-12 (Latambar) 331.47

North Wazirstan, Karak & Bannu 24-10-2005 23-10-2010

6.

OGDCL

3270-6 (Wali) 2,179.26 South Wazirstan, Laki Marwat & Bannu

31-05-2006 30-05-2013

7 OPII 3170-2 (Marwat)

1,792.87 South Wazirstan, Laki Marwat, Tank & D. I. Khan

22-01-2007 21-01-2012

8. 3370-13 (Bannu West)

1,229.57 North Wazirstan, Kohat, Kurram, Bannu

27-04-2005 31-08-2012

9.

Tullow

3371-10 (Kohat) 1,107.21 Peshawar, Nowshera, Kohat, Adamkhel 27-04-2005 26-10-2011

Total area 13,991.00

(Source: Directorate of Petroleum Concessions, Ministry of Petroleum & Natural Resources.)


56

2. Oil and gas sites in NWFP fall in the Potohar Region, where almost all the

major oil fields, including Chanda, Tal block and the recently discovered Nashpa oil and

gas reserves are situated, which has created an atmosphere of competition for fresh

leases for exploration in the area. The presence of Oil and Gas Development Company

Limited (OGDCL) and M/S Tullow of United Kingdom in exploration in this high risk and

high cost area is more conspicuous. This is followed by Pakistan Petroleum Limited

(PPL), Pakistan Oilfield Limited (POL) and Mari Gas Company Limited (MGCL).

3. Oil and Gas Development Company Limited (OGDCL) has the largest

stake in the exploration activities in the Potohar Region. Chanda oil field was the first

major discovery in NWFP in the year 1999. This was followed by Manzali and Makori

fields in the Tal block in the year 2002 and 2005, respectively.

4. Tal block has an estimated gas reserves of 2.56 trillion cubic feet and oil

reserves of 58.6 million barrels, which has an estimated life of about 178 years for oil

and 117 years for natural gas. The recently discovered oil and gas reserves at Nashpa

block with 4,100 barrels of oil per day and 12 million cubic feet gas per day is another

significant discovery in the Potohar Region.

5. According to Article 161(1) of the Constitution of Islamic Republic of

Pakistan, royalty and excise duty on natural gas shall be paid to the provinces where

the above mentioned natural resources are located. The National Finance Commission

has recommended transfer of royalty on oil in 1990. Article 161(1) of the Constitution is

reproduced as follows:-

161(1):

Notwithstanding the provisions of Article 78 the net proceeds of the

Federal duty of excise on natural gas levied at Well-head and

collected by the Federal Govt: and of the royalty collected by the

Federal Govt: shall not form part of the Federal consolidated fund

and shall be paid to the Province in which the well-head of natural

gas is situated.


57

6. In accordance with the Pakistan Petroleum (Exploration and Production)

Rules 1986, the Provincial Government gets revenues on account of the following: -

a) Royalty on Oil.

b) Royalty on Gas.

c) Gas Development Surcharge.

d) Excise Duty on Gas

7. Royalty on oil/gas is payable by the exploration and production companies

to the government @12.50% of the wellhead value. It is payable monthly within 10 days

of the calendar month in question as per Rule 36(2) of the Pakistan Petroleum

Exploration and Production Rules 1986. The Wellhead value is determined by the Govt.

of Pakistan after every six months.

8. Gas Development Surcharge, levied under the Natural Gas (Dev:

Surcharge) Ordinance, 1967 is the difference between the prescribed price and the

consumer’s price (price is determined by OGRA). In accordance with the said

Ordinance, the Federal Government has to fix the sale price for consumers and

prescribed price for Gas Companies on the basis of their fixed return. The difference

between consumer gas price and the Companies prescribed price as defined in the

Natural Gas (Development Surcharge) Ordinance, 1967 is the margin available to the

Government as Development Surcharge. The prescribed price of Sui Northern Gas

Pipeline Ltd (SNGPL) and Sui Southern Gas Company Limited (SSGCL) is based on

the following:-

• Wellhead price of gas.

• Excise Duty at Wellhead.

• Operation and Maintenance Cost.

• Depreciation.

• Returns of Gas Company (17.5% SNGPL and 17% SSGCL) on assets.


58

7,549

5,085

4,190

2,309

1,184

487

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

9. Royalty and Gas Development Surcharge are inversely proportional to

each other. In case, the Wellhead value is more, there will be more royalty but less Gas

Development Surcharge and vice versa. Status of actual receipts from the Federal

Govt: since commercial production of oil and gas has started from the wells located in

NWFP is given as under:-

Table 7.2 ACTUAL AND ESTIMATED RECEIPTS 2004-05 - 2007-08 & 2008-09 & 2009-10

(Rs.in Millions)

ACTUALS ESTIMATED

S. No Receipts Head

2004-05

2005-06

2006-07

2007-08

2008-09

(R.E)

2009-10

(B.E)

1 Royalty on Crude Oil 263.793 492.009 1090.718 3,027.076 3416.524 2469.512

2 Royalty on Gas 109.370 351.050 462.418 537.988 838.687 2729.095

3 Excise duty on Gas 44.280 24.591 123.290 206.236 173.460 191.100

4 Gas Dev: Surcharge 69.828 316.229 632.717 418.236 656.812 2159.296

Total 487.271 1,183.879 2,309.143 4,189.536 5,085.483 7,549.003

Receipts from production of oil & gas


59

1,044,440

1,312,626

2,859,988

4,689,267

4,777,0006,789,000

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

10. Well-head wise production figures of oil from financial year 2004-05 to

2009-10 and production trend of oil is indicated in the following tables: -

Table 7.3 PRODUCTION OF OIL (BARRELS) DURING

FINANCIAL YEARS 2004-05 TO 2009-10

ACTUALS ESTIMATED S. No Name of well

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

1 Chanda (Shakardara Kohat)

989,305 960,980 1,887,302 2,058,926 1,815,294 1,642,500

2 Manzali (Karak) 55,135 166,445 156,978 137,231 147,436 1,551,980

3 Makori (Karak) - 185,201 517,543 771,595 718,388 674,520

4 Mela (Kohat) 298,165 1,721,515 2,095,882 2,920,000

Total 1,044,440 1,312,626 2,859,988 4,689,267 4,777,000 6,789,000

PRODUCTION TREND OF OIL (Barrels/Years)


60

111,325

31,51829,70726,370

20,944

8,435

-

20,000

40,000

60,000

80,000

100,000

120,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Table 7.4 PRODUCTION OF GAS (MILLION CUBIC FEET-MCFT) DURING

FINANCIAL YEAR 2004-05 TO 2009-10

ACTUALS ESTIMATED

S.No Name of well

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

1 Chanda (Shakardara Kohat)

3,495 2,990 3552 3,032 2,650 2,555

2 Manzali (Karak) 4,940 17,221 16181 12,552

13,159 91,250

3 Makori (Karak) - 733 6594 10,314

9,914 9,490

4 Mela 43 3,809 5,795 8,030

Total 8,435 20,944 26,370 29,707 31,518 111,325

(Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)

PRODUCTION TREND OF GAS (MCFT/YEARS)

11. Ministry of Petroleum & Natural Resources, Government of Pakistan has

decided to grant production bonus to those districts where oil & gas reserves have been

discovered. The funds will be spent through Petroleum Social Development

Committees (PSDC) comprising of MNA(s) (Chairmen), MPA(s), Tehsil/ Taluka Nazim


61

(s), District Nazim (Members), DCO (Secretary) of the District and two representatives

of the Exploration & Production (E&P) Company (Member/Vice Chairman). Secretary of

the PSDC (DCO) will open and administer a joint bank account with the title "Petroleum

Social Development Fund (PSDF)", to be operated by District Coordination Officer and

the Executive District Officer (EDO), Finance and Planning for the purpose of funding

projects identified by the PSDC through the production bonus payable by the E&P

Company. All those E&P companies who are obligated to pay production bonus to the

government for infrastructure development of the area will deposit the production bonus

directly in the bank account of the Secretary (DCO) of the PSDF in consultation with the

Director General, Petroleum Concessions (DGPC). The Finance Division (P.F. Wing)

Federal Government will transfer the proceeds deposited in the Federal Treasury

directly to the respective Provincial Government. Upon receipt, the Provincial

Government will transfer the same amount to the bank account of the PSDF concerned.

A sum of Rs. 14.923 million on account of production bonus received from Federal

Government so far has been transferred to the PSDF bank accounts of the respective

districts during 2008-09.

12. The Provincial Government has also decided to transfer 5% share of

receipts on account of Oil/Gas receivable from Federal Government to the respective

districts wherefrom production of Oil/Gas has started. In this connection report of the

committee headed by the Chief Secretary, NWFP regarding utilization of 5% share has

been approved by the Provincial Cabinet. The said 5% share will be over and above the

district and provincial ADP and will be utilized on electricity, supply of gas, education,

technical education, water supply schemes, roads and health facilities. Utilization of 5%

share in the respective districts would certainly supplement the development activities

and improve the socio-economic condition of the area.

Chapter 8: Revenues Transferred to District Governments

62

34

3027

23

191717

0

5

10

15

20

25

30

35

40

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

REVENUES TRANSFERRED TO DISTRICT GOVERNMENTS There are seven Administrative Divisions, 24 Districts, 52 Tehsils / Sub-

Divisions, 31 Sub Tehsils, 55 Tehsil / Town Municipal Administrations and 986 Union

Councils in the Province. Local Governments have been established under the NWFP

Local Government Ordinance, 2001. Over the last 7 years, the Provincial Government

has actively supported the institutionalization of this new system through needed

legislation and provision of adequate resources for effective service delivery.

2. Funds provided to Local Governments during the past 7 years are

tabulated as under:-

TABLE-8.1 REVENUES TRANSFERRED TO DISTRICT GOVERNMENTS

(Rs. in billion)

Description RE 2002-03

RE 2003-04

RE 2004-05

RE 2005-06

RE 2006-07

RE 2007-08

RE 2008-09

i) Salary 13.856 13.817 15.775 19.396 23.204 24.000 28.000

ii) Non Salary 1.097 1.191 1.499 1.650 2.249 3.408 3.417

iii)Development 0.963 0.963 0.963 0.963 0.963 1.204 1.246 iv) O&Z Tax grant

0.984 0.887 0.926 0.996 1.081 1.285 1.435

Total:- 16.900 16.858 19.163 23.005 27.497 29.897 34.098

Revenues Transferred to District Governments

Rs.

In B

illio

n


63

3. The Provincial Finance Commission is responsible for distribution of

resources between the Provincial and District Governments. The Commission met twice

during 2008-09 for review of existing three years Award and formulation of additional

recommendations for the year 2009-10. These recommendations will be part of the

three years Award which is currently in vogue. Salient features of these

recommendations are as under:-

(i) Salary Budget of the Districts was increased by 10% in PFC Award as

compared to current year 2008-09. This increase covers the normal

growth as well as impact of new posts. The Provincial Government is

bound to pick up the actual expenditure of the salary. The increase in

salary by the Federal Government, if any, will have to be borne by the

Provincial Government subject to availability of resources. The impact of

Technical Education which is now a non-devolved subject has been

excluded from the PFC Award.

(ii) Non-Salary Budget, which is meant for other than salary requirements,

has been increased by 12.4%.

(iii) Due to increase in tariff and in order to make timely payment of electricity

bills by the District Governments, allocation has been increased

substantially, on the recommendations of the Energy Monitoring Cell.

(iv) The development share has been increased by 10%. Ten percent (10%)

of development funds will continue to be reserved for Chief Minister’s

directives as usual. The share of Finance Minister in development funds

has been increased from 5% to 10%.

(v) Grant in lieu of Zilla Tax and Octroi has been increased by 10% as per

existing Award. The grant meant for weak TMAs will also be available for

weak Zilla Councils.

(vi) Other conditions will remain the same as per three years PFC Award for

the financial years 2008-09 to 2010-11.


64

4. The allocation made for Local Governments for the year 2009-10 is

summarized as under:-

TABLE 8.2

(Rs. In Million)

S.No. Item Allocation

1 Salary 29500.000

2 Non-Salary 3839.000

3 Development 1341.735

4 O.Z.T Grant 1,556.500

Total 36237.235

Chapter 9: Subsidy on Procurement of Wheat

65

SUBSIDY ON PROCUREMENT OF WHEAT NWFP is a wheat deficient Province and always imports wheat from

Punjab/PASSCO and abroad, for meeting its wheat requirements. Food Department

NWFP also caters for the needs of FATA and Afghan refugees residing in NWFP. Apart

from this, NWFP has got a long porous border with Afghanistan, which is a food

deficient Country and traditionally depends on Pakistan especially NWFP for its food

requirements. Impacts of the shortage of wheat or other foodstuffs in Afghanistan, are

felt in NWFP either in the shape of shortage of supply or price rise. In this scenario,

Food Department, NWFP plays an important role which is summarized as under:-

i. Food Procurement, rationing and distribution. ii. Storage of Food grain. iii. Control over the price.

PROCUREMENT OF FOOD WHEAT 2. Annual estimated requirements of wheat are provided to MINFAL in April

every year where the Wheat Coordination Committee earmarks share of each Province

in accordance with its requirements. Break up of annual wheat requirements of NWFP

is given as below:-

Table 9.1

Area Population according to 1998

Census Projected @ 2.61% per annum

Requirements @ 124 KG per head per

annum Settled Area 24,228,351 3,004,316 FATA 4,397,109 543,009 Afghan Refugees 1,500,000 186,000 Total 30,107,460 3,733,325

3. It is evident from the above that wheat requirements of NWFP are above

37,33,325 M.tons. After adjustment of local production of 11,18,229 M.tons, the net

requirements comes to 26,15,096 M. tons. This deficiency is met out from stocks,

procured through MINFAL and through supply of regulated atta from Punjab. An


66

overview of the quantity of wheat released during the last 3 years, from Government

godowns is given in the following table:-

Table 9.2

Year Opening Balance (M.Ton)

Receipts sduring year

(M.Ton)

Total (2+3)

Releases (M.Ton)

Closing Balance (M.Ton)

1 2 3 4 5 6 2006-07 137,551 301,186 438,737 340,181 98,556 2007-08 98,556 588,202 686,758 658,590 28,168 2008-09 28,168 930,900 959,068 797,332 161,736

STORAGE OF WHEAT 4. Wheat stores meant for NWFP are transported through carriage

contractors from Punjab as well as Karachi at the rates approved by the Provincial Food

Committee. The Wheat is stored in food grains godowns, stock is released to flour mills

according to requirements and quota. At present, Food Department has a storage

capacity of 3,88,150 M.tons. These godowns are scattered over 27 Provincial Reserve

Centers.

5. Food Department NWFP procures wheat from Govt: of Punjab / PASSCO

or imports through Trading Cooperation of Pakistan Karachi. A considerable amount is

spent on its transportation and storage. However the wheat is released to flour mills at

lower rates fixed by MINFAL. The gap is met out from Provincial Government

exchequer through subsidy.

6. The requirement of wheat for financial year 2008-09 was assessed at

2,050,000 M.tons. Due to supply of atta from Punjab, the quantity was reduced to

1,500.000 M.tons with an estimated subsidy of Rs. 10,359.241 million. As the subsidy is

paid on the basis of actual off take, therefore, Finance Department has restricted the

Revised Estimates at the level Rs. 2000 (million). The detail of Rs. 10,359.241 million is

as under:-


67

Table 9.3 SUBSIDY DURING 2008-09 (REVISED ESTIMATES)

(Rs. in million)

S.No Source/activity Qty: in M.Tons Rate per M.Ton Amount

1. PASSCO (Indigenous) 617,303 3,023 1,866.107 2. TCP (Imported wheat) 882,697 6,175 4,550.654 3. Provincial Food Deptt: 1,500,000 2,526 3,789.000 4. Transportation TCP 2,500 2,206.743 Total 12,412.504 Grand total (purchase of wheat + incidental) 31,200.000

5. Sale of wheat 20,841.000 6. Net Subsidy 10,359.000

7. Due to the critical condition of wheat stocks, wheat has been imported to

overcome the shortages of wheat / atta in the country, especially NWFP. On the basis

of the above, the subsidy has been bifurcated between the indigenous and imported

wheat as under:

Table 9.4

SUBSIDY ON INDIGENOUS & IMPORTED WHEAT Rs. in million

S.N. Source Qty: in M.Tons Rate per M.Ton Amount

1. Indigenous Wheat 617,303 4,231 2,611.809 2. Imported Wheat 882,697 8,777 7,747.432 Total 1,500,000 - 10,359.241 8. The Provincial Government intends to procure 2.5 (million) M.Tons of

Wheat for the next Financial Year 2009-10. For this purpose the estimated amount of

subsidy would be Rs.14,022.500 (million). However, Rs. 2 billion have been earmarked

by the Provincial Government and the balance of Rs. 12,022.500 (million) will be

managed by arranging receipts of Rs. 2.200 million by FATA and Rs.10,022.300

(million) will be demanded from the Federal Government as grant. Detailed break up of

Wheat Subsidy for 2009-10 is as under:-


68

Table 9.5

(Rs. in million)

Source Qty. in M.Tons

Rate per M.Ton Amount

COST OF WHEAT PASSCO Wheat 1,250,000 23,750 29,687.500

Punjab 1,250,000 23,750 29,687.500

Total 2,500,000 23,750 59,375.000

INCIDENTALS

PASSCO 1,250,000 4,368 5,460.000

Punjab 1,250,000 3,034 3,792.500

Provincial Food Department 2,500,000 2,778 6,945.000

Total 16,197.500

SALE OF WHEAT

Purchase of Wheat + Incidentals Rs. 75,572.500

Sale of Wheat Rs. 61,550.000 @ Rs. 24,620/- M.T

Net Subsidy Rs. 14,022.500

FLOUR MILLS 9. There are 241 Flour Mills in NWFP out of which only 208 are functioning

as per detail given below:-

Table 9.6

Detail NWFP FATA Total Functioning flour Mills 202 06 208 Closed flour Mills 32 01 33 Total 234 07 241

69

Chapter 10: Hydroelectric Power

HYDRO-ELECTRIC POWER POTENTIAL

The province of NWFP has been blessed with vast natural resource like

water, forests, minerals, gem stones, oil and gas. There are several ideal locations for

generation of Hydro electricity. The estimated potential of hydel power generation in the

province is about 29,600 MW, which is about 70% of the total hydel power generation

capacity of the country i.e. 41700 MW. Presently 3945 MW hydel power is being

generated in NWFP, detailed as under: -

Table 10.1

S.No. Hydel Station MW

1. Tarbela 3478 2. Warsak 342 3. Dargai 20 4. Jabhan 19 5. Kurram Garhi 4 6. Chitral 1 7. Malakand III 81

Total 3945

2. A hydel policy for construction of small scale power plants (upto 20 MW)

has been formulated to exploit the hydro electric power potential of the province. The

provincial government has established Sarhad Hydel Development Organization

(SHYDO) for promotion of hydel power generation, identification of potential sites and

mobilization of ways and means for investment in the said sector. Estimated cost of

construction of 1 MW Hydel Electricity is about US$ 1.5-2 million. Pursuant to

commitment of the provincial government to hydel power development, a independent

department with the name “Energy & Power Department” has been established to

exclusively look after the affairs of power potential in the province, including hydel and

other renewable resources i.e. solar, wind etc.

70


3. Following is the status of different project undertaken by SHYDO:-

Table 10.2

S.No Project Capacity Mega Watts Status

1 Malakand III 81 Functional & Rs. 746 Million received

2 Pehur Swabi 18 To be made functional soon

3 Shishi Chitral 1.875 -Do-

4 Daral Khwar 36.6 Consultants hired-funded by ADB at a cost of Rs. 3075 million.

5 Ranolia Khwar 11.5 Estimated cost Rs. 1077 million.

6 Macchi Mardan 2.6 Estimated cost Rs. 318 million.

7 Koto Hydro Power Plant, Lower Dir 18

Feasibility phase Rs. 2430 Million

8 Jabori, Manshera 8 Feasibility phase Rs. 907 Million

9 Karora, Shangla 7.5 Feasibility phase Rs. 729 Million

10 Summer Gah Kohistan 28 Under construction

11 Mataltan Swat 84 Under construction

12 Karora Shangla 8 Under construction

Total 305.075 MW

4. Work on pre-feasibility study is in progress in respect of the following

medium size sites. The studies will be completed during the financial year 2009-10.

i) F/study of Shigo Kach Dir (38 MW)

ii) F/study of Barikot-Patrak Dir (34 MW)

iii) F/study of Patrak-Shingral Dir (21 MW)

iv) F/study of Serai Karoara Shangla (13.5 MW)

v) F/study of Bhimbal Khata Manshera (8.1 MW)

vi) F/study of Batakundi HPP Manshera (65 MW)

71


vii) F/study of Shigo Kach Dir (38 MW)

viii) F/study of Barikot-Patrak Dir (34 MW)

ix) F/study of Patrak-Shingral Dir (21 MW)

x) F/study of Serai Karoara Shangla (13.5 MW)

xi) F/study of Bhimbal Khata Manshera (8.1 MW)

5. It is pertinent to mention that hydro power plants with installed capacity of

less than 50 MW do not come under the purview of Private Power and Infrastructure

Board. The PPIB is the Federal Government’s facilitation agency for private investment

in the Power Sector. The National Electric Power Regulatory Authority (NEPRA) is also

playing its due role in regulation of power sector.

6. In order to give a clear perception of the government for the private

potential investors, the Government of NWFP announced Power Policy in 2001, under

which the private investors can develop Hydel Project upto 50 MW. Salient features of

the new Hydel Power Policy of NWFP are as under: -

(i) SHYDO will provide one window facility and technical help to the private investors in setting up hydropower projects upto 50 MW in NWFP.

(ii) Implementation of projects through solicited and unsolicited proposals.

(iii) Simple procedure for projects up to one MW.

(iv) Reduced fee structure as compared to Federal Power Policy 2002.

(v) Sites above one MW will be leased on the basis of highest bid on the base lease price of Rs.1000/kW/annum through competitive bidding.

(vi) The agreed lease price will be escalated @25% after every 10 years of lease period.

(vii) Concession period will be 50 years.

(viii) Lease could be transferred to another buyer of the project with prior approval from SHYDO upon payment of prescribed fee.

72


(ix) Hydrological risk will be borne by the power purchaser.

(x) No provincial taxes will be levied on the sponsors of hydel projects.

(xi) No water use charges will be levied.

(xii) All hydel power plants up to 50 MW allowed to be installed on BOOT basis, for a period of 50 years.

