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WHITE PAPER

2009-10

GOVERNMENT OF NWFP FINANCE DEPARTMENT


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 KHAN Secretary Finance Government of N.W.F.P


17th June, 2009

TABLE OF CONTENTS
CHAPTER DESCRIPTION
General Abstract of Revenue & Expenditure for the Year 2009-10 Budget at a Glance Summary Position of Revenues for the Year 2008-09 & 2009-10 Summary Position of Expenditure for the Year 2008-09 & 2009-10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Current Revenue Expenditure Provincial Revenue Receipts Capital Receipts and Expenditure Socio-Economic Indicators of NWFP Revenue Distribution through NFC Awards The Issue of Profits From Hydel Power Generation Revenues from Oil and Gas Production Revenues Transferred to District Governments Subsidy on Procurement of Wheat Hydroelectric Power Potential Medium Term Budgetary Frame Work Performance Based Budgeting The Malakand Catastrophe Annual Development Programme

PAGE
i ii iii iv 1 19 27 33 43 48 55 62 65 69 73 80 88 90

ANNEXURES
I II III IV V VI VII VIII IX X XI

DESCRIPTION
CDL Liabilities as on 01-07-2009 Foreign Exchange Loan Liabilities as on 01-07-2009 Disbursement of On Going Foreign Loans Against Allocated Share as on 01-07-2009 General Revenue Receipts Current Revenue Budget Development Budget Potential Hydel Power Generation Sites Annual Development Programme since 1970-71 State Trading Growth in Provincial Current Revenue Budget & Total Current Revenue Receipts since 1973-1974 Estimated Resources to be transferred to Local Governments for the year 2009-10

PAGE
140 141 143 145 148 150 154 160 161 162 164

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


(Rs. in million)

Head A-General Revenue Receipts Federal Tax Assignment 1/6th of Sales tax/2.5% GST on Sales Tax Straight Transfers GST on Services (Provincial) Special Grant (Grant-in-Aid) Provincial Own Receipts Profit from Hydel Power Generation

Budget Estimates 2009-2010

Head A-Current Revenue Expenditure

Budget Estimates 2009-2010

67,808.026 General Public Service 7,861.533 Transfer to District Governments 7,549.003 Public order and Safety Affairs 2,110.364 Economic Affairs 14,822.500 Environmental Protection 7,537.200 Housing and Community Amenities 6,000.000 Health Recreation, Culture& Religion Education Affairs& Services Social Protection

19,357.658 34,895.500 11,487.139 6,118.510 12.403 28.130 2,989.963 244.152 3,942.963 923.582 80,000.000

Total (A) B-General Capital Receipts Account I (Non- Food) Total (B) C-Development Receipts

113,688.626

Total (A) B-Current Capital Expenditure

400.000 Account I (Non- Food) 400.000 Total (B) C-Development Expenditure Provincial ADP Districts ADP

3,266.785 3,266.785

32,546.412 1,341.735 574.000 10,050.485 6,644.324 51,156.956 134,423.741 (3,066.306) 79,757.381 214,181.122 (3,066.306)

Population Welfare Programme Special Dev: Federal Grant (PSDP) Foreign Project Assistance Total (C) Total (A+B+C) Net Deficit(-)/Surplus(+)Account I D-General Capital Receipts Account II (Food) Grand Total(A+B+C+D) Total Deficit(-)/Surplus(+) (Account I+ II)

574.000 Population Welfare Programme 10,050.485 Special Funded Programme PSDP 6,644.324 Foreign Project 17,268.809 131,357.435 (3,066.306) D-Capital Expenditure 79,757.381 Account II (Food) 211,114.816 Grand Total(A+B+C+D) Total (C) Total (A+B+C)

BUDGET AT A GLANCE
Rs.In Million

Budget Estimates 2008-09 A - GENERAL REVENUE BUDGET General Revenue Receipts Revenue Expenditure Net Current Revenue Budget (Deficit ( - )/Surplus (+) B - CURRENT CAPITAL BUDGET (Account-I) General Capital Receipts Current Capital Expenditure Net Current Capital Budget (Account-I) (Deficit ( - )/Surplus (+) C - DEVELOPMENT BUDGET Receipts Expenditure Net Development Budget (Deficit ( - )/Surplus (+) D - CAPITAL BUDGET (Account-II) General Capital Receipts Current Capital Expenditure Net Capital Budget (Account-II) (Deficit ( - )/Surplus (+) Total Resources (A+B+C+D) Total Expenditure (A+B+C+D) Net Deficit ( - )/Surplus (+)) Revenue Deficit (-) / Surplus Account (+) Capital Account Deficit (-) / Surplus (+) 100,088.746 67,300.000 32,788.746 400.000 4476.988 -4,076.988 13,178.738 41,544.935 -28,366.197 57236.950 57,236.950 0.000 170,904.434 170,558.873 345.561 4,422.549 -4,076.988

Revised Estimates 2008-09 96,323.728 75,600.000 20,723.728 400.000 2,919.946 -2,519.946 11,647.118 39,000.603 -27,353.485 41,930.852 41,930.852 0.000 150,301.698 159,451.401 -9,149.703 -6,629.757 -2,519.946

Budget Estimates 2009-10 113,688.626 80,000.000 33,688.626 400.000 3266.785 -2,866.785 17,268.809 51,156.956 -33,888.147 79,757.381 79,757.381 0.000 211,114.816 214,181.122 -3,066.306 -199.521 -2,866.785

ii

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


Rs.In Million

Description A-General Revenue Receipts Federal Tax Assignment Straight Transfers (less GST on services) GST on services Special Grant (Grant-in-Aid) 1/6th of Sales tax for District Government & Contt Boards Provincial Own Receipts Net Hydel Profits Extra Budgetary Grants (Non Development) Total General Revenue Receipts (A) B-General Capital Receipts Account I (Non- Food) Total General Capital Receipts (B) C-Development Receipts Special Dev: Federal Grant PSDP Special Fedral Grant PSDP (i+ii+iii) of which: i Grants ii. Loans iii. Unspent Balances of Previous years Population Welfare Programme Extra Budgetary Grant Foreign Project Assistance Total Development Receipts (C) Total Receipts (A+B+C) D-General Capital Receipts Account-II (Food) Total Resources (A+B+C+D)

Budget Estimates 2008-09

Revised Estimates 2008-09

Budget Estimates 2009-10

59,684.257 4,429.463 766.568 14,432.225 7,332.031 7,444.202 6,000.000

56,099.975 5,085.483 747.471 13,183.310 7,098.409 6,427.252 6,000.000 1,681.828

67,808.026 7,549.003 2,110.364 14,822.500 7,861.533 7,537.200 6,000.000

100,088.746

96,323.728

113,688.626

400.000 400.000

400.000 400.000

400.000 400.000

8,093.544 7,257.576 237.085 598.883 468.000 4,617.194 13,178.738 113,667.484 57,236.950 170,904.434 419.535 3,178.431 5,089.601 11,647.118 108,370.846 41,930.852 150,301.698 574.000 6,644.324 17,268.809 131,357.435 79,757.381 211,114.816 2,959.551 2,520.169 439.382 10,050.485 9,835.570 214.915

iii

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


Rs. in million

Description

Budget Estimates 2008-2009

Revised Estimates 2008-09

Budget Etimates 2009-10

A-Current Revenue Expenditure General Public Service Transfer to District Governments Public order and Safety Affairs Economic Affairs Environmental Protection Housing and Community Amenities Health Recreation, Culture& Religion Education Affairs& Services Social Protection Total Current Revenue Expenditure (A) B-Current Capital Expenditure (Account-I) Financial & Fiscal Affairs (Non-Food) of which Foreign Debt Management of which Domestic Debt Management Transfers (Others) Total Current Capital Expenditure (B) C-Development Expenditure Provincial ADP Districts ADP 27,148.197 1,218.000 29,286.300 1,245.615 32,546.412 1,341.735 4,235.488 2,613.745 1,621.743 241.500 4,476.988 2,678.446 613.745 2,064.701 241.500 2,919.946 3,213.585 697.419 2,516.166 53.200 3,266.785 16,499.020 31,030.000 8,010.289 5,684.406 9.423 56.669 2,704.293 195.847 2,791.688 318.365 67,300.000 16,932.405 32,852.000 11,144.914 6,487.389 12.075 102.937 2,610.013 264.593 3,070.148 2,123.526 75,600.000 19,357.658 34,895.500 11,487.139 6,118.510 12.403 28.130 2,989.963 244.152 3,942.963 923.582 80,000.000

iv

Rs. in million

Description

Budget Estimates 2008-2009 8,093.544 7,257.576 237.085 598.883 468.000 4,617.194 41,544.935 113,321.923

Revised Estimates 2008-09 2,959.552 2,520.170 439.382

Budget Etimates 2009-10 10,050.485 9,835.570 214.915

Special Federal Progamme PSDP (i+ii+iii+iv) of which: i Grants ii Loans iii Unspent Balances of Previous years Population Welfare Programme Foreign Project Assistance Total Development Expenditure (C) Total Expenditure (A+B+C) D-Current Capital Exp. Account-II (Food) Domestic Debt Management (Food) State Trading (Food) Total Current Cap. Exp. Account-II (Food) (D) Total Expenditure (A+B+C+D)

419.535 5,089.601 39,000.603 117,520.549

574.000 6,644.324 51,156.956 134,423.741

8,300.000 48,936.950 57,236.950 170,558.873

1,500.000 40,430.852 41,930.852 159,451.401

2,500.000 77,257.381 79,757.381 214,181.122

Special Federal Programme(PSDP) i. GRANTS Special Programme (PWP-II) Establishment of RHS - A Center (Population) Education Agriculture Environment Finance Sector Health Water ii. LOANS DERA A.J.P TOTAL (i+ii) 9,835.570 4,062.000 32.707 194.282 1,887.476 325.246 2,549.172 19.687 765.000 214.915 120.000 94.915 10,050.485

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 Welfare Budget Other Budget Development Budget Total

Revised Estimates 2008-09 59,603.435 15,996.565 39,000.603 114,600.603

% age Revised Estimates 2008-09 52 14 34 100

Budget Estimates 2009-10 65,857.204 14,142.796 51,156.956 131,156.956

% age Budget Estimates 2009-10 50 11 39 100

1 2 3

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

Chapter 1: Current Revenue Expenditure

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 40,400.503 5,777.418 12,530.995 6,591.084 2,000.000 1,350.000 67,300.000

Revised Estimates 2008-09 42,868.152 6,184.227 18,256.536 6,291.084 2,000.000 1,350.000 75,600.000

Budget Estimates 2009-10 48,159.577 7,172.089 12,560.302 8,108.032 2,000.000 2,000.000 80,000.000

1 2 3 4 5 6

Establishment Charges Pension O&M Debt Servicing Subsidies Govt: Investment Total

MAJOR HEADS OF CURRENT EXPENDITURE (Budget Estimates 2009-10)


Subsidies 3% Debt Servicing 10% Govt. Investment 3%

O&M 16% Pension 9%

Establishment Charges 59%

Chapter 1: Current Revenue Expenditure

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 Salary: 1

Description

Budget Estimate 2008-09 40,400.503 14,202.503 26,198.000 9,130.995 5,713.995 3,417.000 1,025.000 825.000 200.000 5,777.418 2,000.000 1,350.000 6,591.084 67,300.000

Revised Estimate 2008-09 42,752.496 14,752.496 28,000.000 196,984.000 15,437.196 12,020.196 1,585.000 1,020.000 565.000 6,184.227 2,000.000 1,350.000 6,291.084 75,600.000

Budget Estimate 2009-10 48,159.577 18,659.577 29,500.000 11,485.300 7,646.300 3,839.000 1,075.004 825.000 250.004 7,172.089 2,000.000 2,000.000 8,108.032 80,000.000

a) Provincial b) Districts Non Salary:

a) Provincial b) Districts Maintenance & Repairs: a) Road, Highway & Bridges (Repair) b) Buildings & Structure (Repair) Pension Wheat Subsidy Government Investment Debt Servicing Total

4 5 6 7

Chapter 1: Current Revenue Expenditure

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

Provincial Government is making all out efforts for the promotion of education. Its 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 200203 to 2008-09 are as follows:Table 1.4 Financial year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Revised Estimate % change

10,090.637 11,423.444 13,134.273 15,614.621 17,606.510 19,710.142 22,173.910 13.21 14.98 18.89 12.76 11.95 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

Chapter 1: Current Revenue Expenditure

secondary schools).

Similarly enrolment has increased from 3.28 million students to

3.70 million. Table given below elaborates the position:Table 1.5


School Type 2005-06 Primary Middle High Higher Total
22,183 2,443 1,379 238 26,243

No. of Schools 2006-07


22,281 2,437 1,500 261 26,479

Enrollment 2008-09
22,881 2,617 1,692 281 27,471

2007-08
22,730 2,527 1,618 272 27,147

2005-06
2,413,228 217,121 484,933 169,378 3,284,660

2006-07
2,625,627 210,850 516,324 181,827 3,534,528

2007-08
2,758,656 206,792 544,076 192,752 3,702,276

2008-09
2,881,962 205,349 535,118 194,782 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. i. ii. iii. iv. v. vi. vii. viii. Schools/Colleges Govt: Primary Schools. Govt: Middle Schools. Establishment of High Schools. Upgradation of Middle to High status. Upgradation of High to Higher Secondary level. Establishment of Degree Colleges. Starting of Post Graduate Degree Colleges. Creation of posts for Hostels. Total Number of Schools/Colleges 106 53 2 48 5 7 5 8 Posts created 322 431 30 342 85 285 33 23 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:-

Chapter 1: Current Revenue Expenditure

Table 1.7 S.No i. ii. iii. iv. v. vi. vii. Schools/Colleges Primary Schools Middle Schools High Schools. Higher Secondary Schools Additional Posts for existing Colleges Dy: District Offices Elementary & Secondary Education Department Total Numbers of Schools/ Offices/Colleges 14 18 15 2 0 2 0 Posts to be created. 41 145 113 28 8 12 10 357

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:-

Chapter 1: Current Revenue Expenditure

Table 1.8
S.No

Function RITEs Directorate/Administration Training Institutes Secretariat Total

Budget Estimates 2008-09

Budget Estimates 2009-10

Salary 103.316 22.850 51.219 28.741 206.126

Non Sal 104.957 25.771 53.077 112.595 90.274

Total 104.957 25.771 53.077 112.595 296.400

1. 2. 3 4

91.894 20.586 125.858 23.954 262.292

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 2008-09 Budget Estimates 2009-10 Salary Non Sal Total

S.No

Function

1. 2. 3

Secretariat General colleges Archives & Libraries Total

33.246 1588.240 20.111 1641.597

45.471 1751.886 22.338 1819.695

3.086 121.850 5.879 130.815

48.557 1873.736 28.217 1950.510

Chapter 1: Current Revenue Expenditure

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:-

Chapter 1: Current Revenue Expenditure

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 Institution S.No 1 Lady Reading Hospital. 2 3 4 5 6 7 8 Khyber Teaching Hospital. Khyber Medical College. Khyber College of Dentistry. Hayatabad Medical Complex. Post Graduate Medical Institute Ayub Teaching Hospital. Ayub Medical College. Total B.E. 2008-09 555.318 388.628 126.600 40.193 204.983 216.109 207.439 142.557 1881.827 R.E.2008-09 684.483 472.519 195.866 79.561 296.074 297.039 255.822 204.191 2485.555 B.E. 2009-10 614.713 439.155 150.128 59.878 231.920 280.329 234.619 159.036 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

Chapter 1: Current Revenue Expenditure

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. provided:-

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

Table 1.11 S.No 1 2 3 4 5 6 7 8 9 Institution/Purpose Endowment Fund. Provision of Emergency Drugs for poor & wounded patients. Cardiology Unit, Lady Reading Hospital. Cardiovascular Unit, Lady Reading Hospital, Peshawar. Khyber Medical University Fatimid Foundation Paraplegic Centre Hayatabad. Hamza Foundation. Health Regulatory Authority. Total 2008-09 100,000,000 100,000,000 40,000,000 20,000,000 50,000,000 2,000,000 14,000,000 1,000,000 0 327,000,000 2009-10 100,000,000 100,000,000 40,000,000 20,000,000 50,000,000 2,000,000 20,000,000 1,500,000 20,000,000 353,500,000

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.

10

Chapter 1: Current Revenue Expenditure

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)

Budget Estimates 2008-09 6.188 POLICE

Revised Estimates 2008-09 8.690

Budget Estimates 2009-10 6.670

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. 2005-06 2006-07 2007-08 2008-09 2009-10 25.

