TABLE OF CONTENTS
CHAPTER DESCRIPTION PAGE
GENERAL ABSTRACT 20132013----20142014 General Abstract of Revenue s & Expenditure for the Year i 2013-2014 Budget at a Glance ii Summary Position of Revenues for the Year 2012 -13 & iii 2013-2014 Summary Position of Expenditure for the Year 2012 -13 iv & 2013-2014 20122012----20132013 AN OVERVIEW
1 Current Revenue Expenditure 1
2 Sectoral Expenditure 4
3 Provincial Revenue Receipts 16
4 Capital Receipts and Expenditures 22
5 Local Government Act 2012 29
GROWTH AND DEVELOPDEVELOPMENTMENT
6 Hydro Electric Power Potential 32
7 Revenues from Oil and Gas 37
8 7th National Finance Commission 44
PUBLIC FINANCIAL MANAGEMENT
9 Public Financial Management (PFM) 48
10 Bank of Khyber 60
11 Funds Management 66
12 Annual Development Programme 2013-14 71
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ANNEXURES DESCRIPTION PAGE
I CDL Liabilities as on 01-07-2013 109
II Detail of Premature Debt Retirement 110
III Foreign Exchange Loan Liabilities as on 01-07-2013 111
Disbursement of Loans in R/o of Ongoing Foreign IV 113 Projects Share as on 30-06-2013
V General Revenue Receipts 114
VI Current Revenue Expenditure 117
Development Budget by Sector for the Year 2012-13 VII 119 & 2013-14 Annual Development Programme Since 1971-72 on VIII 124 ward Growth in Current Revenue Budget & Revenue IX 125 Receipts Since 1974-75 on ward Grant Wise General Abstract of Current Budget for the X 127 Year 2013-14
www.financekpp.gov.pk FOREWORD
White Paper reflects the Provincial Government’s policies and presents an overview of the financial position of the Provincial Government. It provides a summary position of revenues from all sources (Revenue & Capital) and estimated expenditure of all the departments. It also presents a comparative analysis of the estimates for the Financial Year 2013-14 with those of Financial Year 2012-13 along with detailed analysis of the Annual Development Program. It is envisaged that the inside provided by this document, will enable the reader to formulate an informed opinion about the Budget Estimates.
2. While formulating budget for the Financial Year 2013-14 due concentration has been emphasized on effective and efficient resource allocation, need based prioritization of spending, performance and monitoring. The budget for the Financial Year 2013-14 has been devised to promote Economic Growth and Development in the Province. The budget has been prepared in consultation with all stakeholders to seek their guidance in the preparation of a business friendly budget.
3. In order to improve the service delivery outcomes and strengthen the Public Financial Management system of the province, the Output Based Budgeting under MTBF shall continue in all provincial departments. The Output Based Budget unlike traditional incremental budgeting allocates resources to strategic priorities of the government and links departmental outcomes, outputs, targets and indicators.
4. It gives me immense pleasure to highlight the success stories of District Conditional Grants Programme that was extended to six districts. The overarching objective of introducing Conditional Grants is to improve Service Delivery in Education and Health Sectors at the grass root level and tie operational budget with better results. In Budget Estimates 2013-14 Rs. 1.00 billion are allocated for successful continuity of the programme.
www.financekpp.gov.pk 5. In order to achieve a sustainable improvement in the coverage and quality of frontline public service delivery through the active involvement of local communities, the Govt. of Khyber Pakhtunkhwa approved “Community Driven Local Development Policy and Frame Work”. Community Driven Local Development initiatives operates on the principles of local empowerment, participatory governance, greater downward accountability and will be initiated in six districts of Malakand Division in cooperative with European Union’s budget.
6. The budget support funds, for the next Financial Year is based on the vision and strategic directions of the new government, especially of the Honorable Chief Minister, Khyber Pakhtunkhwa, Mr. Pervez Khattak and Minister for Finance, Mr. Siraj-Ul-Haq. I am thankful to them for their support and guidance at every step of the budget formulation.
7. I avail this opportunity to acknowledge the dedication and hard work put in by the Officers/officials of Finance Department to accomplish the time bound uphill task of budget preparation. I am grateful for the unrelenting support provided by the line departments, in the compilation of the white paper, and other budgetary documents.
(SAHIBZADA SAEED AHMAD) Secretary Finance Government of Khyber Pakhtunkhwa 17 th June, 2013
www.financekpp.gov.pk GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2013-2014
(Rs. In Million) Budget Budget REVENUES Estimates EXPENDITURE Estimates 2013-14 2013-14 A-General Revenue Receipts A-Current Revenue Expenditure
Federal Tax Assignment 198,269.368 General Public Service 59,694.034 1% of Divisble Pool for 23,823.481 Civil Defence 59.449 War on Terror Straight Transfers 27,495.741 Public Order and Safety Affairs 30,028.891
GST on Services (Provincial) 6,000.000 Economic Affairs 17,524.015 Provincial Own Receipts 8,559.263 Environmental Protection 29.571 (Tax & Non Tax) Net Profit from Hydel Power Generation 6,000.000 Housing and Community Amenities 4,293.132
Arears of Net Hydel Profit 25,000.000 Health (Excluding Health Education) 19,108.777
Hydel Power Own Generation 2,361.256 Recreation, Culture and Religion 737.289 Education Affairs and Services Population Welfare Programme 477.000 72,687.935 (Including Health Education etc) Social Protection 6,836.907
Total-A 297,986.109 Total-A 211,000.000 B-General Capital Receipts B-Current Capital Expenditure
Recoveries of Loans & Advances 250.000 Repayment of Loans 8,710.000
Loans and Advances 6,290.000
Total-B 250.000 Total-B 15,000.000 C-Development Reciepts C-Development Expenditure
Operational Shortfall 10,763.891 ADP including operational shortfall 83,000.000
Foreign Projects Assistance 35,000.000 Foreign Projects Assistance 35,000.000
Total-C 45,763.891 Total-C 118,000.000
Total Revenues (Account-I) 344,000.000 Total Expenditure (Account-I) 344,000.000
Receipts and Recoveries Capital Expenditure 98,000.000 98,000.000 (Account-II) (Account-II)
www.financekpp.gov.pk i BUDGET AT A GLANCE (Rs.In Million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14
A - GENERAL REVENUE BUDGET
General Revenue Receipts 279,492.000 245,925.696 297,986.109
Revenue Expenditure 191,600.000 195,000.000 211,000.000
Net Revenue Account (Deficit/Surplus) 87,892.000 50,925.696 86,986.109
B - CURRENT CAPITAL BUDGET
General Capital Receipts 250.000 250.000 250.000
Current Capital Expenditure 13,942.000 13,942.000 15,000.000
Net Capital Account (Deficit/Surplus) (13,692.000) (13,692.000) (14,750.000)
C-Surplus for Development (A+B) 74,200.000 37,233.696 72,236.109
D - ADP FINANCING ITEMS
Operational Shortfall - - 10,763.891
Foreign Project Assistance 23,258.000 10,759.510 35,000.000
Other Grants - 4,137.416 -
Total ADP Financing Items 23,258.000 14,896.926 45,763.891
Resources for Development 97,458.000 52,130.622 118,000.000
Development Expenditure 97,458.000 88,130.610 118,000.000
Total Resources (A+B+C+D) 303,000.000 261,072.622 344,000.000
Total Expenditure (A+B+D) 303,000.000 297,072.610 344,000.000
Net (Deficit/Surplus) (Account-I) - (35,999.988) -
General Capital Expenditure (Account-II) 87,786.372 31,184.966 98,000.000
Less Receipts and Recoveries (87,786.372) (31,184.966) (98,000.000)
Net (Deficit/Surplus) (Account-II) - - -
ii www.financekpp.gov.pk SUMMARY POSITION OF REVENUES FOR THE YEAR 2012-13 & 2013-14
(Rs.In Million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14 A-General Revenue Receipts Federal Tax Assignment 183,684.937 160,564.157 198,269.368 1% Divisible Pool for War on Terror 22,071.058 19,292.930 23,823.481 Straight Transfers 22,157.543 19,924.970 27,495.741 GST on Services (Provincial) 9,886.394 4,289.590 6,000.000 Provincial Own Receipts (Tax & Non-Tax) 7,812.221 7,964.118 8,559.263 Net Profit from Hydel Power Generation 6,000.000 6,000.000 6,000.000 Arears of Net Hydel Profit 25,000.000 25,000.000 25,000.000 Population Welfare Programme 477.403 743.385 477.000 Hydel Power Own Generation 2,402.444 2,146.546 2,361.256 Total General Revenue Receipts (A) 279,492.000 245,925.696 297,986.109 B-General Capital Receipts Recoveries of Loans & Advances 250.000 250.000 250.000 Total General Capital Receipts (B) 250.000 250.000 250.000 C-Development Receipts Special Federal Grant PSDP (i+ii) - 2,446.515 - of which: i Grants - 2,411.635 ii. Loans - 34.880 Other Foreign Grants - 1,690.901 Foreign Project Assistance 23,258.000 10,759.510 35,000.000 Operational Shortfall - - 10,763.891 Total Development Receipts (C) 23,258.000 14,896.926 45,763.891 Total Revenues (A+B+C) 303,000.000 261,072.622 344,000.000
iii www.financekpp.gov.pk SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2012-13 & 2013-14
(Rs. in million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14 A-Current Revenue Expenditure General Public Service 43,996.882 125,832.153 59,694.034 Civil Defence 83,839.264 - 59.449 Public order and Safety Affairs 28,783.827 29,856.936 30,028.891 Economic Affairs 11,376.305 12,450.499 17,524.015 Environmental Protection 22.479 22.455 29.571 Housing and Community Amenities 193.326 190.673 4,293.132 Health (Excluding Health Education) 7,236.251 7,646.447 19,108.777 Recreation, Culture& Religion 604.753 642.022 737.289 Education Affairs and Services 10,972.648 11,225.143 72,687.935 (Including Health Education etc) Social Protection 4,574.265 7,133.672 6,836.907 Total Current Revenue Expenditure (A) 191,600.000 195,000.000 211,000.000 B-Current Capital Expenditure (i) Financial & Fiscal Affairs 7,939.000 7,939.000 8,710.000 of which Foreign Debt Management 3,699.992 3,822.330 4,385.306 of which Domestic Debt Management 4,239.008 4,116.670 4,324.694 (ii) Financial & Fiscal Affairs 6,003.000 6,003.000 6,290.000 Total Current Capital Expenditure (B) (i+ii) 13,942.000 13,942.000 15,000.000 C-Development Expenditure Provincial ADP 72,527.670 71,977.668 83,000.000 Districts ADP 1,672.330 1,672.330 - Special Federal Progamme PSDP (i+ii) 0.000 3,721.102 0.000 of which: i Grants 3,686.405 ii Loans 34.697 Foreign Project Assistance 23,258.000 10,759.510 35,000.000 Total Development Expenditure (C) 97,458.000 88,130.610 118,000.000 Total Expenditure (A+B+C) 303,000.000 297,072.610 344,000.000
www.financekpp.gov.pk iv 2012-2013 AN OVERVIEW
Khyber Pakhtunkhwa is one of the least-developed and crisis-prone province of Pakistan. Located in far north of the country, it covers 10% of the total land area and is home to 13% of the country’s population spread over seven administrative divisions. Khyber Pakhtunkhwa is confronted with numerous challenges. The economy of the province has been adversely affected during the past several years due to unstable security situation.
During budget for the FY 2012-13, ample funds were allocated to avenues of economic growth in the province, like, Hydel power generation, oil and gas exploration, tourism, mineral development and agriculture. For the social uplift of the province, resources were generously committed to Social sectors, like Education, Health and Population welfare.
In the FY 2012-13, the governance enacted the Local Government Act 2012, which change the optics of governance at districts. In pursuance of the LGA 2012, Budget 2013-14 (salary and non salary) has been remodeled on the Pre-2001 format and necessary adjustments in relevant grants have been made. This is a vital deviation from the budget formats of the past 12 years and must be kept in mind while reviewing Budget 2013-14.
This chapter briefly highlight the Revenue and Expenditure statements in respect of Provincial Government Departments.
www.financekpp.gov.pk WHITE PAPER 2013-14
CURRENT REVENUE EXPENDITURE
The next year budget 2013-14 has been segregated into three parts i.e Welfare, Administration and Development Budget. The detail is given below:- (Rs. In Million) Budget Budget S.No Description Estimates % Estimates % 2012-13 2013-14 1 Welfare Budget 151,469.418 50 162,969.040 47 2 Administrative Budget 54,072.582 18 63,030.960 18 3 Development Budget 97 ,458.000 32 118,000.000 34 Total 303,000.000 100 344,000.000 100
WELFARE BUDGET:
A sum of Rs. 162,969.040 million has been allocated for utilization under Welfare Budget 2013- 14, which is 47% of the total budget of Rs. 344,000.000 million which includes the following departments:- (Rs. In Million) Budget Revised Budget Department Estimates Estimates Estimates 2012-13 2012-13 2013-14 HIGHER EDUCATION, ARCHIVES & 5,390.615 5,444.445 6,055.093 LIBRARIES HEALTH 10,330.374 10,797.888 22,807.005 COMMUNICATION AND WORKS 436.703 436.703 2,261.341 DEPARTMENT ROADS HIGHWAYS & BRIDGES (REPAIR) 1,455.000 1,565.783 1,881.000
BUILDING & STRUCTURE (REPAIR) 560.765 627.800 783.702
BUILDING & STRUCTURE (REPAIR) 4.015 31.435 4.015
PUBLIC HEALTH ENGINEERING 167.032 164.379 4,246.762
LOCAL GOVERNMENT DEPARTMENT 58.329 76.685 1,601.734
AGRICULTURE 1,238.666 1,198.405 2,913.869
ANIMAL HUSBANDRY 438.017 436.347 1,466.202
CO-OPERATION 22.808 22.808 140.020
ENVIRONMENT AND FORESTRY 1,117.283 1,316.510 1,275.122
FORESTRY (WILDLIFE) 253.455 289.773 289.786
FISHERIES 65.827 62.698 168.883
IRRIGATION 2,799.913 2,899.100 3,122.158
1 Chapter No. 1 : Current Revenue Expenditure
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INDUSTRIES 80.748 149.160 184.372 MINERAL DEVELOPMENT AND 336.950 301.197 364.479 INSPECTORATE OF STATIONERY AND PRINTING 78.790 78.504 88.104
POPULATION WELFARE DEPARTMENT 207.679 148.021 1,072.920
TECHNICAL EDUCATION AND MANPOWER 1,732.692 1,599.033 1,972.441
LABOUR 95.266 95.149 175.823 INFORMATION, CULTURE & PUBLIC 265.896 264.414 274.165 RELATIONS SOCIAL WELFARE, SPECIAL EDUCATION 189.469 193.544 928.324
ZAKAT & USHER DEPARTMENT 116.994 124.466 134.125
SUBSIDIES 2,500.000 2,500.000 2,500.000 GOVT INVESTMENT & COMMITTED 9,000.000 9,000.000 10,000.000 CONTRIBUTION AUQAF, RELIGIOUS, MINORITY & HAJJ 101.729 74.746 112.812
SPORTS, TOURISM & MUSEUMS 187.010 255.935 303.224
DISTRICT NON SALARY 9,164.714 10,558.060 0.100
GRANT IN LIEU OF OCTROI AND ZILA TAX 3,536.107 3,536.107 3,740.718
HOUSING DEPARTMENT 22.294 22.294 26.370
DISTRICT SALARY 71,138.443 67,551.744 0.100
INTER PROVINCIAL COORDINATION DEPTT 23.914 23.974 30.469
ENERGY AND POWER DEPARTMENT 72.069 702.247 58.965
TRANSPORT DEPARTMENT 75.162 57.371 109.921
ELEMENTARY AND SECONDARY EDUCATION 681.068 945.297 60,552.937
RELIEF REHABILITATION AND SETTLEMENT 4,018.622 6,606.035 5,152.578
DEBT SERVICING ( INTEREST PAYMENT ) 6,263.000 6,293.053 7,196.057
DEBT SER. ( APPRO. FOR REDUCTION OR 3,300.000 3,269.947 3,973.344
LOANS AND ADVANCES 6,003.000 6,003.000 6,290.000 DEBT SERVICING (LOAN FROM FEDERAL 7,939.000 7,939.000 8,710.000 GOVT. Total Welfare Budget 151,469.418 153,663.057 162,969.040
2 Chapter No. 1 : Current Revenue Expenditure
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ADMINISTRATIVE BUDGET:
A sum of Rs. 63,030.960 million has been allocated for Administration Budget 2013-14, which is 18% of the total budget of RS. 344,000.000 million which includes the following departments:-
(Rs. In Million) Budget Revised Budget Department Estimates Estimates Estimates 2012-13 2012-13 2013-14 PROVINCIAL ASSEMBLY 433.255 476.562 517.592
GENERAL ADMINISTRATION 1,583.507 1,929.729 1,832.128
FINANCE, TREASURIES & LOCAL FUND AUDIT 644.533 570.425 2,586.333 PLANNING & DEVELOPMENT & BUREAU OF 212.268 179.046 242.502 STATISTCS INFORMATION TECHNOLOGY DEPARTMENT 49.098 45.224 54.179
REVENUE & ESTATE DEPARTMENT 834.229 708.412 3,502.897
EXCISE AND TAXATION DEPARTMENT 115.769 113.865 459.451
HOME DEPARTMENT 1,396.744 1,254.428 1,132.914
CIVIL DEFENCE 10.835 10.699 -
JAILS & CONVICTS SETTLEMENT 913.010 1,268.515 1,072.223
POLICE 23,355.613 23,514.912 23,781.398
ADMINISTRATION OF JUSTICE 2,941.925 3,625.330 3,849.343
PENSION 21,581.796 21,581.796 24,000.000
TOTAL ADMINISTRATIVE BUDGET 54,072.582 55,278.943 63,030.960
3 Chapter No. 1 : Current Revenue Expenditure
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SECTORAL EXPENDITURE
ELEMENTARY AND SECONDARY EDUCATION:
Under the provisions of the Local Government Act 2012(Khyber Pakhtunkhwa Act No. VIII of 2012), the District Governments system has been rolled back. The offices of the Executive District Officers (Finance & Planning) in all the Districts have been dissolved, resulting in shifting of responsibility for preparation and printing of the District Budget for financial year 2013-2014 on the Provincial Finance Department.