(xiii) Performance of all federal entities, including power purchasers, will be covered under a sovereign guarantee of the Federal Government.

7. Incentives for Hydropower Projects upto 1 MW are:-

(i) Selection on first come first served basis.

(ii) No lengthy procedure, just registration and Bank Guarantee.

(iii) Nominal lease money, fixed @Rs. 500/kW/annum.

(iv) NOC to be issued by SHYDO within one month after registration.

(v) Three years are allowed to construct the project.

8. Besides the above, significant increase in the revenues from Hydroelectric

Power Generation are expected from 3500 MW capacity Bhasha Dam in District

Kohistan and 840 MW capacity Suki Kinari Hydro Electric Project, to be constructed on

Kunhar river in Kaghan area of District Mansehra.

73

Chapter 11: Medium Term Budgetary Framework (MTBF)

MEDIUM TERM BUDGETARY FRAMEWORK (MTBF)

Fiscal transparency, credibility and predictability are important objectives

of financial management systems of the Government of NWFP. The Government has

always strived to introduce innovations and reforms in financial management system.

One such initiative is preparation of The Medium Term Fiscal Framework (MTFF). It’s a

medium term (three year) outlook to the budgeting and provides an essential

cornerstone for achieving the Government’s public financial management (PFM)

reforms objectives. A well developed MTFF provides the foundation for sound fiscal

policy, budgeting linked to policy, and achieving macro fiscal stability. It also ensures

increased efficiency in the use of public money, and caters for the creation of

performance indicators that allows government to measure how far this is actually

taking place. This gives the Finance Department more of a strategic, policy oriented role

to complement its current focus on financial control and fiscal discipline.

Economic Outlook

2. The Government of NWFP is facing most challenging times in its history.

Global economic recession and down turn of economic indicators of the Federal

Government has adverse impact on the economy of the province. In addition NWFP is

now the center stage of war against terror and is fighting an active insurgency. Recently

the Province is faced with the biggest influx of internally displaced persons (IDP’s),

whose numbers has surpassed three million. Safety and comfort of IDP’s is on top of

the government agenda. There has been an uphill surge in the expenditure pertaining to

security and law and order. Such unprecedented expenditure pressures will make it

difficult for the government to allocate the, already scarce resources, in the much

needed areas of education, health and infrastructure. Estimated trend of overall budget

deficit is given below;

74


NET DEFICIT

-4,500

-4,000

-3,500

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

Rs.

in m

illio

n

Net Deficit -3,827 -3,718 -3,719 -2,836

2009-10 2010-11 2011-12 2012-13

Fiscal space

3. Fiscal space can be created by increasing the revenue generation trends

and introducing economy, transparency and efficiency in the expenditure. The

Government of NWFP is by and large dependent on the Federal Government for

allocation of revenues. During the year 2009-10 the Government of NWFP will face an

overall budgetary deficit of Rs.3.827 billion. Due to extraordinary fiscal pressures this

trend will change and gradual improvements in the fiscal balance would be made over

the medium term and the fiscal deficit would be reduced to an overall budgetary deficit

of Rs. 2.8 billion during year 2012-13.

Revenues

4. Provincial Government gets 93% of its revenues from the federal

government. It is estimated that during the MTBF period, Federal Tax Assignment will

be increased by 15% each year. This is due to increase in inflation and imposition of

new taxes. Although the Government of NWFP, has limited revenue resources, but

75


does has the potential for expansion. Due to the war against the terrorism, the

Provincial Government faces tremendous difficulties in the collection of its revenues.

Expenditure

5. Government of NWFP is facing extreme expenditure pressures. The

unprecedented influx of IDP’s and combating the growing menace of terrorism will make

it very difficult for the government to contain its fiscal deficit. It will require strict

economic measures and efficiency in budget execution to avert this fiscal imbalance.

6. Provincial MTBF for three years on IMF format is given as under: -

Table 11.1

MEDIUM TERM BUDGETARY FRAMEWORK (MTBF)

MTBF Rs. in million (unless otherwise stated)

2009-10 2010-11 2011-12 2012-13

REVENUE Total Revenue Receipts 93,870 105,436 119,657 137,124

Federal Tax Assignment

66,198 74,804

85,276

98,068

1/6th of Sales Tax

7,797 8,577

9,520

10,663

GST on services

822 904

1,003

1,124

Provincial Revenues

6,441 7,085

7,935

8,967

Royalty on Oil & Gas

6,612 8,066

9,922

12,303

Net Hydel Profit

6,000 6,000

6,000

6,000 Transfers to District Governments 38,967 42,863 47,858 53,437

Wages

32,200 35,420

39,670

44,431

Non-Salary

3,839 4,223

4,645

5,110

Octroi and Zilla Tax

1,557 1,713

1,884

2,072

Annual Development Program (Distts.)

1,371 1,508

1,658

1,824

Net Revenue after Transfers 54,903 62,573 71,799 83,687

76


EXPENDITURE Current Expenditure 35,535 38,498 42,314 46,764

Wages

16,966 18,663

20,902

23,410

Pension

6,802 7,483

8,231

9,054

Non-Wage O&M and Contingency

9,767 10,353

11,181

12,300

Subsidy

2,000 2,000

2,000

2,000

Development Expenditure 37,846 44,472 52,330 61,655

Annual Development Program (Provl.)

28,421 34,105

40,926

49,111

Special Programme

4,400 4,840

5,324

5,856

Foreign Project Assistance

5,025 5,527

6,080

6,688 PRIMARY BALANCE (18,478) (20,398) (22,845) (24,732) GRANTS AND INTEREST PAYMENTS Federal & Foreign grants 20,359 22,673 25,420 28,504

Grant in Aid

14,818 16,596

18,753

21,191

Federal Dev. Grants

4,400 4,840

5,324

5,856

Foreign Dev. Grants

782 860

946

1,041

Others

359 377

396

416

Interest Payments 5,708 5,993 6,293 6,608 OVERALL BALANCE (3,827) (3,718) (3,719) (2,836)

MTBF Rs. in million (unless otherwise stated) 2009-10 2010-11 2011-12 2012-13

BUDGET FINANCING

Net Federal Debt (CDL)

(697)

(767)

(843)

(928)

Net Foreign Debt

1,942 1,732 1,556 1,351

SBP Overdraft

1,282 1,452 1,706 1,112

Net Public Account

1,000 1,000 1,000 1,000

Net Capital

300 300 300

300

Cash Balance Utilization - - - - Total Financing 3,827 3,718 3,718 2,835

77


Provincial Gross Domestic Product (PGDP)

7. Gross Domestic Product for the Province of NWFP is not determined

separately. The figures of National GDP are taken from the Economic Survey of

Pakistan. The growth rate figures for the National GDP are revised due to bleak

economic situation. However, this year the growth rate cannot be determined /

projected for NWFP, due to non availability of base-line data about certain segments,

determining the size of growth of GDP.

8. Relative trend of National GDP is given below;

TRENDS OF GDP GROWTH

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Rs.

in m

illio

n

National 2.1 3.3 4.0 4.5 5.0

2008-09 2009-10 2010-11 2011-12 2012-13

Inflation

9. Recent economic shocks resulted in a steep rise in the inflation rate.

According to the projections of the Federal Government, CPI will reach 20% in 2008-9

and then it will be controlled and brought below the single digit figure that is 9.5% to 6%

in the medium term.

78


INFLATION RATE

0.00

5.00

10.00

15.00

20.00

25.00R

s. in

mill

ion

Inflation Rate % 20.0 9.5 7.0 6.0 6.0

2008-09 2009-10 2010-11 2011-12 2012-13

10. The Medium Term Fiscal Framework is prepared by the Provincial

Government for a period of three years, which is then revised every year. This review of

the framework is essential in order to provide a policy-led approach to budget planning

in which resource allocations are linked to strategic objectives and priorities of the line

departments and agencies. A medium term budgetary horizon provides the government

the space and flexibility needed to formulate, plan and implement policies that focus on

public service delivery.

11. The introduction of MTBF means that government is shifting from a

traditional, centrally driven planning and budgeting system to one that makes line

departments more accountable for their performance, within a more integrated budget

structure. Despite the fact that the PFM reform process is seen as a long-term

endeavour, the MTBF is already putting in place a system of resource management

which shifts decisions to the line departments allowing them to manage resources to

achieve the desired results in the priority areas. This will also give a sense of ownership

to the respective department’s vis-à-vis their budgetary strategy.

79


12. The Government of NWFP prepared its first Medium Term Fiscal

Framework in 2002-03. It was the very same year when the first tranche of $90 million

was allotted to the Provincial Government, by The World Bank, to support its Provincial

Reforms Program. Since then serious efforts have been made to increase the quantum

of the provincial revenues, improve the effectiveness of spending under recurrent

budget, maximize both social sector budgetary allocation and development expenditure,

and to rationalize the fiscal deficit. Encouraged by the experience of preparing Medium

Term Fiscal Framework, the Finance Department aims to further improve on the

existing framework. Policies and priorities will be linked to the budgetary process by

introducing the concept of Budget Strategy Paper for the Financial Year 2010-2011.

This will include Indicative Budget Ceilings to the line departments, enabling them to

prioritize their budget according to the constraints of the available fiscal space. These

steps along with output based budget will enable the Provincial Government to allocate

scarce resources for the betterment and development of its people.

80

Chapter 12: Performance Based Budgeting

PERFORMANCE BASED BUDGETING

Efficient, effective and economical service delivery to the grass root level

is the biggest challenge in the public sector. The Government is committed to improve

the life of common citizens by ensuring that funds allocated for education, health and

infrastructure are spent according to the policies and priorities and monitored effectively.

Performance Based Budgeting (PBB) is a step in this direction. Performance based

budgeting clarifies programme goals and objectives and identifies performance targets,

thereby helping the government communicate more effectively about their activities to

the legislature and the public. As a result the budget document will serve as a major

tool of transparency and accountability for the legislative body and the public.

Traditional budgets, typically organized according to line item inputs, fail to deliver

meaningful information regarding what and how well the government is doing. In

comparison, performance based budgeting classifies resources by programs and

presents performance against specific indicators. The budget thus prepared, makes it

much easier for the public to get a sense of major government activities and their

achievements.

2. The economic condition of NWFP is evident from the low vital socio-

economic indicators of the province vis-à-vis other provinces or country average.

Population density in NWFP is 238, which is second highest in the country but it is the

highest if the inaccessible and barren area of Chitral and Kohsitan are excluded.

Population growth in NWFP is the highest (2.6%), house hold size is the highest (8

persons), incidence of poverty or people living below poverty line is 46% which is the

highest and which has been further increased due to the recent economic recession,

per capita income is the lowest i.e Rs. 746 (SPDC- 2000), majority of the industrial units

are either closed or operating at below the capacity, daily wages are the lowest,

unemployment is the highest, female literacy is the lowest (22%) & dependence on

remittances is the highest.

81


3. On the other hand the quality of service delivery in the public sector

institutions is deteriorating due to lack of resources, mismanagement of the available

resources, lack of capacity and accountability, political interference, extremism and

terrorism. The present incremental form of budgeting is input driven, having no links

with output/outcome of the expenditure. In this backdrop, Performance Base Budgeting

(PBB) was introduced, which is output oriented and takes stock of the performance of

individual service delivery units.

4. Main features of PBB are:-

a. It clarifies entity’s goals and objectives and identifies performance targets based

on the performance indicators, thereby helping the government communicate

more effectively about its activities to the legislature and the public.

b. It can help the Secretaries of line departments to specify organizational goals,

monitor program performance, maintain better knowledge of problems with

program structure and operation, plan for the future, improve internal control, and

communicate program results.

c. It may not rationalize and transform the political budgeting process, but it

certainly adds value to deliberations because performance information is taken

into account when the level of funding is decided. With appropriate information,

parliamentarians are able to exert pressure for improvements and can better

understand the issues involved.

d. It attempts to increase the influence of policy analysis, strategic decision support,

performance information in the budget system.

e. It is seen as a way to improve on the poor quality of public service delivery and to

help improve the overall allocation of resources, in what have traditionally been

viewed as rigid and unresponsive budget systems.

5. PBB in NWFP was launched during 2005-06 in 201 pilot units, in the

Departments of Education, Health, Agriculture and Population Welfare, in Districts’

Peshawar and Kohat. The system was extended to district Abbotabad and Bannu

82


during 2006-07 and to six additional districts during 2008-09 namely, Swat, Swabi,

Mardan, Battagram, Karak and Lakki in the same four departments, in 107 pilot SDUs

per district

Table 12.1

Sector Spending Unit Type Coverage

Primary School Male 20

Primary School Female 20

Middle School Male 10

Middle School Female 10

High School Male 5

Education

High School Female 5

Basic Health Unit 10

Civil Dispensary 5 Health

Mother and Child Health 2

Agriculture Extension Circle 5 Agriculture

Livestock circle 5

Population Family welfare centers 10

Total 107

6. Performance of the pilot SDUs has improved considerably especially in

health and agriculture sectors, as evident from the evaluations. Improvement in

performance can be attributed to the capacity building, effective monitoring,

coordination, appreciation and encouragement, financial and administrative autonomy

and provision of conducive working environment by meeting the need based non salary

budgetary requirements. Non-salary budget of the pilot SDUs is contributed by the

provincial and respective district governments in the ratio of 50:50. A sum of Rs. 139.68

million has been allocated for all the 10 pilot districts during the c.f.y. 2009-10 out of

which 50% (Rs. 69.84 Million) will be provided by the Provincial Government as

83


matching grant and 50% provided by the respective districts. However budgetary

requirements of Population Welfare sector are being funded through PSDP.

7. Owing to the encouraging response of the pilot phase, DFID has extended

support for full scale implementation of PBB, under the Provincial Reforms Programme.

A Reforms Management Group supported by a Reforms Working Group is actively

working on the subject. PBB implementation strategy has been formulated which will be

approved shortly. PBB is complementary to the ongoing Medium Term Budgetary

Framework (MTBF) approach, being adopted in NWFP. The top down approach of

MTBF will be integrated with the bottom–up approach of PBB.

EVALUATION 2006-07

8. This is the fifth year of Performance Based Budgeting in operation. Despite

capacity constraints, the output of the first four years is encouraging. The midterm

evaluations carried out in April 2006 and in January 2008 have shown encouraging

results. The Evaluation Report indicates that enrolment in pilot schools has increased in

the range of 30% to 122%, dropout rate has reduced at an average by 40%, quality of

teaching has improved and the percentage of students placed in A & B grades has

increased in the range of 14% to 20%. Teacher’s attendance, PTA meetings and co-

curricular activities, such as debates and sports events were made a regular feature.

9. In case of health, OPD patients in the spending units of district Peshawar

have increased by 13%, 14% & 8% in the BHUs, Civil Dispensaries and Mother Child

Health Centres (MCHC) respectively. There is increase in the family planning services,

anti-natal care and health education. Anti natal care has increased by 116% & 300% in

the BHUs and MCHCs respectively. Number of family planning clients has increased by

33% & 170% in the BHUs and MCHCs respectively. Similarly Health Education

sessions have increased by 18%, 101% & 74% in the BHUs, Civil Dispensaries and

Mother Child Health Centres respectively.

84


10. In agriculture sector the amount of improved seed distributed has

increased by 86% and 107% in district Peshawar and Kohat respectively. Orchard

management by 100% and 160%, budding & grafting by 169% & 14%, farmers training

by 120% & 136%, demonstration plots by 100% & 250%, crops diversification by 25%

& 45% and crops data collection by 20% & 80% in district Peshawar and Kohat

respectively. Livestock sector, too, has shown good performance. Artificial insemination

has increased by 305% & 164%, fodder demonstration plots by 80% & 210%, number

of animals received veterinary care by 84% & 56%, number of animals vaccinated by

146% & 38%, number of poultry vaccinated by 58% & 7%, number of field days by 61%

& 19%, number of farmers trained by 77% & 28% and data collection of livestock

products by 23% & 5% in District Peshawar & Kohat respectively.

EVALUATION 2007-08

11. Almost all indicators have shown improvement during 2007-08.

Comparative position of some sample indicators during 2007-08 is shown in the

following tables:-

Table 12.2

IMPROVEMENT IN EDUCATION SECTOR 2007-08 % Increase over Previous Year

% increase in

A Grades % increase in Teachers

Attendance School type

% increase in Enrollment over non

PBB Period Before PBB After PBB Before PBB After PBB

Primary Male 8.9 19.2 26.7 91.0 93.0 Primary Female 13.4 19.1 26.2 93.0 95.0 Middle Male 9.8 12.5 16.3 89.5 92.2 Middle Female 8.4 11.1 20.2 90.8 88.3 High Male 25.0 16.8 25.6 90.3 93.6 High Female 24.6 6.7 13.7 90.1 90.8

85


Table 12.3

IMPROVEMENT IN HEALTH SECTOR 2007-08 % Increase over Previous Year

Facility Type OPD Patient

receiving ANC

Family Planning Clients

Vaccination Malaria Cases

detected

BHU 83.3 249.4 52.44 214.2 28.5

MCHC 121.6 709.1 290.1 1753.8 - Dispensaries 232.6 - - 152.2 -

Table 12.4

IMPROVEMENT IN AGRICULTURE & LIVESTOCK SECTORS 2007-08 % Increase over Previous Year

Service Type

Improved Seed distributed

No of Farmers Trained

No. of Advisory

Visits

Demonstrations Plots

Field Days

Extension 273 1865.8 283.5 616.1 185

Immunization Animals Vaccinated

Animals Treated

Farmers Contacted

Field Days

Livestock 235.2 720.6 248.7 3140.1 1864.2

12. The Performance reported during 2008-09 shows continuous upward

trend, in all the three Pilot Sectors Education, Health and Agriculture. Though the

Improvement has taken place against all the indicators, however Performance of some

important indicators has been graphically presented. The graphs includes, increase in

enrollment of Middle and High Schools in case of Education Sector, increase in OPD

patients in the BHUs, CDs and MCHCs in the Health Sector and increase in distribution

of improved seeds and increase in number of animals receiving veterinary care in case

of Agriculture Extension and Livestock and Dairy Development sectors respectively.

86


High Schools Female High Schools Male

2007-088759

2008-098908

2007-087724

2008-099913

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Nu

mb

er o

f S

tud

ents

En

roll

ed

Increase in Enrollment during 2008-09 Over 2007-08 in High Schools

2007-08

2008-09

Middle Schools Female Middle Schools Male

2007-083374

2008-093545

2007-083888

2008-093918

3100

3200

3300

3400

3500

3600

3700

3800

3900

4000

Nu

mb

er o

f S

tuen

dts

En

rolle

d

Increase in Enrollment during 2008-09 Over 2007-08 in Middle Schools

2007-08

2008-09

2007-08 2008-09

286587

638478

0

100000

200000

300000

400000

500000

600000

700000

Nu

mb

er o

f P

atie

nts

Increase in Number of Patients in OPDs during 2008-09 Over 2007-08

2007-08 2008-09

87775

207504

0

50000

100000

150000

200000

250000

Nu

mb

er o

f P

atie

nts

Increase in Number of Patients in OPDs during 2008-09 Over 2007-08

INCREASE IN OVERALL ENROLLMENT 2008-09

INCREASE IN OPD PATIENTS DURING 2008-09

HIGH SCHOOLS MIDDLE SCHOOLS

BASIC HEALTH UNITS CIVIL DISPENSARIES

87


2007-08 2008-09

587588

1862476

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

See

d D

istr

idut

ed in

KG

Increase in distribution of improved Seed during 2008-09 Over 2007-08

2007-08 2008-09

1156079

1472501

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Num

ber

of A

nim

als

Rec

ieve

d V

eter

inar

y C

are

Increase in Number of Animals Receiving Veterinary Care during 2008-09 Over 2007-08

INCREASE IN THE PERFORMANCE OF AGRICULTURE SECTOR DURING 2008-09

13. A strategy for complete switch over to PBB has been prepared. Salient

features of the strategy includes: formulation of a PBB model; hybrid of the international

experience and local requirements and constraints; pilot testing of the proposed

methodology using real data; establishment of the agreed conceptual framework

(Objectives, Programmes, Outcomes, Outputs and Performance Indicators);

development of guidelines for setting Performance Targets; against standard

Performance Indicators; yearly plans linked with socio-economic factors of a Service

Delivery Units; affecting their performance like population; finalization; preparation of a

set of training materials; delivery of the training courses; support of the Line

Departments to establish the mapping of Spending Units onto Outputs; development of

monitoring toolkits; modification of PBB and Financial Management Application;

introduction of performance based agreements between FD/line departments/Districts

and the service departments/ executing agencies/districts’ level offices; strengthening of

the professional capacity of FD; line departments and districts ensuring effective

coordination and implementation of PBB and complete switch over to PBB.

AGRICULTURE EXTENSION LIVESTOCK & DAIRY DEVELOPMENT

Chapter 13: The Malakand Catastrophe

88

THE MALAKAND CATASTROPHE

Pakistan in general and NWFP in particular is facing serious security

threats due to extremism and terrorism. Law and order in the province and FATA is

fragile. NWFP has been the frontline province during the Afghan war as well as in the

recent insurgency in Malakand Division and FATA. The 1.5 million Afghan refugees are

predominantly residing in NWFP which is a continuous burden on the economy and

social services network of the province and a major source of heinous crimes. Major

share of the tribal population has migrated mostly to NWFP due to the recent “war on

terror”. On the other hand, the extremist and terrorist insurgency in Malakand Division

has caused the migration of the world largest number of internally displaced

persons/peoples (IDPs). Over 3.5 million IDPs from Malakand Division have been

registered so far due to the ongoing military clean up operation. This situation has

created uncertainty in the region and has badly affected the economic activities.