Budget Estimates 3692.708 4527.282 5141.126 6558.418 9677.150

% Increase 7.00% 22.60% 13.56% 27.57% 48.00%

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
11

Chapter 1: Current Revenue Expenditure

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 200910 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.

12

Chapter 1: Current Revenue Expenditure

Table 1.14

TERRORIST INCIDENTS FROM 2004 TO MAY 2009


Persons Killed Forces 2004 2005 2006 2007 2008 Upto 15.5.2009 Total 28. 27 1 38 359 524 274 1223 9 0 18 156 194 89 466
Civilian

YEARS

No. of Cases Registered

Persons Injured Total 13 0 73 409 602 213 1310 Forces 13 0 24 423 430 237 1127
Civilian

Total 71 0 145 1015 1315 635 3181

4 0 55 253 408 124 844

58 0 121 592 885 398 2054

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 FOREST 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 Pakistans 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.

13

Chapter 1: Current Revenue Expenditure

AGRICULTURE 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

14

Chapter 1: Current Revenue Expenditure

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 countrys 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:-

15

Chapter 1: Current Revenue Expenditure

Table 1.15
(Rs. in million)

S.No

Year

Establishment

Electricity

O&M

Total

1 2 3 4

2006-07 2007-08 2008-09 2009-10

706.000 936.283 809.000 818.000

305.926 303.727 253.029 255.275

309.481 39.579 413.193 361.463

1320.516 1279.589 1475.005 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 Ministers 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),
16

Chapter 1: Current Revenue Expenditure

Samarbagh (Dir Lower), Pabbi (Nowshera), Sawari (Bunair), Boomi (Chitral), Takht-eNasrati (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 1 2 3 4 5 6 7 Category College of Technology Polytechnic Institutes Colleges of Commerce and Management Technical and Vocational Centers Advance Technical Center Teacher Training Technical Center Skill Development Center Total No. of Institutes 13 06 20 39 01 01 01 81 Staff 1510 284 1015 1270 27 35 06 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
17

Chapter 1: Current Revenue Expenditure

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) National Roads Provincial Roads District Roads Irrigation Roads Local Area Authorities Total Length 89 Km 1720 Km 1622 Km 8556 Km 1993 Km 631 Km 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 Works and Services (Operational Budget) Roads Highways & Bridges (Repair) Building & Structure (Repairs) Public Health Engineering

Revised Estimates 2008-09

Budget Estimates 2009-10

137.000 1,020.000 565.000 36.680

123.584 825.000 250.000 17.630

18

Chapter 2: Provincial Revenue Receipts

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.

19

Chapter 2: Provincial Revenue Receipts

TABLE 2.1 TREND OF TAXES SINCE 2004-05 TO 2009-10


(Rs. in million)
Actuals 2004-05 DIRECT TAXES Tax from Agriculture (A.I.Tax) Urban Immovable Property Tax (Net) Tax on Transfer of Property (Registration) Land Revenue Tax on Profession, Trades & Callings Total Direct Taxes INDIRECT TAXES Provincial Excise Stamp Duty Motor Vehicle Tax Entertainment Tax Others/ Hotel Tax Tobacco Development Cess/KDF Electricity Duty Total Indirect Taxes Total Provincial Taxes 20.357 333.113 546.766 3.504 13.927 205.999 183.131 1306.797 1852.055 19.679 352.374 603.937 5.159 12.804 313.382 121.416 1428.751 2019.050 25.836 441.396 687.153 19.988 15.133 219.052 97.968 1506.526 2272.909 31.370 411.504 667.494 4.731 16.392 205.419 33.490 1370.400 2201.836 54.980 701.834 1137.923 15.000 40.000 186.000 450.000 2585.737 3873.758 25.000 534.440 851.000 3.000 24.000 278.000 420.000 2135.440 3038.580 33.000 701.834 1104.500 4.000 34.000 381.000 420.000 2678.334 3881.500 2005-06 2006-07 2007-08 Budget 2008-09 90.000 116.630 150.000 758.166 173.225 1288.021 Estimated Revised 2008-09 18.623 67.580 112.899 621.038 83.000 903.140 Budget 2009-10 90.000 92.000 150.000 758.166 113.000 1203.166

46.933 31.609 42.416 375.018 48.682 544.658

18.145 31.702 44.968 429.949 65.535 590.299

19.819 57.499 55.656 562.216 71.193 766.383

19.707 56.091 67.476 603.992 84.170 831.436

NON TAX REVENUE 6. Non-tax Revenue for the financial year 2009-10 are estimated at

Rs.3655.700 million. These are based on the following heads:a) b) c) User Charges. Income from Civil Administration. Interest and Dividend.
20

Chapter 2: Provincial Revenue Receipts

a) User Charges 7. Detail of user charges is as under. Table 2.2


(Rs in million)

BE 2008-09 I. Community Services 1 2 3 Buildings Communication Public Health Total (I) II. Social Services 1 2 3 4 Education Tech. Education Health Man Power Total (II) III. Economic Services 1 2 3 4 5 6 7 8 Agriculture Fisheries Live stock and Dairy Development Forests Irrigation Industry-Excise Duty Printing Stationery Industries Total (III) Grand Total (I+II+III) 116.500 15.000 31.600 584.640 575.000 40.000 30.000 2.500 1395.240 2044.790 143.550 10.000 198.500 5.500 357.550 72.000 110.000 110.000 292.000

RE 2008-09

BE 2009-10

85.000 129.000 130.000 344.000

100.000 131.630 156.000 387.630

143.600 11.000 209.330 6.000 369.930

160.700 10.000 231.500 5.500 407.700

83.600 11.500 35.000 584.640 350.000 30.000 30.000 2.500 1127.240 1841.170

115.120 15.000 38.000 584.640 395.000 40.000 30.000 2.500 1220.260 2015.590

21

Chapter 2: Provincial Revenue Receipts

b) Civil Administration

8.

The Civil Administration includes receipts from Home & Tribal Affairs

Department, Law and General Administration Departments. Department wise RE 200809 and BE 2009-10 is as under:Table 2.3
(Rs in million)

S.No 1 2 3

Name Of Department Home & Tribal Affairs Law Department (Registrar Peshawar High Court) General Administration Total c) Interests & Dividends

BE 2008-09 510.580 91.000 87.000 688.580

RE 2008-09 571.080 91.000 87.000 749.080

BE 2009-10 620.090 91.000 93.000 804.090

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 General Administration Administration of Justice Police Jails Total: 41.943 52.495 138.634 12.771 245.843 Actual 2005-06 53.065 54.336 135.634 3.624 246.659 Actual 2006-07 61.992 66.465 185.632 3.524 317.613 Actual 2007-08 78.194 53.429 206.931 7.347 345.901 BE 2008-09 87.000 91.000 399.500 11.000 588.500 RE 2008-09 87.000 91.000 460.000 11.000 649.000 BE 2009-10 93.000 91.000 500.000 20.000 704.000

22

Chapter 2: Provincial Revenue Receipts

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

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.

23

Chapter 2: Provincial Revenue Receipts

TABLE-2.5 RECEIPTS FROM COMMUNITY AND SOCIAL SERVICES


(Rs. in million)
Actual 2004-05 Works Public Health Education Health Manpower Management Total 95.215 51.893 106.105 127.898 3.129 384.240 Actual 2005-06 132.060 44.368 73.596 73.966 2.640 326.630 Actual 2006-07 155.233 60.419 37.353 59.094 2.991 315.090 Actual 2007-08 185.386 96.788 83.948 55.924 1.716 423.762 BE 2008-09 182.000 110.000 143.550 198.500 5.500 639.550 RE 2008-09 214.000 130.000 143.600 209.330 6.000 702.930 BE 2009-10 231.630 156.000 160.700 231.500 5.500 785.330

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 Agriculture Fisheries Live stock and Dairy Development Forests Irrigation Other Mine & Quarries Printing Industries Total: 58.241 3.388 22.513 420.341 236.828 184.458 28.841 3.073 957.683 Actual 2005-06 71.412 6.338 27.373 350.175 251.147 240.805 23.429 2.225 972.904 Actual 2006-07 59.913 7.394 27.408 566.596 270.749 265.511 36.640 2.344 1236.555 Actual 2007-08 117.120 11.119 31.573 547.572 268.156 336.923 27.693 2.205 1342.361 BE 2008-09 116.500 15.000 31.600 584.640 575.000 400.000 30.000 2.500 1755.240 RE 2008-09 83.600 11.500 35.000 584.640 350.000 400.000 30.000 2.500 1497.240 BE 2009-10 115.120 15.000 38.000 584.640 395.000 400.000 30.000 2.500 1580.260

24

Chapter 2: Provincial Revenue Receipts

IRRIGATION 13. It consists of the following: (i) Abiana (i) Abiana 14. The Provincial Government collects water charges from the farmers who (ii) Farmers Organizations

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.
25

Chapter 2: Provincial Revenue Receipts

FORESTS

17.

NWFP has been blessed with huge and precious forests. Its 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 1. 2. 3. 4. 5. 6.
6,000 5,000 4,000 3,000 2,000 1,000 2003-04 3,619

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

Budget Estimates 3752.089 4064.614 4474.166 5200.000 6220.000 7444.202

Actual recovery 3619.226 4624.614 4242.219 4773.667 5322.875 3322.162*

(*Figures are up to April 2009)

4,625

4,774 4,242

5,323

3,322

2004-05

2005-06

2006-07

2007-08

2008-09

Actual Receipts Recovery


26

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 1

Nomenclature Recoveries of Loans and Advances TOTAL:

Budget Estimates 2008-09 400 400

Revised Estimates 2008-09 400 400

Budget Estimates 2009-10 400 400

CURRENT CAPITAL EXPENDITURE 3. The current expenditure on Capital Account includes the following: (a) (b) (c) (d) Repayment of Federal Loans. Repayment of Foreign Loans. Loans to Provincial Government Employees. Writing off the Loans advanced to Provincial Government Employees. (e) 4. Loan to Banks for SMEs.

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:-

27

Chapter 3: Capital Receipts and Expenditure

Table 3.2
(Rupees in Million)

S. No i ii iii Iv v

Nomenclature Repayment of Federal Loans Repayment of Foreign Loans Loans to Provincial Government Employees. Writing off Loans to Provincial Govt. Employees Loan Scheme for SMEs TOTAL

Budget Estimates 2008-09 2613.745 1621.743 40.000 1.500 200.000 4476.988

Revised Estimates 2008-09 613.745 2064.701 40.000 1.500 200.000 2919.941

Budget Estimates 2009-10 697.419 2516.166 40.000 1.500 11.700 3266.785

I. 5.

FEDERAL LOANS AGAINST THE PROVINCE 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. b. c. d. Five years grace period, during which only interest is payable. Repayment in 20 years. Markup rate determined by the Federal Govt. on yearly basis. Recovery on monthly basis by the Finance Division, at source, from Federal Tax Assignment. The outstanding debt liability of the provincial government on account of

6.

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

28

Chapter 3: Capital Receipts and Expenditure

II.
7.

FOREIGN EXCHANGE LOANS


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 Repayment period Grace period Asian Development Bank Service Charges Repayment period IFAD Markup rate Repayment period 1% to 4% 40 years & 30 years 1 % t o 2% 15 30 years 0.75% to 1.5% 25 years 10 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.

29

Chapter 3: Capital Receipts and Expenditure

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 Foreign Exchange Loans Total Rs. 15083.404 million Rs. 119870.460 million 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; In case of Government servants BS-16 & above, the outstanding amount is waived off on the following formula:Outstanding amount 1. Upto Rs.20,000/2. Beyond Rs.20,000/Extent of write off Full outstanding amount Rs.20,000/- plus 50% of residual liability subject to total relief not exceeding Rs.1.5 lac (inclusive of Rs.20,000/-)

(ii)

30

Chapter 3: Capital Receipts and Expenditure

V. 12.

LOAN TO BANKS FOR SMEs 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:-

31

Chapter 3: Capital Receipts and Expenditure

TABLE 3.3 (Rs. in million)


Nomenclature A-INTERNAL DEBT i) C.D.Loans ii) Un-Funded Debt 2035.512 2613.745 2045.472 613.745 1945.190 697.419 Budget 2008-2009 Mark up Repayment charges of Principal Revised 2008-2009 Mark up Repayment Charges of principal Budget 2009-2010 Mark up Repayment charges of principal

1750.000

--

1900.000

--

2250.000

--

iii) Other Floating Debt Sub-Total (A) B Loans From Foreign Agencies C Counterpart Fund Loans D Other Debt Servicing Sub-Total (B,C&D) Total (A+B+C+D)

329.626 4115.138 640.366

-2613.745 1621.711

176.626 4122.098 1252.641

-613.745 2064.669

400.000 4595.190 1112.751

-697.419 2516.133

0.002

0.032

0.002

0.032

0.001

0.033

1835.578

--

916.343

--

2400.090

--

2475.946 6591.084

1621.743 4235.488

2168.986 6291.084

2064.701 2678.446

3512.842 8108.032

2516.166 3213.585

32

Chapter 4: Socio-Economic Indicators of NWFP

SOCIO-ECONOMIC INDICATORS OF N-W.F.P.


The total area of Pakistan is 796,096 sq. Kilometers, of which the NorthWest 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 4.1

AREA & POPULATION (1998 CENSUS)


Area (Sq. Km) Total Pakistan Islamabad Punjab Sindh NWFP Population (in million) Total Male Female Total Urban Male Female Total Rural Male Female Density (Per Sq. Km) 166 889 359 216 238 19 117

796.096 132.352 68.874 63.478 43.036 22.752 20.284 89.316 46.122 43.194 906 0.805 0.4,34 0.371 0.529 0.291 0.238 0.276 0.143 0.133

205.345 73.621 38.094 35.527 23.019 12.071 10.948 50.602 26.023 24.579 140.914 30.440 16.098 14.342 14.840 7.905 74.521 17.744 9.089 3.506 1.652 8.655 3.056 1.524 2.994 1.569 85 1.589 849 46 6.935 1.405 719 39 15.600 8.193 14.750 7.500 4.997 3.091 2.657 1.606 7.407 7.250 2.340 1.485

Balochistan 347.190 6.566 FATA 27.220 3.176

(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.

33

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.2 Area and Population Density by Province


Province/ Region Area (Sq. Km). 2003 (E) Den. Pop. (per (per Sq. Sq. Km.) Km.) 149.03 187 82.71 34.24 20.17 7.45 3.42 403 243 271 22 2005 (E) Den. Pop. (per (per Sq. Sq. Km.) Km.) 153.96 193 85.65 35.41 20.64 7.63 417 251 277 22 2006 (E) Den. Pop. (per (per Sq. Sq. Km.) Km.) 156.77 197 86.26 35.86 21.39 8.00 3.62 420 254 287 23 133 2007 (E) Den. Pop. (per (per Sq. Sq. Km.) Km.) 159.57 200 88.95 36.47 21.95 8.39 3.81 431 258 295 24 140

Pakistan Punjab Sindh NWFP Balochistan FATA

796,095 2006,250 140,914 74,521 347,190 27,220

126 3.69 136 (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 4.3 AVERAGE HOUSE HOLD SIZE BY PROVINCE


2004-05 2005-06 2006-07 Rural Overall Rural Overall Urban Urban Urban Rural Overall Punjab Sindh NWFP Balochistan Overall 6.6 6.6 7.7 7.1 6.7 6.5 6.6 7.6 6.9 6.7 6.6 6.6 7.6 6.9 6.8 6.5 6.5 7.6 8.4 6.7 6.4 7.6 8.0 7.3 6.9 6.5 7.0 8.0 7.5 6.8 6.3 6.2 7.3 7.4 6.4 6.4 6.4 7.5 7.3 6.6 6.3 6.3 7.5 7.3 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.

34

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.4 HOUSING INDICATORS - 1998 CENSUS


Indicators
Total Housing Units Persons Per Housing Unit Persons Per Room Single Room Housing Units (%) Two Rooms Housing Units (%) Pucca Housing Units (%) Owned Housing Units (%) Housing Units having Electricity (%) Inside Outside Housing Units using Gas for cooking (%) Housing Units with Separate Kitchen (%) Television Radio Pakistan 19,211,738 6.80 3.13 38.11 30.54 54.64 81.19 70.46 28.08 4.18 20.19 32.70 35.32 23.94 NWFP 2,211,236 8.00 3.34 27.71 34.50 56.15 80.61 72.19 27.19 12.27 9.80 33.01 24.60 27.40 FATA 341,114 9.30 2.91 13.04 25.91 36.73 90.08 61.97 12.39 6.92 1.28 56.37 28.10 92.20 Punjab Sindh Balochistan 971,116 6.70 3.07 42.77 25.18 14.19 86.64 46.62 25.31 4.33 9.84 22.71 15.34 39.72 Islamabad 128,753 6.20 2.16 16.01 29.47 87.97 47.75 91.39 57.28 6.05 71.93 62.70 61.30 43.10 10,537,127 5,022,392 6.90 3.04 31.97 33.54 62.00 82.97 72.49 24.34 2.18 17.67 31.48 36.70 18.00 6.00 3.37 56.94 23.87 46.69 76.90 70.08 37.17 4.53 32.43 34.60 41.87 29.75

(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.