The Elementary & Secondary Education Department, under the LGA 2012 has made consequential administrative arrangement with effect from January 1 st 2013. Now the positions of officers at district level are as under:-
i. The offices of the Executive District Officers Elementary & Secondary Education BPS-19 has been bifurcated into District Education Officers (Male & Female), the District Officers B-18 in to Deputy District Officers (M&F) and Deputy District Officers (M&F) into Sub Divisional Education Officers (M& F) respectively.
ii. Staff for offices of the District Education Officers (Female), which did not exist in the earlier set up, has been arranged from the existing staff of the defunct offices of the Executive District Officers (E&SE).
iii. Creation of Permanent positions of staff numbering to a total of 1823 posts for establishment of separate offices of the District Education Officers (M&F) are being proposed w.e.f. 1 st July 2013. 1475 posts have been transferred to the offices of District Education Officers (Female) of the 25 Districts from the already sanctioned staff. Some of the Existing posts of the offices of the Executive District Officers (E&SE) have been transferred/adjusted in the offices of the District Education Officers (M&F), whereas 348 posts of various categories are being proposed to be created w.e.f. 1 st July 2013. Total sanctioned strength of Elementary & Secondary Education Department is as under:-
Year Provincial District Total 2013-14 1062 183,187 184,249
The total Budget Estimates of the Elementary & Secondary Education for the Current Financial Year 2012-2013 were Rs. 681.068 million, which were enhanced to Rs. 945.297 million in the Revised Estimates 2012-2013 for the provincial offices only. The total Budget Estimates for 2013-2014 of the provincial offices comes to Rs. 881.754 million. However the total Budget Estimates for the financial year 2013-2014, both Provincial & Districts are tabulated as under:-
4 Chapter No. 2 : Sectoral Expenditure
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(Rs. In million) Budget Estimates 2013 -14 Classification Salary Non -Salary Total 091102 -Govt. Primary Schools 24,018.894 2843.794 26862.688 (M&F) in Khyber Pakhtunkhwa. 091103 -Administration. Sub Divisional Education Officers 468.414 32.416 500.830 ( M&F) in Khyber Pakhtunkhwa 091120 -Others. (Regional institutes for Teachers Education 232.618 5.008 237.626 in Khyber Pakhtunkhwa). 092101 -Secondary Education.(Middle, High/ Higher 27,904.259 767.888 28674.857 Secondary Schools in Khyber Pakhtunkhwa) . 092102 -Administration.(District Education Officers (M&F) in Khyber 804.162 133.929 938.091 Pakhtunkhwa 093102 -Proff. /Tech./Colleges/Institutes in 107.238 5.078 112.316 Khyber Pakhtunkhwa. 096101 -Secretary Elementary & 2917.169 326.635 3243.804 Secondary Education Department. Total 56440.559 4,112.378 60552.937
In 2012-2013, the position of establishment of Govt. Primary Schools (M&F) and up-gradation of Govt. Primary Schools (M&F) to Middle, Govt. Middle Schools (M&F)to High and High Schools to Higher Secondary status and offices of Sub Divisional Education Officers is given below:-
Number of Schools Posts S.No Schools /Colleges Created Establishment of new Govt. Primary Schools 1 138 400 (M&F) Up Gradation of Primary schools (M&F) to 2 98 780 Middle Status. 3 Establishment of High Schools. 3 48 Up gradation of Govt. Middle Schools (M&F) 4 92 734 to High status. Up gradation of Govt. High Schools to Higher 5 12 204 Secondary level. Starting of Science Classes in Higher 6 3 18 Secondary Schools. 7 Establishment of Cluster Hostel. 1 2 8 Creation of Additional Posts of SET (Science) -- 251
5 Chapter No. 2 : Sectoral Expenditure
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for existing Govt. High School s Creation of posts for offices of the Sub 9 Divisional Education Officers (M&F) Paharpur -- 16 & Paroa Distt. D.I.Khan. Creation of posts for offices of the Sub 10 Divisional Education Officers (M&F) Topi -- 6 Distt. Swabi. 11 Additional created for Secretary E&SE Deptt -- 2 Total 2461
In addition to the above the following posts are proposed to be created in the SNE (Fresh) for the financial year 2013-14.
Posts S.No Schools Created Establishment of DEOs (Male & Female) in 1 348 Khyber Pakhtunkhwa Creation of Posts for Establishment of Internal 2 6 Audit Cell in the E&SE Department. Creation of Additional Posts of IT Teachers in 3 20 Regional Institutes for Teacher Education Total 374
Besides the above, Grant in Aid have also been released to the following Autonomous/Semi Autonomous Institutions during the current financial year.
Rs in S.No NAME OF INSTITUTION Million 1 Sangota Public School Swat. 3.000 2 Cadet College Kohat. 114.000 3 Cadet College Swat. 30.370 4 Fazle Haq College Mardan. 59.650 5 Bacha Khan Model School Jandool Dir. 5.000 6 Karnal Sher Khan Cadet College Swabi. 7.677 7 Centennial Model School Batkheila. 1.000 8 Sabawoon School Rangmal a Malakand. 1.000 9 Purchase of Land for B.I.S.E DI Khan. 150.000 TOTAL 371.697
In order to provide incentive to the teachers and bring improvement in the quality of teaching in return thereof , a total of 1,766 number of posts in BPS-17 have been up-graded on the basis of up-dation of 4-Tier formula of 1:15:34:50 during the current financial year 2012-13, in two phases, as per detailed break up given below:-
6 Chapter No. 2 : Sectoral Expenditure
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With Effect From 01-07-2012 With Effect From 01-07-2013 BPS Male Female Total BPS Male Female Total BPS-20 13 6 19 BPS-20 13 6 19 BPS-19 183 102 285 BPS-19 183 102 285 BPS-18 374 205 579 BPS-18 374 205 579 Total 570 313 883 Total 570 313 883
In addition to the above almost all of the categories of teachers, including Primary School Teachers, C.T, A.T, T.T, D.M, PET and Qaris have been up-graded w.e.f 01-07-2012.
HIGHER EDUCATION:
The total Budget Estimates of the Higher Education for the financial year 2012-13 were Rs. 5390.615 million which raised upto Rs. 5444.445 million in Revised Estimates with a budget deficit of 53.830 million. For the next financial year 2013-14, therefore the Budget is estimated to be Rs. 6055.093 million. The detail breakup is given below:-
Budget Estimates 2013-14 Classification Salary Non-Salary Total 093101-General Colleges 5,280,418,000 569,657,000 5,850,075,000 095101-Archives Libraries 57,499,000 8,650,000 66,149,000 096101 -Secretary Higher 86,211,000 52,658,000 138,869,000 Education Total 5,424,128,000 630,965,000 6,055,093,000
On the basis of 4 tier formula, many posts of college teaching cadre were upgraded. The ratio of this 4 tier formula was also enhanced from 1:15:34:50 to 50:20:37:38, as an incentive to invigorate the teachers to ensure quality education. As a result of this development a total of 3147 posts of lecturers have been upgraded to BPS-18, BPS-19 and BPS-20 w.e.f 01-07-2012 as per details given below:-
Govt. Colleges Govt. Colleges Total (Male) (Female)
BPS-20 170 84 254
BPS-19 681 334 1015
BPS-18 1259 619 1878
Total 2110 1037 3147
To support and provide a strong financial back to the Semi-Government/Autonomous Educational Institutions so as to fulfill their operational and development needs, Grant in aid 7 Chapter No. 2 : Sectoral Expenditure
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amounting to Rs. 1025.000 million have been released time to time during the financial year 2012-13. These institutes and the Grants received at their end are given below in the table:-
Rs. In S.No NAME OF INSTITUTION Million GIK University Topi (Swabi) for the Scholarship to the Khyber 1 19.000 Pakhtunkhwa brilliant students. 2 Edwards College Peshawar. 300.000 3 Abdul Wali Khan University Swabi Campus. 426.00 4 Abdul Wali Khan University Pabbi Campus District Nowshera 50.000 5 University of Peshawar 100.000 6 University of Peshawar Teachers Association. 10.000 Establishment of Department of Peace & Conflict status at 7 120.000 University of Peshawar. Total 1025.000
HEALTH:
Allocation in the Budget 2013-14 for Health Department has been increased from Rs. 10,330.374 million to Rs. 22,807.005 million which shows an increase of 121% budget of Health Department including District Health Institutions and also regular Grant-in-aid to various autonomous Health Institutions detail of these Grants in aid provided during the year 2012-13 and 2013-14 are as follow:- Rs. (in million) S.No Institutions B.E 2012-13 B.E 2013-14 % increase 1 Lady Reading Hospital Peshawar 1305.490 1703.523 30 .49 2 Khyber Teaching Hospital, Peshawar 843.694 955.845 13.29 3 Khyber Medical College, Peshawar 339.315 387.002 14.05 4 Khyber College of Dentistry, Peshawar 171.370 196.382 14.60 5 Hayatabad Medical Complex, Peshawar 622.349 1014.698 63.04 6 Postgraduate Medical Institute Peshawar 924.203 1103.691 19.42 7 Ayub Teaching Hospital, Abbottabad, 676.960 844.538 24.75 8 Ayub Medical College, Abbottabad 424.975 499.152 17.45 9 Institute of Kidney Disease, Peshawar 157.356 174.312 10.78 Pakistan Institute of Community 10 Ophthalmology Hayatabad Medical complex, 17.380 19.112 9.97 Peshawar. 11 Khyber Girls Medical College, Peshawar 212.233 219.493 3.42 Bashir Bilour Memorial children Hospital 12 19.958 24.587 23.19 Peshawar. Total 5,715.283 7,142.335 24.97
Grant-in-Aid has also been proposed for the following purposes in the Budget Estimates 2013- 14:- 8 Chapter No. 2 : Sectoral Expenditure
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(Rs. In million) S.No Institutions/purpose 2012 -13 2013 -14 1 Endowment fund 100.00 100.00 2 Provision of Emergency Drugs for poor patients. 100.00 725.00 Creation of posts in the project/schemes due for 3 200.00 200.00 completion during the year 4 Red Crescent society 0 2.500 5 Cardiology Unit LRH Peshawar 40.00 40.00 6 Cardiovascular LRH 20.00 20.00 7 Fatimid Foundation 5.00 5.00 8 Paraplegic Center Hayatabad Peshawar 40.00 50.00 9 Health Regulatory Authority 20.00 20.00 10 Frontier Foundation 15.00 15.00 11 Khyber Medical University, Peshawar for KUST 61.00 61.00 12 Free Dialysis Services 0 60 .00 13 Free angiography/angioplasty surgery 0 100.00 14 Electrophysiology Department at HMC 0 20.00
Health Department is mandated by the Government of Khyber Pakhtunkhwa to ensure provision of quality health services to the people in Khyber Pakhtunkhwa at an affordable cost. In terms of Human Resource, Health Department is the second largest in the Province with total number of 52,842 employees (including more than 13000 LHWs).
There is a well distributed infrastructure in all 25 districts of the Province. Primary Care Health services are provided through 89 RHCs, 781 BHUs and more than 150 other Primary Health Centres. The Secondary Health care is provided through 121 hospitals besides which there are 8 teaching/ tertiary hospitals in the province. The total number of beds in hospital beds in the province is 12568.
Despite all its endeavours the Department is facing the following challenges to achieve its goal and objectives:
I. Policy Formulation and Strategy Development: a. Insufficient capacity in developing evidence based Health Policies, Lack of focus on governance and regulatory functions. b. Non-involvement of Key Stakeholders in policy issues.
II. Lack of Organizational Capacity to implement the assigned Business: a. Deficient Structure for the assigned functions. b. Disproportionate skills mix of Human Resource.
III. Lack of Internal Control and Performance Assessment Mechanisms: a. Institutions or individuals do not have pre-defined targets and for this reason performance assessment is just subjective. b. Lack of monitoring framework for Health Sector. c. Non-availability of Internal Audit systems linking financing with performance.
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IV. Community Participation and Responsiveness; No formal institutional Mechanism of Community Involvement.
V. Centralized System at Provincial Level a. Centralized planning process (ADP is finalized at provincial level without involving key stake holders.) b. Centralized Human Resource Management.
VI. Information/Assessment Capacity a. Non availability /insufficient data for the province. b. Lack of capacities for data analysis and data validation.
VII. Regulatory Framework a. Health service delivery. b. Drug Regulations. c. Food Regulations.
VIII. Miscellaneous: a. High out of pocket expenditure for health care. b. Increasing morbidity and mortality due to common diseases especially among vulnerable segments of the population. c. Obsolete procurement system.
The main focus of Government in Health Sector was consolidation and an emphasis on completion of the ongoing projects and prevention of communicable diseases.
The Health Sector was allocated Rs.7575.100 million for 73 ongoing & 16 new schemes. Twenty (20) projects were completed during the financial year. Following achievements were made in this sector:
• 07 ambulances were procured for teaching hospitals. • The District Health Information System (DHIS) was extended from 13 Districts to 25 Districts. • Under TB Control Program, 35848 TB patients were provided free treatment. • The Ayub Teaching hospital Abbotabad was provided Rs.180.000 million for functionlization of 400 beded new Gynea-peads ward. • The Lady Reading Hospital, Peshawar was provided Rs.90 million for purchase of 128 slice CT Scan Machine. • 26 New Civil Dispensaries were established in the province. • Construction of Two Hostels for 300 girl’s students of Khyber Girls Medical College Peshawar was completed. • Construction of Cardiac Rehabilitation Centre at Hayatbaad Medical Complex was completed which has started provision of free Angiography & Angioplasty for poor patients. • In THQ Bisham, Shangla a hostel for 20 doctors and in KTH Peshawar a hostel for 45 doctors were completed. • 638 cancer patients were provided free treatment.
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The Provincial Government is committed to provide quality health care services to the people of Khyber Pakhtunkhwa and in this connection has pursued the policy of reforms for strengthening the health care service delivery system. Main emphasis has been on completion of ongoing infrastructure, human capital development and effective monitoring. At the same time Maternal and Child Health care and prevention of communicable diseases have been the priority areas. To enhance the coverage of outreach primary health care services from the present 55% to 80% within 03 years and to ensure minimum health services at primary health care level, a new initiative, with donors support, Integration of Vertical Programmes project will be launched with a cost of Rs.17 billion.
Health Sector has been allocated Rs. 8332 million for 61 ongoing schemes. Following targets will be achieved in the Financial Year 2013-14.
• Under TB Control Program, 36000 TB patients will be provided free treatment. • 800 Poor patients will be provided free cancer treatment. • Improvement and Standardization of two DHQ Hospitals Kohistan & Hangu will be completed. • Construction of Accident & Emergency Department in DHQ Hospital Kohat , Mardan D.I.Khan will be completed • Establishment of Sixteen new BHUs will be completed. • Under Social Health Protection scheme, a package of free health services will be provided to the poorest of the poor in four selected districts through insurance scheme. • Construction of Paramedical Staff hostel at LRH, Peshawar will be completed.
Furthermore the way forward envisioned is:
1. Restructuring of Health Department in light of the recently approved functions of health department in the provincial rules of business in the aftermath of 18th constitutional amendment and Local Government Act, 2012. 2. Strict adherence to the tenure policy so that the officers can perform optimally and their accountability is also ensured 3. Establishment of appropriate procurement cell (human resource having appropriate skills). 4. Merit Based Policy for filling of positions. 5. Strengthening of Hospital Autonomy with special focus on its Act, Rules and Regulations in light of the recommendations of the Evaluation study conducted by a team of International Experts. 6. Strengthening of Health Regulatory Authority. 7. Introduction of Public Private Policy framework and institutional arrangement for contract management. 8. Approval of Integrated PC-1 thereby ensuring service delivery.