Investors hardly take risk of investing in Pakistan, especially in NWFP. As a result, the

socio-economic condition of the province is deteriorating day by day. Iimplications of

this insecurity are widespread, such as:

a) Economic opportunity and employment is declining, with many businesses

closing or moving out of the province;

b) It is difficult to maintain basic public services in some areas;

c) The costs of maintaining law and order has greatly increased;

d) Large groups of displaced people require basic support;

e) Regional trade has been disrupted, reducing employment and revenue;

f) International funding for development has declined markedly;

2. The recent conflicts in NWFP have led to large number of internally

displaced people (IDPs) who have settled in camps or with host families. As military

operation continues in Swat, Dir, Buner and adjacent locations, the residents of these

areas are migrating to safer regions like Mardan, Swabi, Charsadda, Nowshera,

Peshawar and Kohat. For this purpose, 15 permanent and one transit camps have been

established in these districts to house the IDPs, as depicted in the following table:-

Chapter 13: The Malakand Catastrophe

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Table 13.1 DISTRICT WISE NUMBER OF IDPS

S. NO DISTRICT FAMILIES INDIVIDUALS

1 Swabi 97036 586182

2 Mardan 252813 2074248

3 Charsadda 25899 155394

4 Kohat 3169 42758

5 Nowshera 25323 158643

6 Peshawar 58283 373011

TOTAL 462523 3390236 (Sources: Social Welfare Dept. (ii) Data Management Unit ERU-PRC as of 7th June 2009

(being updated continuously)

3. A total of 86 registration points have been established in Peshawar,

Mardan, Nowshera, Charsadda, Swabi and Kohat to register these IDPs while

registration of IDPs is also in progress in Abbottabad, Haripur, Mansehra and

Battagram. Different local and foreign organizations are serving these IDPs in camps

within their respective framework.

4. An amount of Rs. 1.140 billion has been released by the Provincial

Government for the welfare of the IDPs apart from the assistance being provided by the

UNHCR, WFP, NGOs and other donor agencies. The Federal Government has

allocated a sum of Rs. 7 Billion as cash support of Rs. 25,000 per family. A huge

amount of funds will be required for rehabilitation of these displaced people. Besides

the miscreants have caused huge damages to public property and a large number of

schools, bridges and hospitals which have deprived innocent children from education

and people from health and communication facilities. The Federal Government has

allocated Rs. 50 billion in the PSDP for relief, rehabilitation, reconstruction and security

in Malakand Division. The Provincial Government has allocated Rs. 2 billion in the ADP

for the rehabilitation work and also making efforts for donors’ support in the

rehabilitation process. The extra cost of policing and reconstruction of the damaged

property, coupled with losses to business activity are expected to cost the government

of NWFP nearly Rs 20 billion as estimated in the Comprehensive Development Strategy

(CDS). Besides the over all rehabilitation would cost about Rs. 35 billion.

Chapter 14: Annual Development Programme

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ANNUAL DEVELOPMENT PROGRAMME 2009-10

NWFP borders Afghanistan in the north and west, Punjab and Azad

Jammu & Kashmir in the east, Baluchistan and Punjab in the south. The total area of

the province is 74521 square kilometers, which is 9.4% of the total area of Pakistan.

According to the latest estimates, the population of the Province is 23.314 million, which

is 13.4 percent of the national population. The population density is 238 persons per s.q

kilometer. The high population growth rate, coupled with lower GDP growth rate, has

resulted in lesser per capita income, which is considerably lower than the national

average.

2. NWFP is the poorest province in Pakistan with an overall incidence of

poverty at 44% as compared to 23.9% for Pakistan. The farm area in NWFP is only

11.76% of the total farm area in the entire country. It has a high share of small sized

land holdings. 50% of the provinces total land still remains un-cultivated. The share of

NWFP in manufacturing sector in terms of value added goods is only 5%, which is much

below the provincial contribution to national GDP. However, the share of NWFP in

vegetable ghee, cigarettes and cement in national production is greater than the

provincial share in the manufacturing sector value added goods and GDP.

3. Besides, the diversity in geographical and climatic conditions, nature has

bestowed immense wealth in the shape of Hydel power, minerals, oil, gas and tourism

potential that makes it prominent amongst the other provinces. However, morbid socio-

economic conditions and low literacy rate has had a serious impact on the pace of

development. Above all, governance issues are impeding the pace of institutional

efficiency in both public and private sectors. To address these issues the Government

has taken various initiatives through sectoral reforms to improve the efficacy of the

service rendering institutions to improve socio- economic conditions of the Province.


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SALIENT FEATURES OF ADP 2008-09

NWFP Provincial Reform Programme-II

4. The Province adopted the Provincial Reforms Program, and the detailed

reforms program articulated in the World Bank’s SAC-I. Development is a continuous

process, and the reforms over the last few years laid down the foundation for continuing

progress in the years ahead. Notwithstanding the progress made, because of low

starting point, NWFP still faces huge challenges and needs to continue with the

direction and pace of reforms for poverty reduction and human development. Poverty in

NWFP is still widespread, especially in the rural areas. Disparity in incomes between

NWFP and the rest of the country may have increased over recent years while NWFP

could not benefit proportionately due to low share of manufacturing in the provincial

economy. Slow growth in economic activity is the main reason for the prevalence of

poverty in NWFP. Invigorating the provincial economy is pivotal to creating employment

opportunities, increasing incomes and reducing poverty. The locational disadvantage of

NWFP vis-à-vis ports and major markets is one challenge the private sector has to

confront in the development process.

5. The Government formulated the Provincial Reform Program-II for

2005/06-2007/08, keeping in mind the continuing challenges facing the Province.

Accordingly, the Government had adopted the following four-pronged strategy to

address the development challenge over the medium-term:

i. To accelerate human development through education and better health so

that, all people can benefit from and contribute to economic growth.

ii. Invigorating competitive private sector activities in the province.

iii. Addressing disparities in development across genders, the rural-urban divide

and across regions, and to develop social safety nets for the most deprived in

society.

iv. To enhance the efficiency of public expenditure and improve social service

delivery by improving governance and enhancing accountability.


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SOCIAL PROTECTION IN NWFP

6. The concept of Social Protection/social safety nets is not new. Safety nets

are envisioned primarily as protection for the poor in terms of unexpected

consequences from macroeconomic downturns. At present, the social safety nets for

the vulnerable in Pakistan include; Workers Welfare Fund (WWF), Food Support

Programme, Social Security, Employees Old Age Benefit (EOBI), Pakistan Bait-ul-

Mal(PBM) and Zakat Fund. The Federal and the Provincial Poverty Reduction

Strategies aim to strengthen the existing mechanisms of cash transfers through Zakat,

and the social protection system of EOBI and health care through Employees Social

Security Institutions (ESSI). The work on the National Social Protection Strategy was

initiated by the Federal Government in 2004 in the hindsight of the recommendations of

the PRSP, “to make the poor an integral part of the economy, so that they can take part

in mainstream social and economic activities, can gain from the growth of the economy

and can accumulate human and physical assets”. In this context, a participatory process

was started in the country including NWFP. The strategy was approved in May 2007.

The goals of the strategy were as under:

1. To support chronically poor households and protect them against

destitution, food insecurity, exploitation, and social exclusion.

2. To protect poor and vulnerable households from the impacts of adverse

shocks to their consumption and wellbeing that, if not mitigated, would push

non-poor households into poverty, and poor households into deeper

poverty; and

3. To promote investment in human and physical assets, including health,

nutrition, and education, by poor households capable of ensuring their

resilience in the medium run and of interrupting the inter-generational cycle

of poverty.


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7. The World Bank and the DFID are providing technical and financial

support for strengthening the capacity of the federal and provincial governments to

implement the NSPS. In this context, three workshops were held in the Province. The

first workshop was held in May 2006 wherein consultations were held on the preliminary

draft of the strategy. This consultative workshop was followed by one-day roundtable

discussions in November that helped in generating a common understanding on

concepts of vulnerability and social protection in delivery mechanisms, synergies and

gaps, amongst the stakeholders. The action planning workshop which was convened

from March 14-16 provided a platform for both the provincial and district stakeholders to

take forward in practical terms the identification and planning of their desired strategic

approaches for implementation of the Social Protection Strategy, and related capacity

building and resource needs.

8. The Provincial Social Protection Policy is in the process of approval. The

World Bank will soon be providing the technical support for undertaking institutional,

economic and social appraisals and planning for taking forward the social protection

interventions at the provincial level.

MULTIPLE INDICATOR CLUSTER SURVEY (MICS)

9. The Multiple Indicator Cluster Survey was originated in 1990 with the aim

to improve the status of women and children in the society. For the first time in Pakistan,

this survey was conducted in 2001 with the collaboration of UNICEF. This survey was

based on 39 indicators, to provide reliable socio-economic information to assist the

situation of household for planning purposes. The survey was repeated in the Province

with the Financial and Technical Assistance of DFID & UNICEF and was contacted by

Oxford Policy Management (OPM) under the close supervision of Government of

NWFP. The sample for the survey was designed by Federal Bureau of Statistics to

provide estimates on a large number of Indicators on the situation of children and

women at the provincial level. Data on around 70 Indicators was to be collected in the

1061 clusters of 24 districts.


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10. Despite the deteriorated Law and Order situation in NWFP, the Provincial

Government managed to conduct survey in the 20 districts. District of Malakand, Swat,

Hangu and Tank could not be surveyed due to the said reasons. Out of 1061 Clusters,

250 Clusters were not visited. Among these 163 clusters fall in Swat, Malakand, Tank

and Hangu where fieldwork could not be started. In 7 districts coverage of sample

clusters was low. Sample of these 7 districts was 263 clusters and data was collected

from 187 clusters. 74 Clusters could not be covered. In addition 5 clusters were dropped

by FBS, while computing weights as very few households were covered with in each

cluster. Draft MICs. Report to be submitted to Government of NWFP by OPM will be

based on data collected from 806 Clusters. After the review of the draft report by all

stakeholders’ final report will be published.

APPROVAL OF DEVELOPMENT PROJECTS IN 2008-09

11. Every year certain number of new projects form part of Annual

Development Plan alongwith the on-going projects in various sectors. These projects

are approved by project approving bodies working at various levels. These include the

District Development Committee, Departmental Development Working Party, Provincial

Departmental Development Working Party, Central Departmental Development Working

Party, Economic Coordination Committee and Executive Committee of National

Economic Council. These bodies approve projects/programmes according to their

approved financial limits. The PDWP scrutinizes various projects as recommended by

the Pre-PDWP forum for inclusion in the Annual & Five Years Plans. The PDWP is

competent to approve projects upto certain financial limits and projects exceeding this

limit are submitted to CDWP for approval. In the current financial year, the PDWP held

16 meetings and approved 302 projects pertaining to different sectors.

PUBLIC SECTOR DEVELOPMENT PROGRAMME, 2008-09

12. The Public Sector Development Programme (PSDP) is an annual

document, which lists all the public sector projects/programmes with specific allocations,

made for each one of them in that particular financial year. It is the operational side of


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the Five Year and Annual Plans. In other words, it is that part of the country’s annual

budget which deals with development expenditure. In the fiscal year 2008-09, an

amount of Rs.8093.544 million was allocated for 61 projects pertaining to NWFP in the

PSDP, it also included umbrella projects. Major share of allocations were envisaged for

Water & Power sector with Rs.2323.750 million, Health Rs.1978.660 Education

Rs.384.850 and Agriculture Rs.1884.545.

13. The size of the Annual Development Programmes has steadily grown

since, the dissolution of one unit in Pakistan, and emergence of North West Frontier

Province; as a separate unit in 1970-71.

REVIEW OF ADP 2008-09

14. The original size of the ADP 2008-09 was Rs.41544.935 million, which

included foreign aid component of Rs.4617.194 million. The provincial government’s

contribution in the ADP was Rs.27148.197 million. Besides this, an amount of

Rs.1218.000 million was earmarked for the District ADP, which was increased upto

Rs.1245.615 after giving supplementary grant to various district, by Finance

Department. Special Development Programmes, which included, Drought Emergency

Relief Assistance, Devolution Transition Fund, Access to Justice Programme,

Decentralization Support Programme and Police Reforms Programme were allocated

Rs.8093.544 million. Besides this, amount of Rs.468.000 million was envisaged for the

federally funded Population Welfare Programme.

Table 14.1SOURCES OF FUNDING ADP 2008-09

(Rs. In million)

S.No. Source of funding Allocation %A Provincial budget 27148.197 65.3

B Total Foreign Assistance 4617.194 11.1

i. Grants 780.440 1.9

ii. Loans 3836.754 9.2

C District Programme (development) 1218.000 2.9

D Special programmes 8093.544 19.5


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i. Agriculture Sector 1884.545 4.5

ii. Education Sector 384.850 0.9

iii. Environment Sector 335.788 0.8

Iv Finance Sector 61.354 0.1

V Health Sector 1978.660 4.8

Vi Industries Sector 29.758 0.1

Vii Law Justice Sector 108.320 0.3

Viii Planning & Development Sector 203.100 0.5

Ix Water Sector 2352.750 5.7

X NCD 377.810 0.9

E Population Welfare 468.000 1.1

Total 41544.935 100

FOREIGN ASSISTANCE

15. For the year 2008-09, the size of foreign assistance was Rs.4617.194

million for 40 projects. The counterpart funds were envisaged as Rs.1517.391 million.

Of the total foreign assistance, the Asian Development Bank provided an amount of

Rs.3375.767 million for 5 projects. An amount of Rs.567.187 million for 3 projects was

provided by World Bank, Rs.241.132 million for 2 projects by Govt of Germany. An

amount of Rs.71.893 million and Rs.70.000 million were provided by DFID and Govt of

Japan. Besides this an amount Rs.290.215 million was provided by various International

Agencies for 10 projects. The sector wise allocation of foreign assistance is tabulated as

under:

Table 14.2SECTOR WISE ALLOCATION OF FOREIGN ASSISTANCE

(Rs. In million)

S.No Sector No.Foreign

AssistanceCounterpart

1 Schools & Literacy 2 0.00 28.100

2 Health 8 377.037 36.486

3 DWSS 3 50.000 0.299

4 Roads 3 2512.000 550.200

5 Agriculture 2 0.000 5.010


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6 Power 1 140.000 197.730

8 Forestry 2 50.000 2.253

9 Industries 1 100.000 60.000

10 Regional Dev. 15 1374.557 620.957

11 R&D 3 13.600 16.456

Total: 40 4617.194 1517.391

SECTOR-WISE ALLOCATION

16. The original sector allocations of local resources in ADP 2008-09 and

revised allocation after re-appropriation are given in Table IV.

Table 14.3ORIGINAL AND REVISED SIZE OF ADP

(Rs. In million)Budget

EstimatesRevised

Estimates%age

S.No. SectorAllocation %age Allocation %age

against BE

1 Schools & Literacy 4158.734 10.0 5700.134 14.6 137.12 Higher Education 1348.646 3.2 1348.646 3.5 100.03 Health 3939.880 9.5 3725.740 9.6 94.64 DWSS 1000.145 2.4 1000.145 2.6 100.05 Social Welfare 99.551 0.2 94.045 0.2 94.56 Auqaf, Hajj, Religious &

Minority Affairs35.100 0.1 16.805 0.0 47.9

7 Roads 4478.890 10.8 5349.404 13.7 119.48 Building & Housing 802.048 1.9 563.385 1.4 70.29 Urban Development 174.820 0.4 288.645 0.7 165.1

10 Water 1278.636 3.1 979.875 2.5 76.611 Agriculture 715.428 1.7 455.855 1.2 63.712 Forestry 477.326 1.1 263.336 0.7 55.213 Environment 26.684 0.1 15.948 0.0 59.814 Tourism 263.524 0.6 255.032 0.7 96.815 Power 429.969 1.0 287.915 0.7 67.016 Industries 1141.354 2.7 564.254 1.4 49.417 Regional Dev. 5328.533 12.8 6965.563 17.9 130.718 R&D 68.771 0.2 63.074 0.2 91.7


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19 ST & IT 140.158 0.3 104.458 0.3 74.520 Tameer-e-Sarhad

Programme 1240 3.0 1240 3.2 100.0

21 Transport 0.000 0.0 4.042 0.0 400.0Total Local 27148.197 65.3 29286.3 74.9 106.9

22 Special Programmes 8093.544 19.5 2959.551 7.6 36.623 Population Welfare 468.000 1.1 419.535 1.1 89.624 Districts Programme 1218.000 2.9 1245.615 3.2 102.325 Foreign Aid 4617.194 11.1 5089.601 13.1 110.2

Grand Total 41544.935 100 39000.603 100 93.9

SECTORAL HIGHLIGHTS

EDUCATION

17. Education is an essential tool for human resource development and a

necessary ingredient for sustainable socio-economic growth. Investment in education

contributes towards accumulation of human capital, which is essential for higher income

and sustained economic growth. Under the education sector reforms, various steps

were initiated for upgrading primary, middle and secondary schools, provision of

furniture and toilets, capacity building of the teachers, revamping science and education

facilities and advancing gender equality in the province, particularly girls at the primary

level. Similarly, in the Higher Education sector emphasis was to provide essential

facilities in the Degree Colleges of the province; such as, construction of additional

classrooms, Science Post Graduates blocks, examination halls, science and I.T

laboratories. In year 2008-09 this sector was allocated an amount of Rs.5507.380 for 88

projects, out of which 32 have been completed and the following achievements made:

1. Constructions of Boundary walls were completed in 300 Primary Schools.

2. 100 Primary Schools were up-graded to Middle level.

3. 100 Middle Schools were up-graded to High level.

4. 200 additional classrooms were constructed in various schools.

5. 120 new Primary Schools were established.

6. Clean drinking water facility was provided in 300 schools.


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7. Group latrines were constructed in 300 schools.

8. 4000 teachers were trained in service.

9. 4344000 students were provided free Text Books up to class 12.

10. Rs.200/- stipends were provided to 307678 Girls students of 6th to 10th

class in all 24 districts.

11. 5 secondary Schools were reconstructed.

12. Consolidation of existing 990 facilities (Boundary Walls, Water &

Sanitation, Group Latrine, Electrification, Additional Class Rooms, and

Repair of furniture) was provided in Government schools.

13. More than 25,000 teachers were trained in the subject of English,

Mathematics, Science and Social Studies.

14. Additional shifts were started in 21 Govt. colleges to provide educational

facilities.

15. Special repair work of 19 College Buildings has been carried out.

16. Funds for purchase of books, furniture, computers and machinery in 143

Government Colleges and for the purchase of Sports goods in 138

colleges have been provided.

17. Language Laboratories were established in 5 Govt. Colleges.

18. Construction work on staff/students hostels in 17 colleges is in progress

out of which 6 were completed.

19. 8 new Government Colleges were established.

20. Digital Libraries in 18 Government Colleges were established.

21. Books, furniture, computers and machineries were provided to public

libraries as well as work on new public libraries in Timergara were

completed.

22. Up-gradation of Islamia College Peshawar to University level and

Establishment of Abdul Wali Khan University in Mardan District has

started.

23. Day care centers were established in 6 Female Government Colleges and

Buses were provided to 14 Female Colleges.


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24. Subject of Computer Sciences was introduced at Intermediate level in 25

Government Colleges.

25. An amount of Rs.3.676 million has been incurred on the In-service

Teachers Training.

26. An amount of Rs.67.000 million has been provided to IM Sciences

College Hayatabad Peshawar.

HEALTH

18. The Provincial Government adopted a strategy in Health through which

reforms were introduced to improve provision of quality health care services. Various

projects were initiated/approved some are completed and work has been started on

various projects i.e. Construction of Doctors hostels, improvement of health services

and information system, construction of separate building for para medical institute and

additional Wards at Hayatabad Medical Complex. Comprehensive and elaborate steps

were under taken under preventive and curative programmes to address various Health

Programmes by providing sufficient funds to Primary Health programmes like Rollback

Malaria Program, Prevention of Hepatitis programme and Tuberculosis Control

Programme. Sufficient funds were provided for up-gradation of various hospitals in the

province as well as for improvement of Primary Health Care Centres. In ADP 2008-09

Rs.3939.880 million were allocated for 124 schemes out of which 28 schemes have

been completed. The following achievements were made in this sector:

1. Improvement of DHQ Hospitals; 8 Districts placed in category-A, 12 in

Category-B and 3 in Category-C for the time being on needs based

assessment. Works on 5 DHQs completed (Charsadda, Chitral, Haripur,

Swabi, Bannu).

2. Up-gradation of RHCs to Civil Hospitals and Category-D status.

3. Up-gradation of BHUs to RHCs.

4. Establishment of new Dispensaries, BHUs and RHCs initiated

5. Balance Civil Works and Provision of Equipment for health facilities.


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6. Standardization of equipment in all health facilities.

7. Completion of Khyber College of Dentistry.

8. Completion of Khyber Institute of Child Health in Hayatabad

9. Purchase of 20 Ambulances and 200 KVA Diesel/Gas Generators for 20

Hospitals.

10. Improvement of Post Graduate College of Nursing.

11. Establishment of TB Centre in Kohistan.

12. Rs.140 millions provided for installation of MRI equipment at Mardan Medical

Complex; and completion of Phase-II of the Complex.

13. 516 Charge Nurses recruited, 967 staff trained under MNCH Programme and

722 female technicians trained in various technologies.

14. 1417 Hepatitis-C registered cases treated besides 1000 Hepatitis-B patients.

15. Rs.159.689 millions provided for treatment component of Hepatitis under the

PM’s Programme for Hepatitis Control & Prevention.

16. Pilot project for Development of Emergency Rescue Services (Rescue 1122)

costing Rs. 172.411 millions has been launched initially in Peshawar.

17. Burn Care Treatment Centre is being established in Hayatabad through the

Workers Welfare Board funding while an additional project has been approved

under the President’s Package for NWFP, to cater for high tech equipment for

reconstructive surgery in the said facility; which will cost Rs.200 millions

18. Rehabilitation of Paraplegic Centre in Hayatabad completed.

19. Rs.150 millions provided to Tanzeem Lissael-e-wal-Mahroom.

SOCIAL WELFARE AND WOMEN DEVELOPMENT

19. In Social Welfare and Women Development sector, attention is given to

the fact that, the needy people may get full advantage of its services. The department

initiated various projects for rehabilitation of male, female and child beggars, drug

addicts, destitute women in jail, and disabled person. Moreover, senior citizen and un-

employed Post Graduate students were provided stipends and monthly allowances.

Various vocational training centers were established to facilitate the destitute women.


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An amount of Rs.99.551 was allocated for 31 projects out of which 4 projects were

completed. The following achievements were made in this sector:

1. 1000 elderly people and 1200 Post Graduate students were provided

stipends of @ Rs.1000 & Rs.2000 respectively.

2. 60 orphans were provided with shelter and skills.

3. 500 destitute women were provided with vocational training.

4. 100 male, female and child beggars were provided skills.

5. 40 special children were imparted essential education.

6. 19 working women were provided safe accommodation.

7. 11 Dastakari Centers were established in District Charsadda and Swabi.

8. 37 registered welfare organizations were provided financial aid by the

Provincial Social Welfare Council (PSWC).

9. 176 Special persons were provided tri-cycles, wheel chairs and Finance

grant/Aid to deserving Voluntary Social Welfare Agencies (VSWA).