35

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.5 POVERTY TRENDS IN THE LARGER PROVINCES (PERCENT OF POPULATION) Urban Province Punjab Sindh NWFP 1998-99 27 19 31 2001-02 27 24 35 Rural 1998-99 35 37 47 2001-02 37 51 48 Overall 1998-99 32 29 44 2001-02 34 40 46

(Source: NWFP Economic Report)

POPULATION BELOW POVERTY LINE


46%

34%

40%

% Population

Punjab

Sindh

NWFP

(Source: NWFP Economic Report)

36

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.6 INCIDENCE OF POVERTY BY PROVINCE Change Different Estimates (%) (% points)
1998-99 2001-02 2004-05 1998-99 to 2001-02 2001-02 to 2004-05

Punjab Government/CRPRID World Bank SPDC Sindh Government/CRPRID World Bank SPDC NWFP Government/CRPRID World Bank SPDC Balochistan Government/CRPRID World Bank SPDC

31.6 29.8 0.0 26.0 26.2 0.0 41.3 40.8 0.0 21.6 22.1 0.0

32.2 29.7 34.2 35.5 36.5 35.0 41.5 40.8 39.9 35.5 36.1 49.2

25.0 28.6 30.8 19.0 21.9 25.0 26.9 38.1 33.6 28.4 31.8 33.7

0.6 -0.1 0.0 9.5 10.3 0.0 0.2 0.0 0.0 13.9 14.0 0.0

-7.2 -1.1 -3.4 -16.5 -14.6 -10.0 -14.6 -2.7 -6.3 -7.1 -4.3 -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.

37

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.7 LITERACY


2004-05 PSLM M F T 2005-06 PSLM M F T 2006-07 PSLM M F T

Literacy rates aged 10 yrs and older Overall Punjab Sindh NWFP Balochistan 65 65 68 64 52 40 44 41 26 19 53 55 56 45 37 65 66 67 64 54 42 47 42 30 20 54 56 55 46 38 67 67 67 67 58 42 48 42 28 22 55 58 55 47 42

Adult literacy Rates aged 15 years and older Overall Punjab Sindh NWFP Balochistan 63 63 68 61 49 36 40 38 22 14 50 52 54 40 33 64 63 67 62 52 38 42 40 26 15 51 52 54 43 35 65 65 66 63 54 38 43 39 22 17 52 54 54 42 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.

38

Chapter 4: Socio-Economic Indicators of NWFP

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

2004-05 PSLM M F T

2005-06 PSLM M F T

2006-07 PSLM M F T

Full immunization (based on recall and Record) Overall Punjab Sindh NWFP Balochistan 78 85 74 77 64 77 84 72 76 60 77 84 73 76 62 72 75 70 65 56 71 76 71 62 43 71 76 71 64 48 77 84 65 79 56 75 83 65 73 52 76 83 65 76 54

Diarrhoea (under 5 years) Overall Punjab Sindh NWFP Balochistan 16 16 18 16 13 15 15 18 15 13 16 15 18 15 13 13 15 9 15 4 12 14 7 14 5 12 14 8 15 4 11 11 12 8 8 11 11 12 8 7 11 11 12 8 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 SPDCs 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.

39

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.9 ACCESS TO DRINKING WATER


Percentage of Households with tap water connections 1996 Punjab Sindh NWFP Balochistan 19 43 40 30 2001 20 30 39 25 2006 27 43 47 36 ACGR(%) 1996 to 2001 0.9 -5.8 -0.4 -3.0 2001 to 2006 7.8 9.4 4.8 9.3

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

Table 4.10 PERCEIVED ACCESS TO SEWERAGE AND SANITATION


2002 Punjab Sindh NWFP Balochistan Pakistan 55.3 48.1 48.0 23.5 51.4 2004 66.3 60.7 60.8 32.1 66.3

Source: Social Development in Pakistan, Annual Review 2006- 07 9. According to the Government of Pakistan, in 2006-07, 36.34% of NWFPs

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.

40

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.11 CIVILIAN LABOUR FORCE Civilian Employed Unemployed Labour % % Force % Pakistan Punjab Sindh NWFP Balochistan 45.18 48.55 42.67 36.34 43.60 42.78 41.22 45.88 32.88 42.47 2.41 2.66 1.45 3.47 1.12

Not in Civilian Labour Force % 54.82 51.45 57.33 63.77 56.40

(Source: Statistical Supplement Economic Survey 2007-08) Table 4.12 DAILY WAGES OF CONSTRUCTION WORKERS IN PAKISTAN: Category of Worker Carpenter Cities Islamabad Karachi Lahore Peshawar Quetta Islamabad Karachi Lahore Peshawar Quetta Islamabad Karachi Lahore Peshawar 2005 400 365 338 275 275 400 365 380 325 275 200 230 200 150 2006 450 402 361 300 400 450 402 461 325 400 250 275 246 175 2007 525 450 388 375 500 525 450 491 442 450 275 300 250 200 300

Mason (Raj)

Labour (unskilled)

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

41

Chapter 4: Socio-Economic Indicators of NWFP

Table 4.13 PARTICIPATION AND UNEMPLOYENT RATES BY AGE, GENDER AND AREA 2007-08 Labour Force Participation Unemployment Rates rates Male PAKISTAN Rural Urban Punjab Rural Urban Sindh Rural Urban NWFP Rural Urban Balochistan Rural Urban 10. 69.54 71.18 66.6 70.22 71.15 68.39 70.98 77.35 64.93 64.66 64.57 65.07 67.35 69.88 Female 19.59 25.58 8.35 22.81 28.87 10.49 15.31 26.24 5.42 15.96 17.79 6.96 10.3 11.83 Total 45.17 48.76 38.58 46.6 49.95 39.89 45.47 54.26 37.3 39.81 40.52 36.49 41.75 43.95 Male 4.31 3.94 5.02 4.85 4.41 5.76 2.41 1.32 3.63 6.85 6.74 7.36 1.86 1.51 Female 8.52 6.92 17.7 7.69 6.13 16.43 6.88 4.62 16.81 15.49 14.1 33.02 10.09 7.31 Total 5.2 4.71 6.34 5.54 4.91 7.14 3.1 2.04 4.52 8.62 8.4 9.77 2.78 2.21 4.94

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

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 IDPs 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.

42

Chapter 5: Revenue Distribution through NFC Awards

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); The making of grants-in-aid by the Federal Government to the Provincial Governments; The exercise by the Federal Government and the Provincial Governments of the borrowing powers, conferred by the Constitution; and Any other matter relating to finance referred to the Commission by the President.

b)

c)

d)

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; Taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed; Export duties on cotton, and such other export duties as may be specified by the President; Such duties of excise as may be specified by the President ; and Such other taxes as may be specified by the President.
43

ii)

iii)

iv) v)

Chapter 5: Revenue Distribution through NFC Awards

CHRONOLOGY OF THE NFC AWARDS


S.No NAME DATE OF CONSTITUTION DATE OF EFFECT

1 2 3 4

NFC, 1974 (1st NFC) NFC, 1979 (2nd NFC) NFC, 1985 (3rd NFC) NFC, 1989 (4th NFC)

9th Feb, 1974 11th Feb, 1979 25th July, 1985 23rd July, 1990 23rd July, 1995 Reconstituted on 10th Dec, 1996

1st July, 1975 Remained inconclusive Remained inconclusive 1st July, 1991 1st July, 1997

NFC, 1995 (5th NFC)

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.

NFC, 2005 (7th NFC)

The Commission has been 21st July, 2005, amended on constituted and the Award is 26th August 2008 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.

44

Chapter 5: Revenue Distribution through NFC Awards

5.

Share of Provinces in the Divisible Pool is elaborated as follows:Table 5.1 S.No Financial Year 1 2006-07 2 3 4 5 2007-08 2008-09 2009-10 2010-11 & onward % Share 41.50 42.50 43.75 45.00 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--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
45

Chapter 5: Revenue Distribution through NFC Awards

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 % Share in the % Share in the % Share in the Province Divisible Pool Special Grant 1/6th of Sales Tax (Population Based) 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

NWFP, 13.82%

Baluchistan , 5.11%

Baluchistan , NWFP, 9.93% 5.22%

Sindh, 23.71%
% SHARE IN THE DIVISIBLE POOL (POPULATION BASIS)

Punjab, 57.36%

Punjab, 50% Sindh, 34.85%


% SHARE IN 1/6
TH

OF SALES TAX.

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,

46

Chapter 5: Revenue Distribution through NFC Awards

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, 200809 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 NFC Award 2006-07 % Province 1996-97 2006-07 2007-08 2008-09 2009-10 % Punjab 53.9 52.54 52.77 52.87 53.20 Sindh NWFP Baluchistan 11. 21.68 15.69 8.73 25.2 14.91 7.35 24.99 14.95 7.29 25.01 14.89 7.23 24.96 14.78 7.05

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 Punjab % Sindh % NWFP % Baluchistan % Total

Divisible Pool 281,437.653 57.36 116,333.451 23.71 67,808.026 13.82 25,072.287 5.11 490,651.418

1/6 Sales Tax 39,584.758 50.00 27,590.577 34.85 7,861.533 9.93 4,132.649 5.22 79,169.517

Grant-inAid 4,658.500 11.00 8,893.500 21.00 14,822.500 35.00 13,975.500 33.00 42,350.000

Total 325,680.912

% Share 53.20%

152,817.528 24.96% 90,492.059 14.78% 43,180.436 7.05% 612,170.935 100%

47

Chapter 6: The Issue of Profit from Hydel Power Generation

THE ISSUE OF PROFITS FROM HYDEL POWER GENERATION


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

48

Chapter 6: The Issue of Profit from Hydel Power Generation

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

49

Chapter 6: The Issue of Profit from Hydel Power Generation

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 HydroElectric Stations to Provinces, Order 1991 (Presidents 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
50

Chapter 6: The Issue of Profit from Hydel Power Generation

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 Kazis formula, the revenues should include all the revenues paid by the consumers, including surcharge. There will be no effect of unbundling/ privatization of WAPDA on the payment of Net Hydel Profits. Unilateral capping of the Profits at Rs.6 billion is unconstitutional. According to the Kazi Committees 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.

(b)

(c) (d)

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. WAPDAs 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. 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 WAPDAs revenues to be used for calculating the Net Hydel Profits.

(ii)

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

51

Chapter 6: The Issue of Profit from Hydel Power Generation

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

10.

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)

52

Chapter 6: The Issue of Profit from Hydel Power Generation

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

24,735.116 22,020.286 2714.830 30,611.214 22,020.286 8590.928 28,626.372 22,020.286 6606.086 26,424.343 22,020.286 4404.057 24,222.315 22,020.286 2,202.029

F.Y 2007-08 i. 2nd instalment ii. iii. Principal Mark up from 10th January to 31st December,2007

F.Y 2008-09 i. 3rd instalment ii. iii. Principal Mark up from 1st January to 31st December,2008

F.Y 2009-10 i. 4th instalment ii. iii. Principal Mark up from 1st January to 31st December,2009

F.Y 2010-11 i. 5th instalment ii. iii. 12. Principal Mark up from 1st January to 31st December,2010

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.

53

Chapter 6: The Issue of Profit from Hydel Power Generation

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.

54

Chapter 7: Revenues from Oil and Gas Production

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 1. 2. 3. 4.
OGDCL MOL

Block
3370-3(Tal)

Area (Sq.km)
3,688.83

Districts / Area
Kohat, Karak, Bannu, Adamkhel, North Wazirstan Karak, Bannu, North Wazirstan, Mianwali Kohat & Attock Attock, North Wazirstan, Mianwali, Kohat, Karak North Wazirstan, Karak & Bannu South Wazirstan, Laki Marwat & Bannu South Wazirstan, Laki Marwat, Tank & D. I. Khan North Wazirstan, Kohat, Kurram, Bannu Peshawar, Nowshera, Kohat, Adamkhel

Grant Date
11-02-1999

Relinquish ment Date


31-10-2006

MGCL

3271-1(Karak) 3371-5 (Gurgalot) 3370-10 (Nashpa) 3370-12 (Latambar) 3270-6 (Wali) 3170-2 (Marwat) 3370-13 (Bannu West)

2,335.18

14-04-2005

13-04-2011

346.92

28-06-2000

30-06-2008

979.69

16-04-2002

21-03-2007

5. 6. 7 8.
Tullow OPII

331.47

24-10-2005

23-10-2010

2,179.26

31-05-2006

30-05-2013

1,792.87

22-01-2007

21-01-2012

1,229.57

27-04-2005

31-08-2012

9.

3371-10 (Kohat)

1,107.21

27-04-2005

26-10-2011

Total area

13,991.00

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

55

Chapter 7: Revenues from Oil and Gas Production

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.

56

Chapter 7: Revenues from Oil and Gas Production

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 consumers 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.

57

Chapter 7: Revenues from Oil and Gas Production

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 S. No Receipts Head 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 ESTIMATED

(R.E) 1 Royalty on Crude Oil 263.793 2 Royalty on Gas 3 Excise duty on Gas 4 Dev: Surcharge Gas Total 109.370 44.280 69.828 492.009 351.050 24.591 316.229 1090.718 3,027.076 462.418 123.290 632.717 537.988 206.236 418.236

(B.E)

3416.524 838.687 173.460 656.812


5,085.483

2469.512 2729.095 191.100 2159.296


7,549.003

487.271 1,183.879 2,309.143 4,189.536

8,000 7,000 6,000 5,000 5,085 4,000 3,000 2,000 1,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 487 1,184 2,309 4,190 7,549

Receipts from production of oil & gas


58

Chapter 7: Revenues from Oil and Gas Production

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 S. No Name of well 2004-05 2005-06 960,980 166,445 185,201 2006-07 1,887,302 156,978 517,543 298,165 1,044,440 1,312,626 2,859,988 2007-08 2,058,926 137,231 771,595 1,721,515 4,689,267 2008-09 1,815,294 147,436 718,388 2,095,882 4,777,000 2009-10 1,642,500 1,551,980 674,520 2,920,000 6,789,000 Chanda (Shakardara Kohat) Manzali (Karak) Makori (Karak) ESTIMATED

1 2 3 4

989,305 55,135 -

Mela (Kohat) Total

PRODUCTION TREND OF OIL (Barrels/Years)


8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 1,044,440 1,312,626 2,859,988 4,777,000 4,689,267 6,789,000

59

Chapter 7: Revenues from Oil and Gas Production

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 2,990 17,221 733 2006-07 3552 16181 6594 43 Total 8,435 20,944 26,370 2007-08 3,032 12,552 10,314 3,809 29,707 2008-09 2,650 13,159 9,914 5,795 31,518 2009-10 2,555 91,250 9,490 8,030 111,325

1 2 3 4

Chanda (Shakardara Kohat) Manzali (Karak) Makori (Karak) Mela

3,495 4,940 -

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

PRODUCTION TREND OF GAS (MCFT/YEARS)


120,000 111,325 100,000 80,000 60,000 40,000 20,944 20,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 8,435 26,370 29,707 31,518

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

60

Chapter 7: Revenues from Oil and Gas Production

(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.

61

Chapter 8: Revenues Transferred to District Governments

REVENUES TRANSFERRED TO DISTRICT GOVERNMENTS


There are seven Administrative Divisions, 24 Districts, 52 Tehsils / SubDivisions, 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 ii) Non Salary iii)Development iv) O&Z Tax grant Total:40 35 30
Rs. In Billion

13.856 1.097 0.963 0.984 16.900

13.817 1.191 0.963 0.887 16.858

15.775 1.499 0.963 0.926 19.163

19.396 1.650 0.963 0.996 23.005

23.204 2.249 0.963 1.081 27.497

24.000 3.408 1.204 1.285 29.897

28.000 3.417 1.246 1.435 34.098

34 30 27 23 17 17 19

25 20 15 10 5 0 2002-03 2003-04 2004-05 2005-06

2006-07

2007-08

2008-09

Revenues Transferred to District Governments


62

Chapter 8: Revenues Transferred to District Governments

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 Ministers 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.

63

Chapter 8: Revenues Transferred to District Governments

4.

The allocation made for Local Governments for the year 2009-10 is

summarized as under:TABLE 8.2


(Rs. In Million)

S.No. 1 2 3 4 Salary

Item

Allocation 29500.000 3839.000 1341.735 1,556.500 36237.235

Non-Salary Development O.Z.T Grant Total

64

Chapter 9: Subsidy on Procurement of Wheat

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. ii. iii.