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LAW AND ORDER:
It is common knowledge that the Province of Khyber Pakhtunkhwa has been affected hardly by terrorism, resultantly expenditure on Law Enforcing Agencies are on the rise since long. The following table is a proof to this extra ordinary increase. This trend is still operative and thus funds for essential items like POL, Repair and Maintenance of Transport etc have been provided at enhanced rate. Year-wise figures of Budget Estimates from financial year 2006-07 onward are tabulated below: - Rs. (in million) Financial Year Budget Est imates % Increase 2006 -2007 4,527.282 22.60 2007 -2008 5,141.126 13.60 2008 -2009 6,558.418 27.57 2009 -2010 9,,677.150 47.55 2010 -2011 21,041.940 117.44 2011 -2012 18,810.003 10.60 2012 -2013 23,355.613 24.17 2013 -2014 23781.398 1.82
1. The reason for comparatively less increase in Budget Estimates 2013-14 i.e of 1.82% is due less allocation in lumpsum budget for 2013-14 and contract of Special Police Force/Ex-Armymen expired on 30/06/2013. 2. 62 new posts have been created in Police Department for the Financial Year 2013-14.
A sum of Rs. 23781.398 million has been earmarked for Police in the budget for Financial Year 2013-14, out of which Rs. 20016.828 million is meant for salaries and Rs. 3764.570 million for non-salary/operational expenses for the police force.
IRRIGATION:
Water is the most important natural resource and essential for all forms of life. It is a vital and a finite resource for maintaining global hydrological equilibrium, ecosystem and human development particularly, for the economies that largely rely on hydrological endowments. Main limitation for agricultural development is water shortage because of the arid climate. Since agriculture is the major water harvester, therefore sustainability of this sector directly depends on timely and adequate availability of water. Total cultivable land of the province is 6.55 million acres whereas irrigated area is only 2.27 million acres. Due to lack of industrial development in the province, the importance of agriculture is crucial which mainly depends on a smooth and effective Irrigation system. In water sector the following targets have been achieved during the current financial year.
• Jabba Khattak Dam District Nowshera and Khairbara Dam District Haripur have been 90% completed that has brought 2065 acres of barren land under irrigation network. • Provincial Government started construction work on Gul Dheri Dam Nowshera, Dhoke Toru-Jhangra Dam district Abbottabad/Haripur and Kiyala Dam Abbottabad during current financial year. These dams after completion would provide irrigation facilities to about 6000 acres of barren land. 12 Chapter No. 2 : Sectoral Expenditure
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• Keeping in view the importance of water conservation and optimum utilization the feasibility studies of 11 Nos. and detail design of 07 Nos. small dams sites completed. • Tangi Lift Irrigation Scheme Charsadda damaged during flood 2010 has been restored. • Munda Head Works damaged during flood 2010 has also been restored. • 50 Nos. Tube Wells/ Lift irrigation schemes have been installed which will bring 7500 acres of new barren land under irrigation. Besides work on installation of 100 Nos. irrigation tube wells in the province has been initiated which would bring a new area of 15000 acres under irrigation. • To enhance the capacity of Baran Dam district Bannu a project for raising of Baran Dam has been initiated. • In the drought area of the province, about 50 Nos. small ponds in various districts have been constructed that would provide intermitted irrigation facility to about 500 acres of barren land under irrigation. • Flood Protection Works at different vulnerable sites of the province have been constructed to protect the agriculture land/property and infrastructure against the flood threats. • To bring new area under irrigation, work on different small irrigation schemes/channels in the province has been started. • To provide access from farm to market and to provide better facilities of communication to the dwellers a number of Canal Patrol Roads have been improved/mettaled. • During current financial year an amount of Rs. 2858.289 million had been allocated for 91 Nos. schemes. Out of which about 42 Nos. schemes have been completed and the desired benefits are being delivered to the public.
Keeping in view importance of agriculture the present government has increased allocation for water sector and has provided Rs. 3.6 billion during 2013-14. In the next year the following targets are planned to be achieved.
• To provide irrigation facility to barren land of 25200 acres of district Mardan and Malakand Agency the progress under construction Bazai irrigation scheme would be geared up to bring the scheme functional so that targets benefits are being delivered to the beneficiaries.
It is planned that the following small dams are brought to advance stage of completion during next financial year.
• Palai dam district Charsadda with CCA of 4600 acres • Darmalak Dam Kohat with CCA of 3500 acres • Ghole Banda Dam Karak with CCA of 1500 acres • Mardan Khel Dam Karak with CCA of 1500 acres
It is also planned to start work on new small dams from the provincial and Federal resources on the following small dams during next financial year.
• Kundal Dam Swabi with CCA of 5000 acres • Sanam Dam Dir Lower with CCA of 2000 acres • Jalozai Dam district Nowshera with CCA of 900 acres
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• Gadwalian Dam district Haripur with CCA 3700 acres • Khandan Jonali Koch Irrigation Scheme in district Chitral would be completed which would extend irrigation facilities to an area of about 1200 acres in the remote area of district Chitral. • Hero Shah Minor which would also bring an additional area of 2143 acres under irrigation would be completed. • Detailed design for construction of Barrage on Swat River would be completed. • Work on the detailed design and construction of Siran Right Bank Canal in district Mansehra would be initiated. The project after completion would provide irrigation facilities to a vast fertile land of about 12, 000 acres presently rain fed on the right bank of Siran river of district Mansehra.
Work on the detailed design of Pehur High Level Canal extension project in district Swabi will be started. The project is aimed to bring additional area of 20105 acres under irrigation system.
COMMUNICATION AND WORKS:
An efficient transport and communication system contributes to economic growth by lowering domestic production costs, enhancing economies of scale in the production process and creating economic opportunities. Road transport is the main communication mode within Khyber Pakhtunkhwa and predominantly used for inter provincial transport being an easy and affordable facility with better accessibility to remote corners of the Province.
The focus in 2013-14 will be on developing efficient road network with a strategic thrust on optimal utilization of the existing capacity, emphasis on asset management with consolidation, upgradation, rehabilitation, and maintenance of the existing system. The department proposes to establish an Infrastructure Fund to achieve the objective. Institutional Capacity Building and Research & Development (R&D) activities will be under taken with use of modern technology to enhance restore efficiency.
Apart from communication sector, construction and maintenance of buildings fall under the purview of the Communication & Works (C&W) Department. In the ADP, the "Building" sector encompasses the District Program and Provincial Program. The District Program covers the public buildings pertaining to District/ Tehsil Administration and residential accommodation; Provincial Programme includes Civil Secretariat, Pakhtunkhwa Houses / Rest Houses and residential accommodation in Provincial Metropolis. The C&W Department acts as an executing agency for other provincial departments such as Health, Elementary & Secondary Education, Higher Education etc. This year objectives were to restore flood damage infrastructure in Abbotabad and Kohistan districts, increase road density and enhance capacity building. The objectives have almost been achieved in adverse law and order situation and of ban on re- appropriation of funds by Election Commission of Pakistan. Progress is briefly enumerated below: PROCUREMENT OF WHEAT AND WHEAT SUBSIDY
Food Department is responsible to ensure availability of wheat and other food requirements of the Province. Generally the Province depends on import from Punjab to meet its food requirements, especially Wheat. Brief description of the activities of Food Department is given as follows:- 14 Chapter No. 2 : Sectoral Expenditure
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i. Food Procurement, Rationing and Distribution. ii. Storage of Food Grain. iii. Control over the Prices.
Annual estimates of Wheat requirements are furnished to Ministry of National Food Security & Research Cell (NFS & R) Islamabad in April every year. The breakup of annual wheat requirements of Khyber Pakhtunkhwa is given below:-
Population according to 1998 Requirement @ 124 KG Area Census projected @ 2.61% per head per annum annually (M.Tons) Settled Area 27,288,429 3,383,765 FATA 4,951,269 613,957 Afghan Refugees 1,550,000 192,200 Total 33,789,698 4,189,922
After adjustment of local production of 999,315 metric tons, the net wheat requirements of the Province comes to 3,190,607 metric tons. This deficiency is met out from stocks procured through Ministry of Food Agriculture & Livestock (MINFAL) and through supply of regulated Atta from Punjab. The quantity of wheat provided from the Government godowns is tabulated as under:-
Opening Balance Receipt During Releases Closing Balance Year Total (M.Ton) year (M.Ton) (M.Ton) (M.Ton) 2009 -10 161,736 523,527 685,263 510,443 174,820 2010 -11 174,820 396,487 571,307 479,995 91,312 2011 -12 91,312 444,028 535,340 430,553 104,787 2012 -13 104,787 325,397 430,184 383,657 46,527
Wheat stock of the Province is transported through carriage contractors from Punjab as well as Karachi at the rates approved by the Provincial Food Committee. NLC being a Government Organization is also involved in the transportation of wheat both from Punjab and Karachi to various godowns in the Province, where the stock is stored and issued to the flour mills according to requirements.
Food Department of the Province has to purchase wheat from Govt of Punjab / PASSCO and imported wheat through TCP Karachi. A considerable amount has to be spent on its transportation, storage, establishment and other charges. However, the same wheat is provided to flour mills at a lower rate fixed by MINFAL. The shortfall is met by the Provincial Government through Subsidy. For the financial year 2012-13 an allocation of Rs. 2.500 billion was made and a sum of Rs. 2.500 billion has been allocated for the year 2013-14.
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PROVINCIAL REVENUE RECEIPTS
The Provincial Revenue Receipts for the financial year 2013-14 are estimated at Rs. 16920.519 million, comprising of Tax Receipts of Rs. 10287.588 million (60.8%) Non-Tax receipts of Rs. 6632.931 million (39.2%). Tax receipt includes GST on Services of Rs. 6000.000 million. Tax Receipts comprises of 16.5 % direct taxes and 83.5% indirect taxes. The direct and indirect taxes are explained as under:-
The direct taxes include taxes on Agriculture Income, Property, Land Revenue, Profession, Trade and Callings etc. The Revised Estimates of direct taxes during 2012-13 is Rs. 1581.314 million as compared with the Budget Estimates 2013-14 of Rs. 1696.083 million, shows an increase of 7.2%.
Indirect taxes comprise of GST on Services, Provincial Excise, Motor Vehicle Tax, Stamp Duties, Cess of all types, Electricity Duty etc. Revised Estimates for financial year 2012-13 from indirect taxes is estimated as Rs. 6583.595 million as compared with the Budget Estimates 2013-14 of Rs. 8591.505 million registering an increase of 30%.
The trend of taxes under Provincial Tax Receipts since 2008-09 to 2011-12 is demonstrated in the following tables. Most of the heads incorporated in the tables show upward trend in growth rate since 2008-09 to 2011-12. The Province has been in shadow of poor law & order situation which has adversely affected its own receipts growth. Finance Department has set realistic targets for the year 2013-14, objectively and in line with the potential of the Department concerned. (Rs. in million) Actual Estimated TAX Budget Revised Budget 2008-09 2009-10 2010-11 2011-12 2012-13 2012-13 2013-14 DIRECT TAXES Tax from Agriculture 17.344 15.740 17.532 20.081 22.000 22.000 22.000 Urban Immovable 41.595 84.613 77.567 86.400 98.100 92.650 107.910 Property Tax (Net) Tax on Transfer of Property 56.103 45.645 58.013 80.166 72.000 76.000 80.000 (Reg.) Land Revenue 572.652 571.630 770.892 1271.666 920.000 1060.664 1111.173 Tax on Profession, 92.365 89.044 98.178 131.420 150.000 130.000 165.000 Trades & Callings Urban CVT ------247.606 240.310 200.000 200.000 210.000 Provincial Total Direct 780.059 806.672 1269.788 1830.043 1462.100 1581.314 1696.083 Taxes
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(Rs. in million) Actual Estimated TAX Budget Revised Budget 2008-09 2009-10 2010-11 2011-12 2012-13 2012-13 2013-14 INDIRECT TAXES GST on Services ------9886.394 4289.590 6000.000 Provincial Excise 28.345 23.636 23.381 26.415 30.000 15.000 30.000 Motor Vehicle 699.093 833.916 874.844 865.237 957.000 964.000 1072.000 Tax+R.Permit+Fitness Stamp Duty 358.435 357.360 408.610 588.596 600.000 570.000 600.000 Entertainment Tax 3.059 0.679 0.023 0.008 ------Others/ Hotel Tax/Real Estate 248.381 229.622 262.887 278.299 377.000 288.000 382.000 Dealer Electronic Media/TDC/ KDF Electricity Duty/fee on account of 34.294 38.846 584.134 41.735 550.000 457.005 507.505 Elecy.Rules. Total Indirect 1371.607 1,484.059 2153.879 1800.290 12400.394 6583.595 8591.505 Taxes Total Provincial 2151.666 2,290.731 3423.667 3630.333 13862.494 8164.909 10287.588 Taxes
Non-tax Revenue consists of income from Property and Enterprises, Civil Administration, Economic Services, Community Services, Social Services and Miscellaneous Receipts. For the financial year 2013-14, Rs. 6632.931 million are estimated as per given table:-
(Rs. in million) Budget Revised Budget Sector 2012-13 2012-13 2013-14
Income from Property and Enterprises. Interest 116.356 116.356 116.356 Dividends 20.000 20.000 20.000 Own Hydel Generation 2402.444 2146.546 2361.256 General Administration. 132.700 133.600 138.150 Law and Orders. 558.762 592.032 621.824 Community Services. 630.000 654.000 674.000 Social Services. 255.874 326.157 369.993 Economic Services. 1759.307 1878.582 1946.580 Miscellaneous. 363.122 368.072 384.772 Total Non-Tax Receipts 6238.565 6235.345 6632.931
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Further Department-wise, Sector-wise Non-Tax receipt is discussed as under:-
The composition of receipts from Community Services is as under: i. Tolls on roads and bridges. ii. Sale of tender forms. iii. Registration fee of contractors. iv. Confiscation of earnest money. v. Receipts from P.B.M.C. vi. Payments for services rendered and recovery of water charges by Public Health Engineering Department.
(Rs. in million) Actual Actual Actual Actual Budget Revised Budget Sector 2008- 2009- 2010- 2011- 2012- 2012- 2013- 09 10 11 12 13 13 14 Building, Communication & 147.794 731.302 381.047 447.869 400.000 440.000 450.000 PBMC.
Public Health 91.535 98.982 128.078 168.736 230.000 214.000 224.000
KP.H.A* *108.966 *112.202 *101.845 *133.184 *120.000 *125.000 *130.600
TOTAL 239.329 830.284 509.125 616.605 630.000 654.000 674.000
* Receipt retained by Khyber Pakhtunkhwa Highway Authority in the Road Maintenance Fund.
The composition of receipts from Social Services is as under:- a) Education. b) Health. c) Manpower Management. (Rs. in million) Actual Actual Actual Actual Budget Revised Budget Sector 2008- 2009- 2010- 2011- 2012- 2012- 2013- 09 10 11 12 13 13 14 Higher Education, 68.419 101.899 90.602 105.125 86.925 105.150 Archives & Libraries Deptt 86.466 Elementary & Secondary 38.065 48.885 51.148 3.000 55.000 60.000 Education Deptt Technical 21.179 10.475 18.424 18.451 21.000 22.000 23.000 Education. Museum. -- 0.347 1.116 1.255 0.800 0.900 0.950
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Tourism Deptt ------12.347 11.000 9.000 11.150
Health Deptt 54.771 72.248 83.438 124.671 114.449 151.782 169.203 Manpower 0.522 2.107 2.553 3.893 0.500 0.550 0.540 Management Total 153.819 200.056 257.682 301.724 255.874 326.157 369.993
The receipt in respect of Primary and Secondary Education and Health Department at District level was retained in the District’s Account No.IV for utilization within the same sectors as per decision of the Provincial Government. With the promulgation of Local Government Act 2012, the receipt from primary and secondary Education and health Departments at District level will now be accounted for in the Provincial Account-I as per practice in vogue prior to devolution. Similarly, receipts of big territory institutes/ hospitals are retained by them in line with the financial autonomy given to them.