SPORTS, CULTURE AND TOURISM

20. The province possesses not only beautiful landscapes but also unique

cultural heritage. It has a complete cultural profile from Stone Age to the Islamic period.

To protect, preserve and promote the cultural heritage of the province, the provincial

government initiated some projects, which included multitude activities such as

development of Tourism resort, promotion of local fairs and festivals, establishment of

new museums and construction of sports grounds especially in the rural areas. For this

purpose an amount of Rs.263.524 million was allocated for 37 projects, out of which 14

were completed.

AUQAF, HAJJ AND MINORITY AFFAIRS

21. The Constitution of Pakistan guarantees the rights of minorities. Keeping

in view the essential needs of the minorities living in the province, the provincial

government initiated various projects regarding repair and rehabilitation of their worship


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places and provision of basic amenities of life in their residential areas. An amount of

Rs.35.100 million for 7 projects was allocated in 2008-09, out of which 2 projects were

completed.

ROADS

22. Construction of roads is an essential part of the developmental

programme of a country. The road network in a way can be compared to the arterial and

venous system of a human body. No other sector of the economy can be developed

without the provision of a viable road network. Keeping the aforementioned premise in

mind the government also laid emphasis on the construction of highways and roads in

the province. Various projects were initiated for construction, repair and widening of

roads in various districts of the Province. Some projects were completed and others will

be completed in near future. In the ADP 2008-09, 125 schemes were included for which

Rs.4478.890 million were allocated of which 5 projects were completed and the

following achievements were made:

1. 12. K.M roads were completed in various districts.

2. 1 bridge was constructed in district Peshawar.

DRINKING WATER SUPPLY AND SANITATION

23. Drinking Water and adequate sanitation facilities are one of the basic

human needs and its absence is a major factor in the spread of contagious diseases.

The provincial government had made a hectic effort to provide necessary drinking water

and sanitation facilities to the people of the province during 2008-09. Keeping in view its

importance, the provincial government included 38 Nos. of schemes in the provincial

ADP of 2008-09, and allocated Rs.1000.145 million for provision of safe and clean

drinking water and sanitation facilities to the poor and needy communities of the

province .Out of which 1 scheme was completed.


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BUILDING AND HOUSING

24. In the year 2008-09 this sector focused on many official buildings in

various districts, which included Police Stations & Posts, Jails and Judiciary buildings.

Construction of most of the buildings was completed and handed over to the concerned

departments. Construction of building for public service commission was completed in

district Peshawar. Building of District Accounts Office in district Bannu was

reconstructed while construction work on 2 Police Stations in Kohistan and VIP block

and Hall in Circuit House Bannu was completed. Beside this Plots were provided to the

employees of Civil Secretariat, (BPS-1 to BPS-16). Moreover, work on essential

infrastructure for new housing schemes for general public & the government servants

was also started. In the ADP 2008-09 an amount of Rs.802.048 million were allocated

for 60 Nos. of schemes out of which 4 projects were completed.

URBAN DEVELOPMENT

25. An amount of Rs.174.820 was allocated for 14 projects. These projects

included Construction of G.T Road, Jamrud Road, Saddar Road and Mufti Mehmood

Flyover and Rehman Baba Intersection, Feasibility Study for construction of 11Under

Passes /Flyovers. Provision of 100 Containers for solid waste collection for Peshawar

City. Besides this Green Belts on G.T Road from Ring Road flyover to Rehman Baba

intersection were improved and Construction work on various roads including,

establishment of 6 Police Posts at Industrial Estate and Ring Road and establishment of

Modern Bus Terminal in Peshawar. Work is in progress on the above-mentioned

schemes.

WATER

26. Pakistan being an agrarian country with its economy, largely, depending

on agriculture needs a smooth and effective irrigation system. In ADP 2008-09 this

department executed various projects pertaining to construction of dams, installation of

tube wells, lining of the canals and flood protection structures. An amount of Rs.


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1278.636 million was allocated for water sector for the execution of 41 projects, out of

which 6 projects were completed and the following achievements were made:

1. Constructions of 6 Nos. Small Dams were completed in Bannu, Karak,

Haripur, Nowshera and Kohat districts, which would bring 8910 acres area

under irrigation.

2. Completion of Feasibility studies of 12 Small Dams and Tank Zam Dam.

3. Completion of Pre-Feasibility study of 33 Nos. sites.

4. Details designing of 5 Nos. of dams in District Karak, D.I.Khan, Nowshera

and Kohat have been completed.

5. Preliminary works of land acquisition and approach road of 7 small dams

have started at Abbottabad, Swabi, Dir, Karak and Haripur.

POWER

27. The Province has vast hydropower potential of about 29600 MW which is

70% of the total hydel potential of 41700 MW with the objective to develop hydel energy

in the province has started commercial operation from 81 MM Malakand-III HPP while

other projects namely 18 MW Pehur HPP Swabi and 1.875 MW Sheshi HPP Chitral will

start commercial operations very soon. The new projects with the assistance of ADB

viz Daral Khwar Swat (36.6 MW) Ranolia Khawarh (11.5 MW) Kohistan, and Machi

Mardan (2.6 MW) are under process; while feasibility study for Koto HPP Dir, (18.5 MW)

Karora HPP Shangla (8.5 MW and Jabori Mansehra (7.5 MW) with ADB’s support and

are in progress. An amount of Rs.429.969 million was allocated for 7 projects. Out of

which 2 were completed.

AGRICULTURE

28. Agriculture sector has a vital role in bolstering, the economy of the NWFP.

About 80% rural population of the Province is dependent for their livelihoods upon this

sector. Keeping in view this important factor, the provincial government initiated certain

steps for the development of Agriculture Sector. Advanced technology is being used to

precise leveling of the farms on scientific patterns for the sustainable use of water and


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also for increasing crop production. Farm services were established at District and

Tehsil level, improved variety of seeds was provided and farmers were educated in

modern technique of Agriculture and Livestock breeding. Farmers were provided

interest free loans and special packages were given for Sugar Cane growers whose

crops were hit by severe frost. Variety of new crops i.e Wheat, maize pulses was

introduced. Moreover, Government also announced incentives in Livestock project. An

amount of Rs.715.428 million was allocated during the fiscal year 2008-09 for 55

schemes, out of which 6 were completed and the following achievements were made: -

1. On 400 acres of area high efficiency irrigation system has been installed.

2. 2000 Farmers & Staff were trained in Modern Agriculture Technology.

3. 96 Farmer Field Schools were established.

4. 508 tons seed of wheat, rice, gram and potato were produced.

5. Fruit Orchards were established on 354 acres land.

6. 1200 Water Courses were improved.

7. One Lac Tea saplings were produced.

8. 124 Tons seeds of maize were produced.

9. 831 hac of waste land was reclaimed.

10. 27 Tube Wells were installed.

11. 3500 M. Tons of certified seeds of wheat were distributed.

12. 1.250 million of animals and 2.00 million poultry birds were vaccinated.

13. 40000 liters of milk was produced.

14. 40Nos. of breed bulls were distributed.

15. Million doses of various vaccines against different diseases in

Animals/Poultry were produced.

FORESTRY

29. Forestry sector deals with conservation and development of renewable

natural resource including those of Forestry, Wildlife, Sericulture, Fisheries and

Rangeland. The department implemented various projects in this sector in the year

2008-09 for the promotion and protection of forests and wildlife. An amount of


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Rs.477.326 million was allocated for 70 projects. Out of which 18 projects were

completed and the following achievements were made:

1. Departmental nurseries were established over an area of 26.5 acres.

2. Afforestation was done over an area of 4678 acres.

3. Sowing was done over 3885 acres.

4. Linear plantation was carried out over 209 Km.

5. Demarcation of 48630 acres forest area was completed.

6. 2180 boundary pillars were constructed.

7. 385000 plants were distributed to people under developmental programme.

8. 500 acres area was managed under Rangeland management.

9. Maintenance of previous year’s plantation & sowing was carried out over

9320 acre areas.

10.U$ 294000 Dollar permit fee was realized under “Trophy Hunting

Programme in Chitral and Kohistan. Whereas 80% of said amount was

distributed among local communities of respective districts.

11.State of the Art, Aquarium House at Peshawar is in completion phase. The

same will be opened for public for educational & recreational purpose.

ENVIRONMENT

30. EPA NWFP is basically an advisory body, and its role is to regulate the

Pakistan Environment Protection Act, 1997 and ascertain its implementation. This

Agency plays an important role in dissemination of environmental concerns to the

general public. In this regard, the Government initiated work on various projects, which

are; strengthening capacity building of EPA NWFP for review of development projects at

planning stage and strengthening of Legal Section, launching awareness campaign,

establishment of environmental monitoring system and financial assistance to the

projects regarding environmental protection submitted by NGO/semi govt/autonomous


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bodies. An amount Rs.26.684 million was allocated for total 8 projects, out of which 1

project was completed.

INDUSTRIES

31. Industrial and Mineral sectors play important roles in the sustainable

development of the Province. The Province has a vast potential of minerals both

metallic and non-metallic as well as dimensional stones. The Government has

introduced regulatory mechanisms for exploring the maximum benefits and productivity

in this sector. SDA had developed major industrial estates attracting an investment

outlay of Rs.1132.793 million providing employment opportunities to 1622 persons. SDA

in a joint venture with PASDEC is in the process of establishing Marble City at Risalpur.

The SIDB also played important role in the developing of the Cottage Industry in the

province. In this regard networks of training centers in different trades were established

throughout the province. This created job opportunities and imparted training to

thousands of youth. To eradicate child labour and other social evils from the society,

Legal Aid Service Unit (LASU) and a Toll Free Help line were established. Funds were

provided for strengthening the inspection services for effective implementation of Child

Labour Laws. A base line survey on child labour is selected occupations in District

Mardan was completed. The Directorate of Technical Education & Manpower training,

developed and expanded the technical facilities all over the province especially in less

developed areas and produced 32,000 male & female Diploma and Degree holders in

various technical disciplines to boost-up skill training and poverty alleviation. Under

financial assistance of the Federal Government (NAVTEC) 1000 trainees were enrolled

and were also paid a monthly stipend of Rs.1000/- each. 12 Govt. Technical &

Vocational Centers (Boys) in the uncovered Tehsils of NWFP are being established at a

cost of Rs.152.6512 million, under which 3000 students will be trained annually in 3-

month short courses, which will enable them to earn their livelihood. Mineral potential in

NWFP comprises of gemstones, marble, granite, metallic and non-metallic minerals.

The Mineral Directorate is deeply involved in the establishment of Resource

Management by adopting latest techniques of GIS/Remote sensing in conjunction with


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geographical field work operations. The other important project is of installation of GIS

system to develop minerals prospect portfolios and dissemination to attract potential

investors. Ministry of IT/Telecom Division Islamabad is supporting the effort. A total of

397 persons have been trained in the prospecting and mine development in small

gemstones base holds of Hazara and Malakand Division, a Government effort launched

with the support of Ministry of P & NR. The project on studies for extraction of gold and

base metals including antimony is nearing completion. R&D studies are under way for

categorization of gemstones, to attract local and foreign investors. An allocation of

Rs.1141.354 million was made for 60 projects out of which 15 were completed.

REGIONAL DEVELOPMENT

32. The area development projects play a significant role in enhancing the

agriculture productivity, natural resource management and rural development. These

multi-sectoral projects aim at reducing poverty by investing in social services, rural

infrastructure and also strengthening of institutions for better resource management. In

fiscal year 2008-09, various schemes were implemented by the Local Government

Department i.e. Community Infrastructure Project-II, NWFP Urban Development Project,

Rural Water and Sanitation Project.

33. These programmes aim to improve the well being of low-income

communities and to improve living conditions by providing safe and sustainable WatSan

services all over the province. Similar Area Development Projects were also

implemented by SDU (P & D Department) such as Barani Area Development Project

Phase-II, Dir Area Support Project, Kohistan, Warai Area Development Projects and

Kala Dhaka Area Development Project to address the issues pertaining to poverty

alleviation and helping the inhabitants of the area to raise

their socio-economic status. An amount of Rs.5328.533 million was allocated for 41

projects including the following major projects, out of which 12 are completed. The

following achievements were made:


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(Rs. In million)1 Special Package for Dev: Initiatives in NWFP 1500.000

2Reconstruction & Rehabilitation of Earthquake affected District Swat.

300.000

3 Provision of Natural Gas to Tobacco growing District in NWFP 365.412

4Block provisions for project to be funded by 5% Net hydel profit.

300.000

5Block provisions for project to be funded by 5% Oil & Gas royalty.

170.000

6 NWFP Urban Development Project. 208.0007 Chief Minister Programme for Poverty Elimination in NWFP. 1000.0008 Special Development Support for NWFP Police. 500.000

RESEARCH & DEVELOPMENT

34. An amount of Rs.68.771 million was allocated for 9 projects including

creation of Establishment of Energy Management Unit in Finance Department, Capacity

Building and M&E in P&D Department, Reform Management and Monitoring Unit in

Chief Secretary Office.

SCIENCE AND INFORMATION TECHNOLOGY

35. The Information Technology in the recent time has played a leading role in

the development of the nation. Keeping in view this importance, the provincial

government executed various schemes in the year 2008-09; which included

computerization of various government departments like Land Record of District

Peshawar and Computerization of Driving Licences for Traffic Police NWFP. Computer

Labs were established in various government Schools and Colleges of the province,

Record of Property Tax and information department was also computerized. The

system of Teachers recruitment and staff promotions of Elementary and Secondary

department was analyzed and I.T professional centres were established for I.T

Graduates and Government employees of the province. Similarly, GIS was established

to facilitate the investors for mining in NWFP and to provide online facility to the patients

and general public a project online Hospital Management in LRH Peshawar was also

launched. Besides this the computerization of Provincial Assembly NWFP was also one

of the achievements. In addition to this, block allocation for Science and Technology

schemes in NWFP was a project under which model competitions were held in the 24


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districts of NWFP. An academia-industry-government round table has been constituted

under another initiative for encouraging research in Science and Technology. Pilot

Research Studies were also initiated. For strengthening of S&T Department, a scheme

of Planning & Development Unit was executive. A Design Center has been established

with design and photographing facilities. A Science & Technology Park is also in the

planning phase. In I.T Sector 8 projects were initiated during 2008-09. An amount of

Rs.140.158 million was allocated for 20 projects, out of which 1 was completed.

DISTRICT DEVELOPMENT FUND

36. The government’s strategy for institutional renewal is a bottom up

approach. For this purpose, it launched a devolution programme in the year 2001 to

devolve powers to the grass root level. The process consisted of devolution of power,

decentralization of administrative authority, de-concentration of management functions

and distribution of resources to the district levels. This new system will enable the locals

to play a proactive role in the development of their respective areas by involving

themselves in the decision-making process. The Provincial Government allocated an

amount of Rs.1218.000, which was revised to the tune of Rs.1245.615 millions by the

authorization for additional grant (Rs.7.036 million as District ADP and Rs.20.579 million

as TMAs ADP). The detail of budgeted and revised amount of District ADP 2008-09 is

as under:

Table 14.4BUDGETED AND REVISED SIZE OF DISTRICT ADP

(Rs. in million)S.No. Particular B.E 2008-09 R.E 2008-09

1. District’s ADP 724.710 731.746

2. TMA’s ADP 310.590 331.169

3. C.M’s Directives 121.800 121.800

4. F.M’s Directives 60.900 60.900

Total: 1218.000 1245.615


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37. Under the PFC formula Abbottabad district was allocated Rs. 46.381

millions, Bannu Rs.43.723 million, Battagram Rs. 26.121 million, Buner Rs.58.037

million, Charsadda Rs.53.627 million, Chitral Rs.24.302 million, D.I.Khan Rs.48.347

million, Dir Lower Rs.53.440 million, Dir Upper Rs.41.344 million, Hangu Rs.25.075

million, Haripur Rs.37.891 million, Karak Rs.29.610 million, Kohat Rs.38.751 million,

Kohistan Rs.43.792 million, Lakki Marwat Rs.33.855 million, Malakand Rs.61.825

million, Mansehra Rs.68.112 million, Mardan Rs.159.206 million, Nowshera Rs.64.795

million, Peshawar Rs.110.502 million, Shangla Rs.34.889 million, Swabi Rs.53.629

million, Swat Rs.64.468 and Tank Rs.23.502 million.

MAJOR DEVELOPMENT INTERVENTIONS

TAMEER-E-SARHAD PROGRAMME (TSP)

38. The Government had launched Tameer-e-Sarhad Programme (TSP), with

the objective to initiate development projects thereby creating employment opportunities

in the length and breadth of the province. In order to ensure public participation,

members of provincial assembly recommended projects in their respective

constituencies. A total amount of Rs.1240.00 million had been allocated equally to all

124 MPAs for 2651 schemes, out of which 151 were completed.

SUPPORT TO LAW AND ORDER

39. The precarious Law and Order situation had been one of the most

worrying aspects of the current Governance paradigm. Increase in crime had created a

crisis situation in the province. Keeping in view the rise in the insurgency the Provincial

Government articulated a pragmatic approach to manage the situation by strengthening

Police and Frontier Constabulary in NWFP. For this purpose several schemes were

included in various sectors like Building & Housing, Urban & Regional Development and

Access to Justice Programme to improve the infrastructure, to provide security and

ensure equal protection under the law to the entire citizens of NWFP and strengthen the

Police Force. Additional vacancies were created and forces were equipped with heavy


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weapons, coupled with special packages for families of Shuhada’s including allotment of

plots etc. Besides this, the basic pay of the Police Force was increased. During the year

2008-09, an amount of Rs 503.000 million was earmarked for 2 schemes, in the

Building and Housing, Urban Development, Regional Development Sectors and Access

to Justice Programme.

CHIEF MINISTER’S POVERTY ALLEVIATION PROGRAMME

40. Our Province is the poorest amongst other provinces of the Country. The

poverty head count percentage is 43 where as the total poverty head count percentage

of the country is 33. Keeping in view this situation it is our prime duty to give relief to the

people of the Province from the burden of inflation and poverty. In this regard the

present government had allocated a handsome amount of 1500.000 million for a project

under which various steps have been taken for poverty alleviation so that the poor

citizens of province may also enjoy a batter quality of life. This programme shall focus

on micro finance for the vulnerable, enterprise development, skill development, small

community infrastructure schemes, safety health nets and educational scholarships.

The programme has formation of LSOs, Capacity Building (NRM) Communities framing

etc been approved by the PDWP. Releases to SRSP being the executing agency have

been made. Since the Union Councils under the Programme have already been

identified the progress is expected to start soon.

POPULATION WELFARE

41. Poverty and population are closely linked. The relationship between

various dimensions of population and poverty are complex and operate in both

directions. High population growth, high densities of population, a youthful age structure

and increasing urbanization characterize the province’s population, exacerbating the

rising levels of poverty. Though the administrative functions of the population welfare

programme were devolved to the provinces in 2002 however, the federal government is

still financing this programme in the province. With the collaboration of the Asian


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Development Bank, the Reproductive Health Project was started in thirteen districts of

the province with the aim to address the peri-natal care and also to strengthen the

institutional mechanisms of the population welfare department in the province.

Moreover, the scope of outreach programmes will be extended to the far-flung areas of

the province. An amount of Rs.468.000 million was allocated for this programme and

the following achievements were made:

1. Establishment of 14 Family Welfare Centres.

2. Establishment of 10 Reproductive Health Centres was established.

3. 61 Male Mobilizers registered.

4. 103 Female Welfare Workers trained.

5. 3 Mobile Service Units established.

MAIN FEATURES OF ANNUAL DEVELOPMENT PROGRAMME 2009-10

42. In the light of Provincial Government policy regarding the formulation of

Annual Development Programme 2009-10, the proposed ADP has been formulated on

the basis of government priorities and people’s aspirations. The main focus of ADP is

poverty alleviation, social protection and uplift of the backward and remote areas of the

Province. Although, the development needs of the Province are enormous; but the

resources are limited, yet efforts have been made to cover the priority projects in the

ADP to provide relief to the needy people. Large sections of society do not have access

to basic facilities like education, health and roads. As such, greater emphasis on these

sectors has been laid. The total size of Annual Development Programme 2009-10 is Rs.

51156.956 million which is an increase of 23.1% over last year. The details of source of

funding are tabulated as under:


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Table 14.5SOURCES OF FUNDING

(Rs. In million)S. No. Source of funding Allocation %age

A Provincial Budget 32546.412 63.6

B Total Foreign Assistance 6644.324 13.0

i. Grants 2181.824 4.3

ii. Loans 4462.500 8.7

C District Programme (Development) 1341.735 2.6

D Special programmes 10050.485 19.6

i. Food, Agriculture Sector 1846.856 3.6

ii. Livestock and Dairy 40.620 0.1

iii. Education and Training 194.282 0.4

Vi Environment 325.246 0.6

V Finance 2549.172 5.0

Vi Health 19.687 0.0

Vii Law and Justice 94.915 0.2

Viii P&D 120.000 0.2

Ix Population Welfare 32.707 0.1

Water and Power 765.000 1.5

Peoples Work Program-II 4062.000 7.9

E Population Welfare 574.000 1.1

Total 51156.956 100

SALIENT FEATURES OF ADP 2009-10

FORMULATION OF ADP 2009-10

43. The ADP-2009-10 has been formulated after an intensive consultative

process. The process included a series of meetings with the development departments,

Minister for Finance Department, Senior Minister for Planning and Development

Department and the Chief Minister, NWFP.


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PRIORITIES OF FUNDING

44. Given the limitation of resources, the following order of priority has

generally been observed:

i) Maximum funding for ongoing projects.

ii) Arrangement of counterpart funds for foreign aided projects.

iii) New projects in social sectors.

DEVELOPMENT STRATEGY-KEY FEATURES

i) Take measures to contribute towards gradually placing the economy on

the track of sustainable and inclusive economic growth that enhances

employment opportunities and reduce poverty with special focus on

empowering poor and reducing regional disparities.

ii) Improve law and order and security situation and provide basic needs to

Internally Displaced Persons (IDPs) besides rehabilitation and

reconstruction of infrastructure.

iii) Overcome the social deficit by improving education, health, gender

equity and safety nets for needy and vulnerable segments of society,

which also enhance their skills. Also, take precautionary measures

against disasters.

iv) Capitalize on the comparative advantages of the provincial resources

under its ambit and adopt a balanced approach towards sectoral

priorities.

v) Meet the goals and targets of the MDGs, MTDF and PRSP and other

national and international obligations.

vi) Develop an adequate infrastructure required for development and

enhance skill and technology, develop human resources and ensure

food security through pro-agriculture development initiatives.

vii) Improve monitoring and evaluation system to ensure smooth and

effective delivery of goods and services and make use of scare public

resources optimally.