Food Procurement, rationing and distribution. Storage of Food grain. 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 Population according to 1998 Census Projected @ 2.61% per annum 24,228,351 4,397,109 1,500,000 30,107,460 Requirements @ 124 KG per head per annum 3,004,316 543,009 186,000 3,733,325

Area Settled Area FATA Afghan Refugees Total 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

65

Chapter 9: Subsidy on Procurement of Wheat

overview of the quantity of wheat released during the last 3 years, from Government godowns is given in the following table:Table 9.2 Opening Balance (M.Ton) 2 137,551 98,556 28,168 Receipts sduring year (M.Ton) 3 301,186 588,202 930,900 Total (2+3) 4 438,737 686,758 959,068 Releases (M.Ton) 5 340,181 658,590 797,332 Closing Balance (M.Ton) 6 98,556 28,168 161,736

Year 1 2006-07 2007-08 2008-09

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:-

66

Chapter 9: Subsidy on Procurement of Wheat

Table 9.3 SUBSIDY DURING 2008-09 (REVISED ESTIMATES) (Rs. in million) S.No 1. 2. 3. 4. Source/activity Qty: in M.Tons Rate per M.Ton 3,023 6,175 2,526 2,500 Amount 1,866.107 4,550.654 3,789.000 2,206.743 12,412.504 31,200.000 20,841.000 10,359.000

5. 6.

PASSCO (Indigenous) 617,303 TCP (Imported wheat) 882,697 Provincial Food Deptt: 1,500,000 Transportation TCP Total Grand total (purchase of wheat + incidental) Sale of wheat Net Subsidy

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 S.N. 1. 2. Source Indigenous Wheat Imported Wheat Total Qty: in M.Tons Rate per M.Ton 617,303 882,697 1,500,000 4,231 8,777 Rs. in million Amount 2,611.809 7,747.432 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:-

67

Chapter 9: Subsidy on Procurement of Wheat

Table 9.5
(Rs. in million)

Source PASSCO Wheat Punjab Total

Qty. in M.Tons COST OF WHEAT 1,250,000 1,250,000 2,500,000 INCIDENTALS

Rate per M.Ton 23,750 23,750 23,750

Amount 29,687.500 29,687.500 59,375.000

PASSCO Punjab Provincial Food Department Total

1,250,000 1,250,000 2,500,000

4,368 3,034 2,778

5,460.000 3,792.500 6,945.000 16,197.500

SALE OF WHEAT

Purchase of Wheat + Incidentals Sale of Wheat @ Rs. 24,620/- M.T Net Subsidy FLOUR MILLS 9.

Rs. 75,572.500 Rs. 61,550.000

Rs. 14,022.500

There are 241 Flour Mills in NWFP out of which only 208 are functioning

as per detail given below:Table 9.6 Detail Functioning flour Mills Closed flour Mills Total NWFP 202 32 234 FATA 06 01 07 Total 208 33 241

68

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. generated in NWFP, detailed as under: Table 10.1 S.No. 1. 2. 3. 4. 5. 6. 7. Tarbela Warsak Dargai Jabhan Kurram Garhi Chitral Malakand III Total 2. Hydel Station MW 3478 342 20 19 4 1 81 3945 Presently 3945 MW hydel power is being

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.

69

Chapter 10: Hydroelectric Power

3.

Following is the status of different project undertaken by SHYDO:Table 10.2 S.No 1 2 3 4 5 6 7 8 9 10 11 12 Project Malakand III Pehur Swabi Shishi Chitral Daral Khwar Ranolia Khwar Macchi Mardan Koto Hydro Power Plant, Lower Dir Jabori, Manshera Karora, Shangla Summer Gah Kohistan Mataltan Swat Karora Shangla Total Capacity Mega Watts 81 18 1.875 36.6 11.5 2.6 18 8 7.5 28 84 8
305.075 MW

Status Functional & Rs. 746 Million received To be made functional soon -DoConsultants hired-funded by ADB at a cost of Rs. 3075 million. Estimated cost Rs. 1077 million. Estimated cost Rs. 318 million. Feasibility phase Rs. 2430 Million Feasibility phase Rs. 907 Million Feasibility phase Rs. 729 Million Under construction Under construction Under construction

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) ii) iii) iv) v) vi) F/study of Shigo Kach Dir (38 MW) F/study of Barikot-Patrak Dir (34 MW) F/study of Patrak-Shingral Dir (21 MW) F/study of Serai Karoara Shangla (13.5 MW) F/study of Bhimbal Khata Manshera (8.1 MW) F/study of Batakundi HPP Manshera (65 MW)

70

Chapter 10: Hydroelectric Power

vii) viii) ix) x) xi)

F/study of Shigo Kach Dir (38 MW) F/study of Barikot-Patrak Dir (34 MW) F/study of Patrak-Shingral Dir (21 MW) F/study of Serai Karoara Shangla (13.5 MW) 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 Governments 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. Implementation of projects through solicited and unsolicited proposals. Simple procedure for projects up to one MW. Reduced fee structure as compared to Federal Power Policy 2002. 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. The agreed lease price will be escalated @25% after every 10 years of lease period. Concession period will be 50 years. Lease could be transferred to another buyer of the project with prior approval from SHYDO upon payment of prescribed fee.
71

(ii) (iii) (iv) (v)

(vi) (vii) (viii)

Chapter 10: Hydroelectric Power

(ix) (x) (xi) (xii) (xiii)

Hydrological risk will be borne by the power purchaser. No provincial taxes will be levied on the sponsors of hydel projects. No water use charges will be levied. All hydel power plants up to 50 MW allowed to be installed on BOOT basis, for a period of 50 years. 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) (ii) (iii) (iv) (v) Selection on first come first served basis. No lengthy procedure, just registration and Bank Guarantee. Nominal lease money, fixed @Rs. 500/kW/annum. NOC to be issued by SHYDO within one month after registration. 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.

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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). Its a medium term (three year) outlook to the budgeting and provides an essential cornerstone for achieving the Governments 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 (IDPs), whose numbers has surpassed three million. Safety and comfort of IDPs 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;

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Chapter 11: Medium Term Budgetary Framework (MTBF)

NET DEFICIT
0 -500

Rs. in million

-1,000 -1,500 -2,000 -2,500 -3,000 -3,500 -4,000 -4,500

2009-10 Net Deficit -3,827

2010-11 -3,718

2011-12 -3,719

2012-13 -2,836

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

74

Chapter 11: Medium Term Budgetary Framework (MTBF)

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 IDPs 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)


Rs. in million (unless otherwise stated) REVENUE Total Revenue Receipts Federal Tax Assignment 1/6th of Sales Tax GST on services Provincial Revenues Royalty on Oil & Gas Net Hydel Profit Transfers to District Governments Wages Non-Salary Octroi and Zilla Tax Annual Development Program (Distts.) Net Revenue after Transfers 2009-10 93,870 66,198 7,797 822 6,441 6,612 6,000 38,967 32,200 3,839 1,557 1,371 54,903 MTBF 2010-11 2011-12 105,436 74,804 8,577 904 7,085 8,066 6,000 42,863 35,420 4,223 1,713 1,508 62,573 119,657 85,276 9,520 1,003 7,935 9,922 6,000 47,858 39,670 4,645 1,884 1,658 71,799 2012-13 137,124 98,068 10,663 1,124 8,967 12,303 6,000 53,437 44,431 5,110 2,072 1,824 83,687

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Chapter 11: Medium Term Budgetary Framework (MTBF)

EXPENDITURE Current Expenditure Wages Pension Non-Wage O&M and Contingency Subsidy Development Expenditure Annual Development Program (Provl.) Special Programme Foreign Project Assistance PRIMARY BALANCE GRANTS AND INTEREST PAYMENTS Federal & Foreign grants Grant in Aid Federal Dev. Grants Foreign Dev. Grants Others Interest Payments OVERALL BALANCE

35,535 16,966 6,802 9,767 2,000 37,846 28,421 4,400 5,025 (18,478)

38,498 18,663 7,483 10,353 2,000 44,472 34,105 4,840 5,527 (20,398)

42,314 20,902 8,231 11,181 2,000 52,330 40,926 5,324 6,080 (22,845)

46,764 23,410 9,054 12,300 2,000 61,655 49,111 5,856 6,688 (24,732)

20,359 14,818 4,400 782 359 5,708 (3,827)

22,673 16,596 4,840 860 377 5,993 (3,718)

25,420 18,753 5,324 946 396 6,293 (3,719)

28,504 21,191 5,856 1,041 416 6,608 (2,836)

Rs. in million (unless otherwise stated) BUDGET FINANCING Net Federal Debt (CDL) Net Foreign Debt SBP Overdraft Net Public Account Net Capital Cash Balance Utilization Total Financing

2009-10

MTBF 2010-11 2011-12

2012-13

(697) 1,942 1,282 1,000 300 3,827

(767) 1,732 1,452 1,000 300 3,718

(843) 1,556 1,706 1,000 300 3,718

(928) 1,351 1,112 1,000 300 2,835

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Chapter 11: Medium Term Budgetary Framework (MTBF)

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


6.0 5.0

Rs. in million

4.0 3.0 2.0 1.0 0.0 National

2008-09 2.1

2009-10 3.3

2010-11 4.0

2011-12 4.5

2012-13 5.0

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.

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Chapter 11: Medium Term Budgetary Framework (MTBF)

INFLATION RATE
25.00 20.00 15.00 10.00 5.00 0.00

Rs. in million

2008-09 Inflation Rate % 20.0

2009-10 9.5

2010-11 7.0

2011-12 6.0

2012-13 6.0

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 departments vis--vis their budgetary strategy.

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Chapter 11: Medium Term Budgetary Framework (MTBF)

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.

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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--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.

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Chapter 12: Performance Based Budgeting

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 entitys 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
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Chapter 12: Performance Based Budgeting

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 Primary School Male Primary School Female Education Middle School Male Middle School Female High School Male High School Female Basic Health Unit Health Civil Dispensary Mother and Child Health Agriculture Population Agriculture Extension Circle Livestock circle Family welfare centers Total Coverage 20 20 10 10 5 5 10 5 2 5 5 10 107

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

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Chapter 12: Performance Based Budgeting

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 bottomup 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%. Teachers attendance, PTA meetings and cocurricular 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.

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Chapter 12: Performance Based Budgeting

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 Enrollment over non PBB Period % increase in A Grades Before After PBB PBB % increase in Teachers Attendance Before PBB After PBB

School type

Primary Male Primary Female Middle Male Middle Female High Male High Female

8.9 13.4 9.8 8.4 25.0 24.6

19.2 19.1 12.5 11.1 16.8 6.7

26.7 26.2 16.3 20.2 25.6 13.7

91.0 93.0 89.5 90.8 90.3 90.1

93.0 95.0 92.2 88.3 93.6 90.8

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Chapter 12: Performance Based Budgeting

Table 12.3 IMPROVEMENT IN HEALTH SECTOR 2007-08 % Increase over Previous Year Patient receiving ANC 249.4 709.1 Family Planning Clients 52.44 290.1 Malaria Cases detected 28.5 -

Facility Type BHU MCHC Dispensaries

OPD 83.3 121.6 232.6

Vaccination 214.2 1753.8 152.2

Table 12.4 IMPROVEMENT IN AGRICULTURE & LIVESTOCK SECTORS 2007-08 % Increase over Previous Year
Service Type Extension Improved Seed distributed 273 Immunization Livestock 235.2 No of Farmers Trained 1865.8 Animals Vaccinated 720.6 No. of Advisory Visits 283.5 Animals Treated 248.7 Demonstrations Plots 616.1 Farmers Contacted 3140.1 Field Days 185 Field Days 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.

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Chapter 12: Performance Based Budgeting

INCREASE IN OVERALL ENROLLMENT 2008-09


HIGH SCHOOLS MIDDLE SCHOOLS

Increase in Enrollment during 2008-09 Over 2007-08 in 2008-09 High Schools


10000 9000
2007-08 8759 9913 2008-09 8908 2007-08 7724

Increase in Enrollment during 2008-09 Over 2007-08 in Middle Schools


4000 3900 N u m b er o f Stu en d ts En ro lled 3800 3700 3600 3500 3400 3300 3200 3100
2007-08 3374 2008-09 3545 2007-08 3888 2008-09 391 8

Nu m b er o f S tu d en ts E n ro lled

8000 7000 6000 5000 4000 3000 2000 1000 0

2007-08 2008-09

2007-08 2008-09

High Schools Female High Schools Male

Middle Schools Female

Middle Schools Male

INCREASE IN OPD PATIENTS DURING 2008-09


BASIC HEALTH UNITS CIVIL DISPENSARIES

Increase in Number of Patients in OPDs during 2008-09 Over 2007-08


700000 600000 500000 400000 300000 200000 100000 0 2007-08 2008-09 286587 638478

Increase in Number of Patients in OPDs during 2008-09 Over 2007-08


250000 207504 200000 150000 100000 50000 0 2007-08 2008-09 87775

N u m b e r o f P a ti e n t s

N u m b e r o f P a ti e n ts

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Chapter 12: Performance Based Budgeting

INCREASE IN THE PERFORMANCE OF AGRICULTURE SECTOR DURING 2008-09


AGRICULTURE EXTENSION LIVESTOCK & DAIRY DEVELOPMENT

Increase in distribution of improved Seed during 2008-09 Over 2007-08


2000000 1800000 1862476

Increase in Number of Animals Receiving Veterinary Care during 2008-09 Over 2007-08
1600000 1472501

N um ber of A nim als R ecieved Veterinary C are

S e e d D is tr id u te d in K G

1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 2007-08 2008-09 587588

1400000 1200000 1000000 800000 600000 400000 200000 0 2007-08 2008-09 1156079

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.

87

Chapter 13: The Malakand Catastrophe

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) c) d) e) f) It is difficult to maintain basic public services in some areas; The costs of maintaining law and order has greatly increased; Large groups of displaced people require basic support; Regional trade has been disrupted, reducing employment and revenue; 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:88

Chapter 13: The Malakand Catastrophe

Table 13.1 DISTRICT WISE NUMBER OF IDPS DISTRICT FAMILIES INDIVIDUALS S. NO 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 7 June 2009 (being updated continuously)
th

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.

89

Chapter 14: Annual Development Programme

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 socioeconomic 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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Chapter 14: Annual Development Programme

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 Banks 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--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. ii. iii. To accelerate human development through education and better health so that, all people can benefit from and contribute to economic growth. Invigorating competitive private sector activities in the province. 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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Chapter 14: Annual Development Programme

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-ulMal(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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Chapter 14: Annual Development Programme

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 countrys 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 governments 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 14.1 SOURCES OF FUNDING ADP 2008-09
(Rs. In million)

S.No. A B i. ii. C D

Source of funding Provincial budget Total Foreign Assistance Grants Loans District Programme (development) Special programmes

Allocation 27148.197 4617.194 780.440 3836.754 1218.000 8093.544

% 65.3 11.1 1.9 9.2 2.9 19.5


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i. ii. iii. Iv V Vi Vii Viii Ix X E

Agriculture Sector Education Sector Environment Sector Finance Sector Health Sector Industries Sector Law Justice Sector Planning & Development Sector Water Sector NCD Population Welfare Total

1884.545 384.850 335.788 61.354 1978.660 29.758 108.320 203.100 2352.750 377.810 468.000 41544.935

4.5 0.9 0.8 0.1 4.8 0.1 0.3 0.5 5.7 0.9 1.1 100

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 14.2 SECTOR WISE ALLOCATION OF FOREIGN ASSISTANCE
(Rs. In million)

S.No 1 2 3 4 5 Health DWSS Roads

Sector Schools & Literacy

No. 2 8 3 3 2

Foreign Assistance 0.00 377.037 50.000 2512.000 0.000

Counterpart 28.100 36.486 0.299 550.200 5.010

Agriculture

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6 8 9 10 11

Power Forestry Industries Regional Dev. R&D Total:

1 2 1 15 3 40

140.000 50.000 100.000 1374.557 13.600 4617.194

197.730 2.253 60.000 620.957 16.456 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 14.3 ORIGINAL AND REVISED SIZE OF ADP
(Rs. In million)

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Sector Schools & Literacy Higher Education Health DWSS Social Welfare Auqaf, Hajj, Religious & Minority Affairs Roads Building & Housing Urban Development Water Agriculture Forestry Environment Tourism Power Industries Regional Dev. R&D

Budget Estimates

Revised Estimates

%age

Allocation %age Allocation %age 4158.734 1348.646 3939.880 1000.145 99.551 35.100 4478.890 802.048 174.820 1278.636 715.428 477.326 26.684 263.524 429.969 1141.354 5328.533 68.771 10.0 3.2 9.5 2.4 0.2 0.1 10.8 1.9 0.4 3.1 1.7 1.1 0.1 0.6 1.0 2.7 12.8 0.2

against BE 5700.134 14.6 137.1 1348.646 3.5 100.0 3725.740 9.6 94.6 1000.145 2.6 100.0 94.045 0.2 94.5 16.805 0.0 47.9 5349.404 563.385 288.645 979.875 455.855 263.336 15.948 255.032 287.915 564.254 6965.563 63.074 13.7 1.4 0.7 2.5 1.2 0.7 0.0 0.7 0.7 1.4 17.9 0.2 119.4 70.2 165.1 76.6 63.7 55.2 59.8 96.8 67.0 49.4 130.7 91.7
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19 20 21 22 23 24 25

ST & IT Tameer-e-Sarhad Programme Transport Total Local Special Programmes Population Welfare Districts Programme Foreign Aid Grand Total

140.158 0.3 1240 3.0 0.000 27148.197 8093.544 468.000 1218.000 4617.194 41544.935

104.458 0.3 1240 3.2 0.0 74.9 7.6 1.1 3.2 13.1 100

74.5 100.0 400.0 106.9 36.6 89.6 102.3 110.2 93.9

0.0 4.042 65.3 29286.3 19.5 2959.551 1.1 419.535 2.9 1245.615 11.1 5089.601 100 39000.603

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. 2. 3. 4. 5. 6. Constructions of Boundary walls were completed in 300 Primary Schools. 100 Primary Schools were up-graded to Middle level. 100 Middle Schools were up-graded to High level. 200 additional classrooms were constructed in various schools. 120 new Primary Schools were established. Clean drinking water facility was provided in 300 schools.
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7. 8. 9. 10. 11. 12.