The composition of receipt from Economic Services is as under:- (Rs. in million) Actual Actual Actual Actual Budget Revised Budget Sector 2008-09 2009-10 2010-11 2011-12 2012-13 2012-13 2013-14 Agriculture 88.895 101.199 98.056 121.656 125.250 108.750 131.300 Fisheries 10.931 13.388 18.770 19.906 20.000 20.000 21.000 Livestock & Dairy 36.380 41.336 57.170 68.199 51.500 62.375 67.000 Development Forests & 594.630 1035.687 761.990 395.734 420.000 512.500 524.000 Wildlife* Irrigation 220.422 267.372 328.077 321.349 402.677 411.677 417.000 Mineral 298.584 563.146 651.781 734.238 680.280 692.280 710.280 Development. Printing + Registration 36.796 50.588 52.675 56.500 66.000 70.000 Renewal of 71.396 Printing Press Industries 2.455 2.923 3.438 3.659 3.100 5.000 6.000 Total: 1289.093 2075.639 1971.957 1736.137 1759.307 1878.582 1946.580
The General Administration includes Admission/Examination Fees of Public Service Commission, receipts-in-aid of superannuation and receipts under the Weights and Measures and Trade Employees Act. The Civil Administration includes receipts from Home & Tribal Affairs Department, Law and General Administration Departments. Receipts from Police include charges of guards supplied to the Federal and Provincial government departments, fees and forfeitures, arms license fee, motor driving license fee and traffic fine. The 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 jails comprises of the sale of goods manufactured in the factories located inside the jail. Department wise detail is as under:-
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(Rs. in million) Actual Actual Actual Actual Budget Revised Budget Sector 2008- 2009- 2010- 2011- 2012- 2012- 2013- 09 10 11 12 13 13 14 A-General 99.715 104.193 134.301 146.262 132.700 133.600 138.150 Administration B- Law and Order 506.680 569.347 524.384 701.791 558.762 592.032 621.824 Administration of 64.965 96.476 98.493 128.825 101.230 132.000 137.000 Justice Police + Private 434.655 469.436 417.871 568.630 450.532 453.032 477.324 Security Companies Jails 7.060 3.435 8.020 4.336 7.000 7.000 7.500 Total (A+B): 606.395 673.540 658.685 848.053 691.462 725.632 759.974
INCOME FROM PROPERTY AND ENTERPRISES:
The provision under this component is for interest on loan and advances and Dividends. For financial year 2013-14, Rs. 116.356 million and Rs. 20.000 million respectively are proposed to be accrued on this account.
ENERGY AND POWER
i) Receipts from Sale of Electricity of Hydel Power Station Own Generation: The Malakand-III, Pehur & Shishi Power Station Projects have been commissioned. The income from sale of electricity accrued during the current financial year would be Rs. 2 billion approximately. Income upto 2.363 billion is expected during the year 2012-13.
PHYDO have already been requested by Finance Department to take up fresh Hydel project at the earliest and Finance Department will provide necessary funds. By doing so, Finance Department will get more receipt in future.
Provincial Government is working on various initiatives for increase in the Provincial revenue, which are;
i. Meetings for Monitoring and efforts for the effective recovery under supervision of Chief Secretary Khyber Pakhtunkhwa. ii. An independent Survey for tax potential/tax units is under consideration. iii. Establishment of Khyber Pakhtunkhwa Revenue Authority for Administration of General Sales Tax on Services and other taxes.
ii) Electricity Duty: Electricity duty is collected by PEPCO on behalf of the Provincial Government. Earlier the duty was used to be adjusted by PEPCO against the arrear of Electricity dues of Provincial Government Departments/Local Bodies. With the efforts of Provincial Government (Energy Monitoring Cell of Finance Department), the issue has been resolved and PEPCO has paid Rs. 300 million on this account during Current Financial Year 2012-13.
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Details of total provincial receipts excluding General Sales Tax on Services (targets & actual realization) during the last eight years are depicted in the following table:-
(Rs. In Million) Revised Actual S.No Years Estimates Recovery 1 2005-06 4671.733 4242.219 2 2006-07 51.000 4773.667 3 2007-08 6234.929 5322.875 4 2008-09 6427.252 5430.248 5 2009-10 7392.428 6414.189 6 2010-11 8737.589 8828.664 7 2011-12 9994.422 10057.427 8760.112 8 2012-13 14400.254 Up to April 2013
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CAPITAL RECEIPTS AND EXPENDITURES
The provinces are keen to look for new ways and means of growth and development to improve the living standard of its people. Khyber Pakhtunkhwa also wants to excel and perform brilliantly in this modern era of professionalism and self-reliance.
Capital receipts is part and parcel of the White Paper and it consists of recovery of loans and advances from Local Councils, Municipalities, Co-operative Societies, Industrial Estates, Autonomous Bodies, Agriculturists and Government Servants.
The budgetary position of capital receipts of the Province for financial year 2012-13 (Budget and Revised) and 2013-14 (Budget) is reflected in the following table:-
(Rupees in million) Budget Revised Budget S. No Nomenclature Estimates Estimates Estimates 2012-13 2012-13 2013-14 Recoveries of Loans and i 250.000 250.000 250.000 Advances TOTAL: 250.000 250.000 250.000
The Current Expenditure on Capital Account includes the following: - a) Repayment of Federal Loans (CDL). b) Repayment of Foreign Loans. c) Loans and Advances to Provincial Government Employees. d) Write-off of Loans and Advances to Provincial Government Employees. e) Loan to Cooperative Bank. f) Pro Poor Welfare Scheme
The position regarding the above components of current expenditure on Capital Accounts for 2012-13 (Budget and Revised) and 2013-14 (Budget) is shown in the following table:-
(Rupees in million) Budget Revised Budget S.No Nomenclature Estimates Estimates Estimates 2012-13 2012-13 2013-14 i Repayment of Federal Loans (CDL) 3039.008 3039.008 3124.694 ii Repayment of Foreign Loans 3699.992 3822.330 4385.306 Repayment of SBP Loan for Recapitalization iii 1200.000 1077.662 1200.000 of Bank of Khyber iv Loans to Provincial Government Employees. 60.000 60.000 80.000 Write off of Loans and Advances to Provincial v 1.000 1.000 10.000 Govt. Employees vi Loan to Cooperative Bank 200.000 200.000 200.000 vii Pro Poor Welfare Schemes 5742.000 5742.000 6000.000 TOTAL 13942.000 13942.000 15000.000
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The outstanding debt liability of the Provincial Government on account of Federal Loans (Cash Development Loans) as on 1 st July, 2013 is Rs. 8608.583 million. The detail is given at Annexure-I.
As far as financing of Development Programme is concerned, our Province relies on different types of borrowings. Loans from Federal Government are 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 on the following terms and conditions:- a. Five years grace period, during which only interest is payable. b. Repayment in 20 years. c. Markup rate determined by the Federal Govt. on yearly basis. d. Recovery on monthly basis by the Finance Division, at source, from Federal Tax Assignment.
PREMATURE DEBT RETIREMENT:
Realizing the heavy debt servicing liability on the provincial budget, the Provincial Government decided as part of its debt management strategy, to retire expensive loan of the Federal Government. The Government of Khyber Pakhtunkhwa started repayment of expensive Federal Government’s loans from the financial year 2002-03. An amount of Rs.19874.718 million has been repaid prematurely to Federal Government upto 2010-11. As a result of this premature retirement of federal loans, the Provincial Government has generated saving of Rs. 4434.520 million per annum. An amount of Rs. 2500.000 million has been earmarked for the financial year 2013-14. The details of total premature retired loans and saving per annum is at Annex-II.
FOREIGN EXCHANGE LOANS:
All Foreign Exchange Loans are handled by the Federal Government. These Loans are used for the financing of specified Developmental Projects under an agreement between the respective Governments. The relending terms and conditions of the loans to the provincial Government are the same as agreed by Federal Government with the loan giving agencies. The terms and conditions of loans by different agencies are as under:-
Donor Agency Terms & conditions World Bank (IDA) Service Charges 0.75% Repayment period 25 years Grace period 10 years Asian Development Bank (ADB) Service Charges 1 to 1.5% Repayment period 15 – 30 years Grace period 10 years IFAD Markup rate 1 to 4% Repayment period 30 to 40 years Grace period 10 years
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The details of outstanding liability on account of these loans against the Government of Khyber Pakhtunkhwa is Rs. 91056.537 million as on 1 st July 2013 are given at Annex-III.
Annexure-IV demonstrate the confirmation of outstanding balances of a number of foreign loans is under verification between Provincial and Federal Government as the disbursement in respect of these loans has not yet been stopped and are being made to the project executing agencies. The outstanding balance/amount disbursed upto 30.6.2013 is Rs. 32764.337 million against the allocated share of Khyber Pakhtunkhwa.
Total outstanding debt against the Provincial Government as on 1 st July, 2013 is Rs. 132429.457 million as detailed below:-
Federal Government Loans Rs. 8608.583 million Foreign Exchange Loans Rs. 123820.874 million Total: Rs. 132429.457 million
WRITE OFF LOANS & ADVANCES TO PROVINCIAL GOVERNMENT EMPLOYEES:
For facilitating the provincial government employees the provisions are made under these heads for construction of houses, motor cycles and bicycles, etc. As far as waiver off 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 in BPS-I to BPS-15, full outstanding amount is waived off; ii. In case of Government servants in BPS-16 & above, the outstanding amount is waived off on the basis of following formula:-
Outstanding amount Extent of write off
1. Upto Rs. 20,000/- Full outstanding amount 2. Beyond Rs. 20,000/- Rs.20,000/- plus 50% of residual liability Subject to total relief not exceeding Rs. 1.5 lac (inclusive of Rs. 20,000/-). LOAN TO COOPERATIVE BANK:
Provincial Government has revived the Cooperative Bank and is providing amount of rupees one billion in five installments. As such three installments of Rs.200.000 million each were released during financial year 2010-11 to 2012-13. Against Rs 1000.000 million, amount of Rs. 600.000 million has been released so far. The bank will provide loans on easy terms for necessary equipment of farming, seeds, poultry, dairy & live- stocks and to rural women for handicrafts. In this regard, a sum of Rs. 200.000 million (4th Installment) has been earmarked for the financial year 2013-14.
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The debt servicing liability is a very much problematic liability and proves to be a hindrance to the progress of the province as it 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 year 2012-13 and 2013-14 on account of internal and external debt is given in the table:-
(Rs. in million)
Budget 2012-13 Revised 2012-13 Budget 2013-14 Nomenclature Mark up Repayment Mark up Repayment Mark up Repayment Payment of Principal Payment of Principal Payment of Principal A-INTERNAL DEBT i) C.D.Loans 1076.822 3039.008 1076.822 3039.008 1006.482 3124.694 ii) Un-funded Debt (GP 3600.000 --- 4000.000 --- 4600.000 --- Fund) iii) Other Floating 500.000 --- 100.000 --- 500.000 --- Debt Sub-Total (A) 5176.822 3039.008 5176.822 3039.008 6106.482 3124.694 B - Loans From 1086.088 3699.992 1116.141 3822.330 1089.485 4385.306 Foreign Agencies C - Other Debt 3300.090 --- 3270.037 --- 3973.434 --- Servicing Sub-Total 4386.178 3699.992 4386.178 3822.330 5062.919 4385.306 (B&C) D – Domestic --- 1200.000 --- 1077.662 --- 1200.000 Debt (SBP) Total 9563.000 7939.000 9563.000 7939.000 11169.401 8710.000 (A+B+C+D)
PRO POOR SCHEMES
Continuation of the Special Initiatives.
JOURNALISTS WELFARE ENDOWMENT FUND.
A Journalists Welfare Endowment Fund is being established for the welfare of journalists. The fund shall be used for the medical treatment of the journalists and their families in public sector hospitals. The fund will also offer as financial assistance to the Journalists who embraced martyrdom in acts of terrorism. A sum of Rs. 50 million has been allocated for the Fund during 2013-14.
EDUCATION EMERGENCY
Multiple programs are being initiated for the promotion of a uniform education system in the province. These initiatives include:
i. Stori Da Pakhtunkhwa Scheme: The scheme has been launched to motivate and encourage talented students. Scope of the scheme has been increased from 10 to 20 position holders in Matric and Intermediate Arts and Science, from each Education Board in the Province. A sum of Rs. 10,000 (Matric) and Rs. 15,000 (Inter) respectively shall
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be granted to them for a period of two years. The scheme shall also cover Diploma of Associate Engineering & Diploma of Business Administration and Certificate/Diploma of Commerce from Board of Technical Education in the Province. A sum of Rs. 360.000 million has been allocated for this purpose during 2013-14.
ii. Removing the gender disparity in education: The girls students from the districts with less/weak girls enrollment shall be granted a stipend of Rs. 200/PM to remove the gender disparity. Their parents shall also be persuaded to enroll their daughters. About 41,667 girls shall be benefitted from the scheme. A sum of Rs. 100 million has been earmarked for this purpose during 2013-14.
iii. Conditional Grants: Missing facilities (additional rooms, latrines, boundary walls etc) are being provided in schools under this initiative, trough community participation. The civil work for the facilities is executed through Parent-Teacher-Councils. A sum of Rs. 1 billion has been earmarked for this purpose during 2013-14.
iv. Chief Minister Endowment Fund: The Fund has been established for financial assistance to deserving students admitted against self financing schemes in the disciplines of Engineering, Energy, Geology, IT, Electronics & Public Finance etc in all educational institutions, excellence centers and universities of the Province. The number of self finance seats shall also be increased. A sum of Rs. 500 million has been allocated for this purpose during 2013-14.
v. Rokhana Pakhtunkhwa Public-Private-Partnership in Education: The dropout rate and quality of education in the public sector schools of the Province is alarming. The pilot PPP shall be established in two union councils per district, supporting both male & female schools. The scheme shall be extended to about 400 schools. A sum of Rs. 800 million has been allocated for this purpose during 2013-14.
vi. Iqra Feroghe Taleem Voucher Scheme (IFTVS): This scheme is aimed at provision of educational opportunities to the children of under privileged segments of the society such as laborers, daily wagers, orphans and brick kiln workers etc. Private schools (primary to high) both male and female shall be enlisted for the purpose in a transparent manner. About 100 schools shall be selected later in the districts . A sum of Rs. 500 million has been allocated for this purpose during 2013-14.
vii. Third Party Validation: The performance of the education facilities, in terms of enrollment, dropouts, absenteeism etc shall be assessed through independent thirty party validation. Services of a credible firm shall be hired for the purpose by following procurement process in a transparent manner. A sum of Rs. 100 million has been allocated for this purpose during 2013-14.
viii. Hard Area Allowance for Lady Education Supervisors: In order to ensure presence of teachers in the backward areas, hard area allowance at the rate of 50% of the Basic Pay shall be granted to the Lady Education Supervisors in 6 backward districts. A sum of Rs. 15 million has been allocated for this purpose during 2013-14.
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Health Service delivery
Four schemes are being initiated for effective health sector service delivery with focus on relief to poor masses. The schemes include:
i. Health Care for critical illness: ii. Health Insurance Scheme: This scheme is being introduced covering 20% of the population based on poverty and providing free health care services to the patients of critical diseases such as cancer, AIDS, Renal failure and Hepatitis. A sum of Rs. 500 million has been allocated for this purpose during 2013-14. iii. Mother & Child Health: The scheme is being launched in 10 districts with highest infant mortality. Financial assistance of Rs. 200 shall be provided to a woman who undergoes health examination from qualified medico, once in three months. Similarly financial help of Rs. 1000/pm shall be provided to woman seeking delivery in a hospital or through a midwife. A sum of Rs. 300 million has been allocated for this purpose during 2013-14. iv. Enhancing immunization coverage: A financial incentive of Rs. 1000 for successful completion of immunization course shall be granted to parents, living below poverty line. This scheme shall be introduced in 10 districts with lowest immunization rates. A sum of Rs. 200 million has been allocated for this purpose during 2013-14. v. Improvement of Services in Tertiary Care Hospitals: Under this initiative, the Casualty Wards shall be reorganized, properly equipped and free treatment shall be provided to patients of accidents. A sum of Rs. 1 billion has been allocated for this purpose during 2013-14. vi. Insulin for life: Pakistan is ranked 10th in terms of diabetic population, causing renal failure, heart attack, amputation etc. Insulin for life shall be provided to poor patients who will be issued cards for the purpose through designated health outlets. About 25000 patients shall be benefitted from the scheme. A sum of Rs. 25 million has been allocated for this purpose during 2013-14.
UTILIZATION OF YOUTH POTENTIAL
The following four schemes are being introduced for motivation and making the best use of the youth potential. These initiatives include:
i. District Youth Centers for Change: The Youth Centers will be constructed at Divisional Headquarters level, through community driven development for career counseling, organizing sports events, youth mobilization, awareness campaigns etc. The Jawan Marakaz will be preferably established in the existing government buildings like universities and colleges. A sum of Rs. 70 million has been allocated for this purpose during 2013-14. ii. Stipend for unemployed youth: A stipend of Rs. 2000/pm will be provided to the fresh Masters Degree Holders who have graduated in the year 2013-14. A sum of Rs. 500 million has been allocated for this purpose during 2013-14.