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SECTOR-WISE ALLOCATION

45. There are 891 projects in the Provincial ADP 2009-10 for which a total of

Rs 51156.956 million has been allocated which includes local share of Rs.32546.412

million, Special Programme Rs.10050.485 million, Population Welfare Rs.574.000

million and district ADP Rs. 1341.735 million.

Table 14.6SECTOR-WISE ALLOCATION FOR ONGOING AND NEW SCHEMES

(Rs. In million)Schemes Schemes

(On Going) (New)Total

SectorNo Allocation No Allocation No Allocation

Elementary & Secondary Education

39 3656.387 17 918.576 56 4574.963

Higher Education 19 1079.951 16 404.440 35 1484.391Health 85 3649.156 23 684.712 108 4333.868

Drinking Water & Sanitation 41 1441.169 41 1441.169Social Welfare 28 109.509 2 13.000 30 122.509Auqaf, Hajj, Religious & Minority Affairs

5 15.710 5 20.000 10 35.71

Roads 105 4695.292 10 442.100 115 5137.392Building & Housing 53 776.067 8 80.354 61 856.421Urban Development 10 184.845 4 10.800 14 195.645Water 33 921.196 19 485.300 52 1406.496Agriculture 47 574.567 17 222.096 64 796.663Forestry 54 290.625 28 178.000 82 468.625Environment 6 26.438 3 13.700 9 40.138Sports, Culture, Tourism, Archaeology

23 246.243 11 86.379 34 332.622

Power 6 421.506 5 19.802 11 441.308Industries 42 858.990 18 314.670 60 1173.66Regional Development 30 5729.509 8 2043.101 38 7772.61

Research and Development 7 106.795 4 8.100 11 114.895Population Welfare 1 574.000 1 574Districts ADP 1 1341.735 1 1341.735Tameer-I-Sarhad Programme 0 0.000 1 1240.000 1 1240ST&IT 15 107.195 7 50.632 22 157.827Special Programme 24 3721.485 6 6329.000 30 10050.485Transport 1 10.000 4 409.500 5 419.5

Total 674 29196.635 217 15315.997 891 44512.632Foreign Assistance 6644.324

Grand Total 511556.956


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FOREIGN ASSISTANCE

46. For the year 2009-10 as indicated in Table - VII, the size of foreign

assistance is Rs. 6644.324 million for 22 projects. The counterpart funds have been

envisaged as Rs. 1093.527 million. Of the total foreign assistance, the grant portion

comprises Rs. 2181.824 million whereas; loan component is Rs. 4462.500 million. The

major chunk of foreign assistance is allocated to roads, drinking water supply and

sanitation, education, and regional development sectors. The sector wise allocation of

foreign assistance is tabulated as under:

Table 14.7FOREIGN ASSISTANCE

(Rs. In million)

S.No Sector No.Foreign

AssistanceCounterpart

1 Schools & Literacy 2 395.283 31.3602 Health 4 246.500 27.4733 DWSS 1 1434.541 20.0004 Roads 2 3883.500 500.0015 Forestry 1 1.000 2.0006 Power 4 278.000 300.2107 Regional Dev. 5 381.000 202.3868 R&D 3 24.500 10.097

Total: 22 6644.324 1093.527

PUBLIC SECTOR DEVELOPMENT PROGRAMME 2009-10

47. An amount of Rs. 10050.485 million has been allocated for 30 projects

pertaining to NWFP. Major share of allocations has been envisaged for People Works

Programme-II amounting (Rs.4062.000 million), Finance Sector (Rs. 2549.172 million)

and Food and Agriculture Sector (Rs.1846.856 million).

SECTOR-WISE INVESTMENT PROGRAM

48. A brief description of the Provincial, Special and Districts Programmes is

as follows:-


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EDUCATION

49. Through education harmonious development of all faculties of human

beings like intellectual, physical, social, moral, aesthetic spiritual and economical takes

place. Education is considered to be the backbone in the progress of any country.

Keeping in view the above, education sector has become the top priority of the

Provincial Government. The main focus of new projects is to promote the education at

the primary level, create a gender balance, and fulfil the infrastructural requirements of

existing institutions including staff, equipment, furniture, teachers training and essential

repairs. The government is committed to provide free and quality education to all up to

higher secondary level. Provision of basic facilities in schools particularly for girls will be

ensured; and enrolment at primary and secondary levels would also be increased. To

promote female education to its optimum, the government will be establishing new

primary schools in the province; it will also provide benefit package for teachers in

remote and difficult areas. Besides, up gradations of different levels of schools in the

development programme, the higher education sector has also planned to establish

new degree colleges in the Province. Moreover, new blocks & hostels will be

constructed and computer equipment will be provided in various colleges for imparting

education in information technology and other sciences. The Higher Education

department will also implement a new programme to establish language laboratories in

the colleges; which will help the students to raise their standards to international

parameters. An amount of Rs.6059.354 million is allocated for funding of 91 projects,

out of which 58 are ongoing and 33 are new projects, the following targets will be

achieved during the year:

1. All Students up-to intermediate level will be provided with free textbooks.

2. Provision of monthly stipends @ Rs.200/- for female student from class 6th

to 10th in all 24 districts will be continued.

3. Completion of boundary walls in 400 schools, Clean Drinking water supply

schemes for 400 schools and group latrine for 400 schools will be ensured.

4. 500 additional classrooms will be constructed.


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5. Buildings of 20 schools will be reconstructed.

6. 150 primary schools will be established, 120 primary and 100 middle

schools will be upgraded.

7. At least 0.32 million male/female in the age of 10-40 will be made literate in

14000 literacy centres in 24 districts of NWFP.

8. Provision of additional facilities and Rehabilitation of Water Supply

Schemes in existing Government Colleges.

9. Establishment of public libraries at District level.

10. Special repair of the buildings and construction of Admin, Science, P.G &

I.T Blocks in various colleges.

11. Staff/Students Hostels will be constructed in various Districts.

12. In-service and pre-service training will be given to the Colleges Teachers.

13. Establishment of digital libraries in Post Graduate/Degree Colleges, and

language laboratories in various colleges.

14. Provision of transport facilities in girls colleges.

15. Establishment of day care centres for female teachers in government

colleges.

16. Additional shifts will be started in boys and girls colleges.

HEALTH

50. Health is another high priority sector. The main focus of Government in

Health Sector is consolidation and an emphasis has been this laid on completion of the

ongoing projects. The preventative programmes like Rollback malaria programme,

Tuberculosis Control programme will be strengthened so as to reduce the risks of

communicable diseases. Sufficient funds will be provided for

improvement/standardization of DHQ hospitals and other Health facilities. An amount of

Rs. 4333.868 million is allocated for 108 projects out of which 85 are ongoing and 23

are new projects. The following targets will be achieved in this sector:

1. Renewed focus on completion of balance works of all DHQ Hospitals.


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2. Work on Shaheed Benazir Bhutto Hospital (500 Beds) will be initiated; as

funded under the President’s Development Package for NWFP costing Rs.2

billions.

3. Work on Children Hospital in Hayatabad to be initiated under President’s

Package, costing Rs.1.7 billion.

4. Equipment for Reconstructive Surgery at the Burn Care Center in Hayatabad

5. Equipment for DHQ Hospitals worth Rs.2.000 billion will be provided under

President Development package for NWFP.

6. Establishment of Shaheed Mohtarama Benazir Bhutto Childern Hospital in

Mardan.

7. Works to commence on Bacha Khan Medical University, Mardan; currently

working in Mardan Medical Complex.

8. Work to commence on Establishment of Blood Transfusion Services in NWFP,

with the assistance of German Agencies KFW and GTZ.

9. Work to commence on establishment of a Fountain House for mentally

retarded patients in Peshawar.

10. Land for DHQ Swabi at Shah Mansoor Township to be acquired.

11. Improvement works in KTH Peshawar to be initiated besides completion of

Casualty Block and hostels for female doctors.

12. Improvement works in Khyber Medical College to be initiated besides

construction of two hostels for female students; and initiation of work on

Khyber Girls Medical College.

13. TB Control Programme will be strengthened.

14. New initiatives will be undertaken for prevention and control of Hepatitis.

15. New project on Promoting Safe Motherhood will be launched with the

assistance of World Food Programme.

16. Post Graduate Medical Institute at Hayatabad Medical Complex will be

completed.

17. New initiatives concerning Strengthening of Drug Management System will be

initiated.

18. Strengthening of Khyber Medical College.


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SOCIAL WELFARE AND WOMEN DEVELOPMENT

51. In Social Welfare and Women Development sector, attention is given to

the fact that, the needy people especially women may get full advantage of its services.

The ongoing projects of the department include schemes for development of women

and children; destitute women in jail, beggars, drug addicts and disabled person will be

further extended. Moreover, new projects will be started for rehabilitation of drug addicts

at Buner and Malakand Districts. Besides this land for the establishment of special

children (MR & PH) Centers at District Charsadda, Dir Upper and Karak, working

women hostel at Mardan and Child Protection Bureau at Peshawar will be purchased.

Land for the establishment of Women Development Center at Mardan and D.I.Khan

District will also be acquired. An amount of Rs. 122.509 million has been earmarked for

30 projects all of which 28 are ongoing and 2 are new. The following targets will be

achieved during the year:

1. 40 disabled children will be given special education.

2. 2000 elderly people and 2500 postgraduate students will be provided monthly

stipends of Rs.1000 & 2000 respectively.

3. 600 helpless women & 200 male beggars will be imparted with skills

development training.

4. 100 workingwomen will be provided safe accommodation.

5. 500 disabled persons will be given rehabilitative aids, i.e. Wheel Chairs, Tri-

Cycles etc.

6. Child Welfare and Protection Bureau will be established at the Districts level.

7. Establishment of Detoxification and Rehabilitation Centre in Malakand.

8. Special Education initiative for vulnerable Children in Peshawar.

TOURISM, SPORTS, CULTURE AND MUSEUM

52. Like other sectors, the performance of Tourism sector to a larger extend is

linked with Law & Order situation, improved infrastructure and performance of other


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sector. Keeping in view these important factors, the Government is committed to

promote this sector vigorously. Special focus will be laid on to promotion of culture,

heritage of the province for attracting domestic and international tourists. The Provincial

Government will focus on the promotion of local languages, women sports, and making

available opportunities for income generation for the youth. Moreover, the renovation of

historic buildings, creation of sports facilities in the rural areas particularly will be the

main thrust of the sector. An amount of Rs.332.622 million has been allocated for 34

projects, out of which 23 are ongoing and 11 are new.

AUQAF, HAJJ AND MINORITY AFFAIRS

53. This sector has been provided with an allocation of Rs.35.710 million for

10 projects, out of which 5 are on going and 5 are new. Under this sector, programmes

have been framed to provide basic facilities for the residential areas and for worship

places of the minorities.

ROADS

54. Keeping in view, the deplorable conditions of roads special attention is

being given to the improvement of existing infrastructure in the nook and corner of the

province. Efforts will be made to extend the existing road network to the remote and

less developed areas of the Province. Work will also be expedited on the Asian

Development Bank assisted Road Sector Project for providing a sustainable road chain

in the rural areas. For this sector an allocation of Rs. 5137.392 million has been made.

There are total of 115 projects out of which 105 are ongoing and 10 are new. The

following target will be achieved in this sector:

1. Construction of 650 K.M B/T roads in various districts of the Province.

2. Construction of 12 bridges in various places.

3. Conducting feasibility study and designing of alternate route from Malakand to down districts.


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DRINKING WATER SUPPLY AND SANITATION

55. Fresh water is liquid of life. The supply of water is finite, but demand is

rising rapidly as the population growth and the water use per capita increases. Similarly,

alongwith water, sanitation is regarded as the basis of development. Keeping in view,

the importance in this sector the government will take adequate measures to provide

sanitation facilities and Provision of potable drinking water to the population in all the

corners of the Province. Some of the significant intervention in this sector will be supply

of filtration plants for clean drinking water in the Province. 100 drinking water supply

schemes will be constructed in various districts of the Province. Amounts of

Rs.1441.169 million have been allocated for 41projects, out of which 41 are on going.

BUILDING AND HOUSING

56. This department has been mandated for carrying out maintenance &

construction works of Government Buildings throughout the Province. Which include

official buildings, mostly. Moreover, under the new Programme Housing Units will be

provided to low income groups on affordable and low cost based, for this purpose land

has been acquired in various districts of the Province. Besides this, land has been

purchased at Hayatabad for construction of High Rise Flats for retired government

servants. Overall, funds of Rs.856.421 million have been earmarked for 61 projects,

out of which 53 are ongoing and 8 are new.

URBAN DEVELOPMENT

57. Urban areas are important from the economic point of view, as they are

the focal points for trade, commerce and government administration. In this sector

various developmental activities will be undertaken to improve the existing infrastructure

in Peshawar. Various projects will be initiated like rehabilitation and improvement of

Bana Mari Road and road from Beri Bagh to Punj Khattak Peshawar, construction of

Science Superior College roads and infrastructure of major Urban Centre and

establishment of new urban Town ships. Besides this Green Peshawar Project, project


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for improvement of Governor House Road Intersection, and project for Saddar

Intersection road are also included. An amount of Rs 195.645 million has been

earmarked for the sector for 14 projects; out of which 10.are ongoing and 4 are new.

WATER

58. Irrigation serves as a lifeline for the agriculture sector. As we know

Agriculture is the main source of livelihoods in rural areas of the Province, therefore, a

sustainable irrigation system becomes the requirement of the province. The Provincial

Government is committed to initiate a comprehensive programme for the improvement

of irrigation system. In this regard, the government will execute various projects

pertaining to construction of Dams and lining of the Canals etc. An allocation of

Rs.1406.496 million has been made for the implementation of 52 schemes, out of

which, 33 are ongoing and 19 are new. The following targets will be achieved in this

sector.

1. 9 Nos. of small and medium dams will be constructed in D.I.Khan, Tank,

Hangu, Nowshera, Abbottabad and Kohat districts.

2. Detailed design of 15 Nos. of small dams and feasibilities of 25 Nos. of small

dams will be carried out.

3. Pre-feasibility study of 6 Nos. sites will be carried out.

4. The NWFP Emergency Rehabilitation Project (NERP) will be completed.

5. Balambat Irrigation scheme, Bazai Irrigation Scheme and Shringle Doadba

irrigation scheme will be completed, which will irrigate 33810 acres land in

various districts.

6. 5 new irrigation schemes would be initiated.

7. Work will be started on Remodelling of Warsak Canal and Diversion Weir for

Peshawar Canal, which will also provide 300 Cusecs Drinking Water.

8. Programme for clearance and construction of dams would be initiated to

cater for water logging issue.

9. Hydrological infrastructure would be upgraded.


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POWER

59. Hydel power development has its strength in the power development

sector where three fourth of the potential sites of the country are located in NWFP. In

ADP 2009-10, an amount of Rs.441.308 million has been allocated for 11 schemes 6

are ongoing where as 5 are new. The ongoing portfolio includes construction activities

on Pehur HPP, Sheshi HPP development of Renewable energy projects and pre-

feasibility studies. New schemes consist of creation of Planning & Monitoring Cell, a

meter testing lab, Summargah HPP Kohistan (28 MW), Matlitan HPP Swat (84MW) and

3 Projects under Renewable energy NWFP-II at Koto Karora, Shangal and Jabori with a

total generation capacity of 145 MW, under the same Umbrella programme of

renewable energy-NWFP-II, Feasibility studies for 6 new sites with a generation of

179.5 MW has been envisaged. Their locations are as under:

1. HPP Mansehra (Batakundi) 65MW.

2. HPP Shigo Kach (Dir) 38 MW.

3. HPP Barikot Patrak Dir 36 MW.

4. HPP Patrak-Shringal Dir 21 MW.

5. HPP Serai Karora Shngla 13.5 MW.

6. HPP Bhimbal Khata Mansehra 8.1 MW.

AGRICULTURE

60. The NWFP has almost an agrarian economy and more than 80% of the

rural population depends for their survival on Agriculture, out of which 70% are directly

or indirectly engaged in agriculture. The primary goal of this sector is to ensure food

security, alleviate poverty and generate employment opportunities propelling higher

growth rate in this vital sector of the economy. This Province can easily attain the status

of self-sufficiency in wheat if proper care and patronage is given to Agriculture.

Agriculture comprises of two main sub sectors viz Agriculture and Livestock. As we

know that the province is short in food commodities, hardly producing 40% of local

requirements and meets the balance requirements on import from the Punjab, therefore


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the provincial government initiated certain steps for the promotion of this sector in the

province for gaining food self sufficiency, enhancing Livestock production, developing

high value agriculture and horticulture products and promotion of dairy products. An

allocation of Rs.796.663 million has been made for 64 projects out of which 47 are

ongoing and 17 new. The following major targets will be achieved in this sector:

1. 13 Nos: of laser units, 20 Nos. Honey production kits and 20 Nos. of

Mushroom cultivation kits will be distributed.

2. 2560 acres demonstration plots will be established.

3. 13000 farmers and 3200 professional staff would be trained on modern

farming technology.

4. Sprinkler irrigation system on 6501 acres will be installed.

5. 0.200 million dozes of vaccine will be produced.

6. 249 Model Fruit Orchards will be established.

7. 1000 watercourses will be improved.

8. 0.286 million animals will be artificially inseminated.

9. 1.650 million Animals will be vaccinated & 4.400 million sick animals will be

treated.

10. 100 dug wells/tube well will be installed.

11. 100 Nos. Of Bulldozers will be purchased.

12. 65 Nos. of water storage tanks, 130 protection bunds and 65 Nos. check

dams will be constructed.

13. 10 Nos of nurseries will be registered.

14. Construction of 12 Nos: Seed Stores.

15. 70 tons (hybrid) maize seed will be produced and distributed.

16. 30000 animals will be de-wormed.

17. 6 Nos. of model orchards and 80 Nos of Date progeny orchards will be

installed.

18. 2600 hectares land will be levelled.


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FORESTRY

61. NWFP has rich forest resources and it is of vital significance that the

Provincial Government protects these forests. During next financial year 2009-10, total

82 projects have been proposed with an allocation of Rs.468.625 million for

development, promotion, propagation & conservation of Forestry, Wildlife and Fisheries

resources. Out of total projects 54 projects are ongoing and 28 are new. During

formulation of annual development programme those areas have been preferred which

were neglected in past, therefore during next year mostly projects have been proposed

for Arid / Semi Arid Zones and Rain-field areas for development of Forests,

Conservation & propagation of Wildlife and for enhancement of fish production to

overcome the issue of unemployment & to ensure economic development of province.

During next financial year following targets will be achieved.

1. Departmental nurseries will be raised over an area of 32 acres.

2. Afforestation will be made over an area of 13400 acres.

3. Sowing will be carried out over area 2550 acres.

4. Linear plantation will be carried out over an area of 950 Km.

5. 2180 boundary pillars will be constructed.

6. 385000 plants will be distributed.

7. 500 acres area will be brought under rangeland management.

8. At Peshawar a Zoo will be established with total cost of 600 million.

9. An aviary will be established at Public Park at Mardan.

10. At Bannu, D.I.Khan, Kohat, Mansehra, Kohistan and Lower Dir, the production capacity of Government Fish Hatcheries will be enhanced.

11. A modern fish market will be planned at Peshawar with the cooperation of Federal Government for provision of fresh and cheaper fish to people.

ENVIRONMENT

62. Environment protection and conservation of natural resources is key to

sustainable development. This provincial government despite its limited resources will

be providing adequate funds to environment sector to cater for its existing plans and

future requirements. Therefore, considerable allocations have been earmarked to

monitor ambient air, water and waste collection and & disposal practices across the


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provinces. Moreover, promotion of environmental education, urban environmental

improvements would be given emphasis to provided safe & healthy environment for the

local populace. Besides, environmental campaigns on print & electronic media will be

launched for creating awareness among the masses about the prevailing environmental

issues. In ADP 2009-10 an allocation of Rs.40.138 million has been proposed for this

sector for implementing of total 9 projects out of which 6 are ongoing and 3 are new.

INDUSTRIES

63. Industrial and Mineral Sectors can play a pivotal role in the uplift and well

being of a nation. The main focus in the industrial sector is to produce skilled

manpower, essential for the industrialization of the province. To bring remote areas of

the province in the ambit of new industrial growth interventions, to eliminate poverty and

expedite the process of development, the SDA will focus upon establishing industrial

estates ROZ/SEZ at M-1 District Nowshera and China-Pak Economic Zone at Hattar.

Provision for Fire Fighting and Rescue Equipment for major Industrial Estates is also

one of the aims of the Provincial Government. Feasibility study for various projects in

the Province will also be completed. In addition to the establishment of a network of

training centres, the SIDB has also recommended various other developmental

schemes, which are (i) provision of infrastructure facilities for 2nd Industrial Estates at

Peshawar, (ii) scholarship/training in SIDB Centres, (iii) Small/Mini Industrial Estates in

Malakand Region, (iv) Revival of Patty training centers at Rahim Abad Swat. Technical

and Vocational training facilities would be expanded especially in less developed areas

of the province. An allocation of Rs.1173.660 million has been made for 60 projects, out

of which 42 are on going and 18 are new and the following targets will be achieved.

1. Establishment of Industrial Estates/ ROZ/SEZ/at M.1, district Nowshera.

2. Improvement/rehabilitation and modernization of Industrial Estates.

3. Construction of approached roads and Boundary wall and procurement of Expo

Centre at Industrial Estates Peshawar.

4. Establishment of Combined Effluent Treatment plants for Peshawar and Hattar

Industrial Estates.


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5. Provision of scholarships has been made for 1000 persons to be trained in SIDB

Training Centres.

6. Feasibility Study for establishment of 2nd Industrial Estate Abbottabad and

Leather Goods Service Centre at Haripur will be conducted.

7. Establishment and Operation of SIDB Readymade Garments Centres for Female

in NWFP.

8. Operationalization of newly constructed GTVC Karak and Govt. Commercial Training Institute at Warai, Dir Upper.

TRANSPORT

64. To accord higher priority to transport, the Provincial Govt has enacted an

independent Transport Department on 18.09.2008.The aim of the Transport Department

is to provide safe reliable, affordable and environment friendly transport system and

ensure greater mobility of people and goods for the welfare of the people through

economic growth and poverty reduction. Towards achievement of this goal, the

Transport Department has initiated 5 schemes with an allocation of Rs.419.500 million

out of which 1 is ongoing and 4 are new.

