The National Economic Council (NEC) Thursday approved the annual plan for the next year 2012-13 with a growth rate of 4.3percent, national development outlay of Rs.863 billion including Federal PSDP of Rs.360 billion.

The NEC meeting chaired by Prime Minister Syed Yusuf Raza Gilani here at the PM Secretariat was attended by Finance Minister Dr Abdul Hafeez Shaikh, Governor KPK, Chief Ministers of Sindh, KPK, GB, Ishaq Dar and Chief Secretary Balochistan.

A statement released from the PM House pointed the salient features of the proposed PSDP 2012-13 as; -

Total National Development Outlays 2012-13 has been proposed at Rs.863 Billion, wherein Federal PSDP would amount to Rs.350 Billion. -

Ministries and Divisions have formulated their own development priorities while remaining in their approved ceilings and adopting guidelines of the Planning Commission and Finance Division. -

Emphasis has been placed on completion of ongoing priority projects during 2012-13. -

New unapproved projects were discouraged as they may cause thin spread resource allocation resulting in time and cost overrun. -

It was ensured that Foreign Assistance was not underestimated. In the total proposed PSDP 2012-13, the size of this Assistance has been estimated at Rs.100 Billion.

The Council during its meeting also reviewed and approved the Annual Plan 2011-12 and 2012-13, Review of PSDP 2011-12 and approved PSDP 2012-13, Implementation Plan of Framework for Economic Growth and Progress Report of the Schemes Approved by CDWP and ECNEC.

While reviewing the Annual Plan 2011-12 and proposed Annual Plan 2012-13, the NEC was informed that the performance of the economy during the current fiscal year was satisfactory. The GDP growth was expected to be 3.7percent as against 3percent achieved during the last year.

The size of GDP (mp) has been estimated at Rs.20.7 trillion (US$ 232 billion).

Total investment as percentage of GDP will be at 12.5percent during the current fiscal year, slightly lower than the revised estimates of 13percent during the last year mainly due to reduction in the national savings from 13.1percent to 10.8percent at the corresponding period of last year.

On the external front, exports and imports have been estimated at around $ 25 billion and $ 40 billion, respectively with current account balance of -1.7percent.

Tax revenue during the period July-April 2011-12 was Rs.1,246 Billion, while workers remittances stand at US$ 10.8 Billion during the same period. Inflation during July-April, 2011-12 has been maintained at 10.8percent against 13.8percent during the corresponding period last year. Inflation during 2012-13 will be further brought down to 9.5percent.

The NEC approved growth targets of 4.3 as envisaged in the Annual Plan 2012-13 under the Growth Strategy. The targets will be achieved through improvement in productivity and competitiveness, reforms in the markets, promoting cities as regional clusters, improving connectivity, reforming the civil service, institutions and PSEs, harnessing the potential of youth and embarking on result based management.

It was informed that no reduction in current year’s PSDP size was made to help restore GDP growth. As such, the National Development Outlays 2011-12 remained at Rs.730 Billion. The proposed PSDP 2012-13 has been prepared in line with the growth strategy framework to ensure inclusive growth, reduce poverty, achieve MDGs, minimize wastage and ensure balanced development, food, water and energy security.

The proposed PSDP 2012-13 also articulates the division of subjects between Provincial and Federal Governments after passage of the Constitutional 18th Amendment.

Source: APP