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iii. Establishment of Technology Up-gradation and Skill Development Company (TUSDEC). A sum of Rs. 150 million has been allocated for this purpose during 2013- 14. iv. Youth Skill Development: The government will bear the training charged as well provide stipend to students between the ages of 18 and 25 years, who undergoes technical training. A sum of Rs. 100 million has been allocated for this purpose during 2013-14. v. Youth Challenge Fund: This Fund is being established to encourage local entrepreneurship in the Province. Rs. 2 million shall be provided as seed money to 50 top business proposals prepared by young business planning youth, to be assessed through a transparent system of competition. A sum of Rs. 120 million has been allocated for this purpose during 2013-14. vi. Sports Facilities for Youth: To promote healthy co-curricular activities, sports equipment/items shall be provided to High schools (M&F) with playground facility. A sum of Rs. 100 million has been allocated for this purpose during 2013-14. vii. Khud Kifalat Interest free scheme: An interest free loan of Rs. 50,000 to 200,000 will be provided to bona-fide residents of Khyber Pakhtunkhwa in the age range of 18 to 50 years. The loan shall be secured through personal guarantee by two guarantors. A sum of Rs. 2.7 billion has been allocated for this purpose during 2013-14. viii. Madrasa interest free Micro Finance credit scheme: An Interest free loan of Rs. 25,000 to 50,000 shall be extended to Madaris in 12 backward districts to be selected on the basis of credible survey. A sum of Rs. 1 billion has been allocated for this purpose during 2013-14.
Ranrra Solar Energy Initiative Loan: A loan up to Rs. 30 million on 7% markup for a period of 6 years with 1 year grace period shall be granted to bonafide residents of Khyber Pakhtunkhwa, upto 60 years age for the establishment of employment oriented businesses in the Province with debt-equity ratio of 60:40. The loan shall be recovered in quarterly installments. A sum of Rs. 300 million has been allocated for this purpose during 2013-14.
Community Driven Local Development: A policy and governance framework for community driven local development is being adopted by the government of Khyber Pakhtunkhwa. Funds shall be directly transferred to the village based organizations/councils, to be monitored through strict system of performance audit. EU has allocated a sum of Rs. 1 billion and counterpart funds of Rs. 500 million shall be provided by Government of KPP.
Energy Task Force: Alongside generation of power, efficient transmission & distribution of power is a big issue. A Task Force will study the T&D and Demand Side Management and recommend strategy for resolution. A sum of Rs. 10 million has been allocated for this purpose during 2013-14.
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LOCAL GOVERNMENT ACT 2012
District Governments system was introduced in 2001 after promulgation of the Local Government Ordinance in the province. As a result a large number of departments were devolved to the districts. Under the Ordinance, among other things, Account-IV was opened for financial management of District Governments and District Coordination Officers were declared as Principal Accounting Officers of Account-IV. District Government system remained in vogue till 2012. In 2012 the Provincial Government decided to wind up District Government system in the province. For this purpose Local Government Act was passed by the Provincial Assembly on 08-05-2012. Subsequently, the Provincial Cabinet in its meeting held on 12-12-2012 decided to implement Local Government Act 2012 (LGA 2012) with effect from 01-01-2013.
With the implementation of Local Government Act 2012, under its section 4(1), the Local Government Ordinance 2001 was repealed on 31-12-2012. Resultantly the following changes occurred at the district level:
1. District Governments system and offices of the DCO, EDO F&P and DO R&E came to an end on 31-12-2012.
2. New Local Councils i.e. Municipal Corporation Peshawar, District councils and Municipal Committees were revived on 01-01-2013.
In the same meeting the Cabinet had also decided to implement a new administrative setup at district level under which the following measures were introduced:
1. Creation of the office of Deputy Commissioner, Additional Deputy Commissioner, Assistant Commissioner and Additional Assistant Commissioner
2. Creation of the office of District Officer Finance and Planning which was later integrated into the office Deputy Commissioner
3. Realignment of all departments of the defunct district governments with their provincial counterparts.
4. Creation of the office District Education Officer (Female) in Elementary and Secondary Education.
5. Continuation of Account-IV modality with Deputy Commissioners as Principal Accounting Officers
The Cabinet’s decision and consequent administrative changes at district level were notified on 27-12-2012 by Establishment and Administration Department vide its Notification No SO (E-1) E&AD/4-49/2012. These changes have taken effect on 1 st January 2013.
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Facilitating transition to the new administrative setup at district level in terms of financial management was a real challenge. However, Finance Department made it possible by providing a ‘transition framework’ in the form of detailed guidelines which were conveyed to all concerned on 24-01-2013. This framework was meant for the transitional period till 30-06-2013 and covered various aspects of transition like institutional arrangements, procedural arrangements, maintenance of accounts and development expenditure.
Under this framework Account-IV modality was preserved and PFC Award 2012-13 was saved for the remaining part of the FY 2012-13 i.e. for the period 01-01-2013 to 30-06-2013. At the same time an analysis was carried out in the Finance Department to determine the compatibility of Account-IV modality with the new district level administrative set up. It was found that, after repeal of the Local Government Ordinance 2001, non existence of the following factors in favor of Account-IV modality call for shifting of budget (salary and non-salary) formulation processes at district level to the pre-2001 format:
1. Administrative Rationale 2. Legal Cover 3. Reconciliation of the role of Deputy Commissioner viz-a-viz the role of Administrative Secretary a. as Principal Accounting Officer b. as Competent Authority for excess/surrender c. as recipient of Grants
All concerned were made wise on this aspect of Account-IV modality in a presentation held in the office of Chief Secretary KP on 12-04-2013. After presentation, the Chief Secretary was pleased to direct, among other things, that all departments of the provincial government will follow the practice of budget processing according to the pre-devolution set up and Finance Department will issue necessary instructions to all concerned in this regard.
On the basis of this decision Budget 2013-14 (salary and non salary) has been remodeled on the pre-2001 format and necessary adjustments in relevant grants have been made. This is a vital deviation from the budget formats of the past 12 years and must be kept in mind while reviewing Budget 2013-14.
FISCAL TRANSFERS TO LOCAL COUNCILS:
Fiscal Transfers to the newly created Local Councils will follow a pattern that is analogous to, smaller in scale though, the pattern which existed prior to 1-1-2013 for fiscal transfer to District Governments and TMAs. Chapter XVII (Sections 185-188) of the Local Government Ordinance 2012 provides a framework for such transfers.
The framework provides for constitution of Local Councils Finance Commission (LCFC) akin to the Provincial Finance Commission (PFC) provided in the repealed Local Government Ordinance of 2001. LCFC will make recommendations to the Provincial Cabinet on the amount of Local Councils Grant (LCG), Special Grants (SG) and Grant in aid (GIA) to needy Local Councils. LCFC will also devise the formula for distribution of LCG among Local Councils and will lay down criterion for accessing SG and GIA by the eligible Local Councils. As of now, constitution of LCFC is underway and its first meeting is likely to be convened by the end of June 2013.
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Grants in lieu of Octroi and Zilla Tax will continue to remain as an important form of fiscal transfers to Local Councils and during FY 2013-14 Rs 3.74 billion are estimated to be transferred to the Local Councils.
Under the LGA 2012, recipient entities of these transfers have been re-identified. Now Municipal Corporation Peshawar and Municipal Committees will receive Grants in lieu of Octroi whereas District Councils in the province will receive Grants in lieu of Zilla Tax. As a matter of fact Finance Department started transferring these grants to the respective Local Councils as early as January 2013 on the basis of an exhaustive list of Local Councils, entitled to receive these grants, which was drawn by Local Government and Rural Development Department.
After 1-1-2013, grants in lieu of Octroi and Zilla Tax are being transferred to Local Councils under ‘Transition Framework’. However, these grants will become integral part LCFC Award as per section 187 (1)(a) as and when it is formulated.
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www.financekpp.gov.pk GROWTH AND DEVELOPMENT
The province of Khyber Pakhtunkhwa has agricultural potentials, and offers a diverse climate and landscape for a variety of tourist activities. Located at the crossroads of important international trading routes, the people of Khyber Pakhtunkhwa have long traditions of trade and travel. Hydroelectric power, forestry and mineral sectors offer resources for a robust economy.
The Government of Khyber Pakhtunkhwa believes that acceleration of growth will be realized by concentrating on natural resource endowments of the province in Hydel Power, Mining and Minerals, Oil and Gas and Agriculture value addition and agro-processing industries. The southern districts of Khyber Pakhtunkhwa i.e Karak, Kohat and Hangu, which lag behind from other parts of the province in social infrastructure, are rich in natural resources including huge deposits of oil, gas and minerals.
During the proceedings of the 7 th NFC award, a long drawn issue of payment of the net profits on account of Hydel Power Generation to Khyber Pakhtunkhwa was resolved. The Federal Government accepted the arrears payment of Rs. 110 billion as per decision of the Arbitration Tribunal. So far Rs. 85 billion has been paid to the province and remaining Rs. 25 billion would be paid during the financial year 2013-14.
This chapter highlights the available avenues of growth & development & policies & priorities on part of the Provincial Government for its maximum utilization.
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HYDRO ELECTRIC POWER POTENTIAL
ISSUE OF NET HYDEL PROFIT:
The right 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”.
Explanation: - “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”.
For the first time a sum of Rs. 6 billion Net Hydel Profits was paid during 1991-92. The said amount has been capped since then, despite the fact that power tariff has been increased manifold. The figure of Rs. 6 billion is based on the provisional profits of WAPDA calculated for 1990-91. NFC had recommended increase @ 10% on Rs. 6 billion for future years, but WAPDA did not follow said recommendations.
Owing to the difference of opinion about the computation of Net Hydel Profits between the Government of Khyber Pakhtunkhwa and WAPDA, an Arbitration Tribunal was constituted by the Federal Government on 31 st October 2005, to resolve the dispute on computation of Net Hydel Profits. The Arbitration Tribunal announced its award on 9 th October 2006 and gave an Award of Rs. 110.101 billion to the Government of Khyber Pakhtunkhwa.
It is important to note that the Arbitration Tribunal had agreed with KCM for calculating NHP payable for the year 1991-92 but did not apply KCM for the years onward. Thereafter in order to pursue a middle course, the Tribunal rather adhered to a mechanism of compound indexation of 10% per annum in NHP using figures of Rs. 6,923 million as benchmark. The aforementioned figure of Rs. 6,923 million had been calculated on the basis of KCM formula by WAPDA itself for the year 1991-92.
During the proceeding of the 7 th NFC Award, the Federal Government has played key role in the resolution of a long drawn issue of payment of Rs. 110 billion on account of Net Hydel Profits to Khyber Pakhtunkhwa and has agreed to honour the judgment of Arbitration Tribunal. The Federal Government has released Rs. 10 billion on 16 th November 2009 and balance amount of Rs. 100 billion has been committed to be paid in four equal installments of Rs. 25 billion each will be made on 1 st July every year. In this regard Federal Government has released Rs. 85
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billion upto June 2013 to the Government of Khyber Pakhtunkhwa and the last installment of Rs 25 billion would be paid during the next financial year 2013-14. For the remaining issues a Technical Committee has been constituted for making recommendation on account of arrears and allied issues. Stance of the Government of Khyber Pakhtunkhwa on the issues of Net Hydel Profits before the Technical Committee is as under:
• Khyber Pakhtunkhwa shall not accept reopening of issues already decided/settled. • Any settlement must conform to the parameters of Awards. • The calculation of NHP shall be in accordance with Kazi Committee Methodology “KCM”.
The matter was vigorously pursued by the Province at the highest level with Federal Finance Division and other concerned quarters. Federation was pleased to mandate a technical committee to resolve the issue during 7th NFC. In this respect, a series of meetings by the technical committee were held under the chairmanship of Mr. Rana Asad Amin, Special Secretary Finance, Finance Division, Government of Pakistan (as he then was ) with due participation of all the stakeholders including WAPDA, Ministry of Water & Power, NEPRA etc. The Technical Committee after thorough deliberations made a number of decisions to resolve the afore-described controversies. These decision were later considered at the level of Finance Minister on 14-03-2013 at the sidelines meeting of 8th NFC and were accordingly circulated. The decisions taken are as under:
(i) Uncapping of existing NHP, against the Provincial Government claim made on the basis of Award indexation formula or on the basis of KCM; the Federal Govt agreed that the rate of NHP shall be Rs.1.10 per kwh to be approved w.e.f next financial year with an indexation @ 5.5 % per annum. (ii) Markup on unpaid Award amount of Rs. 110 billion upto 2004-05, the Committee agreed that payment of Rs. 56.59 billion may be paid to Government of Khyber Pakhtunkhwa as markup on Award amount. (iii) NHP from 2005-06 and onward (Principal + Markup), the committee decided that an amount of Rs.45 billion be paid to the Govt of Khyber Pakhtunkhwa assuming different NHP Rates at Ps.60 per KWh from 2005-06, Ps.70 per KWh for 2006-07 and 2007-08 ,Ps.80 per KWh for 2008-09 and 2009-10 and Ps. 90 per KWh for 2010-11 and 2011-12.
After examining the matter and going through record of the above proceedings of Sub- Committee meetings, following decisions emerged out as actionable items:
(i) For uncapping, WAPDA and the Ministry of Water & Power may immediately approach the NEPRA through a tariff petition under the law to include the NHP @ 1.10 per Kwh together with annual indexation @ 5% payable to Government of Khyber Pakhtunkhwa. The change in tariff may take effect from next fiscal i.e. 01- 07-2013.
(ii) For payment of outstanding arrears of Rs. 101.5 billion agreed hereinbefore, Federal Government shall set aside and pay to the Province a reasonable payment upfront in next fiscal, while for remaining amount after defraying the receivables of PEPCO, either a viable instalment plan may be decided by the parties subsequently or other
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options such as book adjustment against Provincial loans or transfer of proprietary interest in power sector entities to the Province may be made, if so mutually agreed.
In light of the above decisions the Government of Khyber Pakhtunkhwa has taken up the issue with Ministry of Water & Power / WAPDA / NEPRA and Finance Division for early settlement.
ENHANCEMENT OF ROYALTY SHARE OF NET HYDEL PROFITS FROM 5% TO 10% TO THE DISTRICTS WHERE DAMS ARE LOCATED.
The Chief Minister Khyber Pakhtunkhwa on the occasion of windup speech on Budget 2012-13 in the Provincial Assembly announced to enhance the royalty share of NHP from 5% to 10% with effect from 01-07-2012. Previously Provincial Government has 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, effective from Financial Year 2008-09. The said 5% share will be over and above the District’s & Provincial ADP which will be utilized on Developmental activities (i.e. Technical Education, Health facilities, roads, scholarship for the effectives, Water supply schemes, Electricity and supply of Gas. Now on the basis of 10% share of NHP the Provincial Government will providing Rs 600 million to the respective district from financial year 2012-13 and onward.
HYDRO ELECTRIC POWER POTENTIAL IN KHYBER PAKHTUNKHWA:
The Province of Khyber Pakhtunkhwa has been blessed with the huge Hydel potential and large reserves of Oil and Gas. These resources are not only contributed in decreasing the gap between energy demand and supply but also earning billion of rupees for the province.
ACTIVITIES DURING 2012-13:
Energy & Power department through PHYDO is operating four Hydropower Projects in Malakand, Swabi and Chitral District. The total installed capacity of these Hydropower Projects is 105 MW. These Hydel electric stations are not only contributing to reduce load shedding but also generating handsome amount of revenue of Rs. 2.5 billion for the province.
Besides the above completed Hydropower Projects, Government of Pakistan has signed a loan agreement with the Asian Development Bank (ABD) for the development of Hydropower Potential in Khyber Pakhtunkhwa Province. Under this project, PHYDO is constructing two new projects having a total installed capacity of 20 MW (17 MW Ranolia HPP Kohistan and 2.6 MW Machai HP Mardan). These projects are under various stages of implementation and will be completed during 2014-15. Under same loan feasibility studies of three sites were also carried out and based on these studies, PC-I have been framed out of which the PC-I for the Jabori HPP (7 MW) Mansehra Karora HPP (10 MW) Shangla have been approved and PC-I of Koto HPP (31 MW) Dir is pending for approval of ECNEC.
In order to attract private investment, Energy & Power Department through PHYDO has also conducted Pre-Feasibility study of 10 raw sites in various districts of Khyber Pakhtunkhwa Province and these sites are in process of development.
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Energy & Power Department has prepared Action Plan 2011-21 under which PHYDO has started work on the following six Hydel Projects having an installed capacity of 238 MW. These projects are in various phases of planning like selection of management consultants, award of EPC contract, mobilization of contractor and physical works on site.
CONSTRUCTION PROJECTS
S.No Name of Scheme Location Capacity in MW 1 Matiltan HPP Swat 84 2 Daral Khwar Swat 36 3 Koto HPP Dir 31 4 Karora HPP Shangla 10 5 Jabori HPP Mansehra 8 6 Lawi HPP Chitral 69 Total Installed Capacity 238
In addition to above, three PC-I with combined capacity of 426 MW have already been forwarded to Federal Government for approval (150 MW Sharmai HPP Dir, 144 MW Shusghai- Zhendoli HPP Chitral and 132 MW Shogo Sin HPP Chitral).
In addition to construction projects Energy & Power Department has also started feasibility study of the following Hydel Power Projects (13) with total potential of 1322 MW installed capacity. Feasibility studies on these sites are in progress.