REGIONAL DEVELOPMENT

65. The area developments projects are based on the concept of multi

sectoral development, through the project driven approach. This strategy will play a

significant role in enhancing the agricultural productivity, natural resource management

and rural development. The mega projects in the province, namely Kala Dhaka Area

Development Projects, Barani Area Development Project, Warai Package/Dir

Development Project and Kohistan Regional Development Project will help in the

development of the respective areas. Developmental works on rural roads, provision of

potable water & sanitation, pavement of streets and other such interventions will be

carried out through different projects. An amount of Rs.7772.610 million has been

allocated for 38 projects, out of which 30 are ongoing and 8 are new and following

targets will be achieved in this sector:


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SDU AREA DEVELOPMENT

1. 31kms Black Topped and Shingled roads will be completed.

2. 60000 animals will be artificially inseminated and 1000 animals of good

variety will be distributed.

3. 4 Small Hydro power generation stations will be established.

4. 280 demonstration plots will be developed.

5. 146 acres fruit orchards and vegetables plots will be demonstrated

6. 14 Irrigation channels will be completed.

7. 11 Clean Drinking Water Supply schemes will be completed.

66. Similarly, the programme under the Regional Development (Local

Government) sector contains 13 new schemes. The major development initiatives would

be in the following areas:

a. NWFP Urban Development Project Phase-II.

b. Establishment of Local Governance Schools.

c. Feasibility study for the establishment of institute.

d. Improving TMAs capacity in Disaster Management.

REHABILITATION PROGRAMME FOR INTERNALLY DISPLACED PERSONS (IDPS)

67. In the wake of the prevailing operation against insurgency in various parts

of NWFP and FATA, millions of local masses have been forced to evacuate their homes

and take temporary shelter in comparatively safer places. For this very basis, the

Government at the national and provincial levels have taken immediate relief measures

and established tented camps having basic amenities of life. The Government is

cognizant of the overall problem and its repercussions in present and future both at

micro and macro levels. A sizeable amount to the tune of Rs. 2.000 billion has been

budgeted in the ADP 2009-10 under the project titled “Rehabilitation of IDPs”, which will

be utilized mostly for augmenting the livelihood activities, capacity building and skill

development of the displaced communities.


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68. Where the issue has created miseries for the IDPs, their influx has also

caused a strain on the limited resources of the hosted districts/areas. In this regard, a

number of initiatives are proposed under the umbrella of local and foreign resources.

The overall size of the programs will be ascertained once the exact amount and nature

of assistance is tapped to implement the following projects:

o Rehabilitation of militancy affected areas of NWFP

o Rehabilitation of host communities and disturb areas in NWFP.

RESEARCH AND DEVELOPMENT

69. An amount of Rs. 114.895 million has been allocated for 11 projects, out

of which 7 are ongoing and 4 are new.

SCIENCE AND INFORMATION TECHNOLOGY

70. In view of the great importance of science and information technology in

today’s changing world, the ST&IT sector will not only implement the ongoing portfolios

but it will also channelize new schemes for promotion of information technology in the

province. An allocation of Rs.157.827 million has been made for 22 projects out of

which, 15 are ongoing and 7 are new. The ongoing I.T projects are:

i) Computerization of Land Record in District Peshawar.

ii) Computerization of Driving Licence in Traffic Police Department NWFP.

iii) Computerization of Property Tax Record, Information Department and

Provincial Assembly of NWFP.

iv) Establishment of I.T Professional Training Centers for I.T Graduates and

Government Employees.


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SCIENCE AND TECHNOLOGY

1. Invigoration and strengthening of lab teaching system (Phase-I).

2. Construction of Building of Science and Technology Directorate.

3. Establishment of Regional Science and Technology Centers.

4. Establishment of Cluster level Quality Enhancement Lab.

5. Provision of Tele Health Services.

INFORMATION TECHNOLOGY

1. Customization of Software

2. Development of MIS and Mobile Communication for the Rescue 1122 for

District Peshawar.

3. I.T Education and Income Generation Programme.

MAJOR DEVELOPMENT INTERVENTIONS

a) Tameer-e-Sarhad Programme (TSP)

71. The Government launched the TSP with an objective to initiate

development projects thereby creating employment opportunities in the length and

breadth of the Province. In order to ensure public participation, Members of Provincial

Assembly recommend projects in their respective constituencies. A total amount of

Rs.1240.00 million has been allocated for 1 new project.

b) Support to Law and Order

72. The precarious Law and Order situation has been one of the most

worrying aspects of the current Governance paradigm. Militancy and terrorism have

created a crisis situation in the Province. Keeping this in view, the provincial

government is determined to protect the life property and livelihoods of every citizen and

initiated various programmes to strengthen police in the Province. Vacancies will be

created and the force will be also equipped with sophisticated and heavy weapons. A


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comprehensive health and life insurance schemes will be introduced and special

attention will be given to the packages of the families of Shuhada. Besides this, work

will be expedited on various projects for the construction and reconstruction of police

lines, Police Stations, police posts and other effected Government Buildings are

included for which an amount of Rs.1023.767million is earmarked.

BACHA KHAN POVERTY ALLEVIATION PROGRAMME

73. It is the prime duty of Provincial Government to give relief to the people of

the Province from the burden of inflation and poverty. In this regard, the present

government has allocated a handsome amount of Rs.500.000 million for the Proramme

under which steps would be taken for poverty alleviation so that the poor citizens of

Province may also enjoy a good quality of life. The Programme duly approved by the

PDWP would be implemented through Sarhad Rural Support Programme (SRSP).

DISTRICT DEVELOPMENT FUND

74. The Provincial Government has allocated an amount of Rs1341.735

million for the District Development Fund, under the Provincial Finance Commission

Award. In this respect, the District Governments will be provided Rs.751.371 million,

Tehsil Municipal Administrations (TMAs) share is Rs.322.016 million and Rs.134.174

million each have been provided for hounrable Chief Minister and Finance Minister’s

Directives, respectively.

POPULATION WELFARE

75. In this sector, the future strategy will focus upon strengthening the

population welfare infrastructure in the province. Additionally, plans are also on the anvil

to extend the scope of outreach programmes to the far-flung areas of the province. An

amount of Rs.574.000 million has been earmarked for this sector to meet the following

targets:


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1. Establishment of 164 Welfare Centres.

2. Establishment of Reproductive Health Centres in District Shangla &

Chitral.

3. Up-gradation of trainings centers in LRH.

4. 142 male mobilizers will be registered.

5. 4 Regional Directorates will be established in District Mardan, Bannu,

Swat and Abbottabad.

6. 13 Tehsil Population Welfare Offices will be established.

COMPREHENSIVE DEVELOPMENT STRATEGY (CDS) FOR NWFP

76. The Comprehensive Development Strategy describes a path over 7 years

that aims to benefit all the people of the Province by offering the possibility of better

employment and access to improved public services involving government, civil society

and the private sector. It builds on the strengths of the NWFP, including it’s natural

resources and the longstanding skills of its people in trade, agriculture and dynamic

management.

77. Levels of poverty, public services and infrastructure are significantly lower

than in most of Pakistan. The dynamism of the province has led to several decades of

relatively high growth, which was narrowing the gap with the rest of Pakistan. Increased

government revenues were helping government to improve services, partly through a

programme of decentralisation. However, the current conflict has reversed this trend.

The extra costs of policing and reconstruction of damaged property, combined with lost

revenue, are expected to cost the government of NWFP nearly Rs 20 billion.

78. The new provincial government is determined to address these challenges

and opportunities and has produced the CDS with the participation of the main

Departments and with consultation and advice from key representatives of civil society

and the private sector. The CDS has the following priority policies.


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79. The government is pursuing a programme of public administration reform

to improve efficiency and governance. The maintenance of law and order has required

the diversion of public funds to the police services in recent years, and this will need to

be maintained for the next two years, notably through a programme of investment in

new police infrastructure and raisning of elite force.

80. Social Sectors. Education standards in NWFP have improved markedly in

recent years, but are still well below the national average. NWFP has an exceptionally

young population and this will lead to a very rapid growth in the demand for education in

the next twenty years. The Government will address this with an ambitious programme

to improve the number of teachers (Rs 30 bn) and classrooms (Rs 85 bn). Equally

important, the education plan also stresses the need to switch from a knowledge

education to a skills education (Rs 18bn) and to be more flexible in cooperating with

schools run by civic society and by the private sector. The CDS plans to further develop

the college sector as part of its promotion of higher education efforts (Rs. 4 bn)

81. The health status of NWFP is complex, with the private sector providing

70% to 80% of all services. The low rate of attended births is particularly worrying and

immunisation is lower than in Punjab. The NWFP strategy for health is based on a

major improvement in access to health services, including: investment in health facilities

(Rs 39 bn); recruitment of new staff (Rs 21 bn); supply of equipment, supplies and

drugs (Rs 15bn); and coordination with the private sector. This strategy builds on the

success of the People’s Primary Healthcare Initiative. Improvements in management

and emergency response (Rs 25 bn) are also included.

82. The main programmes of social protection are defined at national level

and the CDS includes measures to ensure that these programmes are implemented

more efficiently, with some expansion of funding. The CDS attaches a high priority to

undertaking high visibility local development activities to build confidence in

communities (Rs 101 bn), based on successful experience in similar programmes.


137

83. Infrastructure. Demand for road transport has been expanding at a rate

that is much faster than economic development as a whole. The CDS continues with the

programme of improving and expanding the road network (Rs 38 bn), but stresses that

the share of resources devoted to road maintenance will be greatly increased (by Rs 23

bn).

84. There are substantial opportunities for expanding the irrigated area in

NWFP and the CDS will accelerate the current programme of investment and

rehabilitation of irrigation infrastructure (Rs 23 bn). Greater emphasis will be placed on

maintenance, because of the growing constraints in overall water supply. In view of the

likely impact of climate change, priority is also given to investment in water efficiency

programmes (Rs 16 bn) and to flood protection (Rs 7 bn). In energy and power, the

Government of NWFP will seek to promote private investment and will provide some

matching funds (Rs 10 bn). The CDS plans to facilitate alternate energy penetration in

off grid areas of the province to promote agriculture and livelihood measures (Rs. 5 bn).

85. The majority of investment in water and sanitation is undertaken through

urban development plans and local development in rural areas. The CDS plans support

for housing for government officials, which is particularly important in the current

conflict, and for the purchase of land for housing for the poorest households (Rs 9 bn).

86. Economic Management. About three quarters of the population in NWFP

are at least partly dependent on agriculture. T will provide assistance to these people

through improved access to inputs and technology and through a programme of

investment in land levelling and development and investment in water harvesting that is

geared towards increased efficiency and productivity (Rs 11 bn).

87. Major opportunities exist for the expansion of employment through

business creation in Reconstruction Opportunity Zones and in minerals

development. Public investment in infrastructure will allow these opportunities to

expand efficiently (Rs 6 bn). Other reforms will be introduced to improve the business

climate. Likewise private sector development will be facilitated as well.


138

88. The services in technical education are constrained by limited funding.

The Government is committed to improving the scope and content of technical

education to match more closely the needs of employers in NWFP (Rs 4 bn).

89. Urban Development. The Government have developed Urban

Development Plans for 22 urban areas in NWFP. These cover the main public

services, including water, sanitation, drainage, streets and public infrastructure to

accommodate private services in transport, agriculture and trade (Rs. 13 bn). The CDS

plans to provide a mass transit for Peshawar to cater for the growing business activity in

the region (Rs. 3 bn).

90. Implementation. The implementation of the CDS is assured through the

link with the Medium Term Budgetary Framework, which will rely on the CDS for the

identification of major priorities. Implementation will be coordinated by a high level

committee supported by a Special Development Unit in PD&D. A number of cross-

cutting issues will be monitored and promoted, covering gender, environment,

community participation, governance and youth employment.

91. Costing. The costing estimates define 3 periods over the next 7 years. The

estimates suggest that a total of Rs 158 bn will be required in the next two years, above

the current level of expenditure. Of this, Rs 34 bn will be provided by the real growth in

revenue and a further Rs 10bn from renegotiated hydel profits, leaving Rs 114 bn (US$

1,425 m) to be covered by expanded foreign grants and loans, above the current level.

Annual costs are maintained through the period, with a gradually increasing share of

funding coming from increased domestic revenue arising from economic growth. This is

summarised in the table below.


139

Table 14.8FUNDING FOR FULL CDS IMPLEMENTATION (RS BN)

Y1-Y2 Y3-Y5 Y6-Y7 TotalAdditional CDS Expenditure 158 255 170 583

Added Revenue from GDP growth

34 86 82 202

Added Revenue from hydel 10 15 10 35

Foreign Grants and Loans 114 154 78346 under Article

184 of the Constitution,

in US$m 1,425 1,925 975 4325

92. Five sectors require 83% of total support. These are: education (25% of

total), health (20%), local development (19%), roads (10%) and irrigation (9%). The full

sectoral allocations are described in the table below:-

Table 14.9SECTORAL ALLOCATION OF RESOURCES (RS M)

Sector Y1-Y2 Y3-Y5 Y6-Y7 Total % TotalGovernance 560 750 500 1,810 0.3%Security 8,340 3,200 1,800 13,340 2.3%Education 29,683 67,415 45,277 142,374 24.4%Health 31,300 46,649 31,100 109,049 18.7%Social Protection 6,240 9,179 6,119 21,538 3.7%Local Development 21,727 47,745 31,830 101,302 17.4%Access and Roads 18,200 26,345 17,396 61,941 10.6%Irrigation 16,909 18,233 12,089 47,231 8.1%Energy 2,404 6,338 4,226 12,968 2.2%Water and Sanitation 2,136 3,360 2,218 7,714 1.3%Housing 1,360 3,844 2,562 7,766 1.3%Agriculture 9,707 8,230 5,487 23,424 4.0%ROZs 1,963 3,425 2,283 7,671 1.3%Minerals 1,000 1,425 950 3,375 0.6%Privates sector Development 10 4 2 16 0.0%Technical Education 900 2,460 1,640 5,000 0.9%Urban Development 5,345 6,825 4,550 16,720 2.9%

Total 157,784 255,426 170,029 583,239 100.0%

Annex-I

Name of Loans Rate of mark up Outstanding liabilities

1991-9214.51% 1590.275

1992-9315.24% 1592.555

1993-9415.94% 1188.66

1994-9515.59% 544.22

1997-988.50% 2031.772

1999-200011.21% 306.933

7254.415

1992-9315.24% 99.137

1993-9415.94% 880.545

1994-9515.59% 324.81

1999-200011.21% 1244.438

2548.93

Name of Loans Rate of mark up Outstanding liabilities

1993-9415.94% 415.033

1994-9515.59% 421.624

1995-9615.94% 620.073

1998-9917.71% 2.846

1999-200011.21% 1127.523

2000-0111.70% 851.452

2001-0210.72% 482.659

2002-037.42% 242.677

2003-047.20% 13.666

2005-069.79% 341.720

2007-089.96% 660.786

2008-099.96% 100

5280.05915083.404

CDL LIABILITIES AS ON 01-07-2009

GRAND TOTAL (a + b + c)

(Rs. in million)

(C) Cash Development Loans For SCARP Tube well Projects handed over by WAPDA to the Government of NWFP.

SUB-TOTAL (c)

(a) Cash Development Loans

SUB-TOTAL (a)

(b) SAP Tied Loans.

SUB-TOTAL (b)

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Annex-II

1IDA-54-Pak (Highway Project)

0.75% 80 half yearly 15-10-1974 *0.018

2IDA-678-Pak (3rd Education Project) 0.75% 80 half yearly 15-2-1987 *0.355

3IDA-683-Pak (Flood Damages Restoration Project) 0.75% 80 half yearly 15-5-1987 *1.134

4IDA-755-Pak (Hazara Forestry Project) 0.75% 80 half yearly 04/01/1988 *0.217

5IDA-877-Pak (Salinity Control & Reclamation Project Mardan) 0.75% 80 half yearly 04/01/1989 *12.978

6IDA-892-Pak (4th Primary Education Project) 0.75% 80 half yearly 09/01/1989 *0.724

7IDA-1113-Pak (Bannu Leather Goods Services Control Project) 0.75% 80 half yearly 08/01/1991 *0.572

8IDA-1163-Pak (On-Farm Water Management Project) 0.75% 80 half yearly 12/01/1991 *1.351

9IDA-1239-Pak (Irrigation System Rehab: Project) 0.75% 80 half yearly 10/01/1992 *1.867

10IDA-1487-Pak Command Water Mangt Project 0.75% 80 half yearly 15-6-1994 *2.473

11IDA-1499-Pak (Small Industries Dev. Board Project) 0.75% 80 half yearly 15-1-1995 0.115

12IDA-1602-Pak (2nd Primary Education Project) 0.75% 80 half yearly 11/01/1995 *9.751

13IDA-1603-Pak (On-Farm Water Mangt. Project) 0.75% 80 half yearly 11/01/1995 *2.332

14IDA-1888-Pak (2nd Irrigation System and Rehabilitation Project)

0.75% 50 half yearly 08/01/1998 *3.376

15IDA-2003-Pak (1988 Flood Damages Restoration Project) 0.75% 50 half yearly 15-9-1999 *2.234

16IDA-2154-Pak (2ndAgriculture Research Project) 0.75% 50 half yearly 11/01/2000 *3.197

17IDA-2240-Pak (Family Health Project) 0.75% 50 half yearly 11/01/2001 *11.378

18IDA-2593-Pak (Social ActionProgram Project) 0.75% 50 half yearly 08/01/2004 *4.462

19IDA-2999-Pak (National Drainage Programme) 0.75% 50 half yearly 15-11-2007 *1.636

20IDA-3050-Pak (Social Action Programme Project-II) 0.75% 50 half yearly 15.9.2008 *7.002

21IDA-3687-Pak NWFP Structural Adjustment Credit (SAC I) 0.75% … 08/01/2012 *95.753

22IDA-3932-Pak NWPF StructuralAdjustment Credit (SAC II) 0.75% … … *90.863

23IDA-3932-Pak NWPF StructuralAdjustment Credit (SAC II) 0.75% … … *50.059

24IDA-4177-Pak (DevelopmentalPolicy Credit-I) 0.75% … … *93.039

25IDA-4316-Pak (DevelopmentalPolicy Credit-II) 0.75% *129.359

26ADB-433-Pak (Aquaculture Dev: Project) 1% 60 half yearly 05/01/1990 *0.156

FOREIGN EXCHANGE LOAN Liabilities as on 01-07-2009

S.No.

(Rs. in million)

Balance as on 1.7.2009

Name of loans Rate of interestNo. Of

Instalments

First instalment due

from

141

Annex-II

FOREIGN EXCHANGE LOAN Liabilities as on 01-07-2009

S.No.

(Rs. in million)

Balance as on 1.7.2009

Name of loans Rate of interestNo. Of

Instalments

First instalment due

from

27ADB-495-Pak (On Farm Water Mangt. Project) 1% 60 half yearly 15-5-1991 *1.477

28ADB-723-Pak (Chashma Command Area Development Project)

1% 60 half yearly 15-12-1994 *23.294

29ADB-758-Pak (Farm to Market Roads Project) 1% 50 half yearly 04/01/1996 *1.620

30ADB-759 Pak (Science Education for Secondary School Project)

1% 60 half yearly 15-5-1996 *1.132

31ADB-838-Pak (Chitral Area Dev. Project) 1% 60 half yearly 15-12-1997 *15.527

32ADB-850-Pak (3rd Health Project) 1% 50 half yearly 03/01/1998 *7.252

33ADB-851-Pak (Fruit and Vegetable Marketing Project) 1% 50 half yearly 15-4-1998 *0.799

34ADB-874-Pak (Chashma Right Bank Irrigation Project Stage-II) 1% 50 half yearly 15-4-1998 *5.289

35ADB-916-Pak (2nd Aquaculture Dev: Project) 1% 50 half yearly 15-1-1999 *2.204

36ADB-917-Pak (2nd Farm to Market Road Project) 1% 50 half yearly 02/01/1999 *12.796

37ADB-957-Pak (1988-Flood Damages Restoration Project) 1% 50 half yearly 10/01/1999 *2.511

38ADB-973-Pak (Livestock Development Project. 1% 50 half yearly 15-2-2000 *1.813

39ADB-977-Pak (Primary Education Girls Project) 1% 50 half yearly 15-6-2000 *4.286

40ADB-1179-Pak (Barani Area Dev. Project) 1% 50 half yearly 15-3-2003 *19.505

41ADB-1185-Pak (Provincial Highway Project) 1% 50 half yearly 15-3-2003 *8.153

42ADB-1200-Pak (Health Care Dev. Project) 1% 50 half yearly 15-3-2003 *2.574

43ADB-1301-Pak Social Action Program Project-I 1% 50 half yearly 15-9-2004 *11.974

44ADB-1493-Pak Social Action Program Project-II 1% 50 half yearly 15-03-2007 *23.518

45IFAD-18-Pak (4th Agriculture Dev. Project) 1% 80 half yearly 09/01/1989 *0.474

46IFAD-83-Pak (On-Farm Water Mangt. Project) 1% 80 half yearly 06/01/1992 *0.313

47West German No.8267528 (Hospital Equipment in NWFP) 0.75% 80 half yearly 30-6-1994 **3.308

48West German No. 8267585 (Drinking Water Supply in Refugees Camps in NWFP).

