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ADP 2016-17.Pdf

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ADP 2016-17.Pdf PREFACE The National Economic Council in its meeting held on 30th May, 2016 approved Block Allocation of Rs. 12,000 million in Federal PSDP under KA&GB Division for Development Program of Azad Jammu & Kashmir (AJ&K) for the year 2016-17 raising the allocation by 9.3% over financial year 2015-16. The Development Program of AJ&K also includes foreign aid component of Rs. 500 million for Islamic Development Bank assisted Education Sector projects besides World Bank and ADB assisted Flood Damages Restoration Projects. The Development Program has been formulated with a view to translate Government of Pakistan’s Vision 2025 and goals and objectives set for SDG’s into reality. Transport & Communication Sector is the major recipient of allocation during 2016- 17 for up-gradation and modernization of communication infrastructure for better regional connectivity. The second priority has been assigned to Education Sector followed by Power, PP&H, LG&RD, Development Authorities, Foreign Aided projects and Health Sectors. The overall portfolio comprises 489 ongoing and 87 new projects while 125 projects have been planned for completion during 2016-17. The Program has been realigned by enhancing the allocations for productive sectors to realize economic growth through well coordinated strategies ensuring comprehensive multi sectoral development programs by involving local communities to enhance the revenue base of the state to increase income and employment. The efforts have also been made to ensure completion of ongoing projects to combat time and cost overruns and timely provision of services to the targeted populace. Almost 86 % funds are allocated to on-going portfolio to ensure completion of targeted projects. For allocation of resources under the program, inter district equity has been maintained and national criteria (weight age of 80% and 20% for population and area respectively) has been the guiding principle. Besides, emphasis has also been laid on socio-economic development and improved services to the masses. An effective external result based monitoring and evaluation system supported with MIS, has been devised and placed in Planning & Development Department, GoAJK through which projects shall be closely monitored for outputs, outcomes, quality assurance and transparency. A special provision for research and development catering for surveys, studies and pilot projects has been made to create a knowledge and information bank for steering a future development programs. Dr. Tashfeen Khan Addl. Chief Secretary Development EXECUTIVE SUMMARY AJK is located in the Himalayan belt, between 73o to 75o East longitudes and 33o to 35o North Latitude, with an area of 13297 Km2. The physiography is mainly hilly and mountainous terrain, with small terraced plains in the bottom of valleys, which are deeply incised by rivers. The southern part of the territory consists of a narrow zone of plains comprising deep fertile soils having excellent agriculture development potential. The mountain ecosystems of AJK are fragile with low inherent productivity. They are characterized by a large variety of ecological niches upon which people base their livelihoods. The area is endowed with natural beauty, thick forests, vast rangelands, terraced agricultural fields, fast flowing rivers, springs and diversified natural flora and fauna. AJK’s economy primarily depends on the productivity of cereal crops, forestry, livestock, and remittances from workers outside AJK and abroad. There is an increase in the off-farm employment, which is at an average of one adult member per family. GoAJK’s Vision 2025 and Goals/objectives set for SDG’s of our human capital and natural resource base by meeting pre-requisite of sustainable development which inter alia, includes consistency and continuity in economic policies, good governance, development of physical, social and technological infrastructure, presence of properly skilled, educated and enlightened work force and close coordination amongst communities, universities, research & development institution, vocational training institutes and industry.The objectives, goals and targets of the vision would be achieved by seamless integration of resources available from Annual Development Plan, Federal PSDP, Donors, International Development Agencies, Foreign Direct Investment and productivity enhancement through value addition, skill enhancement of communities and capacity building of service providers. We understand that education and health are basic facets of human development, hence are allocated sufficient resources in ADP. Government places high focus on skill enhancement by setting up AJK TEVTA to bridge the capacity gap and to launch a crash vocational training