FEASIBILITY STUDIES
S.No Name of Scheme Location Capacity in MW 1 Gahrit -Swir Lasht HPP Chitral 334 2 Korag Parait HPP Chitral 223 3 Laspur Marigram HPP Chitral 133 4 Arkari Gol HPP Chitral 24 5 Istaru -Buni HPP Chitral 52 6 Mujigram Shogo HPP Chitral 51 7 Barikot Patrak HPP Dir 34 8 Patrak Shringal HPP Dir 21 9 Shigo Kach HPP Dir 26 10 Ghor Band HPP Shangla 14 11 Nandihar HPP Battagram 10 12 Naran Dam HPP Mansehra 210 13 Balakot HPP Mansehra 190 Total Installed Capacity 1322
Moreover, the Government of Khyber Pakhtunkhwa singed two Nos MoU for development of Lower Palas Valley Hydropower (665 MW) and Spat Gah Hydropower Project (496 MW, District Kohistan) under Public Private Partnership (PPP) Mode. The total cost of the project would be
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US $ 3 billion. The project will be built on debt equity ratio of 80:20. The share of Government of Khyber Pakhtunkhwa would be 25% in the equity portion.
In order to harness the Hydropower Potential in province, Energy & Power Department will initiate 2 nd phase of Feasibility Study of potential sites in Khyber Pakhtunkhwa during financial year 2013-14. In this phase the Feasibility study of following three new sites will be started. The potential of these three sites is about 956 MW.
• Torcap-Guddubar HPP District Chitral 409 MW • Kari-Muskhur HPP District Chitral 446 MW • Gabral-Kalam HPP District Swat 101 MW
In addition to Hydel Power Generation, the department is putting its effort for harnessing Power generation through other resources and energy conservation. Keeping in view the available potential for Oil & Gas, Energy & Power Department will carry out feasibility study for construction of 200 MW thermal power house in southern district of the province.
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REVENUES FROM OIL AND GAS
GENERAL SURVEY OF OIL AND GAS IN KHYBER PAKHTUNKHWA:
Production of oil and gas in Khyber Pakhtunkhwa 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 belt of the Province, including district Kohat, Karak and Hangu. As of March 2013, an area of around 247246 square kilometer is under exploration for oil and gas throughout the country out of which 18890.66 square kilometers i.e. 13.08 % of the total is in Khyber Pakhtunkhwa. Eight companies are presently working in the Khyber Pakhtunkhwa and the details of the area held by each company throughout the country as well as in the Khyber Pakhtunkhwa is given in the following table:-
ACTIVE LICENSES IN KHYBER PAKHTUNKHWA
Name of Country wise % share with Area in Khyber % share in company total total area of Pakhtunkhwa Khyber S.No working in Area held by the country held by each Pakhtunkhwa vs Khyber each (Sq. held by each company (Sq. … total area in Pakhtunkhwa KM) Company KM) colum (2) 1 MOL 6637.28 4.74 4,365.98 23.11 2 Hycarbex 6875.98 4.91 2,487.77 13.17 3 MGCL 14316.21 10.22 1,497.94 7.93 4 OGDCL 62108.21 44.34 4,712.58 24.95 5 OPII 6,369.11 4.55 1792.87 9.49 6 PPL 34,233.14 24.44 2,015.47 10.67 7 Tullow 7,086.28 5.06 1,229.57 6.51 China Zhengue 8 2,442.00 1.74 788.48 4.17 Oil Total 140,068.21 100.00 18,890.66 100.00
The oil and gas sites in Khyber Pakhtunkhwa fall in Potohar Region, wherein almost all the major oil /gas fields including Chanda, Tul and Nashpa oil and gas reserves are situated. It has created an atmosphere of competition for fresh leases of exploration in the area. The presence of Oil and Gas Development Corporation Limited (OGDCL) MOL, Hycarbex and PPL shows promising prospects of oil and gas in the area.
ONGOING DRILLING:
Exploration activity is continued at three places in District Kohat & Karak as per detail given below:- Wells Under Drilling Tentative date S.No Well Name Well Type Operator Status of completion 1 Nashpa-04 Development OGDCL 30-April-2013 Under Drilling 2 Manzalai-10 Development MOL 10-May-2013 Completed 3 Makori East-03 Development MOL 25-May-2013 Under Drilling 4 Mela-4 Development OGDCL 10-June-2013 Under Drilling
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Production of oil and gas for the year 2012-13 & 2013-14: 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 Khyber Pakhtunkhwa in the year 1999. MOL has the second largest stake for oil and gas in Khyber Pakhtunkhwa. It has discovered Manzalai, Makori oil field in the Tal block in the year 2002, and 2005 respectively. The various operationalized oil/gas fields in Tal, Chanda, Nashpa blocks and actual /estimated production from these fields for the Financial Year 2012-13 and 2013-14 are given below:-
REVISED & ESTIMATED OIL AND GAS PRODUCTION FOR THE YEAR 2012-13 & 2013-14 District Revised Estimate July 30 July 2013 June 2014 Company Field Name June, 2013 (Estimated)
Oil (BBLs) Gas MMCF Oil (BBL) Gas MMCF
Manzali Karak 1646150.00 87600.00 to 2141820 60750 Makori Karak 529250.00 7300.00 1034775 17520.00 Makori Karak 20075.00 5475.00 1807500.00 8475.00 Mol East Mami Kohat 532900.00 9125.00 211445 18615.00 Khel Maramzai Hangu 576700.00 14600.00 873445 15630.00 Tolang Kohat -- -- 5292.00 1825.00 Mela Kohat 1825000.00 5475.00 1222750.00 4380.00 Chanda Kohat 1241000.00 1825.00 949000.00 2555.00 OGDCL Nashpa Karak 5000500.00 11680.00 7781800.00 13930.00 Sheikhan Kohat 1825.00 18.25 -- -- Total 13360825.00 143.098.25 16027827.00 143680.00 Average per day 36605.00 392.05 43911.85 393.64 (Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)
OIL AND GAS RESERVES IN KHYBER PAKHTUNKHWA: The various operationalized oil/gas fields discovered so far in the Tal, Chanda and Nashpa blocks have sufficient reserves. The detail of each oil/gas fields is given as under:-
A. OIL RESERVES (MILLION BBLS) AS ON 31 ST DECEMBER, 2012 Year of Original Cumulative Operator Field Balance Discovery recoverable production Makori 2005 11 3.6 7.4 Manzali 2002 29 5.3 23.7 MOL Mami Khel 2008 11 1.1 9.9 Makori East 2011 32 0.3 31.7 Maramzai 2009 9 1.1 7.9 Chanda 1999 26.17 13.21 12.96 OGDCL Mela 2006 22.12 10.25 11.87 Nashpa 2009 12.26 7.8 4.46 Shekhan 2010 0.06 0.01 0.05 Sub Total 152.61 42.67 109.64 (Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)
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B. GAS RESERVES (BILLION CUBIC FEET) AS ON 31 ST DECEMBER, 2012 Year of Original Cumulative Balance BTU Company Field Discovery recoverable production SCF Makori 2005 221.000 49.000 172.000 1091 Manzali 2002 1884.000 334.000 1550.000 1032 Mami 2008 148.000 23.000 125.000 1073 MOL Khel Makori 2011 192.000 1.000 191.000 1182 East Maramzai 2009 280.000 27.000 253.000 1075 Chanda 1999 50.580 27.850 22.730 828 Mela 2006 66.210 32.100 34.110 1170 OGDCL Nashpa 2009 53.420 27.930 25.490 1130 Shekhan 2010 11.680 1.670 10.010 1040 Sub Total 2906.890 523.550 2383.340
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
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. As a result of 18 th Amendment, the resources of oil/gas is to be shared between the Federal Government and concerned Provincial Government in the ratio of 50 :50. In wake of this development, the Provincial Government has decided to setup an oil and gas company with the name “Khyber Pakhtunkhwa oil and gas company”. The establishment of this company is completed which will be under control of Energy & Power Department..
GAS DEVELOPMENT SURCHARGE:
Gas Development Surcharge, levied under the Natural Gas (Dev: Surcharge) Ordinance, 1967 is the difference between the prescribed price and the consumer’s price (price is determined by OGRA). In accordance with the said Ordinance, the Federal Government has to fix the sale price for consumers and prescribed price for Gas Companies on the basis of their fixed return. The difference between consumer gas price and the Companies prescribed price as defined in the Natural Gas (Development Surcharge) Ordinance, 1967 is the margin available to the Government as Development Surcharge. The prescribed price of Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company Limited (SSGCL) is based on the following:-
• Wellhead price of gas. • Excise Duty at Wellhead. • Operation and Maintenance Cost.
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• Depreciation. • Returns of Gas Company (17.5% SNGPL and 17% SSGCL) on assets.
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.
MODE OF PAYMENT OF ROYALTY UNDER 7 TH NFC AWARD: PAYMENT OF NET PROCEEDS OF ROYALTY ON CRUDE OIL :- According to the 7 th NFC Award, “each of the Provinces shall be paid in each financial year as a share in the net proceeds of the total royalties on crude oil an amount which bears to the total net proceeds the same proportion as the production of crude oil in the Province in that year bears to the total production of crude oil”.
PAYMENT OF NET PROCEEDS OF DEVELOPMENT SURCHARGE ON NATURAL GAS TO THE PROVINCES:- Similarly, “each of the Provinces shall be paid in each financial year as a share in the net proceeds to be worked out based on average rate per MMBTU of the respective province. The average rate per MMBTU shall be derived by notionally clubbing both the royalty on Natural Gas and development surcharge on gas. Royalty on natural gas shall be distributed in accordance with clause (1) of Article 161 of the Constitution whereas the development surcharge on natural gas would be distributed by making adjustments based on this average rate”.
ACTUAL AND ESTIMATED RECEIPTS FROM 2004-05 TO 2013-14: Status of actual receipts from the Federal Govt: since commercial production of oil and gas has started from the wells located in Khyber Pakhtunkhwa is given as under:-
ACTUAL AND ESTIMATED RECEIPTS 2004-05 to 2013-14
Actual Estimated Receipts 2012- 2013- S.No 2004 2005 2006 2007 2008- 2009- 2010- 2011- Head 13 14 -05 -06 -07 -08 09 10 11 12 (R.E) (B.E) Royalty on 263.7 492.0 1090. 3,027. 3,111. 1942.2 8341.2 11651. 12781. 16103.8 1 crude oil 93 09 718 076 402 40 97 551 675 50 Royalty on 109.3 351.0 462.4 537.9 733.21 1261.4 3814.0 4153.8 3804.1 5071.63 2 natural Gas 70 50 18 88 2 58 63 40 74 7 Excise 44.28 24.59 123.2 206.2 149.13 286.04 1098.4 1173.5 1424.1 1192.76 3 duty on Gas 0 1 90 36 0 6 13 11 21 4 Gas Dev: 69.82 316.2 632.7 418.2 246.02 1026.1 3315.0 1786.0 1915.0 5127.49 4 Surcharge 8 29 17 36 8 55 39 62 00 0 487. 1183 2309 4189 4239. 4515. 16568 18764 19924 27495. Total 271 .879 .143 .536 772 899 .812 .964 .97 741
Actual and estimated well-head wise production figures of oil from financial year 2004-05 to
2013-14 and production trend of oil is indicated in the following tables and chart respectively: -
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PRODUCTION OF OIL (BARRELS) DURING FINANCIAL YEARS 2004-05 TO 2013-14 Actual Estimated S. Receipts 2013 - 2012.13 No Head 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 14 (RE) (B.E) Chanda 94900 1 (Shakardara 989,305 960,980 1,887,302 2,058,926 1,818,588 1691088 1523822 1436673.00 1241000 0 Kohat) Manzali 21418 2 55,135 166,445 156,978 137,231 149,717 1049932 1608099 1325083.04 1646150 (Karak) 20 Makori 10347 3 - 185,201 517,543 771,595 676,310 297578 597641 52776.00 529250 (Karak) 75 Mela 12227 4 - - 298,165 1,721,515 2125,126 2044641 1630434 1734178.00 1825000 (Kohat) 50 Nashpa 77818 5 - - - - - 219472 1955981 3233.789 5000500 (Karak) 00 Makori East 18075 6 ------12370 17351.00 2007500 (Karak) 00 Maramzai 87344 7 ------83959 643808.89 576700 (Hangu) 5 Mami Khe 21144 8 ------431003 557765.07 532900 (Kohat)l 5 Sheikhan 9 ------6034 1146.00 1825 -- (Kohat)l Tolang 10 ------313 -- 5292 (Kohat)l 133608 1602 Total 1,044,440 1,312,626 2,859,988 4,689,267 4,769,741 5302711 7849343 9470883 25 7827
RODUCTION OF GAS (MILLION CUBIC FEET) DURING FINANCIAL YEARS 2004-05 TO 2013-14 Actual Estimated 2013 - S.No Receipts Head 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012-13 14 05 06 07 08 09 10 11 12 (R.E) (B.E) Chanda 1 (Shakardara 3,495 2,990 3552 3,032 2,682 2754 2612 2812.09 1825 2555 Kohat) 12,552 2 Manzali (Karak) 4,940 17,221 16181 13,392 61513 92991 79618.71 87600 60750
3 Makori (Karak) - 733 6594 10,314 9,349 3839 8593 8143.78 7300 17520 4 Mela (Kohat) - - 43 3,809 5,936 6265 4804 6699.38 5475 4380
5 Nashpa (Karak) - - - - 583 6504 11502.75 11680 13930 - 6 Mami Kheil (Kohat) ------7657 10031.71 9125 18615 Maram Zai 7 - - - - 2047 16549.77 14600 15630 (Hangu) - - Makori East 8 (Karak) ------49 70.18 5475 8475 Sheikhan 9 (Kohat) ------914 509.45 18.25 -- Tolang 10 (Kohat) ------0 200 -- 1825 Total 8,435 20,944 26370 29,707 31,359 74954 126173 136137.78 143098.25 143680
PRODUCTION BONUS: Ministry of Petroleum & Natural Resources 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 MNA(s) (Chairmen), MPA(s),
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Tehsil/ Taluka Nazim (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 proceeds of production bonus against Tal block of MOL and OGDCL NASHPA Block is as under:-
DETAIL OF FUNDS ON ACCOUNT OF PRODUCTION TRANSFERRED IN THE RESPECTIVE DCO’S ACCOUNTS DURING YEAR 2012-2013
Name of Date of Company Amount Remarks Block/Field Deposited PK. Amount transferred in joint account 164,209,466 No. C.A 8632-7 NBP Karak Branch US $ 94,203 -do- MOL TAL BLOCK 06/12/2012 PK. Amount transferred in joint account 47,368,115 no. C.A 6355-4 NBP Hungu Branch US $ 27,174 -do- Pk. Amount transferred in joint account 23,975,000 no. 1552-2 NBP Kohat Branch OGDCL NASHPA BLOCK 08/01/2013 PK. Amount transferred in joint account 23,975,000 No. C.A 8632-7 NBP Karak Branch
SOCIAL WELFARE OBLIGATION OF E &P COMPANIES OPERATING IN KHYBER PAKHTUNKHWA PROVINCE. SW Obligation SW Obligation Name of Name of District/Location 2012-2013 2013-14 Company Block (US $) (US $) Kohat, Karak, Bannu, Hangu, Ademkhel MOL Tal 250,000 250,000 & North Waziristan Hycarbex Peshawar Peshawar, Orakzai & Khyber Agency 30,000 30,000 Karak, Bannu, North Waziristan & MGCL Karak 10,000 10,000 Mianwali Gurglot Kohat & Attock 10,000 10,000 Attock, Mianwali, Kohat, Karak & North Nashpa 20,000 20,000 Waziristan OGDCL Latambar North Waziristan, Karak & Bannu 10,000 10,000 Wali South Waziristan, Laki Marwat & Bannu 10,000 10,000 Kohat Peshawar, Nowshera, Kohat, Adam Khel 10,000 10,000 Soghri Kohat & Attock 10,000 10,000 Laki Marwat, Tank, D.I.Khan & South OPII Marwat 10,000 10,000 Waziristan Mianwali, Bakkar, D.I. Khan & Lakki PPL Zindan 30,000 30,000 Marwat Bannu, Kohat, Kurram & North Tullow Bannu West 10,000 10,000 Waziristan Total SW Obligation 410,000 410,000
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TRANSFER OF 10% ROYALTY SHARE OF OIL AND GAS TO THE CONCERNED DISTRICTS:
The Provincial Government has decided to transfer 10% share of receipts on account of Oil/Gas receivable from Federal Government to the respective districts where well heads of oil / gas are located. In this connection report of the committee headed by the Chief Secretary, Khyber Pakhtunkhwa regarding utilization of 10% share has already been approved by the Provincial Cabinet. However the Provincial Government has now amended the said policy of 10% share of royalty on oil & gas. The salient features of the amendment are as under.
a. Minimum size of a scheme financed out of 10% share of Royalty on Oil & Gas will be Rs. 10,00,000/- (one million). b. 10% share of royalty on oil & gas will be utilized on Electricity, supply of Gas, Education, Technical Education, Water Supply Schemes, Roads, Health facilities, construction of small Dams, & Purchase of land for higher educational Institutions.