0.75% 80 half yearly 30-6-1994 **4.700

Name of Currency Foreign Currency Conversion rate as on 01.07.2009

Pak Currency

U.S. Dollar 672.912 82.5 55515.24

DM (German Marks) 8.008 54.8372 439.136

55954.376*US Dollar ** DM (German mark)

Total

142

Annex-III

Sr. No. Name of Loans Rate of InterestNo. of

instalments

First Instalments

due from

Allocated Share

Outstanding Balance/ Amount disbursed upto

30-6-2008

1IDA-2245-Pak (On-Farm Water Management Project)

0.75% 50 half yearly 15-9-2001 $4.59 *3.671

2

IDA-2383-Pak (Environmental Protection and Resource Conservation Project)

0.75% 50 half yearly 15-11-2002SDR 2.196

3.107*2.563

3IDA-2468-Pak (1992 Flood Damages Restoration Project)

0.75% 50 half yearly 15-3-2003 $2.50 *2.096

4IDA-2687-Pak (Primary Education Project) 0.75% 50 half yearly 15-8-2005 $88.89 *79.999

5

IDA-2829-Pak (NWFP Community Infrastructure Project) 0.75% 50 half yearly 07/01/2006

16.662SDR 10.617

*15.412

6IDA 3516-Pak NWFP Emergency Rehabilitation Project

0.75% … … .. *24.843

7IDA 3776-Pak NWFP Provincial HIV/AIDS Control Programme

0.75% 50 half yearly *0.427

8

IDA-3906-Pak (Second NWFP Community Infrastructure Project)

0.75% *27.238

9IDA-6870-Pak (Primary Education Project) 0.75% 50 half yearly *1.537

10ADB-976-Pak (Swabi Salinity Control and Reclamation Project)

1% 50 half yearly 15-12-1999SDR18.126

24.046*18.035

11ADB-1004-Pak (2nd Urban Dev: Project ) 1% 50 half yearly 15-6-2000

SDR51.89966

*50.325

12ADB-1146-Pak (Chashma Right Bank Irr: Project Stage-III)

1% 50 half yearly 15-3-2002SDR50.538

71.156*57.815

13ADB-1209-Pak (Flood Damages Restor-ation Sectors Project)

1% 50 half yearly 15-3-2003SDR10.820

15.139*12.679

14ADB-1210-Pak (Teacher Training Project)

1% 50 half yearly 15-2-2003SDR4.354

5.994*5.020

15ADB-1278-Pak (Middle School Project) 1% 50 half yearly 15-01-2004 $15.60 *13.455

16

ADB-1294-Pak (Pehur High Level Canal Project) 1% 50 half yearly 15-05-2004

SDR 91.652133.545

*110.055

17ADB-1373-Pak (Technical Edu: Project) 1% 50 half yearly 15-11-2005

SDR3.7165.394

*4.855

18ADB-1401-Pak (Rural Access Road Project) 1% 50 half yearly 02/01/2006 $26.14 *23.850

19ADB-1403-Pak (Forestry Sector Project)

1% 50 half yearly 15-5-2006SDR29.007

42.6*38.873

DISBURSEMENT OF ON GOING FOREIGN LOANS AGAINST ALLOCATED SHARE

(Figures in million)

AS ON 01-07-2009

143

Annex-III

Sr. No. Name of Loans Rate of InterestNo. of

instalments

First Instalments

due from

Allocated Share

Outstanding Balance/ Amount disbursed upto

30-6-2008


20ADB-1454-Pak (Primary Education Girls Project-II)

1% 50 half yearly 1.1.2007SDR 2.561

3.625*3.398

21ADB – 1534 Pak Secondary Education Project

1% 50 half yearly 02/01/2008SDR 6.175

8.197*7.890

22

ADB – 1671 Pak Women Health Project 1%

*2.493**54.423***0.149

23ADB-1672 –Pak- Malakand Rural Dev:Project

1% 50 half yearly 1.9.2008SDR 30.852

41.808*40.763

24

ADB-1787 –Pak- Barani Area Development Project Phase-II

1% for first ten year & 1.50%

thereafter50 half yearly 15-05-2009

SDR 40.06552

*50.917

25ADB-1854–Pak NWFP Urban Dev. Project 1% 50 half yearly

*1.208**0.205

26ADB-1877 –Pak- Agriculture Sector Programme(ASPL-II)

2% 32 half yearly 13-03-2010 *8.630

27ADB-1900 –Pak- Reproductive Health Project

1% 50 half yearly *0.390

28ADB-2103 –Pak- WFP Road Dev. Project 2%

40 halfyearly

02/01/2010 $159.60 159.6

29

ADB-2135 –Pak Restructuring and Vocational Training System Project

1% *0.659

30IBRD-3327-Pak (On-Farm Water Mangt. Project Phase-III)

0.75% 50 half yearly 15-9-2001 $2.30 *1.840

31

IFAD-319-Pak (Mansehra Village Support Project) 4% 30 half yearly 05/01/1998

SDR10.35014.557

*3.397

** Japanese Yen ***Euro

Name of Currency Foreign Currency

Pak Currency

U.S. Dollar 773.933 63849.472

Japanese Yen 54.628 49.477

Euro 0.149 17.135

63916.084

115.00

Conversion rate as on 01.07.2009

Total


82.50

0.9057

144

Annex-IV

Description Budget

Estimates2008-09



1-PROVINCAL TAX RECEIPTS 4,737.330 3,786.051 5,991.864

GST on Services 766.568 747.471 2,110.364

Agriculture Income Tax 90.000 18.623 90.000

Urban Immoveable Property Tax (net) 116.630 67.580 92.000

Registration (Transfer of Property) 150.000 112.899 150.000

Land Revenue 758.166 621.038 758.166

Tax on Professions 173.225 83.000 113.000

Provincial Excise 54.980 25.000 33.000

Stamp Duties 701.834 534.440 701.834

Receipts under Motor Vehicles Acts 1,137.923 851.000 1,104.500

Entertainment Tax 15.000 3.000 4.000

Cess on Tobacco and Goods 263.000 278.000 381.000

Electricity Duty 450.000 420.000 420.000

Others 20.000 9.000 13.000

Hotel Tax 40.004 15.000 21.000

II- NON-TAX RECEIPTS

Civil Administration Receipts 3,473.440 3,388.672 3,655.700

Income from Property & Enterprise 140.000 150.000 160.000

Interest 100.000 135.000 140.000

Dividends 36.569 11.569 16.569

Return on Assets Transferred to WAPDA 3.431 3.431 3.431

RECEIPTS FROM GENERAL ADMINISTRATION

87.000 87.000 93.000

Fees from Public Service Commission 16.000 16.000 18.000

Receipt in aid of Superannuation 46.000 46.000 50.000

Weights and Measures 25.000 25.000 25.000

GENERAL REVENUE RECEIPTS

(Rupees in Million)

145

Annex-IV

Description Budget

Estimates2008-09




(Rupees in Million)

Receipts from Law and Order 501.500 562.000 611.000

Administration of Justice 91.000 91.000 91.000

Jails and Convict Settlement 11.000 11.000 20.000

Police 399.500 460.000 500.000

Receipts from Social Services 357.550 369.930 407.700

Education 143.550 143.600 160.700

Technical Education 10.000 11.000 10.000

Health 198.500 209.330 231.500

Manpower Management 5.500 6.000 5.500

Receipts from Community Services 292.000 344.000 387.630

Buildings 72.000 85.000 100.000

Communications 110.000 129.000 131.630

Public Health Engineering 110.000 130.000 156.000

Receipts from Economic Services 1,395.240 1,127.240 1,220.260

Agriculture 116.500 83.600 115.120

Fisheries 15.000 11.500 15.000

Cooperation 31.600 35.000 38.000

Forestry 584.640 584.640 584.640

Irrigation 575.000 350.000 395.000

Industries 2.500 2.500 2.500

Stationery and Printing 30.000 30.000 30.000

Industrial Safety Explosives 40.000 30.000 40.000

Miscellaneous Receipts 700.150 748.502 776.110

III-Provincial Receipts I + II 8,210.770 7,174.723 9,647.564

IV-FEDERAL TAX ASSIGNMENT 59,684.257 56,099.975 67,808.026

Taxes on Income 27,110.176 25,197.175 31,347.314

Capital Value Tax 373.356 346.991 425.852

146

Annex-IV

Description Budget

Estimates2008-09




(Rupees in Million)

Custom Duties 9,578.016 8,183.273 9,706.454

Sales Tax 13,654.010 13,217.331 15,120.954

GST (CE Mode) 2,927.972 2,836.299 3,479.132

Central Excise 6,040.727 6,318.906 7,728.320

V-1/6th of Sales Tax for District Govts and Cantt Boards

7,332.031 7,098.409 7,861.533

VI-Straight Transfers 4,429.463 5,085.483 7,549.003

Royalty on Crude Oil 2,663.176 3,416.524 2,469.512

Royalty on Natural Gas 642.253 838.687 2,729.095

Gas Dev: Surcharge 945.023 656.812 2,159.296

Excise Duty on Natural Gas 179.011 173.460 191.100

VII- Grant-In-Aid (Special Grant) 14,432.225 13,183.310 14,822.500

VIII-Net Hydel Profit 6,000.000 6,000.000 6,000.000

IX- Extra Budgtery Grant (Non-Dev) 0.000 1,681.828 0.000

Total Receipts (III+IX) 100,088.746 96,323.728 113,688.626

147

Annex-V

Budget Revised BudgetEstimates2008-09

Estimates2008-09

Estimates2009-10

General Public Service 47,529.020 49,784.405 54,253.158

Executive and legislative organs, financial and fiscal affairs, external affairs (Voted) 7,726.000 8,032.305 8,298.260

(Charged) 6,774.519 6,531.601 8,352.614

Transfers (Inter Governmental) 32,380.000 34,202.000 36,895.500

To District Govt (Non Salary) 3,417.000 3,417.000 3,839.000

To District Govt (Salary) 26,198.000 28,000.000 29,500.000

TMA’s Zila Tax, other and Investments 2,765.000 2,785.000 3,556.500

General Services 637.057 1,005.183 693.280

Administration of General Public Services 1.657 1.466 1.802 General Public Services not elsewhere defined 9.787 11.850 11.702

Public Order and Safety Affairs 8,010.289 11,144.914 11,487.139

Law Courts (Voted) 562.303 842.603 852.191

(Charged) 159.707 188.048 169.166

Police 6,637.277 8,906.488 9,775.801

Civil Defined Related Services 6.839 6.215 7.236

Prison administration and operation 340.376 390.007 385.140

Administration of public Order 303.787 811.553 297.605

Economic Affairs 5,684.406 6,487.389 6,118.510 General Economic, Commercial and Labour affairs 27.885 31.157 35.634 Agriculture, Food, Irrigation, Forestry and Fishing 4,363.530 4,565.908 4,618.035

Fuel and Energy 14.835 33.728 27.650

Mining and Manufacturing 93.356 105.740 113.810

Construction and Transport (Voted) 1,178.171 1,697.638 1,316.329

(Charged) 4.015 50.000 4.015

Other industries 2.614 3.218 3.037

Classification

(Rupees in Million)

CURRENT REVENUE BUDGET

148

Annex-V

Budget Revised BudgetEstimates2008-09

Estimates2008-09

Estimates2009-10

Classification

(Rupees in Million)

CURRENT REVENUE BUDGET

Environment Protection 9.423 12.075 12.403

Housing and community amenities 56.669 102.937 28.130

Housing Development 8.059 8.748 9.500

Community development 8.392 57.509 1.000

Water supply 40.218 36.680 17.630

Health 2,704.293 2,610.013 2,989.963

Medical product, appliances & Equipment 1.746 2.296 1.889

Hospital servers 2,377.078 2,445.712 2,612.754

Public health servers 10.699 7.810 11.768

Health administration 314.770 154.195 363.552

Recreation, Culture and Religion 195.847 264.593 244.152

Recreation and sporting services 29.880 45.828 34.756

Cultural services 18.462 30.265 23.946

Broad casting and Publishing 47.959 69.511 62.376

Religious Affairs 92.756 110.500 114.470 Administration of Information, Recreation and Culture 6.790 8.489 8.604

Education Affairs and Services 2,791.688 3,070.148 3,942.963 Pre-primary and Primary education affairs and services 91.894 93.070 104.957

Secondary education affairs and services 20.586 24.483 25.771

Tertiary education affairs and services 2,490.474 2,700.117 3,500.191

Subsidiary Services to education 38.004 42.678 47.095

Administration 150.730 209.800 264.949

Social Protection 318.365 2,123.526 923.582

Administration 259.263 2,063.170 857.485

Other 59.102 60.356 66.097

Total Current Expenditure 67,300.000 75,600.000 80,000.000

149

Annex-VI

(Rs. in million)

PARTICULARSBudget

Estimates2008-09



A-EXTERNAL RESOURCES

I-FOREIGN LOANSADB LOANSRestructuring of Technical Education & Vocational Training System Program

100.000 87.119 -

Barani Area Development Project-II 1787-PAK 643.767 874.000 - Malakand Rural Development Project - 11.122 - NWFP Urban Development Project 44.326 -

Road Development Sector & Sub Regional Connectivity Project 2103-PAK

2,492.000 2,732.250 3882.500

Reproductive Health care Project. 1.307 - Renewable Energy Development Project 140.000 134.720 275.000Construction of summar Gah HPP Kohistan. - - 1.000Construction of Mitiltan HPP Swat. - - 1.000Development of Renewable Energy in NWFP - - 1.000IDA LOANSNational Education Assessment 3775-N - 4.987 - Community Infrastructure Project 450.987 581.489 - Enhanced HIV/Aids Control Programme - 48.000 100.000 Refugee affected & hosting area Programme. - - 1.000 JAPANESE LOAN

Japanese Assisted Rural Roads Construction Project Phase II

10.000 - 1.000

IFAD LOANSNWFP Barani Area Development Project 558-Pak - 172.000 200.000

Sub Total (I) Loans 3,836.754 4,691.320 4,462.500 II-FOREIGN GRANTS

WB CIDA Assisted.

Development Partners Coordination Cell P&D - - 11.500

Enhanced HIV/Aids Control Programme (3776-Pak) 105.000 - 0.500 SWISS/NAS/US GRANTSKohistan Area Development Project 126.290 - 100.000 Kala Dhaka Area Development Project 81.620 - 80.000 INRM (Joint Forestry Management) - - 1.000 Re-organization of Special Development Unit 2.400 - 7.000 WFP GRANTS Girls Primary Education - 105.686 245.000Promoting Safe Motherhood Project 30.905 30.905 -

DEVELOPMENT BUDGET

150

Annex-VI

(Rs. in million)

PARTICULARSBudget

Estimates2008-09



DEVELOPMENT BUDGET

IDA GRANTS Chitral Gol National ParkProtected Area Management HIV/Aids Prevention - 2.482 - NWFP Community Infrastructure-II - 7.949 - Strengthening of Procurement Regulatory Framework 11.200 3.009 6.000UNDP GRANT - National Urban Poverty Alleviation Programme. - 1.819 - JAPAN ASSISTED.Gravity Flow Water Supply Scheme, Abbottabad. 20.000 - 1,434.541

Deep Drilling Rigs and Tube wells in Districts Kohat and Karak

20.000 -

-

Development Studies for the Improvement of Water supply to Peshawar from Warsak Dam

10.000 -

-

Provision of Steel Bridges in remote areas of NWFP. 10.000 -

-

NORAD GRANTNWFP Basic Education Improvement Project. - 42.560 150.283 UK/DFID GRANT.Rural Water Supply and Sanitation Project. 71.893 71.893 - GERMAN GRANT.Primary Health Care Project 10.000 - - Tuberculosis Control Programme 231.132 5.378 0.000Equipment Basic Health NWFP - 17.600 146.000

Sub-Total (II) Grants 780.440 398.281 2,181.824 A-Total External Resources (I + II) 4,617.194 5,089.601 6,644.324

B-Provincial Contribution 32.788.746 20,723.728 33688.626

C-Special Programme (PSDP) 8,093.544 6,137.982 10050.485D-Population Welfare Programme 468.000 419.535 574.000

50.000 109.000 0.000

151

Annex-VI

Budget Estimates

Revised Estimates

Annual Dev: Program

Foreign Project

AssistanceTotal

A-ANNUAL DEVELOPMENT PROGRAMME

Agriculture 715.428 455.855 796.663 796.663

Building and Housing 802.048 563.384 856.421 856.421

Drinking Water & Sanitatioin 1050.145 1000.145 1441.169 1434.541 2875.710

School and Literacy 4158.734 5853.369 4574.963 395.283 4970.246

Higher Education 1348.646 1348.646 1484.391 1484.391

Environment 26.684 15.948 40.138 40.138

Forestry 527.326 372.336 468.625 1.000 469.625

Health 4316.917 3831.412 4333.868 246.500 4580.368

Industries 1241.354 651.373 1173.660 1173.660

Auqaf, Hajj & Minority Affairs 35.100 16.805 35.710 35.710

Power 569.969 422.635 441.308 278.000 719.308

Regional Development 6703.090 8728.342 7772.610 381.000 8153.610

Research and Development 82.371 66.083 114.895 24.500 139.395

Road & Communication 6990.890 8081.653 5137.392 3883.500 9020.892

Social Welfare 99.551 94.045 122.509 122.509

Tourism 263.524 255.032 332.622 332.622

Urban Development 174.820 290.464 195.645 195.645

Water 1278.636 979.875 1406.496 1406.496

ST & IT 140.158 104.458 157.827 157.827

Tameer-e-Sarhad Programme 1240.000 1240.000 1240.000 1240.000

2008-09 Bduget Estimates 2009-10

DEVELOPMENT BUDGET

DEVELOPMENT PROGRAMME

(Rs. in million)

152

Annex-VI

Budget Estimates

Revised Estimates

Annual Dev: Program

Foreign Project

AssistanceTotal

2008-09 Bduget Estimates 2009-10

DEVELOPMENT BUDGET

DEVELOPMENT PROGRAMME

(Rs. in million)

Transport .. 4.042 419.500 419.500

Total (A) 31765.391 34375.902 32546.412 6644.324 39190.736

(B) DISTRICT ADP 1218.000 1245.615 1341.735 0.000 1341.735

C) SPECIAL PROGRAMME (PSDP)

Establishment of Additional RHS-A Center 21.000 11.744 32.707 32.707

AJP 108.320 211.953 94.915 94.915

DERA 203.100 227.429 120.000 120.000

DTF 13.809 13.809 0.000

Education 384.850 246.349 194.282 194.282

ASDL-II 35.204 0 0.000

Agriculture 522.421 713.179 1887.476 1887.476

NPI 1326.920 0.000 0.000

Environment 335.788 0.000 325.246 325.246

Finance Division 161.354 101.500 2549.172 2549.172

Health 1978.660 341.477 19.687 19.687

Industries 300.558 143.186 0.000

Norcotics Control Division 377.810 0.000 0.000

Water & Power 2323.750 948.925 765.000 765.000

People Works Programme-II . 4062.000 4062.000

Total ( C ) 8093.544 2959.551 10050.485 0.000 10050.485

Population Welfare Programme (D) 468.000 419.535 574.000 574.000

Total Development Programme (A+B+C+D)

41544.935 39000.603 44512.632 6644.324 51156.956

153

Annex-VII

S.No. Name of Project Capacity

(MW)Estimated Cost

(Mill. US$)

1 Allai Khwar, Kohistan 121 143.00

2 Duber Khwar, Kohistan 130 163.00

3 Keyal Khwar, Kohistan 130 118.00

4 Khan Khwar, Swat 72 90.00

5 Golen Gol, Chitral 106 117.25

6 Gomal Zam Dam 17.4 213.82

S.No. Name of Project StatusCapacity

(MW)

1 Matiltan, Swat LOS 84

2 Mahandry, Mansehra LOI 13.5

3 Tangar, Mansehra LOI 12.5

S.No. Name of Project StatusCapacity

(MW)

1 Suki Kinari, Mansehra LOI 655

2 Madyan, Swat LOI 148

3 Patrind, Mansehra LOI 130

4 Sharmai, Dir LOI 115

5 Gabral-Kalam, Swat LOI 101

6 Munda Dam, Mohmand LOI 740

Potential Hydel Power Generation Sites

Through Provincial Window (SHYDO):

Hydel Projects for which letters of intent/letters of support have been issued to Private Sector

Through Federal Window (PPIB):

154

Annex-VII


(MW)Estimated Cost

(Mill. US$)

1Sammar Gah Hydropower Project, Kohistan

28 42.00

2 Batal Khwar Hydropower Project, Swat 8.1 14.00


(MW)Estimated Cost

(Mill. US$)

1Bimbal Hydropower Project Kaghan Valley, Naran District Mansehra

8.1 12.00

2 Arkari Gol Hydropower Project, Chirtal 26.4 28.58

3Mastuj River Hydropower Project, Chitral

8.9 14.50

4Lutkho River Hydropower Project, Chitral

6.4 9.93

1. Hydel projects with feasibility study available

INVESTMENT OPPORTUNITIES

2. Medium Size Hydropower Projects (Raw Sites)

155

Annex-VII


(KW)Unit Cost US$/ KW

1 Turkho River Alt-2 9,900 1,384.00

2 Dardabahm Gol, Alt-1 1,250 1,492.00

3 Barum Gol 10,000 1,526.00

4 Mastuj River 2 8,900 1,617.00

5 Owir Gol 2,900 1,618.00

6 Rizhun Gol 1,550 1,685.00

7 Rich Gol 2,750 1,737.00

8 Dardabahm Gol, Alt-3 400 1,742.00

9 Turkho River Alt-1 9,404 1,792.00

10 Laspur River 3,250 1,793.00

11 Dardabahm Gol, Alt-2 2,200 1,808.00

12 Tirich Gol, Alt-2A 12,000 1,945.00

13 Tirich Gol, Alt-1A 12,000 1,978.00

14 Rosh Gol Alt-1 6,200 2,038.00

15 Trich Gol, Alt-3A 12,000 2,069.00

16 Chakosh Gol, Alt-1 925 2,074.00

17 Kao Gol, Alt-2 2,100 2,090.00

18 Kao Gol, Alt-1 1,900 2,201.00

19 Rosh Gol Alt-2 7,700 2,252.00

Region 1: Upper Chitral

3. Small Hydropower Project (Raw Sites)

156

Annex-VII



1 Arkari Gol (Alt-1) 26,400 1,082.00

2 Arkari Gol (Alt-2) 24,000 1,126.00

3 Y I A Golen 11,300 1,235.00

4 Kaghozi Gol (Alt-1) 1,980 1,461.00

5 Kaghozi Gol (Alt-2) 2,270 1,537.00

6 Lutkho River 6,400 1,556.00

7 Murdan 1,600 1,616.00

8 Mudan 1,230 1,836.00

9 Bizin + Guti 750 2,024.00

10 Birzin 500 2,197.00

11 Bumburet 1,800 2,237.00



1 Jashil Goh, GI 2,770 729.00

2 Jashil Gah, Badak 1,390 940.00

3 Harban Gah, Harbar 900 2,041.00

4 Seo Khwar 710 2,296.00

S.No. Name of Project Design Capacity

(MW)Unit Cost US$/ KW

1 Rehmat Shah Sind, Garral 860 1,441.00

2 Baral Darra, Garni 1,060 1,514.00

3 Chokel Khwar, Ghundoputai 890 1,590.00

4 Chokel Khwar, Mankial 1,650 1,612.00

5 Anakar Gol , Anaker 760 1,783.00

Region 2: Lower Chitral

Region 3: Indus Kohistan

Region 4: Swat Valley

157

Annex-VII


(MW)Specific Cost US$/

KW

1 Serai, Korora 13.5 1,360.00

2 Balkanai 5.0 1,252.00


(KW)Specific Cost US$/

KW

1 Birkhal 6,140 805.00

2 Kaghan 4,080 1,056.00

3 Naran 2,785 1,545.00

S.No. Plant/RiverCapacity


1 Gande Gar, Ushri Khwar 3,995 1,507.00

2 Thal, Kunrat Sin 1,350 1,544.00

3 Ushiri, Ushri Khwar 1,650 2,123.00

4 Ushiri, Ushri Khwar 900 2,210.00

5 Serai, Zhandsai K. 1,325 2,455.00

6 Biar, Panjkora 1720 2460

7 Ganorai, Basaul Khwar 1980 2502

8 Bibior, Panjkora 12300 2608

9 Patrak, Ghaldai Sin 1090 2633

10 Bibior, Panjkora 12300 2636

11 Sheringal, Dok Darra K. 710 2643

12 Bela Gwaldai Sin 1950 2664

13 Gandrai, Baraul Khwar 1150 3141

14 Kumrat, Kumrat Sin 585 3428

15 Uper Thal, Kumrat Sin 400 3566

16 Dir, Dir Khwar 450 4160

Region 6: Kaghan Valley

Region 7: Dir District

Region 5: Indus Swat/Mansehra West

158

Annex-VII

17 Janbhatai, Gwaldai Sin 800 4691

18 Janbhatai, Baraul Khwar 690 4928

19 Glidag, Gwaldai Sin 690 5211

20 Kolandai, Dir Khwar 235 5459

21 Kolandai, Dir Khwar 235 5896

22 Kater Kili, Dok Darra K. 540 6264

23 Dohr, Bele Khwar 350 6671

24 Dir, Dir Khwar 155 7030

25 Sundraul, Landai Khwar 210 7313

26 Beraul Bandai, Shingara Khwar 240 8354

Source: Investment opportunities of Hydel Power potential in NWFP SHYDO, NWFP

159

Annual Development Programme Since 1970-71

(Rs in Million)