Group latrines were constructed in 300 schools. 4000 teachers were trained in service. 4344000 students were provided free Text Books up to class 12. Rs.200/- stipends were provided to 307678 Girls students of 6th to 10th class in all 24 districts. 5 secondary Schools were reconstructed. 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. 14. 15. 16.

More than 25,000 teachers were trained in the subject of English, Mathematics, Science and Social Studies. Additional shifts were started in 21 Govt. colleges to provide educational facilities. Special repair work of 19 College Buildings has been carried out. 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. 18. 19. 20. 21.

Language Laboratories were established in 5 Govt. Colleges. Construction work on staff/students hostels in 17 colleges is in progress out of which 6 were completed. 8 new Government Colleges were established. Digital Libraries in 18 Government Colleges were established. 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. 25. 26.

Subject of Computer Sciences was introduced at Intermediate level in 25 Government Colleges. An amount of Rs.3.676 million has been incurred on the In-service Teachers Training. 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. 3. 4. 5. Up-gradation of RHCs to Civil Hospitals and Category-D status. Up-gradation of BHUs to RHCs. Establishment of new Dispensaries, BHUs and RHCs initiated Balance Civil Works and Provision of Equipment for health facilities.

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6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Standardization of equipment in all health facilities. Completion of Khyber College of Dentistry. Completion of Khyber Institute of Child Health in Hayatabad Purchase of 20 Ambulances and 200 KVA Diesel/Gas Generators for 20 Hospitals. Improvement of Post Graduate College of Nursing. Establishment of TB Centre in Kohistan. Rs.140 millions provided for installation of MRI equipment at Mardan Medical Complex; and completion of Phase-II of the Complex. 516 Charge Nurses recruited, 967 staff trained under MNCH Programme and 722 female technicians trained in various technologies. 1417 Hepatitis-C registered cases treated besides 1000 Hepatitis-B patients. Rs.159.689 millions provided for treatment component of Hepatitis under the PMs Programme for Hepatitis Control & Prevention. Pilot project for Development of Emergency Rescue Services (Rescue 1122) costing Rs. 172.411 millions has been launched initially in Peshawar. Burn Care Treatment Centre is being established in Hayatabad through the Workers Welfare Board funding while an additional project has been approved under the Presidents Package for NWFP, to cater for high tech equipment for reconstructive surgery in the said facility; which will cost Rs.200 millions

18. 19.

Rehabilitation of Paraplegic Centre in Hayatabad completed. 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 unemployed 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. 2. 3. 4. 5. 6. 7. 8. 9. 1000 elderly people and 1200 Post Graduate students were provided stipends of @ Rs.1000 & Rs.2000 respectively. 60 orphans were provided with shelter and skills. 500 destitute women were provided with vocational training. 100 male, female and child beggars were provided skills. 40 special children were imparted essential education. 19 working women were provided safe accommodation. 11 Dastakari Centers were established in District Charsadda and Swabi. 37 registered welfare organizations were provided financial aid by the Provincial Social Welfare Council (PSWC). 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. 3. 4. 5. POWER 27. The Province has vast hydropower potential of about 29600 MW which is Completion of Feasibility studies of 12 Small Dams and Tank Zam Dam. Completion of Pre-Feasibility study of 33 Nos. sites. Details designing of 5 Nos. of dams in District Karak, D.I.Khan, Nowshera and Kohat have been completed. Preliminary works of land acquisition and approach road of 7 small dams have started at Abbottabad, Swabi, Dir, Karak and Haripur.

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 ADBs 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. 2. 3. 4. 5. 6. 7. 8. 9. On 400 acres of area high efficiency irrigation system has been installed. 2000 Farmers & Staff were trained in Modern Agriculture Technology. 96 Farmer Field Schools were established. 508 tons seed of wheat, rice, gram and potato were produced. Fruit Orchards were established on 354 acres land. 1200 Water Courses were improved. One Lac Tea saplings were produced. 124 Tons seeds of maize were produced. 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 years 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 3month 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 2 3 4 5 6 7 8

Special Package for Dev: Initiatives in NWFP 1500.000 Reconstruction & Rehabilitation of Earthquake affected District 300.000 Swat. Provision of Natural Gas to Tobacco growing District in NWFP 365.412 Block provisions for project to be funded by 5% Net hydel 300.000 profit. Block provisions for project to be funded by 5% Oil & Gas 170.000 royalty. NWFP Urban Development Project. 208.000 Chief Minister Programme for Poverty Elimination in NWFP. 1000.000 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 governments 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 14.4 BUDGETED AND REVISED SIZE OF DISTRICT ADP (Rs. in million) Particular B.E 2008-09 R.E 2008-09 Districts ADP TMAs ADP C.Ms Directives F.Ms Directives Total: 724.710 310.590 121.800 60.900 1218.000 731.746 331.169 121.800 60.900 1245.615

S.No. 1. 2. 3. 4.

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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, 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 million, Swabi Rs.53.629

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 Shuhadas 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 MINISTERS 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 provinces 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 peoples 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 14.5 SOURCES OF FUNDING


(Rs. In million)

S. No. A B i. ii. C D i. ii. iii. Vi V Vi Vii Viii Ix

Source of funding Provincial Budget Total Foreign Assistance Grants Loans District Programme (Development) Special programmes Food, Agriculture Sector Livestock and Dairy Education and Training Environment Finance Health Law and Justice P&D Population Welfare Water and Power Peoples Work Program-II

Allocation %age 32546.412 6644.324 2181.824 4462.500 1341.735 10050.485 1846.856 40.620 194.282 325.246 2549.172 19.687 94.915 120.000 32.707 765.000 4062.000 574.000 51156.956 63.6 13.0 4.3 8.7 2.6 19.6 3.6 0.1 0.4 0.6 5.0 0.0 0.2 0.2 0.1 1.5 7.9 1.1 100

Population Welfare Total

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 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 iii) Displaced Persons (IDPs) besides rehabilitation and reconstruction of infrastructure. 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) vi) Meet the goals and targets of the MDGs, MTDF and PRSP and other national and international obligations. 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 14.6 SECTOR-WISE ALLOCATION FOR ONGOING AND NEW SCHEMES
(Rs. In million) Sector No Elementary & Secondary Education Higher Education Health Drinking Water & Sanitation Social Welfare Auqaf, Hajj, Religious & Minority Affairs Roads Building & Housing Urban Development Water Agriculture Forestry Environment Sports, Culture, Tourism, Archaeology Power Industries Regional Development Research and Development Population Welfare Districts ADP Tameer-I-Sarhad Programme ST&IT Special Programme Transport Total Foreign Assistance Grand Total 39 19 85 41 28 5 105 53 10 33 47 54 6 23 6 42 30 7 1 0 15 24 1 674 Schemes (On Going) Allocation 3656.387 1079.951 3649.156 1441.169 109.509 15.710 4695.292 776.067 184.845 921.196 574.567 290.625 26.438 246.243 421.506 858.990 5729.509 106.795 574.000 0.000 107.195 3721.485 10.000 29196.635 Schemes (New) No 17 16 23 2 5 10 8 4 19 17 28 3 11 5 18 8 4 1 1 7 6 4 217 Allocation 918.576 No 56 Total Allocation 4574.963 1484.391 4333.868 1441.169 122.509 35.71 5137.392 856.421 195.645 1406.496 796.663 468.625 40.138 332.622 441.308 1173.66 7772.61 114.895 574 1341.735 1240 157.827 10050.485 419.5 44512.632 6644.324 511556.956
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404.440 35 684.712 108 41 13.000 30 20.000 10 442.100 115 80.354 61 10.800 14 485.300 52 222.096 64 178.000 82 13.700 9 86.379 19.802 314.670 2043.101 8.100 1341.735 1240.000 50.632 6329.000 409.500 15315.997 34 11 60 38 11 1 1 1 22 30 5 891

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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 14.7 FOREIGN ASSISTANCE (Rs. In million) S.No 1 2 3 4 5 6 7 8 Sector Schools & Literacy Health DWSS Roads Forestry Power Regional Dev. R&D Total: No. 2 4 1 2 1 4 5 3 22 Foreign Counterpart Assistance 395.283 31.360 246.500 27.473 1434.541 20.000 3883.500 500.001 1.000 2.000 278.000 300.210 381.000 202.386 24.500 10.097 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. as follows:A brief description of the Provincial, Special and Districts Programmes is

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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. 2. 3. 4. All Students up-to intermediate level will be provided with free textbooks. Provision of monthly stipends @ Rs.200/- for female student from class 6th to 10th in all 24 districts will be continued. Completion of boundary walls in 400 schools, Clean Drinking water supply schemes for 400 schools and group latrine for 400 schools will be ensured. 500 additional classrooms will be constructed.

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5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. HEALTH 50.

Buildings of 20 schools will be reconstructed. 150 primary schools will be established, 120 primary and 100 middle schools will be upgraded. 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. Provision of additional facilities and Rehabilitation of Water Supply Schemes in existing Government Colleges. Establishment of public libraries at District level. Special repair of the buildings and construction of Admin, Science, P.G & I.T Blocks in various colleges. Staff/Students Hostels will be constructed in various Districts. In-service and pre-service training will be given to the Colleges Teachers. Establishment of digital libraries in Post Graduate/Degree Colleges, and language laboratories in various colleges. Provision of transport facilities in girls colleges. Establishment of day care centres for female teachers in government colleges. Additional shifts will be started in boys and girls colleges.

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 Presidents Development Package for NWFP costing Rs.2 billions.

3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Work on Children Hospital in Hayatabad to be initiated under Presidents Package, costing Rs.1.7 billion. Equipment for Reconstructive Surgery at the Burn Care Center in Hayatabad Equipment for DHQ Hospitals worth Rs.2.000 billion will be provided under President Development package for NWFP. Establishment of Shaheed Mohtarama Benazir Bhutto Childern Hospital in Mardan. Works to commence on Bacha Khan Medical University, Mardan; currently working in Mardan Medical Complex. Work to commence on Establishment of Blood Transfusion Services in NWFP, with the assistance of German Agencies KFW and GTZ. Work to commence on establishment of a Fountain House for mentally retarded patients in Peshawar. Land for DHQ Swabi at Shah Mansoor Township to be acquired. Improvement works in KTH Peshawar to be initiated besides completion of Casualty Block and hostels for female doctors. 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. 14. 15. 16. 17. 18.

TB Control Programme will be strengthened. New initiatives will be undertaken for prevention and control of Hepatitis. New project on Promoting Safe Motherhood will be launched with the assistance of World Food Programme. Post Graduate Medical Institute at Hayatabad Medical Complex will be completed. New initiatives concerning Strengthening of Drug Management System will be initiated. 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. 2. 3. 4. 5. 6. 7. 8. 40 disabled children will be given special education. 2000 elderly people and 2500 postgraduate students will be provided monthly stipends of Rs.1000 & 2000 respectively. 600 helpless women & 200 male beggars will be imparted with skills development training. 100 workingwomen will be provided safe accommodation. 500 disabled persons will be given rehabilitative aids, i.e. Wheel Chairs, TriCycles etc. Child Welfare and Protection Bureau will be established at the Districts level. Establishment of Detoxification and Rehabilitation Centre in Malakand. 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 prefeasibility 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. 2. 3. 4. 5. 6. 7. 8. 9. 13 Nos: of laser units, 20 Nos. Honey production kits and 20 Nos. of Mushroom cultivation kits will be distributed. 2560 acres demonstration plots will be established. 13000 farmers and 3200 professional staff would be trained on modern farming technology. Sprinkler irrigation system on 6501 acres will be installed. 0.200 million dozes of vaccine will be produced. 249 Model Fruit Orchards will be established. 1000 watercourses will be improved. 0.286 million animals will be artificially inseminated. 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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Departmental nurseries will be raised over an area of 32 acres. Afforestation will be made over an area of 13400 acres. Sowing will be carried out over area 2550 acres. Linear plantation will be carried out over an area of 950 Km. 2180 boundary pillars will be constructed. 385000 plants will be distributed. 500 acres area will be brought under rangeland management. At Peshawar a Zoo will be established with total cost of 600 million. An aviary will be established at Public Park at Mardan. At Bannu, D.I.Khan, Kohat, Mansehra, Kohistan and Lower Dir, the production capacity of Government Fish Hatcheries will be enhanced. 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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Chapter 14: Annual Development Programme

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 o Rehabilitation of militancy affected areas of NWFP 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

todays 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) ii) iii) iv) Computerization of Land Record in District Peshawar. Computerization of Driving Licence in Traffic Police Department NWFP. Computerization of Property Tax Record, Information Department and Provincial Assembly of NWFP. Establishment of I.T Professional Training Centers for I.T Graduates and Government Employees.

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Chapter 14: Annual Development Programme

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) 71. Tameer-e-Sarhad Programme (TSP) 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) 72.

Support to Law and Order 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
133

Chapter 14: Annual Development Programme

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 Ministers 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:

134

Chapter 14: Annual Development Programme

1. 2. 3. 4. 5. 6.

Establishment of 164 Welfare Centres. Establishment of Reproductive Health Centres in District Shangla & Chitral. Up-gradation of trainings centers in LRH. 142 male mobilizers will be registered. 4 Regional Directorates will be established in District Mardan, Bannu, Swat and Abbottabad. 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 its 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.

135

Chapter 14: Annual Development Programme

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 Peoples 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.

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Chapter 14: Annual Development Programme

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. business Major opportunities exist for the expansion of employment through 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.

137

Chapter 14: Annual Development Programme

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 crosscutting 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.

138

Chapter 14: Annual Development Programme

Table 14.8 FUNDING FOR FULL CDS IMPLEMENTATION (RS BN) Y1-Y2 Y3-Y5 Y6-Y7 Total Additional CDS Expenditure 158 255 170 583 Added Revenue from GDP 34 86 82 202 growth Added Revenue from hydel 10 15 10 35 346 under Article Foreign Grants and Loans 114 154 78 184 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 14.9 SECTORAL ALLOCATION OF RESOURCES (RS M) Sector Y1-Y2 Y3-Y5 Y6-Y7 Total % Total Governance 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%
139

Annex-I

CDL LIABILITIES AS ON 01-07-2009


(Rs. in million)

Name of Loans (a)


1991-92 1992-93 1993-94 1994-95 1997-98 1999-2000

Rate of mark up

Outstanding liabilities

Cash Development Loans


14.51% 15.24% 15.94% 15.59% 8.50% 11.21% 1590.275 1592.555 1188.66 544.22 2031.772 306.933

(b)

SUB-TOTAL (a) SAP Tied Loans.


1992-93 1993-94 1994-95 1999-2000 15.24% 15.94% 15.59% 11.21% SUB-TOTAL (b)

7254.415
99.137 880.545 324.81 1244.438 2548.93

(C) Cash Development Loans For SCARP Tube well Projects handed over by WAPDA to the Government of NWFP.