The said 10% share is over and above the size of District and Provincial ADP. Utilization of 10% share in the respective districts would certainly supplement the development activities and improve the socio-economic condition of the area. For the Financial Year 2012-13, a sum of Rs. 1876.496 million has been released to the concerned Districts i.e. Kohat, Karak & Hangu as 10% share of royalty on oil, gas.
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7TH NATIONAL FINANCE COMMISSION
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:-
• 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.
The historic announcement of the 7 th NFC Award on 18 th March 2010 has resolved the long standing issue of distribution of resources between the Federation and Provinces of Pakistan. In the 7 th NFC Award the share of Provinces in vertical distribution has been increased from 49% to 56% during 2010-11 and 57.5% during the remaining years of the Award. The traditional population based criteria for horizontal distribution of resources amongst the Provinces has been changed to Multiple-Criteria Formula. According to this criteria 82% distribution was made on population, 10.3% on poverty and backwardness, 5% revenue collection/generation, and 2.7% on inverse population density (IPD).
Federal Government had cut down its collection charges from 5 percent to 1 percent, which would largely benefit the provinces. Realizing the role of Khyber Pakhtunkhwa in the war on terror 1% of the net divisible pool was assigned to this Province. Under the new formula, Punjab would get 51.74 percent from the divisible pool, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62 percent and Baluchistan 9.09%. In the new award Punjab has given up 1.27 percent, Sindh 0.39 percent and Khyber Pakhtunkhwa 0.26 percent, while Baluchistan has gained.
For the first time multiple indicators have been included as the criterion for horizontal distribution amongst the Provinces in the 7 th NFC Award 2010. The multiple indicators and their respective weightage as agreed are as under:-
S.No Indicator % weight 1 Population 82.00 2 Poverty/backwardness 10.30 Revenue Collection/ 3 5.00 generation 4 Inverse population density 2.70 Total 100%
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The subvention/special grant and grant in lieu of Octroi and Zilla Tax (1/6 th of sales tax) have been abolished. The net share of the Provinces (from the divisible pool and grant for war on terror) as compared to the share allocated on the basis of population and 1/6 th of Sales Tax and Special Grant is as under:-
COMPARATIVE POSITION OF SHARE OF PROVINCES IN THE DIVISIBLE POOL
% Share % Share Grant for on the Grant for Total on the Compensation Province basis of War on % basis of 7 th on account of previous Terror Share NFC Award OZ&T award Punjab 53.20 51.74 51.74 Sindh 24.96 24.55 0.66% 25.21* Khyber 14.78 14.62 1.80% 16.42** Pakhtunkhwa Baluchistan 7.05 09.09 9.09 Total 100 100 *Grant-in-Aid to Sindh, equivalent to 0.66% of the net Provincial Divisible Pool as compensation for losses on account of abolition of OZ&T. **The grant for war on terror is 1% of the total divisible pool, which is equivalent to 1.8% of the provincial share in the net proceeds of provincial divisible pool.
Comparative position of the total transfers to Provinces under NFC Award for the financial year 2013-14 is as follows:-
FUNDS TO BE TRANSFERRED TO THE PROVINCES DURING 2013-14
(Rs in million) 1% of total Divisible Pool for Budget Province War on Terror Estimate Total %share grant (1.8% of 2013-14 the provincial pool) Punjab 701,672.852 -- 701,672.852 (51.74%) Sindh 332,935.225 -- 332,935.225 (24.55%) Khyber Pakhtunkhwa 198,269.368 23,823.481 222,092.849 (14.62%) Baluchistan 123,274.183 -- 123,274.183 (9.09%) Total 1,356,151.628 23,823.481 1,379,975.109
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The Net proceeds of Development Surcharge on Natural Gas shall be distributed amongst the Provinces under Article 161(1) of the Constitution. For this purpose the royalty on Natural Gas and Development Surcharge would be notionally clubbed into one and average rate per unit (MMBTU) would be worked out. The rate of excise duty on natural gas shall be raised to Rs. 10 per MMBTU for giving effect to this new formula. Besides, net amount of royalty on crude oil shall be paid to the provinces according to production in each province as per current practice.
The Provinces have been allowed to collect sales tax on services if they so desire. The Provinces shall improve their tax base by effectively taxing the agriculture and real estate sectors and collection system achieving the 15% tax to GDP ratio by 2014-15. The Federal Government will assist the Provinces through specific grants in times of unforeseen calamities.
Accordingly the Provincial Government of Khyber Pakhtunkhwa has taken the following initiatives/measures to increase Provincial Own Revenue and Tax to GDP ratio in line with clause-02 of Article-09 of the 7th National Finance Commission Award.
A-TAX RECEIPT:
(1) Revision of rates of various Taxes i.e. UIP, Motor Vehicles, Tax on Profession Trade and Calling, Tobacco, sugarcane Development Cess, Court Fee etc. (2) Provincialization and rationalization of Rates of Capital Value Tax (CVT). (3) Expansion of Tax net in respect of UIP and Tax on Profession Trade and Callings. (4) Categorization of property situated at different locations for the purpose of Tax and extension of rating area.
B- NON-TAX RECEIPT:
(1) Revision of fee under electricity Rules, Timber Duty rates, Water Charges, Contractor Registration and Tender Form fee.
C- OTHER REFORMS:
(a) Persons who have declared Agriculture Income in their Tax Returns received from FBR are brought under Agriculture Income Tax net. (b) Make it mandatory for owners and cultivators of 12 ½ acres or more of cultivated irrigated land, 25 acres of cultivated un-irrigated land or mature orchard having net income more than 100,000/- to self assess their Agriculture Income and file Agriculture Income Tax Returns. As a result of which cultivators have been brought into the tax net and the number of tax payers increased from 112 to 4799. (c) Comprehensive instructions have been issued for activities from crop inspection, assessment of Agriculture Income, filling of return and issuance of tax demand. (d) Following reforms are also under consideration towards harmonization of Agriculture Income Tax.
(i) Introduction of uniform rates of Agriculture Income Tax in all the provinces. (ii) Withholding Tax on Marketable surpluses of Agriculture Sector which is purchased through formal mechanism. (iii) Reduction in the Exemption ceiling of 05 Acre under Land Tax. 46 Chapter No. 8 : 7th National Finance Commission
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(iv) Simplification and standardized Agriculture Income Tax Forms. (v) Setting up an administrative structure for collection and monitoring of Agriculture Income Tax. (vi) Regular sharing the data of Agriculture Income in the Tax Return with all Provincial governments by FBR. (vii) The capacity building of revenue staff for scrutinizing Agriculture Income Tax Return and maintaining data of Agriculture Income Tax in consultation with FBR.
Review meetings with concerned Departments to motivate for achievement of assigned Target. As a result the recovery position has not only improved but significant increase has also been made as is evident from the following table:- (Rs. in million) Revised Actual Recovery % age of Tax Year Estimates of of Tax Collection Tax Receipt 2009 -10 2647.201 2594.254 98 2010 -11 3314.730 3701.954 111.7 2011 -12 3648.690 3940.265 108 3882.869 2012-13 3940.679 98 (Up-to March)
The Provincial Government has linked online receipt transactions under SAP System in order to streamline the tax collection system.
The Provincial Government is looking forward to; (i) Expand Tax net, Revision of Tax rates which have not been revised in the past 10 years. (ii) Enforcement, simplification of tax laws. (iii) An Independent Survey for tax administration assessment and collection. (iv) 7th NFC as well as 18th amendments recognized the right of Provinces to administer the sales Tax on services. The Province of Punjab and Sindh have established their Revenue Authority and Revenue Board respectively. The Province of Khyber Pakhtunkhwa is also looking forward to establish their Revenue Authority. For the purpose all legal and administrative measure are being taken and hopefully the Revenue Authority will start functioning w.e.f 1-7-2013. With the establishment of the said authority the Provincial Government would be able to enact the Khyber Pakhtunkhwa Sales Tax on Service Act 2013.
The above measures are expected to yield significant amount of revenue for the government of the Khyber Pakhtunkhwa and Tax to GDP ratio will also be increased.
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www.financekpp.gov.pk PUBLIC FINANCIAL MANAGEMENT
Public financial management (PFM) is an essential part of the development process. Transparent and efficient management of public financial resources means improved service delivery by government and masses getting essential services, such as education, healthcare and clean water, which are critical to the achievement of public policy objectives. Reforming public financial management is clearly at the heart of provincial Government’s aspirations to alleviate poverty and improve governance.
In this regard, the Provincial Government of Khyber Pakhtunkhwa has a comprehensive Integrated Public Financial Management Reforms Strategy. This strategy builds on the objectives of financial management reforms approved by the cabinet, and the findings of most recent Public Expenditure Financial Accountability Assessment (PEFA) and the Fiduciary Risk Assessment (FRA). It attempts to address the weaknesses identified within the FRA vis-a-vis to budgeting and to audit (based on PEFA indicators). The aim behind the mitigation strategy is to provide greater credibility to the PFM reform programme of Khyber Pakhtunkhwa.
The main pillars of PFM strategy are;
a. Making budget strategic by linking policies and priorities with budgeting b. Making budget credible and result oriented for better service delivery c. Improving budget execution and reporting d. Capacity Building of the workforce of Khyber Pakhtunkhwa e. Accountability for results
This chapter dwells on a number of key strategic interventions for the deepening of PFM reforms that have been undertaken by the Government of Khyber Pakhtunkhwa in pursuance of the integrated PFM Reforms Strategy.
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PUBLIC FINANCIAL MANAGEMENT REFORMS
MEDIUM TERM BUDGETARY FRAMEWORK & OUTPUT BASED BUDGETING:
A good budget process is far more than the preparation of a legal document that appropriates funds for a series of line items. Good budgeting is a broadly defined process that has political, managerial, planning, communication, and financial dimensions. The following definition recognizes the broad scope of the budget process and provides a base for improvement of the budget process.
“The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets”.
A good budget process is characterized by several essential features. A good budget process:
• Incorporates a long-term perspective • Establishes linkages to broad organizational goals • Focuses budget decisions on results and outcomes • Involves and promotes effective communication with stakeholders • Provide incentives to government management and employees
These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures once a year at a time, but is strategic in nature, encompassing a multi- year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness.
In order to ensure these essential characteristics in the budgeting system of the province, the provincial government resorted to Medium Term Budgetary Framework (MTBF) and Output Based Budgeting (OBB). This new budgeting system was initially piloted in three departments during ‘2010-11’ and the same was rolled out to nine more departments during ‘2011-12’. In FY 2012-13, the provincial cabinet has approved the roll out of output based budgeting to all provincial departments.
Some of the key business processes undertaken for the formulation of Output Based Budget ‘2013-16’ under MTBF included;
• Formulated the three years forward budget estimates ‘2013-16’ on the basis of macroeconomic indicators. • The Medium Term Fiscal Framework ‘2013-16’ to determine the total resource envelop and expenditure pressures thereon. • Presentation of Budget Strategy Papers regularly for the approval of the Cabinet. • Issued three years Recurrent Budget Ceilings to all departments for ‘2013-16’. • Developed Training Modules on PFM & OBB and imparted comprehensive trainings thereon at DDOs level. • Effective steering of the budget preparation processes by the senior management of Administrative Departments through the formation of core teams.
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• Preparation of the budget estimates by Administrative Departments in the light of their strategic priorities/plans with appropriate information on performance indicators and targets. • Initiation of pre budget negotiations/meetings with the core groups by Finance Department. • Development of the log frames of all line departments of the province.
DISTRICTS OUTPUT BASED BUDGETING & CONDITIONAL GRANTS:
During the year ‘2011-12’, the provincial government of Khyber Pakhtunkhwa extended output based budgeting to districts level with the introduction of districts conditional grants. This instrument of inter government transfers was piloted in the Elementary & Secondary Education and Health Departments of Districts D.I Khan and Buner. These districts were selected from the list of ten least developed districts of the province.
Keeping in view the encouraging results of the conditional grant program, the model was replicated in four more districts of the province i.e Lakki Marwat, Karrak, Haripur and Nowshera, during FY 2012-13, for which the provincial government allocated a sum of Rs. 1 billion in its regular budget with funds transferred to the special designated accounts of PTCs. District and Sector wise break-up of the releases up till now is given below: Rs. (in million) Education Health Districts Total Sector Sector Buner 67.86 22.532 90.392 D.I Khan 71.15 23.451 94.601 Karak 40.66 31.572 72.232 Haripur 42.35 25.255 67.605 Nowshera 35.66 22.945 58.605 L.Marwat 38.802 21.22 60.022 Total 296.482 146.975 443.457
The overarching objective(s) of introducing conditional grants is to improve service delivery in Education and Health Sectors at the grass root level and tie operational budget with better results. In order to achieve these objective intensive discussions were carried out with the provincial and districts stakeholders which led to the development of business plans for Education and Health sectors of these six districts. These business plans also contained a set of indicators and targets.
STANDARD OPERATING PROCEDURES (SOPS) FOR EXECUTION OF CONDITIONAL GRANT:
Approval of the concept of Conditional Grants from Cabinet. Development of Business Plans through greater stakeholders’ participation, wherein interventions are identified with detailed costing, key performance indicators and targets are set for effective performance measurement. Proper monitoring and evaluation both at district and provincial level. Approval of Business Plans from districts and provincial authorities.
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Timely transfer of funds directly to the designated accounts of PTCs in the most transparent manner. Identification of core groups in both sectors for ensuring the most efficient and effective execution of work. Effective feedback mechanism whereby any issue/problem identified gets resolved in an instant manner. Continuous independent audit from an international audit firm of high ranking. Third party validation from high rated firm/CSO.
Making Citizens Voice Heard:
The Provincial Government of Khyber Pakhtunkhwa like previous years continued to engage the stakeholders of Khyber Pakhtunkhwa for seeking their guidance in preparation of a business and people friendly budget for FY ‘2013-14’, the Finance Department in collaboration with the Planning & Development Department and with the technical assistance of development partners, organized a number of pre budget consultative workshops both at provincial and district level.
a. "Linking Policies & Priorities with Budgeting - Nowshera:
A pre budget consultative workshop to link policies and priorities with budgeting for improved public service delivery was held on 14 th May, 2013 in district Nowshera. This event was organized by the Finance Department, Government of Khyber Pakhtunkhwa, with the technical assistance of UK DfID's Sub National Governance Programme.
A vast majority of the participants effectively shared their views on the key issues and challenges being faced in the district. Some of the key areas identified by the participants for due consideration at a strategic level included clean drinking water supply especially after the floods 2010, lack of municipal services, expansion of schools and health facilities without consolidating the existing facilities, the non registration of lands/colonies resulting in tax evasion, poor law and order situation, inappropriate measures for tax rectification, poor and ill defined criteria for needs assessment etc.
b. "Linking Policies & Priorities with Budgeting - Haripur:
The second pre budget consultative workshop to link policies and priorities with budgeting for improved public service delivery was held on 15 th May, 2013 in district Haripur. This event was organized by the Finance Department, Government of Khyber Pakhtunkhwa, with the technical assistance of UK DfID's Sub National Governance Programme.
Some of the key issues identified by the participants included provision of insufficient funds for operations & maintenance, expansion of schools and health facilities instead of focusing on consolidation of services, provision of funds for medicines to RHCs, poor municipality services, inadequate criteria for allocation of funds to PTCs, non availability of science laboratories and other basic facilities in schools etc.
c. Pre Budget Consultative Workshop for Education Sector - Peshawar:
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The pre-budget consultative workshop for education sector was held on 16 th May, 2013, in PC Hotel Peshawar. It was chaired by the Secretary Finance and the participants included Additional Secretary (Budget) of Finance Department; Special Secretary E&SE; representatives of Education Sector Reforms Unit, Planning Cell and Budget Section of E&SE Department; Director Provincial Institute for Teacher’s Education (PITE); Chief of Education from Planning & Development (P&D) Department; representatives from Chamber of Education (association of private schools) and nearby private schools, GIZ, Save the Children, Adam Smith International, Sarhad Rural Support Programme, District Education Officers (from Nowshera, Malakand, Shangla, Dir Upper, Dir Lower, Chitral, Buner, Swat), and selected government teaching staff from nearby locations. The event was organized by Finance Department with the technical assistance of European Union funded project "Technical Cooperation Assistance on Public Financial Management to Selected Districts of Khyber Pakhtunkhwa".
During the open forum discussion some of the key issues and suggestions that were put forth by the participants were: inclusion of early childhood education in primary education, targeted allocation of resources on needs basis, consolidation and quality improvement instead of expansion of infrastructure; implementation of construction projects through parent teacher councils and use of citizen activism for monitoring of services; increased public private partnership efforts, liaison with private sector and outsourcing; rationalisation of human resource and use of management information systems for decision making; use of community school arrangement for ensuring sufficient enrolment before construction of school building in an area; special arrangements for expeditious hiring of teaching staff etc.
d. Pre Budget Consultative Workshop for Health Sector - Peshawar:
In order to prepare a budget that is strategically aligned with the health sector priorities, the Finance Department Government of Khyber Pakhtunkhwa (GoKP) with the support of European Union funded project "Technical Cooperation Assistance on Public Financial Management to Selected Districts of Khyber Pakhtunkhwa" organised a consultative workshop for the representatives both from provincial and district level, Finance and P&DD, Academia, SRSP and specialized agencies providing support to health sector. The workshop was held on 17th May, 2013, at the Pearl Continental Hotel, Peshawar with an objective to incorporate strategic consideration of the health sector priorities and issues into decision making processes for budget formulation for FY 2013-14.