Year Size of A.D.P Revised Size of A.D.P

1970-71 150.570 124.872 1971-72 124.000 87.404 1972-73 212.543 217.887 1973-74 300.000 285.133 1974-75 400.000 500.000 1975-76 576.700 601.366 1976-77 546.800 640.928 1977-78 617.000 687.642 1978-79 669.000 720.581 1979-80 767.000 702.850 1980-81 818.000 838.350 1981-82 980.850 1002.323 1982-83 1228.000 1174.275 1983-84 1176.500 1191.500 1984-85 1244.700 1245.424 1985-86 1697.000 1912.787 1986-87 2131.250 2131.250 1987-88 2472.250 2471.050 1988-89 2164.235 2164.235 1989-90 2197.625 2198.649 1990-91 2506.171 2851.434 1991-92 4813.715 4881.569 1992-93 6575.385 5002.873 1993-94 4959.000 4764.638 1994-95 6963.974 7349.212 1995-96 7665.634 8081.917 1996-97 8711.517 5659.089 1997-98 4884.740 5498.215 1998-99 6072.386 7771.653

1999-2000 5745.220 8057.541 2000-01 9212.509 7272.140 2001-02 7986.220 8710.147 2002-03 13673.261 11289.186 2003-04 14696.006 12882.982 2004-05 16195.025 15365.249 2005-06 21000.000 24397.398 2006-07 26630.432 26542.103 2007-08 39462.372 32913.949 2008-09 41544.935 39000.603 2009-10 51156.956

160

Annex-VIII

Annex-IX

(Rupees in Million)Budget Revised Budget

Estimates 2008-09

Estimates 2008-09

Estimates2009-10

A-STATE TRADING IN FOOD GRAINS

Gross Receipts 48,936.950 40,430.852 77257.381

Expenditure 48,936.150 40430.144 77256.404

Net Receipts (-)0.800 (-) 0.708 (-) 0.977

Gross Receipts ….

Expenditure 0.800 0.708 0.977

Net Receipts …

STATE TRADING

161

162

Annexure-X NN--WW..FF..PP.. BBUUDDGGEETT

GGrroowwtthh iinn PPrroovviinncciiaall CCuurrrreenntt RReevveennuuee BBuuddggeett AAnndd TToottaall CCuurrrreenntt RReevveennuuee RReecceeiippttss ssiinnccee 11997733--7744

(Rupees in million)

Year Provincial Tax

Receipts

Provincial Others

Receipts

Total Provincial

Own Receipts

Net Capital Receipts


Net Profits

Grants from

Federal Govt.

Total Provincial Receipts

Current Revenue

Expenditure

Deficit/ surplus Revenue Account

Non-Obligatory

Grant

Receivable as per

Arbitration Award

73-74 B.E. R.E.

50.1 53.9

95.4 81.5

145.5 135.4

(-) 8.2 (-) 5.3

141.8 136.7

..

18.9 24.8

298.0 291.6

304.0 354.8

(-) 6.0 (-) 63.2

.. 63.2

6.0 ..

74-75 B.E. R.E.

55.0 51.4

85.6 102.4

140.6 153.8

(-) 6.0 (-)19.2

194.5 211.3

..

22.0 88.8

351.1 434.7

432.6 551.8

(-) 81.5 (-) 117.1

.. 96.9

81.5 20.2

75-76 B.E. R.E.

51.6 72.2

104.9 113.1

156.5 185.3

7.1 7.9

305.3 329.3

..

110.7 151.3

579.6 673.8

699.5 705.4

(-) 119.9 (-) 31.6

.. 31.6

119.9 ..

76-77 B.E. R.E.

74.5 83.7

120.1 93.1

194.6 176.8

6.9 2.2

367.7 373.6

..

104.8 123.3

674.0 675.9

862.2 955.9

(-) 188.2 (-) 280.0

138.2 223.6

50.0 56.4

77-78 B.E. R.E.

88.7 93.4

127.2 119.4

215.9 212.8

(-) 6.8 14.8

401.1 426.9

..

104.8 107.6

715.0 762.1

1149.1 1137.0

(-) 434.1 (-) 374.9

398.7 352.6

35.4 22.3

78-79 B.E. R.E.

96.8 96.6

135.5 201.3

232.3 297.9

12.7 (-)10.8

461.8 512.3

..

104.8 108.5

811.6 907.9

1314.3 1391.2

(-) 502.7 (-) 483.3

456.8 468.4

45.9 14.9

79-80 B.E. R.E.

101.3 123.0

162.8 209.9

264.1 332.9

11.2 14.8

562.8 736.9

..

104.8 104.8

942.9 1189.4

1557.1 1674.8

(-) 614.2 (- ) 485.4

566.9 475.0

47.3 10.4

80-81 B.E. R.E.

127.4 143.2

250.0 260.7

377.4 403.9

12.3 13.2

881.3 1060.4

..

104.8 107.3

1375.8 1584.8

1877.6 2031.8

(-) 501.8 (-) 447.0

445.8 447.0

56.0 ..

81-82 B.E. R.E.

154.4 174.7

276.6 282.6

431.0 457.3

12.3 37.0

1203.1 1132.6

..

104.7 106.4

1751.1 1733.3

2292.9 2538.9

(-)541.8 (-) 805.6

531.6 805.6

10.2 ..

82-83 B.E. R.E.

188.7 212.0

296.2 308.0

484.9 520.0

16.6 24.8

1223.6 1223.6

..

104.8 105.4

1829.9 1873.8

2714.7 2989.7

(-) 884.8 (-) 1115.9

874.8 1115.9

10.0 ..

83-84 B.E. R.E.

212.0 238.3

340.2 374.6

552.2 612.9

16.0 50.7

1364.3 1374.6

..

104.8 116.6

2037.3 2154.8

3454.3 3705.2

(-) 1417.0 (-) 1550.4

1396.0 1550.4

21.0 ..

84-85 B.E. R.E.

257.5 264.3

375.4 395.9

632.9 660.2

66.8 70.1

1537.4 1457.0

..

104.8 119.3

2341.9 2306.6

4334.7 4512.1

(-)1992.8 (-) 2205.5

1992.8 2205.5

..

.. 85-86 B.E.

R.E. 288.9 284.1

412.3 414.1

701.2 698.2

75.0 51.8

1622.0 1622.0

..

104.7 130.7

2502.9 2502.7

5201.0 5453.7

(-) 2698.1 (-) 2951.0

2698.1 2951.0

..

.. 86-87 B.E.

R.E. 307.2 303.6

430.2 434.5

737.4 738.1

52.8 34.6

1622.0 1615.6

..

104.8 130.3

2517.0 2518.6

6466.3 6811.8

(-) 3949.3 (-) 4293.2

3949.3 4293.2

..

.. 87-88 B.E.

R.E. 309.3 338.6

466.1 619.5

775.4 958.1

34.6 72.5

1831.3 1988.6

..

104.7 111.4

2746.0 3130.6

7382.9 7997.1

(-) 4636.9 (-) 4866.5

4636.9 4866.5

..

.. 88-89 B.E.

R.E. 369.2 374.7

531.1 556.3

900.3 931.0

74.6 174.8

2204.5 3030.5

..

104.8 136.9

3284.2 4273.2

8685.1 8607.4

(-) 5400.9 (-) 4334.2

5400.9 4022.6

.. 311.6

89-90 B.E. R.E

369.3 405.6

581.8 714.5

951.1 1120.1

159.6 197.4

3330.2 3934.0

..

104.8 134.8

4545.7 5386.3

9291.2 9385.6

(-) 4745.5 (-) 3999.3

3735.8 3574.7

1009.7 424.6

90-91 B.E. R.E.

391.6 430.5

691.6 759.8

1083.2 1190.3

202.4 72.8

4356.0 4301.6

..

104.8 132.0

5746.4 5696.7

10558.7 10281.7

(-) 4812.3 (-) 4585.0

3475.6 4029.7

1336.7 555.3

91-92 B.E. R.E.

440.3 435.7

799.7 864.3

1240.0 1300.0

25.4 20.7

6582.4 6444.1

5987.5 5999.9

204.8 402.5

14040.1 14154.8

12732.3 12737.3

(+) 1307.8 (+) 1417.5

..

.. ..

926.4 92-93 B.E.

R.E. 527.2 688.8

972.8 958.8

1500.0 1647.6

19.6 19.7

7304.0 7366.0

6800.0 5680.0

204.8 205.2

15828.4 16038.5

14370.8 14579.0

(+) 1457.6 (+) 1459.5

..

.. ..

1938.9 93-94 B.E.

R.E. 639.0 634.2

1031.0 1040.8

1670.0 1675.0

9.3 9.3

8277.2 9392.1

7500.0 5482.0

204.8 209.5

17661.3 17785.9

16511.3 16635.9

(+) 1150.0 (+) 1150.0

..

.. ..

2898.8

163

Year Provincial

Tax Receipts

Provincial Others

Receipts

Total Provincial

Own Receipts

Net Capital Receipts


Net Profits

Grants from

Federal Govt.

Total Provincial Receipts

Current Revenue

Expenditure

Deficit/ surplus Revenue Account

Non-Obligatory

Grant

Receivable as per

Arbitration Award

94-95 B.E. R.E.

686.4 724.3

1128.0 1272.7

1814.4 1997.0

11.7 17.6

11139.0 11454.7

7800 6500

4.8 10.0

20769.9 21279.3

19189.9 19404.5

(+) 1580.0 (+) 1874.8

..

.. ..

2718.9 95-96 B.E.

R.E. 875.8 810.2

1236.0 1487.3

2111.8 2297.5

12.8 13.9

13873.1 14345.1

7970 6000

4.7 4.8

23972.4 24631.3

21972.4 23564.0

(+) 2000.0 (+) 1067.3

..

.. ..

4140.8 96-97 B.E.

R.E. 803.3

1006.7 1596.3 1754.1

2399.6 2760.8

15.2 629.1

16226.7 16134.5

8500 6000

4.8 4.8

27146.3 28029.1

26862.0 25800.0

(+) 284.3 (+) 2229.1

..

.. ..

5154.9 97-98 B.E.

R.E. 1407.9 1167.7

1867.1 1714.1

3275.0 2881.8

(-) 775.0 (-)381.8

15064.0 14086.4

9423 6000

3310.0 3327.6

30297.0 29337.0

30058.5 29451.0

(+) 238.5 (-) 114.0

..

.. ..

6270.4 98-99 B.E.

R.E. 1472.8 1389.3

2124.9 2262.8

3597.7 3652.1

(-) 752.3 (-)646.6

16018.6 14579.5

10466 6000

3674.0 3675.3

33004.0 31726.3

33004.0 32004.0

.. (-) 277.7

..

.. ..

7497.4 1999-2000

B.E. R.E.

1705.4 1592.7

2336.5 2336.0

4041.9 3928.7

(-)830.2 (-)827.9

16867.7 16613.6

11624 6000

4078.0 4057.3

35781.4 35395.7

35493.0 35263.5

(+) 288.4 (+) 132.2

.. ..

..

8847.2 2000-01

B.E. R.E.

1740.9 1381.8

2509.1 2,207.7

4250.0 3,589.5

(-) 955.0 (-) 648.2

21227.5 19,217.8

12899 6000

4310.7 3827.6

41732.2 31986.7

39132.2 33673.3

(+) 2600.0 (-) 1038.4

..

10331.9 2001-02

B.E. RE.

1862.3 2020.1

2096.1 1943.4

3958.4 3963.5

(-) 776.2 (-)953.5

21552.2 19411.8

14328 6000

4258.6 3898.0

44067.3 32323.2

45040.4 34623.0

(-) 973.13 (-) 559.845

398.5

1195.1 2002-03

BE RE

1987.9 2140.4

2089.9 2103.4

4077.9 4243.8

(-)1262.9 + 1047.9

22728.3 22872.2

15904 6000

3898.0 3898.0

46767.1 37039.3

48564.0 36171.6

(-) 1796.9 + 867.7

159.0 221.0

13761.6 2003-04

BE RE

2148.5 2019.1

2009.8 1999.8

4158.3 4018.9

+ 1788.5 + 3125.2

25750.4 25660.3

17653 6000

3898.0 3898.0

51459.7 39577.2

47114.7 38400.0

+ 4345.1 + 1177.2

..

15737.7 2004-05

BE RE

2278.7 2339.8

2149.4 2210.7

4428.1 4550.5

+ 3132.0

…

29344.1 30215.0

8000 6000

4500.0

45000.0

46272.2 45265.5

42650.0 42650.0

+ 3622.2 +2615.5

..

17911.5 2005-06

BE RE

2528.5 2633.9

2365.5 2555.2

4894.0 5189.1

3132.00

…

35458.2 36805.1

8000 6000

10000.0 5000.0

58352.2 65462.8

51062.0 60693.0

+7290.2

(-) 8799.6

… 12473.2

20302.6 2006-07

BE RE

3053.6 3049.5

2741.4 2682.3

5795.0 5731.8

… …

44034.5 44645.1

8000 6000

9712.5 9765.3

67542.0 66142.2

54500.0 55173.6

(+) 13042.0 (+) 10968.5

22932.9

2007-08 BE

RE

3809.1 3904.6

3172.7 3075.2

6981.8 6979.8

… …

55690.1 55954.2

6000 6000

11907.8 11349.1

80579.7 80283.1

61000.0 61450.0

(+) 19579.7 (+) 18833.1

0.450

25826.2

2008-09

BE RE

4737.3 3749.2

3473.4 3425.5

8210.7 7174.7 … 71445.8

69965.7 6000 6000

14432.2 13183.3

100088.7 96323.7

67300.0 75600.0

(+) 32788.7 (+) 20723.7

1682.0

29008.8

2009-10 BE

5954.9

3692.7

9647.6

… 83218.5

6000

14822.5

113688.6

80000.0

(+) 33688.6

Salary

Salary Others.Death compensation grant.

M&R (Road) ElectricityPetty Repair(Edu:)

CRC (Edu:)

Total (Col:4:9) Non-salary

District Share TMA's ShareTotal (Col:11+12)

TMA's Share C.Bs Share.Total Octroi(Col:14:15)

Zilla TaxTotal OZT (Col16+17)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

1 Abbottabad 1653.279 65.105 6.178 10.000 53.000 31.614 11.099 176.996 33.604 14.402 48.006 22.400 6.870 29.270 10.091 39.361 1917.642

2 Bannu. 1172.521 28.319 4.381 10.000 65.000 22.528 7.924 138.152 29.104 12.473 41.577 23.277 2.945 26.222 30.763 56.985 1409.235

3 Battagram. 499.347 38.951 1.866 6.000 5.000 10.450 3.890 66.157 18.902 8.101 27.003 2.904 0.000 2.904 1.174 4.078 596.585

4 Buner 714.070 28.992 2.668 6.000 21.000 14.267 5.146 78.073 23.778 10.191 33.969 2.904 0.000 2.904 16.623 19.527 845.639

5 Charsadda. 1518.449 54.302 5.674 10.000 33.000 26.890 9.882 139.748 38.855 16.652 55.507 21.964 0.000 21.964 34.987 56.951 1770.655

6 Chitral. 802.554 42.867 2.998 6.000 5.500 13.508 4.345 75.218 17.627 7.555 25.182 8.339 0.000 8.339 32.801 41.140 944.094

7 D.I.Khan. 1876.790 82.597 7.013 10.000 70.000 29.722 10.190 209.522 35.030 15.012 50.042 40.577 0.578 41.155 21.824 62.979 2199.333

8 Dir(Lower) 1408.185 52.151 5.262 10.000 28.000 25.487 9.156 130.056 30.828 13.213 44.041 6.547 0.000 6.547 27.965 34.512 1616.794

9 Dir(Upper). 665.548 51.796 2.487 6.000 14.000 14.570 5.161 94.014 28.579 12.248 40.827 4.651 0.000 4.651 12.102 16.753 817.142

10 Haripur. 1240.155 55.413 4.634 10.000 80.000 25.537 8.980 184.564 27.454 11.765 39.219 30.536 0.000 30.536 99.205 129.741 1593.679

11 Hangu 336.195 24.349 1.256 6.000 13.200 8.553 2.977 56.335 17.552 7.523 25.075 18.786 0.000 18.786 17.324 36.110 453.715

12 Karak. 1094.602 38.618 4.090 6.000 80.000 19.162 6.831 154.701 21.453 9.194 30.647 6.815 0.000 6.815 10.746 17.561 1297.511

13 Kohat. 1034.044 43.242 3.864 10.000 50.000 19.811 7.132 134.049 24.453 10.480 34.933 37.361 8.165 45.526 23.505 69.031 1272.057

14 Kohistan. 467.178 72.649 1.746 6.000 2.000 11.297 4.169 97.861 31.729 13.598 45.327 4.356 0.000 4.356 7.115 11.471 621.837

15 Lakki Marwat 1017.537 47.528 3.802 6.000 66.000 18.810 6.563 148.703 24.528 10.512 35.040 10.104 0.000 10.104 11.880 21.984 1223.264

16 Malakand 899.110 45.681 3.360 10.000 26.000 15.527 5.350 105.918 20.403 8.744 29.147 6.234 0.000 6.234 21.988 28.222 1062.397

17 Mansehra. 1942.293 68.802 7.258 10.000 25.000 35.096 12.067 158.223 42.380 18.164 60.544 19.205 0.000 19.205 10.938 30.143 2191.203

18 Mardan. 2122.941 56.956 7.933 10.000 52.000 40.277 14.639 181.805 51.307 21.988 73.295 62.464 4.379 66.843 39.683 106.526 2484.567

19 Nowshera 1233.931 37.791 4.611 10.000 50.000 23.898 8.444 134.744 33.904 14.531 48.435 40.579 13.425 54.004 91.489 145.493 1562.603

20 Peshawar 2473.069 90.375 9.241 10.000 65.000 41.239 14.564 230.419 72.009 30.861 102.870 207.263 30.959 238.222 126.171 364.393 3170.751

21 Shangla. 552.321 53.880 2.064 6.000 3.000 11.055 4.068 80.067 25.278 10.834 36.112 2.904 0.000 2.904 1.341 4.245 672.745

22 Swabi 1493.830 42.531 5.582 10.000 43.200 29.574 10.800 141.687 38.855 16.652 55.507 19.262 0.000 19.262 55.163 74.425 1765.449

23 Swat. 1747.048 50.521 6.528 10.000 50.000 33.242 11.561 161.852 46.731 20.028 66.759 43.118 0.000 43.118 38.730 81.848 2057.507

24 Tank. 439.577 26.751 1.643 6.000 31.500 8.261 2.765 76.920 17.027 7.298 24.325 14.221 0.000 14.221 6.573 20.794 561.616

Total:- 28404.574 1200.167 106.139 200.000 931.400 530.375 187.703 3155.784 751.370 322.019 1073.389 656.771 67.321 724.092 750.181 1474.273 34108.0200.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 134.173 0.000 134.173 0.000 0.000 0.000 0.000 0.000 134.1730.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 134.173 0.000 134.173 0.000 0.000 0.000 0.000 0.000 134.173

1095.426 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 82.227 0.000 82.227 0.000 82.227 1177.653

0.000 69.826 0.000 0.000 0.000 0.000 0.000 69.826 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.826

0.000 110.000 0.000 0.000 0.000 0.000 0.000 110.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 110.000

0.000 110.000 0.000 0.000 0.000 0.000 0.000 110.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 110.000

0.000 110.000 0.000 0.000 0.000 0.000 0.000 110.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 110.000

0.000 266.890 0.000 0.000 0.000 0.000 0.000 266.890 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 266.890

0.000 16.500 0.000 0.000 0.000 0.000 0.000 16.500 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 16.500

Grand Total:- 29500.000 1883.383 106.139 200.000 931.400 530.375 187.703 3839.000 1019.716 322.019 1341.735 738.998 67.321 806.319 750.181 1556.500 36237.235Advertisement charges

Matching Grant/other emergent requirement.Grant for special repair/furniture/ JuteTats

Grant for Emergency Medicine (DHQHs)Grant for Medicine BHUs.

CM's DirectivesFM's Directives

Grant on need basisPerformance based budget grant

Annex-XI

(Rs. in million)

ESTIMATED RESOURCES TO BE TRANSFERRED TO LOCAL GOVERNMENTS FOR THE YEAR 2009-10Non-Salary Development Grant in lieu of Octroi & Zilla Tax

Name of District

S.NoG.Total

(Col:3+10+13+18)

164

nwfp-whitepaper 2009-10

Documents

provincial revenue receipts

financial year

revenue distribution

sources revenue

development budget

general revenue receipts

financial position

estimated expenditure