Name of Loans
1993-94 1994-95 1995-96 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2005-06 2007-08 2008-09

Rate of mark up
15.94% 15.59% 15.94% 17.71% 11.21% 11.70% 10.72% 7.42% 7.20% 9.79% 9.96% 9.96%

Outstanding liabilities
415.033 421.624 620.073 2.846 1127.523 851.452 482.659 242.677 13.666 341.720 660.786 100

SUB-TOTAL (c) GRAND TOTAL (a + b + c)

5280.059 15083.404

140

Annex-II

FOREIGN EXCHANGE LOAN Liabilities as on 01-07-2009


(Rs. in million)

S.No.

Name of loans
IDA-54-Pak (Highway Project) IDA-678-Pak (3rd Education Project) IDA-683-Pak (Flood Damages Restoration Project) IDA-755-Pak (Hazara Forestry Project) IDA-877-Pak (Salinity Control & Reclamation Project Mardan) IDA-892-Pak (4th Primary Education Project) IDA-1113-Pak (Bannu Leather Goods Services Control Project) IDA-1163-Pak (On-Farm Water Management Project) IDA-1239-Pak (Irrigation System Rehab: Project) IDA-1487-Pak Command Water Mangt Project IDA-1499-Pak (Small Industries Dev. Board Project) IDA-1602-Pak (2nd Primary Education Project) IDA-1603-Pak (On-Farm Water Mangt. Project) IDA-1888-Pak (2nd Irrigation System and Rehabilitation Project) IDA-2003-Pak (1988 Flood Damages Restoration Project) IDA-2154-Pak (2ndAgriculture Research Project) IDA-2240-Pak (Family Health Project) IDA-2593-Pak (Social Action Program Project) IDA-2999-Pak (National Drainage Programme) IDA-3050-Pak (Social Action Programme Project-II) IDA-3687-Pak NWFP Structural Adjustment Credit (SAC I) IDA-3932-Pak NWPF Structural Adjustment Credit (SAC II) IDA-3932-Pak NWPF Structural Adjustment Credit (SAC II) IDA-4177-Pak (Developmental Policy Credit-I) IDA-4316-Pak (Developmental Policy Credit-II) ADB-433-Pak (Aquaculture Dev: Project)

Rate of interest

First No. Of Balance as instalment due Instalments on 1.7.2009 from


80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 15-10-1974 15-2-1987 15-5-1987 04/01/1988 04/01/1989 09/01/1989 08/01/1991 12/01/1991 10/01/1992 15-6-1994 15-1-1995 11/01/1995 11/01/1995 08/01/1998 15-9-1999 11/01/2000 11/01/2001 08/01/2004 15-11-2007 15.9.2008 08/01/2012 *0.018 *0.355 *1.134 *0.217 *12.978 *0.724 *0.572 *1.351 *1.867 *2.473 0.115 *9.751 *2.332 *3.376 *2.234 *3.197 *11.378 *4.462 *1.636 *7.002 *95.753 *90.863 *50.059 *93.039 *129.359 60 half yearly 05/01/1990 *0.156

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 1%

141

Annex-II

FOREIGN EXCHANGE LOAN Liabilities as on 01-07-2009


(Rs. in million)

S.No.

Name of loans
ADB-495-Pak (On Farm Water Mangt. Project) ADB-723-Pak (Chashma Command Area Development Project) ADB-758-Pak (Farm to Market Roads Project) ADB-759 Pak (Science Education for Secondary School Project) ADB-838-Pak (Chitral Area Dev. Project) ADB-850-Pak (3rd Health Project) ADB-851-Pak (Fruit and Vegetable Marketing Project) ADB-874-Pak (Chashma Right Bank Irrigation Project Stage-II) ADB-916-Pak (2nd Aquaculture Dev: Project) ADB-917-Pak (2nd Farm to Market Road Project) ADB-957-Pak (1988-Flood Damages Restoration Project) ADB-973-Pak (Livestock Development Project. ADB-977-Pak (Primary Education Girls Project) ADB-1179-Pak (Barani Area Dev. Project) ADB-1185-Pak (Provincial Highway Project) ADB-1200-Pak (Health Care Dev. Project) ADB-1301-Pak Social Action Program Project-I ADB-1493-Pak Social Action Program Project-II IFAD-18-Pak (4th Agriculture Dev. Project) IFAD-83-Pak (On-Farm Water Mangt. Project) West German No.8267528 (Hospital Equipment in NWFP) West German No. 8267585 (Drinking Water Supply in Refugees Camps in NWFP).

Rate of interest

First No. Of Balance as instalment due Instalments on 1.7.2009 from


60 half yearly 60 half yearly 50 half yearly 60 half yearly 60 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 15-5-1991 15-12-1994 04/01/1996 15-5-1996 15-12-1997 03/01/1998 15-4-1998 15-4-1998 15-1-1999 02/01/1999 10/01/1999 15-2-2000 15-6-2000 15-3-2003 15-3-2003 15-3-2003 15-9-2004 15-03-2007 09/01/1989 06/01/1992 30-6-1994 30-6-1994 Pak Currency *1.477 *23.294 *1.620 *1.132 *15.527 *7.252 *0.799 *5.289 *2.204 *12.796 *2.511 *1.813 *4.286 *19.505 *8.153 *2.574 *11.974 *23.518 *0.474 *0.313 **3.308 **4.700

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0.75% 0.75% Foreign Currency

Name of Currency

U.S. Dollar DM (German Marks) Total


*US Dollar ** DM (German mark)

Conversion rate as on 01.07.2009 672.912 82.5 8.008 54.8372

55515.24 439.136

55954.376

142

Annex-III

DISBURSEMENT OF ON GOING FOREIGN LOANS AGAINST ALLOCATED SHARE AS ON 01-07-2009


(Figures in million) Outstanding Allocated Balance/ Amount Share disbursed upto 30-6-2008

Sr. No.

Name of Loans IDA-2245-Pak (OnFarm Water Management Project) IDA-2383-Pak (Environmental Protection and Resource Conservation Project) IDA-2468-Pak (1992 Flood Damages Restoration Project) IDA-2687-Pak (Primary Education Project) IDA-2829-Pak (NWFP Community Infrastructure Project)

Rate of Interest

No. of instalments

First Instalments due from

0.75%

50 half yearly

15-9-2001

$4.59

*3.671

0.75%

50 half yearly

15-11-2002

SDR 2.196 3.107

*2.563

0.75% 0.75%

50 half yearly 50 half yearly

15-3-2003 15-8-2005

$2.50 $88.89

*2.096 *79.999

0.75%

50 half yearly

07/01/2006

16.662 SDR 10.617

*15.412

IDA 3516-Pak NWFP Emergency Rehabilitation Project IDA 3776-Pak NWFP Provincial HIV/AIDS Control Programme IDA-3906-Pak (Second NWFP Community Infrastructure Project) IDA-6870-Pak (Primary Education Project) ADB-976-Pak (Swabi Salinity Control and Reclamation Project) ADB-1004-Pak (2nd Urban Dev: Project ) ADB-1146-Pak (Chashma Right Bank Irr: Project Stage-III) ADB-1209-Pak (Flood Damages Restor-ation Sectors Project) ADB-1210-Pak (Teacher Training Project) ADB-1278-Pak (Middle School Project) ADB-1294-Pak (Pehur High Level Canal Project)

0.75% 0.75%

50 half yearly

..

*24.843 *0.427

0.75%

*27.238

0.75% 1% 1% 1% 1% 1% 1%

50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 15-12-1999 15-6-2000 15-3-2002 15-3-2003 15-2-2003 15-01-2004 SDR18.126 24.046 SDR51.899 66 SDR50.538 71.156 SDR10.820 15.139 SDR4.354 5.994 $15.60

*1.537 *18.035 *50.325 *57.815 *12.679 *5.020 *13.455

10 11 12

13

14

15

16

1%

50 half yearly

15-05-2004

SDR 91.652 133.545 SDR3.716 5.394 $26.14 SDR29.007 42.6

*110.055

17 18 19

ADB-1373-Pak (Technical Edu: Project) ADB-1401-Pak (Rural Access Road Project) ADB-1403-Pak (Forestry Sector Project)

1% 1% 1%

50 half yearly 50 half yearly 50 half yearly

15-11-2005 02/01/2006 15-5-2006

*4.855 *23.850 *38.873

143

Annex-III

Sr. No.

Name of Loans ADB-1454-Pak (Primary Education Girls ProjectII) ADB 1534 Pak Secondary Education Project ADB 1671 Pak Women Health Project

Rate of Interest

No. of instalments

First Instalments due from

(Figures in million) Outstanding Allocated Balance/ Amount Share disbursed upto 30-6-2008

20

1% 1%

50 half yearly 50 half yearly

1.1.2007 02/01/2008

SDR 2.561 3.625 SDR 6.175 8.197

*3.398 *7.890 *2.493 **54.423 ***0.149

21

22

1% SDR 30.852 41.808 SDR 40.065 52

23

24

ADB-1672 PakMalakand Rural 1% 50 half yearly Dev:Project ADB-1787 Pak- Barani 1% for first ten Area Development year & 1.50% 50 half yearly Project Phase-II

1.9.2008

*40.763

15-05-2009

*50.917 *1.208 **0.205

thereafter 1% 2% 1% 2%

25

ADB-1854Pak NWFP Urban Dev. Project ADB-1877 PakAgriculture Sector Programme(ASPL-II) ADB-1900 PakReproductive Health Project ADB-2103 Pak- WFP Road Dev. Project ADB-2135 Pak Restructuring and Vocational Training System Project IBRD-3327-Pak (OnFarm Water Mangt. Project Phase-III) IFAD-319-Pak (Mansehra Village Support Project)

50 half yearly 32 half yearly 50 half yearly 40 half yearly 02/01/2010 $159.60 13-03-2010

26

*8.630 *0.390 159.6

27

28

29

1%

*0.659

30

0.75%

50 half yearly

15-9-2001

$2.30

*1.840

31

4%

30 half yearly

05/01/1998

SDR10.350 14.557

*3.397

** Japanese Yen

***Euro (Figures in million)

Name of Currency U.S. Dollar Japanese Yen Euro

Foreign Currency 773.933 54.628 0.149 Total

Conversion rate as on 01.07.2009 82.50 0.9057 115.00

Pak Currency 63849.472 49.477 17.135

63916.084

144

GENERAL REVENUE RECEIPTS


(Rupees in Million)

Annex-IV

Description 1-PROVINCAL TAX RECEIPTS GST on Services Agriculture Income Tax Urban Immoveable Property Tax (net) Registration (Transfer of Property) Land Revenue Tax on Professions Provincial Excise Stamp Duties Receipts under Motor Vehicles Acts Entertainment Tax Cess on Tobacco and Goods Electricity Duty Others Hotel Tax II- NON-TAX RECEIPTS Civil Administration Receipts Income from Property & Enterprise Interest Dividends Return on Assets Transferred to WAPDA RECEIPTS FROM GENERAL ADMINISTRATION Fees from Public Service Commission Receipt in aid of Superannuation Weights and Measures

Budget Estimates 2008-09 4,737.330 766.568 90.000 116.630 150.000 758.166 173.225 54.980 701.834 1,137.923 15.000 263.000 450.000 20.000 40.004

Revised Estimates 2008-09 3,786.051 747.471 18.623 67.580 112.899 621.038 83.000 25.000 534.440 851.000 3.000 278.000 420.000 9.000 15.000

Budget Estimates 2009-10 5,991.864 2,110.364 90.000 92.000 150.000 758.166 113.000 33.000 701.834 1,104.500 4.000 381.000 420.000 13.000 21.000

3,473.440 140.000 100.000 36.569 3.431 87.000 16.000 46.000 25.000

3,388.672 150.000 135.000 11.569 3.431 87.000 16.000 46.000 25.000

3,655.700 160.000 140.000 16.569 3.431 93.000 18.000 50.000 25.000

145

GENERAL REVENUE RECEIPTS


(Rupees in Million)

Annex-IV

Description Receipts from Law and Order Administration of Justice Jails and Convict Settlement Police Receipts from Social Services Education Technical Education Health Manpower Management Receipts from Community Services Buildings Communications Public Health Engineering Receipts from Economic Services Agriculture Fisheries Cooperation Forestry Irrigation Industries Stationery and Printing Industrial Safety Explosives Miscellaneous Receipts III-Provincial Receipts I + II IV-FEDERAL TAX ASSIGNMENT Taxes on Income Capital Value Tax

Budget Estimates 2008-09 501.500 91.000 11.000 399.500 357.550 143.550 10.000 198.500 5.500 292.000 72.000 110.000 110.000 1,395.240 116.500 15.000 31.600 584.640 575.000 2.500 30.000 40.000 700.150 8,210.770 59,684.257 27,110.176 373.356

Revised Estimates 2008-09 562.000 91.000 11.000 460.000 369.930 143.600 11.000 209.330 6.000 344.000 85.000 129.000 130.000 1,127.240 83.600 11.500 35.000 584.640 350.000 2.500 30.000 30.000 748.502 7,174.723 56,099.975 25,197.175 346.991

Budget Estimates 2009-10 611.000 91.000 20.000 500.000 407.700 160.700 10.000 231.500 5.500 387.630 100.000 131.630 156.000 1,220.260 115.120 15.000 38.000 584.640 395.000 2.500 30.000 40.000 776.110 9,647.564 67,808.026 31,347.314 425.852

146

GENERAL REVENUE RECEIPTS


(Rupees in Million)

Annex-IV

Description Custom Duties Sales Tax GST (CE Mode) Central Excise V-1/6 of Sales Tax for District Govts and Cantt Boards VI-Straight Transfers Royalty on Crude Oil Royalty on Natural Gas Gas Dev: Surcharge Excise Duty on Natural Gas VII- Grant-In-Aid (Special Grant) VIII-Net Hydel Profit IX- Extra Budgtery Grant (Non-Dev) Total Receipts (III+IX)
th

Budget Estimates 2008-09 9,578.016 13,654.010 2,927.972 6,040.727 7,332.031 4,429.463 2,663.176 642.253 945.023 179.011 14,432.225 6,000.000 0.000 100,088.746

Revised Estimates 2008-09 8,183.273 13,217.331 2,836.299 6,318.906 7,098.409 5,085.483 3,416.524 838.687 656.812 173.460 13,183.310 6,000.000 1,681.828 96,323.728

Budget Estimates 2009-10 9,706.454 15,120.954 3,479.132 7,728.320 7,861.533 7,549.003 2,469.512 2,729.095 2,159.296 191.100 14,822.500 6,000.000 0.000 113,688.626

147

CURRENT REVENUE BUDGET


Budget Estimates 2008-09 47,529.020 Revised Estimates 2008-09 49,784.405

Annex-V
(Rupees in Million)

Classification General Public Service Executive and legislative organs, financial and fiscal affairs, external affairs (Voted) (Charged) Transfers (Inter Governmental) To District Govt (Non Salary) To District Govt (Salary) TMAs Zila Tax, other and Investments General Services Administration of General Public Services General Public Services not elsewhere defined Public Order and Safety Affairs Law Courts (Voted) (Charged) Police Civil Defined Related Services Prison administration and operation Administration of public Order Economic Affairs General Economic, Commercial and Labour affairs Agriculture, Food, Irrigation, Forestry and Fishing Fuel and Energy Mining and Manufacturing Construction and Transport (Voted) (Charged) Other industries

Budget Estimates 2009-10 54,253.158

7,726.000 6,774.519 32,380.000 3,417.000 26,198.000 2,765.000 637.057 1.657 9.787 8,010.289 562.303 159.707 6,637.277 6.839 340.376 303.787 5,684.406 27.885 4,363.530 14.835 93.356 1,178.171 4.015 2.614

8,032.305 6,531.601 34,202.000 3,417.000 28,000.000 2,785.000 1,005.183 1.466 11.850 11,144.914 842.603 188.048 8,906.488 6.215 390.007 811.553 6,487.389 31.157 4,565.908 33.728 105.740 1,697.638 50.000 3.218

8,298.260 8,352.614 36,895.500 3,839.000 29,500.000 3,556.500 693.280 1.802 11.702 11,487.139 852.191 169.166 9,775.801 7.236 385.140 297.605 6,118.510 35.634 4,618.035 27.650 113.810 1,316.329 4.015 3.037

148

CURRENT REVENUE BUDGET


Budget Estimates 2008-09 9.423 56.669 8.059 8.392 40.218 2,704.293 1.746 2,377.078 10.699 314.770 195.847 29.880 18.462 47.959 92.756 6.790 2,791.688 91.894 20.586 2,490.474 38.004 150.730 318.365 259.263 59.102 Total Current Expenditure 67,300.000 Revised Estimates 2008-09 12.075 102.937 8.748 57.509 36.680 2,610.013 2.296 2,445.712 7.810 154.195 264.593 45.828 30.265 69.511 110.500 8.489 3,070.148 93.070 24.483 2,700.117 42.678 209.800 2,123.526 2,063.170 60.356 75,600.000