program to better equip our youth in overcoming the future challenges. Investment in infrastructure development and governance could lead to poverty alleviation and have been assigned the top most priority as such. Annual Development Plan 2016-17 is focused on identifying the most promising sectors for investment aiming at fast track socio economic development and productivity enhancement. They broadly include human resource development and institutional reforms, improved infrastructure, social sector development and productivity. Special focus is on hydropower generation, eco-tourism, high-tech agriculture, value addition and WATSAN. Rationalization and consolidation of public sector investment will gear the limited financial resources towards the most critical areas having the greatest margins for development and pivot the focus from hardcore infrastructure to socio economic development. Infrastructure is a key component of an enabling environment for economic growth and social development. Enterprises need adequate transportation systems to access markets for their goods and services.There is a growing consensus that to reduce poverty, development efforts need to focus on stimulating sustainable long-term national, regional and local economic growth. Hence the Government is attaching the highest priority to road sector development which is the only viable mean of transportation in AJK. The biggest chunk of resources 65% of total ADP is allocated to infrastructure sector, with higher focus on major roads, followed by 19% & 16% of social and productive sectors respectively. Cost of infrastructure development here is very high due to rugged terrain and remoteness. Most of the sector allocations, around 86%, go to ongoing projects. Schemes at advance stages of completion get full allocation for early accruing of benefits to the people. Emergency nature new schemes have been considered only. Foreign Funded Projects Portfolio remained almost at naught over last 6-8 years. Drying up of external resources added to development financial constraints of GoAJK. With the approval of Islamic Development funded two education sector projects and the Asian Development Bank & World Bank funded flood 2014 reconstruction and resilience improvement program, the size of foreign aid portfolio has grown to Rs. 14.100 billion and sizable investment would be made over next 3-4 years. Injection of these projects will eat into over development lag and ease out the burden on PSDP. There are few hydropower sector projects in pipeline at advance stage of approval under foreign aid component as well. GoAJK’s projected development outlay for the year 2016-17 is planned at Rs. 12.000 billion. This allocation shows an increase of around 4.3 % over year 2014-15 block allocation. The approved schemes’ portfolio comprises of 489 schemes; with an estimated cost of Rs. 104.639 billion, expenditure ending June 2016 was Rs. 44.154 billion. Therefore, throw forward of the approved projects’ portfolio beyond 2016-17 is worked out to be Rs. 57.719 billion maintaining the level at the permissible limit of 4.5 years. Number of schemes targeted for completion is 125. The development outlay for the year 2015-16 was planned Rs. 11.500 billion. Development schemes portfolio comprised of 751 schemes; 583 ongoing with an allocation of Rs. 9.288 billion and 168 new schemes with an allocation of Rs. 2.212 billion. Ongoing schemes were allocated 81 % of ADP, while new schemes got 19%. Number of schemes targeted for completion was 119 but only 98 were completed, remaining 21 were extended. The capacity of the Government Departments for sustainable development planning, implementation, monitoring & evaluation and delivery of services is being upgraded. The roles and responsibilities of service providers, facilitators and beneficiaries would be re- delineated and strengthened to realize objectives of the Vision 2025. Keeping in view, our vast natural resource endowment, hardworking nature of our people, firm commitment of present Government in AJK, strong support of Government of Pakistan and tremendous resilience shown by our people in floods and earthquake disasters, these are definitely achievable. Almighty Allah may guide us onto the right path through His eternal blessings and kindness. Mansoor Qadir Dar Secretary P&DD SUMMARY ANNUAL DEVELOPMENT PROGRAMME 2016-17, AZAD JAMMU & KASHMIR (Rupees in Million) Financial Progress Expected Throw Expected No. of Approved(Rev.)/ Budget Revised Allocation Progress Upto Forward Sector/Sub-Sector Expenditure Schemes Estimated Cost Estimates Estimates 2016-17 June 2017 as on Upto June 2015-16 2015-16 (%) 01-07-2017 2016 1 2 3 4 5 6 7 8 9 1-Agriculture a.) Crops & Horticulture On Going 13 1,149.238 90.000 100.000 429.968 123.000 48% 596.270 New 2 283.498 10.000 0.000 0.000
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