Annex-V
(Rupees in Million)

Classification Environment Protection Housing and community amenities Housing Development Community development Water supply Health Medical product, appliances & Equipment Hospital servers Public health servers Health administration Recreation, Culture and Religion Recreation and sporting services Cultural services Broad casting and Publishing Religious Affairs Administration of Information, Recreation and Culture Education Affairs and Services Pre-primary and Primary education affairs and services Secondary education affairs and services Tertiary education affairs and services Subsidiary Services to education Administration Social Protection Administration Other

Budget Estimates 2009-10 12.403 28.130 9.500 1.000 17.630 2,989.963 1.889 2,612.754 11.768 363.552 244.152 34.756 23.946 62.376 114.470 8.604 3,942.963 104.957 25.771 3,500.191 47.095 264.949 923.582 857.485 66.097 80,000.000

149

Annex-VI
DEVELOPMENT BUDGET Budget Estimates 2008-09 (Rs. in million) Revised Budget Estimates Estimates 2008-09 2009-10

PARTICULARS A-EXTERNAL RESOURCES I-FOREIGN LOANS ADB LOANS Restructuring of Technical Education & Vocational Training System Program Barani Area Development Project-II 1787-PAK Malakand Rural Development Project NWFP Urban Development Project Road Development Sector & Sub Regional Connectivity Project 2103-PAK Reproductive Health care Project. Renewable Energy Development Project Construction of summar Gah HPP Kohistan. Construction of Mitiltan HPP Swat. Development of Renewable Energy in NWFP IDA LOANS National Education Assessment 3775-N Community Infrastructure Project Enhanced HIV/Aids Control Programme Refugee affected & hosting area Programme. JAPANESE LOAN Japanese Assisted Rural Roads Construction Project Phase II IFAD LOANS NWFP Barani Area Development Project 558-Pak Sub Total (I) Loans II-FOREIGN GRANTS WB CIDA Assisted. Development Partners Coordination Cell P&D Enhanced HIV/Aids Control Programme (3776-Pak) SWISS/NAS/US GRANTS Kohistan Area Development Project Kala Dhaka Area Development Project INRM (Joint Forestry Management) Re-organization of Special Development Unit WFP GRANTS Girls Primary Education Promoting Safe Motherhood Project

100.000 643.767 -

87.119 874.000 11.122 44.326 2,732.250 1.307 134.720 4.987 581.489 48.000 -

3882.500 275.000 1.000 1.000 1.000 100.000 1.000

2,492.000

140.000 450.987 -

10.000

1.000

3,836.754

172.000 200.000 4,691.320 4,462.500

105.000 126.290 81.620 2.400 30.905

105.686 30.905

11.500 0.500 100.000 80.000 1.000 7.000 245.000 -

150

Annex-VI
DEVELOPMENT BUDGET Budget Estimates 2008-09 50.000 11.200 20.000 20.000 10.000 10.000 71.893 10.000 231.132 780.440 4,617.194 32.788.746 8,093.544 468.000 (Rs. in million) Revised Budget Estimates Estimates 2008-09 2009-10 109.000 2.482 7.949 3.009 1.819 0.000 6.000 -

PARTICULARS IDA GRANTS Chitral Gol National Park Protected Area Management HIV/Aids Prevention NWFP Community Infrastructure-II Strengthening of Procurement Regulatory Framework UNDP GRANT National Urban Poverty Alleviation Programme. JAPAN ASSISTED. Gravity Flow Water Supply Scheme, Abbottabad. Deep Drilling Rigs and Tube wells in Districts Kohat and Karak Development Studies for the Improvement of Water supply to Peshawar from Warsak Dam Provision of Steel Bridges in remote areas of NWFP. NORAD GRANT NWFP Basic Education Improvement Project. UK/DFID GRANT. Rural Water Supply and Sanitation Project. GERMAN GRANT. Primary Health Care Project Tuberculosis Control Programme Equipment Basic Health NWFP Sub-Total (II) Grants A-Total External Resources (I + II)

- 1,434.541 42.560 71.893 150.283 -

5.378 0.000 17.600 146.000 398.281 2,181.824 5,089.601 6,644.324 20,723.728 6,137.982 419.535 33688.626 10050.485 574.000

B-Provincial Contribution
C-Special Programme (PSDP) D-Population Welfare Programme

151

Annex-VI

DEVELOPMENT BUDGET
(Rs. in million) 2008-09 DEVELOPMENT PROGRAMME Budget Estimates Revised Estimates Bduget Estimates 2009-10 Annual Dev: Program Foreign Project Assistance Total

A-ANNUAL DEVELOPMENT PROGRAMME Agriculture Building and Housing Drinking Water & Sanitatioin School and Literacy Higher Education Environment Forestry Health Industries Auqaf, Hajj & Minority Affairs Power Regional Development Research and Development Road & Communication Social Welfare Tourism Urban Development Water ST & IT Tameer-e-Sarhad Programme 715.428 802.048 1050.145 4158.734 1348.646 26.684 527.326 4316.917 1241.354 35.100 569.969 6703.090 82.371 6990.890 99.551 263.524 174.820 1278.636 140.158 1240.000 455.855 563.384 1000.145 5853.369 1348.646 15.948 372.336 3831.412 651.373 16.805 422.635 8728.342 66.083 8081.653 94.045 255.032 290.464 979.875 104.458 1240.000 796.663 856.421 1441.169 4574.963 1484.391 40.138 468.625 4333.868 1173.660 35.710 441.308 7772.610 114.895 5137.392 122.509 332.622 195.645 1406.496 157.827 1240.000 278.000 381.000 24.500 3883.500 1.000 246.500 1434.541 395.283 796.663 856.421 2875.710 4970.246 1484.391 40.138 469.625 4580.368 1173.660 35.710 719.308 8153.610 139.395 9020.892 122.509 332.622 195.645 1406.496 157.827 1240.000

152

Annex-VI

DEVELOPMENT BUDGET
(Rs. in million) 2008-09 DEVELOPMENT PROGRAMME Budget Estimates .. 31765.391 1218.000 Revised Estimates 4.042 34375.902 1245.615 Bduget Estimates 2009-10 Annual Dev: Program 419.500 32546.412 1341.735 6644.324 0.000 Foreign Project Assistance Total

Transport Total (A) (B) DISTRICT ADP C) SPECIAL PROGRAMME (PSDP) Establishment of Additional RHS-A Center AJP DERA DTF Education ASDL-II Agriculture NPI Environment Finance Division Health Industries Norcotics Control Division Water & Power People Works Programme-II

419.500 39190.736 1341.735

21.000 108.320 203.100 13.809 384.850 35.204 522.421 1326.920 335.788 161.354 1978.660 300.558 377.810 2323.750 .

11.744 211.953 227.429 13.809 246.349 0 713.179 0.000 0.000 101.500 341.477 143.186 0.000 948.925

32.707 94.915 120.000

32.707 94.915 120.000 0.000

194.282

194.282 0.000

1887.476

1887.476 0.000

325.246 2549.172 19.687

325.246 2549.172 19.687 0.000 0.000

765.000 4062.000

765.000 4062.000

Total ( C ) Population Welfare Programme (D) Total Development Programme (A+B+C+D)

8093.544 468.000 41544.935

2959.551 419.535 39000.603

10050.485 574.000 44512.632

0.000

10050.485 574.000

6644.324

51156.956

153

Annex-VII

Potential Hydel Power Generation Sites


S.No. 1 2 3 4 5 6 Name of Project Allai Khwar, Kohistan Duber Khwar, Kohistan Keyal Khwar, Kohistan Khan Khwar, Swat Golen Gol, Chitral Gomal Zam Dam Capacity (MW) 121 130 130 72 106 17.4 Estimated Cost (Mill. US$) 143.00 163.00 118.00 90.00 117.25 213.82

Hydel Projects for which letters of intent/letters of support have been issued to Private Sector Through Provincial Window (SHYDO): S.No. 1 2 3 Name of Project Matiltan, Swat Mahandry, Mansehra Tangar, Mansehra Status LOS LOI LOI Capacity (MW) 84 13.5 12.5

Through Federal Window (PPIB): S.No. 1 2 3 4 5 6 Name of Project Suki Kinari, Mansehra Madyan, Swat Patrind, Mansehra Sharmai, Dir Gabral-Kalam, Swat Munda Dam, Mohmand Status LOI LOI LOI LOI LOI LOI Capacity (MW) 655 148 130 115 101 740

154

Annex-VII

INVESTMENT OPPORTUNITIES
1. Hydel projects with feasibility study available Name of Project Sammar Gah Hydropower Project, Kohistan Batal Khwar Hydropower Project, Swat Capacity (MW) 28 8.1 Estimated Cost (Mill. US$) 42.00 14.00

S.No. 1 2

2. Medium Size Hydropower Projects (Raw Sites) S.No. 1 2 3 4 Name of Project Bimbal Hydropower Project Kaghan Valley, Naran District Mansehra Arkari Gol Hydropower Project, Chirtal Mastuj River Hydropower Project, Chitral Lutkho River Hydropower Project, Chitral Capacity (MW) 8.1 26.4 8.9 6.4 Estimated Cost (Mill. US$) 12.00 28.58 14.50 9.93

155

Annex-VII

3. Small Hydropower Project (Raw Sites) Region 1: Upper Chitral S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Name of Project Turkho River Alt-2 Dardabahm Gol, Alt-1 Barum Gol Mastuj River 2 Owir Gol Rizhun Gol Rich Gol Dardabahm Gol, Alt-3 Turkho River Alt-1 Laspur River Dardabahm Gol, Alt-2 Tirich Gol, Alt-2A Tirich Gol, Alt-1A Rosh Gol Alt-1 Trich Gol, Alt-3A Chakosh Gol, Alt-1 Kao Gol, Alt-2 Kao Gol, Alt-1 Rosh Gol Alt-2 Capacity (KW) 9,900 1,250 10,000 8,900 2,900 1,550 2,750 400 9,404 3,250 2,200 12,000 12,000 6,200 12,000 925 2,100 1,900 7,700 Unit Cost US$/ KW 1,384.00 1,492.00 1,526.00 1,617.00 1,618.00 1,685.00 1,737.00 1,742.00 1,792.00 1,793.00 1,808.00 1,945.00 1,978.00 2,038.00 2,069.00 2,074.00 2,090.00 2,201.00 2,252.00

156

Annex-VII Region 2: Lower Chitral S.No. 1 2 3 4 5 6 7 8 9 10 11 Name of Project Arkari Gol (Alt-1) Arkari Gol (Alt-2) Y I A Golen Kaghozi Gol (Alt-1) Kaghozi Gol (Alt-2) Lutkho River Murdan Mudan Bizin + Guti Birzin Bumburet Capacity (KW) 26,400 24,000 11,300 1,980 2,270 6,400 1,600 1,230 750 500 1,800 Unit Cost US$/ KW 1,082.00 1,126.00 1,235.00 1,461.00 1,537.00 1,556.00 1,616.00 1,836.00 2,024.00 2,197.00 2,237.00

Region 3: Indus Kohistan S.No. 1 2 3 4 Name of Project Jashil Goh, GI Jashil Gah, Badak Harban Gah, Harbar Seo Khwar Capacity (KW) 2,770 1,390 900 710 Unit Cost US$/ KW 729.00 940.00 2,041.00 2,296.00

Region 4: Swat Valley S.No. 1 2 3 4 5 Name of Project Rehmat Shah Sind, Garral Baral Darra, Garni Chokel Khwar, Ghundoputai Chokel Khwar, Mankial Anakar Gol , Anaker Design Capacity Unit Cost US$/ KW (MW) 860 1,060 890 1,650 760 1,441.00 1,514.00 1,590.00 1,612.00 1,783.00

157

Annex-VII Region 5: Indus Swat/Mansehra West S.No. 1 2 Name of Project Serai, Korora Balkanai Capacity (MW) 13.5 5.0 Specific Cost US$/ KW 1,360.00 1,252.00

Region 6: Kaghan Valley S.No. 1 2 3 Birkhal Kaghan Naran Name of Project Capacity (KW) 6,140 4,080 2,785 Specific Cost US$/ KW 805.00 1,056.00 1,545.00

Region 7: Dir District S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Plant/River Gande Gar, Ushri Khwar Thal, Kunrat Sin Ushiri, Ushri Khwar Ushiri, Ushri Khwar Serai, Zhandsai K. Biar, Panjkora Ganorai, Basaul Khwar Bibior, Panjkora Patrak, Ghaldai Sin Bibior, Panjkora Sheringal, Dok Darra K. Bela Gwaldai Sin Gandrai, Baraul Khwar Kumrat, Kumrat Sin Uper Thal, Kumrat Sin Dir, Dir Khwar Capacity (KW) 3,995 1,350 1,650 900 1,325 1720 1980 12300 1090 12300 710 1950 1150 585 400 450 Unit Cost US$/ KW 1,507.00 1,544.00 2,123.00 2,210.00 2,455.00 2460 2502 2608 2633 2636 2643 2664 3141 3428 3566 4160

158

Annex-VII 17 18 19 20 21 22 23 24 25 26 Janbhatai, Gwaldai Sin Janbhatai, Baraul Khwar Glidag, Gwaldai Sin Kolandai, Dir Khwar Kolandai, Dir Khwar Kater Kili, Dok Darra K. Dohr, Bele Khwar Dir, Dir Khwar Sundraul, Landai Khwar Beraul Bandai, Shingara Khwar 800 690 690 235 235 540 350 155 210 240 4691 4928 5211 5459 5896 6264 6671 7030 7313 8354

Source: Investment opportunities of Hydel Power potential in NWFP SHYDO, NWFP

159

Annex-VIII Annual Development Programme Since 1970-71


(Rs in Million)

Year 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Size of A.D.P 150.570 124.000 212.543 300.000 400.000 576.700 546.800 617.000 669.000 767.000 818.000 980.850 1228.000 1176.500 1244.700 1697.000 2131.250 2472.250 2164.235 2197.625 2506.171 4813.715 6575.385 4959.000 6963.974 7665.634 8711.517 4884.740 6072.386 5745.220 9212.509 7986.220 13673.261 14696.006 16195.025 21000.000 26630.432 39462.372 41544.935 51156.956

Revised Size of A.D.P 124.872 87.404 217.887 285.133 500.000 601.366 640.928 687.642 720.581 702.850 838.350 1002.323 1174.275 1191.500 1245.424 1912.787 2131.250 2471.050 2164.235 2198.649 2851.434 4881.569 5002.873 4764.638 7349.212 8081.917 5659.089 5498.215 7771.653 8057.541 7272.140 8710.147 11289.186 12882.982 15365.249 24397.398 26542.103 32913.949 39000.603

160

Annex-IX

STATE TRADING
(Rupees in Million) Budget Estimates 2009-10

Budget Estimates 200809 A-STATE TRADING IN FOOD GRAINS Gross Receipts Expenditure Net Receipts 48,936.950 48,936.150 (-)0.800

Revised Estimates 2008-09

40,430.852 40430.144 (-) 0.708

77257.381 77256.404 (-) 0.977

Gross Receipts Expenditure Net Receipts

. 0.800 0.708 0.977

161

Annexure-X

N-W.F.P. BUDGET Growth in Provincial Current Revenue Budget And Total Current Revenue Receipts since 1973-74
(Rupees in million) Year
73-74 B.E. R.E. 74-75 B.E. R.E. 75-76 B.E. R.E. 76-77 B.E. R.E. 77-78 B.E. R.E. 78-79 B.E. R.E. 79-80 B.E. R.E. 80-81 B.E. R.E. 81-82 B.E. R.E. 82-83 B.E. R.E. 83-84 B.E. R.E. 84-85 B.E. R.E. 85-86 B.E. R.E. 86-87 B.E. R.E. 87-88 B.E. R.E. 88-89 B.E. R.E. 89-90 B.E. R.E 90-91 B.E. R.E. 91-92 B.E. R.E. 92-93 B.E. R.E. 93-94 B.E. R.E. Provinci al Tax Receipts 50.1 53.9 55.0 51.4 51.6 72.2 74.5 83.7 88.7 93.4 96.8 96.6 101.3 123.0 127.4 143.2 154.4 174.7 188.7 212.0 212.0 238.3 257.5 264.3 288.9 284.1 307.2 303.6 309.3 338.6 369.2 374.7 369.3 405.6 391.6 430.5 440.3 435.7 527.2 688.8 639.0 634.2 Provincial Others Receipts 95.4 81.5 85.6 102.4 104.9 113.1 120.1 93.1 127.2 119.4 135.5 201.3 162.8 209.9 250.0 260.7 276.6 282.6 296.2 308.0 340.2 374.6 375.4 395.9 412.3 414.1 430.2 434.5 466.1 619.5 531.1 556.3 581.8 714.5 691.6 759.8 799.7 864.3 972.8 958.8 1031.0 1040.8 Total Provincial Own Receipts 145.5 135.4 140.6 153.8 156.5 185.3 194.6 176.8 215.9 212.8 232.3 297.9 264.1 332.9 377.4 403.9 431.0 457.3 484.9 520.0 552.2 612.9 632.9 660.2 701.2 698.2 737.4 738.1 775.4 958.1 900.3 931.0 951.1 1120.1 1083.2 1190.3 1240.0 1300.0 1500.0 1647.6 1670.0 1675.0 Net Capital Receipts (-) 8.2 (-) 5.3 (-) 6.0 (-)19.2 7.1 7.9 6.9 2.2 (-) 6.8 14.8 12.7 (-)10.8 11.2 14.8 12.3 13.2 12.3 37.0 16.6 24.8 16.0 50.7 66.8 70.1 75.0 51.8 52.8 34.6 34.6 72.5 74.6 174.8 159.6 197.4 202.4 72.8 25.4 20.7 19.6 19.7 9.3 9.3 Federal Tax Assignment 141.8 136.7 194.5 211.3 305.3 329.3 367.7 373.6 401.1 426.9 461.8 512.3 562.8 736.9 881.3 1060.4 1203.1 1132.6 1223.6 1223.6 1364.3 1374.6 1537.4 1457.0 1622.0 1622.0 1622.0 1615.6 1831.3 1988.6 2204.5 3030.5 3330.2 3934.0 4356.0 4301.6 6582.4 6444.1 7304.0 7366.0 8277.2 9392.1 Net Profits Grants from Federal Govt. 18.9 24.8 22.0 88.8 110.7 151.3 104.8 123.3 104.8 107.6 104.8 108.5 104.8 104.8 104.8 107.3 104.7 106.4 104.8 105.4 104.8 116.6 104.8 119.3 104.7 130.7 104.8 130.3 104.7 111.4 104.8 136.9 104.8 134.8 104.8 132.0 204.8 402.5 204.8 205.2 204.8 209.5 Total Provincial Receipts 298.0 291.6 351.1 434.7 579.6 673.8 674.0 675.9 715.0 762.1 811.6 907.9 942.9 1189.4 1375.8 1584.8 1751.1 1733.3 1829.9 1873.8 2037.3 2154.8 2341.9 2306.6 2502.9 2502.7 2517.0 2518.6 2746.0 3130.6 3284.2 4273.2 4545.7 5386.3 5746.4 5696.7 14040.1 14154.8 15828.4 16038.5 17661.3 17785.9 Current Revenue Expenditur e 304.0 354.8 432.6 551.8 699.5 705.4 862.2 955.9 1149.1 1137.0 1314.3 1391.2 1557.1 1674.8 1877.6 2031.8 2292.9 2538.9 2714.7 2989.7 3454.3 3705.2 4334.7 4512.1 5201.0 5453.7 6466.3 6811.8 7382.9 7997.1 8685.1 8607.4 9291.2 9385.6 10558.7 10281.7 12732.3 12737.3 14370.8 14579.0 16511.3 16635.9 Deficit/ surplus Revenue Account (-) 6.0 (-) 63.2 (-) 81.5 (-) 117.1 (-) 119.9 (-) 31.6 (-) 188.2 (-) 280.0 (-) 434.1 (-) 374.9 (-) 502.7 (-) 483.3 (-) 614.2 (- ) 485.4 (-) 501.8 (-) 447.0 (-)541.8 (-) 805.6 (-) 884.8 (-) 1115.9 (-) 1417.0 (-) 1550.4 (-)1992.8 (-) 2205.5 (-) 2698.1 (-) 2951.0 (-) 3949.3 (-) 4293.2 (-) 4636.9 (-) 4866.5 (-) 5400.9 (-) 4334.2 (-) 4745.5 (-) 3999.3 (-) 4812.3 (-) 4585.0 (+) 1307.8 (+) 1417.5 (+) 1457.6 (+) 1459.5 (+) 1150.0 (+) 1150.0 NonObligatory Grant .. 63.2 .. 96.9 .. 31.6 138.2 223.6 398.7 352.6 456.8 468.4 566.9 475.0 445.8 447.0 531.6 805.6 874.8 1115.9 1396.0 1550.4 1992.8 2205.5 2698.1 2951.0 3949.3 4293.2 4636.9 4866.5 5400.9 4022.6 3735.8 3574.7 3475.6 4029.7 .. .. .. .. .. .. Receivable as per Arbitration Award 6.0 .. 81.5 20.2 119.9 .. 50.0 56.4 35.4 22.3 45.9 14.9 47.3 10.4 56.0 .. 10.2 .. 10.0 .. 21.0 .. .. .. .. .. .. .. .. .. .. 311.6 1009.7 424.6 1336.7 555.3 .. 926.4 .. 1938.9 .. 2898.8

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5987.5 5999.9 6800.0 5680.0 7500.0 5482.0

162

Year 94-95 B.E. R.E. 95-96 B.E. R.E. 96-97 B.E. R.E. 97-98 B.E. R.E. 98-99 B.E. R.E. 1999-2000 B.E. R.E. 2000-01 B.E. R.E. 2001-02 B.E. RE. 2002-03 BE RE 2003-04 BE RE 2004-05 BE RE 2005-06 BE RE 2006-07 BE RE 2007-08 BE RE 2008-09 BE RE 2009-10 BE

Provincial Tax Receipts 686.4 724.3 875.8 810.2 803.3 1006.7 1407.9 1167.7 1472.8 1389.3 1705.4 1592.7 1740.9 1381.8 1862.3 2020.1 1987.9 2140.4 2148.5 2019.1 2278.7 2339.8 2528.5 2633.9 3053.6 3049.5 3809.1 3904.6 4737.3 3749.2

Provincial Others Receipts 1128.0 1272.7 1236.0 1487.3 1596.3 1754.1 1867.1 1714.1 2124.9 2262.8 2336.5 2336.0 2509.1 2,207.7 2096.1 1943.4 2089.9 2103.4 2009.8 1999.8 2149.4 2210.7 2365.5 2555.2 2741.4 2682.3 3172.7 3075.2 3473.4 3425.5

Total Provincial Own Receipts 1814.4 1997.0 2111.8 2297.5 2399.6 2760.8 3275.0 2881.8 3597.7 3652.1 4041.9 3928.7 4250.0 3,589.5 3958.4 3963.5 4077.9 4243.8 4158.3 4018.9 4428.1 4550.5 4894.0 5189.1 5795.0 5731.8 6981.8 6979.8 8210.7 7174.7

Net Capital Receipts 11.7 17.6 12.8 13.9 15.2 629.1 (-) 775.0 (-)381.8 (-) 752.3 (-)646.6 (-)830.2 (-)827.9 (-) 955.0 (-) 648.2 (-) 776.2 (-)953.5 (-)1262.9 + 1047.9 + 1788.5 + 3125.2 + 3132.0 3132.00

Federal Tax Assignment 11139.0 11454.7 13873.1 14345.1 16226.7 16134.5 15064.0 14086.4 16018.6 14579.5 16867.7 16613.6 21227.5 19,217.8 21552.2 19411.8 22728.3 22872.2 25750.4 25660.3 29344.1 30215.0 35458.2 36805.1 44034.5 44645.1 55690.1 55954.2 71445.8 69965.7

Net Profits 7800 6500 7970 6000 8500 6000 9423 6000 10466 6000 11624 6000 12899 6000 14328 6000 15904 6000 17653 6000 8000 6000 8000 6000 8000 6000 6000 6000 6000 6000

Grants from Federal Govt. 4.8 10.0 4.7 4.8 4.8 4.8 3310.0 3327.6 3674.0 3675.3 4078.0 4057.3 4310.7 3827.6 4258.6 3898.0 3898.0 3898.0 3898.0 3898.0 4500.0 45000.0 10000.0 5000.0 9712.5 9765.3 11907.8 11349.1 14432.2 13183.3

Total Provincial Receipts 20769.9 21279.3 23972.4 24631.3 27146.3 28029.1 30297.0 29337.0 33004.0 31726.3 35781.4 35395.7 41732.2 31986.7 44067.3 32323.2 46767.1 37039.3 51459.7 39577.2 46272.2 45265.5 58352.2 65462.8 67542.0 66142.2 80579.7 80283.1 100088.7 96323.7

Current Revenue Expenditur e 19189.9 19404.5 21972.4 23564.0 26862.0 25800.0 30058.5 29451.0 33004.0 32004.0 35493.0 35263.5 39132.2 33673.3 45040.4 34623.0 48564.0 36171.6 47114.7 38400.0 42650.0 42650.0 51062.0 60693.0 54500.0 55173.6 61000.0 61450.0 67300.0 75600.0

Deficit/ surplus Revenue Account (+) 1580.0 (+) 1874.8 (+) 2000.0 (+) 1067.3 (+) 284.3 (+) 2229.1 (+) 238.5 (-) 114.0 .. (-) 277.7 (+) 288.4 (+) 132.2 (+) 2600.0 (-) 1038.4 (-) 973.13 (-) 559.845 (-) 1796.9 + 867.7 + 4345.1 + 1177.2 + 3622.2 +2615.5 +7290.2 (-) 8799.6 (+) 13042.0 (+) 10968.5 (+) 19579.7 (+) 18833.1 (+) 32788.7 (+) 20723.7

NonObligatory Grant .. .. .. .. .. .. .. .. .. .. .. .. ..

Receivable as per Arbitration Award .. 2718.9 .. 4140.8 .. 5154.9 .. 6270.4 .. 7497.4 .. 8847.2

10331.9

398.5 159.0 221.0 ..

1195.1

13761.6

15737.7

.. 12473.2

17911.5

20302.6

22932.9

0.450

25826.2

1682.0

29008.8

5954.9

3692.7

9647.6

83218.5

6000

14822.5

113688.6

80000.0

(+) 33688.6

163

Annex-XI (Rs. in million)

ESTIMATED RESOURCES TO BE TRANSFERRED TO LOCAL GOVERNMENTS FOR THE YEAR 2009-10


Salary
S.No Name of District Salary Others. Death compensation grant. 4 65.105 28.319 38.951 28.992 54.302 42.867 82.597 52.151 51.796 55.413 24.349 38.618 43.242 72.649 47.528 45.681 68.802 56.956 37.791 90.375 53.880 42.531 50.521 26.751 1200.167 0.000 0.000 0.000 69.826 110.000 110.000 110.000 266.890 16.500 5 6.178 4.381 1.866 2.668 5.674 2.998 7.013 5.262 2.487 4.634 1.256 4.090 3.864 1.746 3.802 3.360 7.258 7.933 4.611 9.241 2.064 5.582 6.528 1.643 M&R (Road)

Non-Salary
Electricity Petty Repair CRC (Edu:) (Edu:) 8 31.614 22.528 10.450 14.267 26.890 13.508 29.722 25.487 14.570 25.537 8.553 19.162 19.811 11.297 18.810 15.527 35.096 40.277 23.898 41.239 11.055 29.574 33.242 8.261 9 11.099 7.924 3.890 5.146 9.882 4.345 10.190 9.156 5.161 8.980 2.977 6.831 7.132 4.169 6.563 5.350 12.067 14.639 8.444 14.564 4.068 10.800 11.561 2.765

Development
Total (Col:4:9) NonTotal District Share TMA's Share salary 11+12) 10 176.996 138.152 66.157 78.073 139.748 75.218 209.522 130.056 94.014 184.564 56.335 154.701 134.049 97.861 148.703 105.918 158.223 181.805 134.744 230.419 80.067 141.687 161.852 76.920 3155.784 0.000 0.000 0.000 69.826 110.000 110.000 110.000 266.890 16.500 3839.000 11 33.604 29.104 18.902 23.778 38.855 17.627 35.030 30.828 28.579 27.454 17.552 21.453 24.453 31.729 24.528 20.403 42.380 51.307 33.904 72.009 25.278 38.855 46.731 17.027 12 14.402 12.473 8.101 10.191 16.652 7.555 15.012 13.213 12.248 11.765 7.523 9.194 10.480 13.598 10.512 8.744 18.164 21.988 14.531 30.861 10.834 16.652 20.028 7.298 13 48.006 41.577 27.003 33.969 55.507 25.182 50.042 44.041 40.827 39.219 25.075 30.647 34.933 45.327 35.040 29.147 60.544 73.295 48.435 102.870 36.112 55.507 66.759 24.325 (Col: TMA's Share

Grant in lieu of Octroi & Zilla Tax


C.Bs Share. Total Octroi Zilla Tax (Col:14:15) 16 29.270 26.222 2.904 2.904 21.964 8.339 41.155 6.547 4.651 30.536 18.786 6.815 45.526 4.356 10.104 6.234 19.205 66.843 54.004 238.222 2.904 19.262 43.118 14.221 17 10.091 30.763 1.174 16.623 34.987 32.801 21.824 27.965 12.102 99.205 17.324 10.746 23.505 7.115 11.880 21.988 10.938 39.683 91.489 126.171 1.341 55.163 38.730 6.573 Total OZT 16+17) 18 39.361 56.985 4.078 19.527 56.951 41.140 62.979 34.512 16.753 129.741 36.110 17.561 69.031 11.471 21.984 28.222 30.143 106.526 145.493 364.393 4.245 74.425 81.848 20.794 (Col G.Total (Col:3+10+ 13+18) 19 1917.642 1409.235 596.585 845.639 1770.655 944.094 2199.333 1616.794 817.142 1593.679 453.715 1297.511 1272.057 621.837 1223.264 1062.397 2191.203 2484.567 1562.603 3170.751 672.745 1765.449 2057.507 561.616

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2 Abbottabad Bannu. Battagram. Buner Charsadda. Chitral. D.I.Khan. Dir(Lower) Dir(Upper). Haripur. Hangu Karak. Kohat. Kohistan. Lakki Marwat Malakand Mansehra. Mardan. Nowshera Peshawar Shangla. Swabi Swat. Tank.

3 1653.279 1172.521 499.347 714.070 1518.449 802.554 1876.790 1408.185 665.548 1240.155 336.195 1094.602 1034.044 467.178 1017.537 899.110 1942.293 2122.941 1233.931 2473.069 552.321 1493.830 1747.048 439.577 28404.574 0.000 0.000 1095.426 0.000 0.000 0.000 0.000 0.000 0.000 29500.000

6 10.000 10.000 6.000 6.000 10.000 6.000 10.000 10.000 6.000 10.000 6.000 6.000 10.000 6.000 6.000 10.000 10.000 10.000 10.000 10.000 6.000 10.000 10.000 6.000

7 53.000 65.000 5.000 21.000 33.000 5.500 70.000 28.000 14.000 80.000 13.200 80.000 50.000 2.000 66.000 26.000 25.000 52.000 50.000 65.000 3.000 43.200 50.000 31.500

14 22.400 23.277 2.904 2.904 21.964 8.339 40.577 6.547 4.651 30.536 18.786 6.815 37.361 4.356 10.104 6.234 19.205 62.464 40.579 207.263 2.904 19.262 43.118 14.221

15 6.870 2.945 0.000 0.000 0.000 0.000 0.578 0.000 0.000 0.000 0.000 0.000 8.165 0.000 0.000 0.000 0.000 4.379 13.425 30.959 0.000 0.000 0.000 0.000

Total:CM's Directives FM's Directives Grant on need basis Performance based budget grant Matching Grant/other emergent requirement. Grant for special repair/furniture/ JuteTats Grant for Emergency Medicine (DHQHs) Grant for Medicine BHUs. Advertisement charges

106.139
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

200.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

931.400
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

530.375
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

187.703
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

751.370
134.173 134.173 0.000 0.000 0.000 0.000 0.000 0.000 0.000 1019.716

322.019
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

1073.389
134.173 134.173 0.000 0.000 0.000 0.000 0.000 0.000 0.000

656.771
0.000 0.000 82.227 0.000 0.000 0.000 0.000 0.000 0.000

67.321
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

724.092
0.000 0.000 82.227 0.000 0.000 0.000 0.000 0.000 0.000

750.181
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

1474.273
0.000 0.000 82.227 0.000 0.000 0.000 0.000 0.000 0.000

34108.020
134.173 134.173 1177.653 69.826 110.000 110.000 110.000 266.890 16.500

Grand Total:-

1883.383

106.139

200.000

931.400

530.375

187.703

322.019

1341.735

738.998

67.321

806.319

750.181

1556.500

36237.235

164