Invitees for the workshop included representatives from the provincial Finance, Planning & Development and Health Departments, including representation from the Planning Cell, Budget Section, Director General Health Services, Provincial Health Services Academy and Health Sector Reforms Unit of Health Department; along with representation from District Health offices of Buner, Chitral, Malakand, Swat, Dir Lower and Upper, Shangla and Peshawar. The participants of the workshop truly represented all officials responsible for making contribution towards effective budget making along with inputs from the external stakeholders.
The workshop was conducted in an open forum format where the participants were given the opportunity to raise issues and suggest remedial actions. The most important issues that came forth during the workshop were as follows:
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• Poor Governance • Lack of Accountability Mechanisms • Absence of Internal Audit Mechanisms • Absence of effective Monitoring and Evaluation System • Employee Absenteeism • Political Interference
UK DFID's Sub National Governance Programme:
Experience in Pakistan over the past decade has shown that top-down governance reform programmes cannot on their own produce concrete, positive benefits for citizens. So this programme envisages to work directly with District Governments, improving their capability and removing the governance constraints that hamper service delivery. While DFID’s health and education programmes support work on improving delivery within those sectors, this programme will tackle common problems common to all service delivery, such as weak planning, a lack of evidence on which to base policies and budgets, poor staff performance management, corruption, and inadequate accounting to citizens and legislatures. Provincial governments will be key partners in this approach, helping solve problems that can’t be fixed locally and supporting roll-out of successful solutions across each Province, giving the programme scale.
There is strong evidence that improving local government leads to better – and more accountable – services for poor citizens. But evidence on how best to improve district governance is limited, especially in conflict affected states like Pakistan. There are some very promising initiatives already running, and the programme will immediately scale these up (e.g. Output Based Budgeting and GIS – see below). It will couple this with innovation, encouraging district officials to test ideas, learn and demonstrate what delivers better services, build political support, and then, by working with Provinces, scale up. The programme will emphasis on building an evidence base for this programme and others.
The Sub National Governance Programme in Khyber Pakhtunkhwa will;
• Scale up an Output Based Budgeting (OBB) pilot from 12 to 32 provincial departments. Provide earmarked financial aid for conditional grants to implement OBB across six districts in at least health and education sectors. The EC will support a further seven districts, thus covering over half the Province in total. This is in line with the Government’s ambitious plans, and the maximum it feels is achievable in the short-medium term. The Provincial Government has allocated Pakistan Rupees 1 billion annually (approximately £7 million at current rates).
• Provide technical assistance (TA) in districts and at Province level (through a Provincial Delivery Unit - PDU) to support OBB scale-up. TA will help districts and the province better plan, budget for, and target services through evidence-based planning, and more consultation with poor communities.
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• Set up a District Delivery Challenge fund so that as OBB sets performance targets for districts, the Challenge Fund will enable them to innovate with ways of improving services to meet those targets. The Fund will also help tackle corruption (for example, by using GPS-enabled mobile phones to track whether government staff turn up for work where and when they should, and whether they ask for unsanctioned payments. or by using GPS to codify property data to detect tax evasion). Successful pilots will be scaled up and rolled out through OBB.
• Provide a new GIS mapping capability to help the provincial government map service provision across the Province, raise revenue, track expansion, highlight gaps and get early warning of potential negative reactions that could fuel conflict.
Develop and implement Provincial Right to Information legislation to enhance government transparency.
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RESULTS CHAIN:
Inputs Outputs Outcome Impact
1. Decisions by sub- national governments
are based on robust in PakistandemocracystableMore DFID evidence Poor people • District budgets based on in Punjab and evidence of peoples needs KPK find that • Successful service services better Management improvement pilots move to meet their Organisation - technical scale needs assistance to district • Government use GIS to monitor quality and quantity of and provincial services governments 2. Sub-national government services Monitoring and are more responsive to - Increased Evaluation peoples‘ needs satisfaction with health and • More of budget allocated to education services District Delivery pro-poor interventions Challenge Fund • Mobile phone pilots lead to improved access to services District Govts by the poor - Reduced cost of corruption to 3. Strengthened sub- Service households national government Delivery Units capability to deliver basic services Financial Aid - Access to for OBB in KPK • District planning more improved health performance based and education services World Bank led • School based procurement delivers better VFM in KPK service delivery innovations • Budget allocations for pro- poor services reach service delivery units
1. European Union "District Governance & Community Development Programme"
Objectives:
The programme aims to contribute towards an effective development and peace building strategy for the government of Pakistan that supports transformation of the functioning of the State in Khyber Pakhtunkhwa and FATA, improving democracy and rule of law, making it more accountable and providing equitable opportunities for better health, education and employment. The programme addresses three of the four strategic objectives of the PCNA:
• Build responsiveness and effectiveness of the State to restore citizen trust • Stimulate employment and livelihood opportunities • Ensure the delivery of basic services
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The purpose is to support the government of Khyber Pakhtunkhwa in reforming public administration at district level to improve service delivery, economic growth and local governance through promotion of community driven development in the crisis affected Malakand Division.
Expected results and main activities:
i. Increased investment in community development in six districts of the Malakand Division responding to specific local demands for public investment in service delivery and community infrastructure (rehabilitation, expansion and maintenance of intra- and intercommunity social and productive assets and infrastructure - education, health, water and sanitation, access, disaster risk reduction, irrigation, renewable energy, agriculture and livestock and natural resource management). ii. An inclusive, representative system of community mobilisation that federates villages exists in all union councils of the Malakand division. iii. Enhanced human, technical and organisational capacities of district and tehsil government agencies to support community driven development and be more service and outcome oriented.
COMMUNITY DRIVEN LOCAL DEVELOPMENT - GOVERNANCE FRAMEWORK:
Community Driven Local Development initiatives operate on the principles of local empowerment, participatory governance, demand-responsiveness, administrative autonomy, greater downward accountability and enhanced local capacity. Experience has shown that given clear rules of the game, access to information and appropriate capacity and financial support, poor men and women can effectively organize to identify community priorities and address local problems by working in partnership with local governments and other supportive institutions.
The Provincial Government of Khyber Pakhtunkhwa fully cognizant of the significance of Community Driven Local Development last year successfully introduced and executed its initiative of districts conditional grants for health and elementary & secondary education. This model of conditional grants to the districts was premised on the principles of greater community participation through Parent Teachers Councils in all phases of the development cycle; greater accountability; transparency; innovative and cost effective interventions against identified needs through bottom up planning and greater executive flexibility with timely monitoring and evaluation. Looking at the encouraging results, this model was up scaled with an enhanced allocation of Rs. 1 billion for FY 2012-13 against the earlier allocation of Rs. 260 million during FY 2011-12.
In order to expand the scope of this model with greater outreach throughout the district at union council level through community based organizations i.e. village and local support organizations, a robust Governance Framework in this regard has been promulgated by the Government most recently. This historical Policy will help the government identify needs of the citizens through participatory bottom up planning and improve the quality of life of the citizens by engaging them in activities that directly benefit them. This will bring the state closer to and make it more responsive to the citizens.
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The overall Goal of the Khyber Pakhtunkhwa Community Driven Local Development Policy is to achieve a sustainable improvement in the coverage and quality of frontline public service delivery through the active involvement of local communities.
The Community Driven Local Development Policy is premised on the following guiding principles:
1. Community involvement in decision making and execution of development initiatives: Local development initiatives will be carried out through community involvement and participation in all phases of the development cycle, making sure that conflicts of interest are identified and mitigating measures put in place.
2. Transparency, accountability and responsiveness: To be ensured in managing local development in such a way that development opportunities are enhanced for all, efficiency and equity in using common resources is improved, and potential conflicts among stakeholders, including among the line departments and communities, are resolved.
3. Subsidiarity: All decisions related to local development are made at the lowest competent level, starting from the community/village and the UC level. The same principle will be observed, consistent with the rules, for decision making within public sector entities.
4. Inclusiveness: The dominant elite’s potentially positive role in the community will be mobilized, while at the same time preventing unacceptable levels of elite dominance and undue resource and benefits’ capture.
The Policy encompasses an indicative implementation roadmap to serve as a guidance for its operationalization. Some of the key features thereof are;
• Key institutional arrangements include the formation of various committees both at the provincial and district level with clearly spelled out roles and responsibilities i.e. for overall strategic guidance and review, a Policy Coordination and Review Committee to be chaired by Secretary Finance; for providing secretariat level service to the Policy Coordination and Review Committee and to monitor & coordinate the CDLD's Policy implementation, a CDLD Coordination Unit to be chaired by Additional Secretary Finance Budget; and for the implementation of the CDLD Policy at the district level District Development Committees to be headed by the respective Deputy Commissioner. • The minimum eligibility criteria for participating Community Based Organizations. • Detailed procedure on the procurement process.
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• An elaborate funds flow and accounting procedure premised on the principles of transparency, predictability, timeliness, integration with regular budget and financial reporting processes, intended to support the overall efficiency and effectiveness of initiatives under the policy. • Effective grievance redressal system. • A robust mechanism for integrated monitoring, learning and reporting of the CDLD Policy’s implementation. • Provision of continuous financial and performance audit through Category A audit firm as approved by the State Bank of Pakistan and Third Party Validation.
6. INTRODUCTION OF BUSINESS PLANs IN PROVINCIAL DEPARTMENTS:
Government of Khyber Pakhtunkhwa has initiated several reform programs to improve the effectiveness of its governance and, more importantly, ensure better service delivery in the province. Departments of Govt. of Khyber Pakhtunkhwa face several institutional constraints on management structures, ambiguity in roles and responsibilities, inadequate financial management and weak controls vis-à-vis processes and procedures. The degree of weakness varies across different individual organizations. However, weak institutional capacity has been a predominant factor, thereby leading to a higher degree of risk, inadequacies in outcomes and consequently serious implications for development.
In order to provide support to the above cited strategic documents and plans, the Government of KP decided to prepare strategic plans for each of its administrative departments. The provincial cabinet approved this proposal and Finance Department is serving as a focal office to oversee this initiative. Initially six line departments were selected in the pilot phase of this exercise.
Government of Khyber Pakhtunkhwa really appreciates the efforts under taken by US-Aid in carrying out its reforms agenda under the umbrella program of PFM, to improve the effectiveness of its governance and, more importantly, stimulate economic growth in the province. US Aid through Assessment and Strengthening Program (ASP) provided technical assistance to these departments in developing strategic plans, and its implementation by linking it with budgetary outlays.
ASP, subsequently, prepared a three year Strategic Plan (FY 13-14 to FY 15-16) for these departments. The plan not only identified strategic issues confronting the department but also elaborated a results chain consisting of outcomes, outputs. This plan can benefit the department in many ways. It can help them: think strategically, clarify future direction, make today’s decisions in the light of future consequences, develop a defensible and coherent basis for decision-making, exercise maximum discretion in areas under organizational control, solve major organizational problems, improve performance, deal effectively with rapid changing environment, build teamwork and expertise and avoid budget overspending and under spending. Most importantly it will end the practice of taking supplementary grant, technical supplementary grant etc. which in other words would enhance the public value of money.
In addition to the Strategic Plan, an Annual Action Plan was also prepared for these departments that identified specific activities leading to outputs and outcomes. Importantly, performance indicators were also identified for the activities to have measurable benchmarks.
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These performance indicators were identified with the help of a department technical team, a core team meant for preparation for Strategic and Annual Action Plans. In order to monitor the performance of the department, targets were also fixed for performance indicators over the next three years. It is important to highlight that all these documents have been aligned with the Output Based Budget (OBB) documents of the department to ensure consistency and strengthened the reforms. The outputs identified in the Strategic Plan have been given to the Finance Department for inclusion in the OBB 2013-14. The present intervention by ASP has identified several new dimensions, which are imperative for successful achievement of the department’s mission. These dimensions are covered with some new outcomes and outputs identified. Thus, the OBB for the year 2013-14 will be more comprehensive encompassing all the major activities of the department, contributing towards the attainment of the mission.
Now to take benefits from these plans and institutionalized these initiatives in the processes of all these departments, a four pronged approach would be adopted. In the first instance, this document will be part of Red Book of the Provincial govt., meant for output based budgeting. Secondly, Planning and Development Department, being the approving authority of all the development budget of the line departments, would oversee the implementation of all these development schemes. It would therefore be appropriate for P&D Department to make it a part of its annual M&E report published by DG M&E.
Thirdly, Strategic Plan covers a period of three years, it is important that an implementation committee be put in place, to oversee the progress of the department against performance indicators. Moreover, since most of the activities need regular and developmental budgetary support; Finance department as well as P&D department would have representation in the committee. ASP would continue its hand holding and support to review, modify, and implement the Strategic and Annual Action Plan.
Fourthly, since UK Aid is also working on M&E framework for the whole KP government, therefore Strategic Plan and Annual Action Plan would be made part of that framework for better results.
All these initiatives have been taken by the Provincial govt. after the consent of Public Representatives, like approval of Cabinet in case of Strategic Planning, and since all the departments have been taken on board through Core Teams, therefore, financial sustainability and institutionalization have already been ensured.
7. Khyber Pakhtunkhwa Public Procurement Regulatory Authority (PPRA)
Public procurement has become a specialized undertaking of the modern world. Government departments generally face institutional capacities issue in their internal control, fiscal management and procurement and contract administration which limit and hamper their overall performance and the delivery of services. There is a strong direct correlation between transparent public procurement and economic development. The procurement specific reforms in Khyber Pakhtunkhwa were triggered by the World Bank back in 2007. This initiative was part of the reforms agenda under Public Financial Management (PFM) component of the Finance Department whereas Reforms Monitoring Unit (RMU) of the Finance Department is the custodian of the procurement rules and regulations.
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The Provincial Assembly of Khyber Pakhtunkhwa passed the Public Procurement Regulatory Authority bill on Monday 3 rd September 2012which became an Act on 16 th September 2012. Under the act draft rules have been framed in consultation with stakeholder departments.
The main drive behind the establishment of KP-PPRA is to create an autonomous body capable of providing legal and regulatory framework to provincial Government departments and other public sector entities/organizations for procurement. The overarching goal of KP-PPRA is to make sure transparency, accountability and quality of public procurement of goods, works and services at all levels across the province leading towards restoring trust in the State Institutions.
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BANK OF KHYBER “Custodian of Rich Values”
BACKGROUND:
The Bank of Khyber was established in 1991 through an Act passed by the Provincial Assembly. It was awarded status of a scheduled bank in September 1994. The Bank of Khyber enjoys a unique position and stands out amidst the other banks operating within Pakistan and has the privilege of being bracketed amongst the only three government banks in the country.
The bank has long been associated with business and commercial circles and has been actively engaged in catering to the financial needs of all sectors. It has successfully been involved in extending funded and non-funded facilities to its customers for various business needs.
The Bank has been closely associated with multilateral agencies through various credit lines for on-lending purposes like DEG, KFW, ADB, IFAD etc. and credit allocations by SBP for local currency needs.
Today, BOK is an “A” rated commercial bank, operating across the country with a network of 79 branches and still expanding. The provincial government is the major stakeholder and during our history of 21 years, the Bank has always played a vital role in the development of Khyber Pakhtunkhwa in particular and participated in the economic development of the country in general.
MANAGEMENT:
The Bank is being managed by a team of highly qualified and experienced professionals at all levels. The Board giving the policy vision constitutes a fine mix of seasoned bureaucrats, experienced senior bankers and members from the private sector. The Top and senior management comprises of banking professionals from related fields and management expertise whereas the middle management constitutes the executives with diversified experience of banking, finance and economics.
PRODUCT & SERVICES:
BOK is offering all sorts of commercial banking products and services to all the sectors and segments across the country under Islamic as well as Conventional Banking groups. The Bank has been active in extending financial assistance to various projects for their long term requirements as well as meeting the short term requirements of the borrowers. The bank extends financial assistance in the shape of term loans for project financing, running finance, working capital loans, agriculture and micro financing as well as consumer loans besides offering L/C and L/G facilities along with trade financing.
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Currently The Bank of Khyber is serving all business segments for various asset and liability products in the following areas:
• Corporate & Syndicate Banking • Commercial / SME Banking • Consumer Banking • Agriculture Financing • Islamic Financing • Micro Finance
ISLAMIC BANKING:
Out of total 79 branches of the Bank, 36 branches are operating as dedicated Islamic Banking Branches nationwide. There is a separate Islamic Banking Group (IBG) within the Bank that looks after all operations of these branches and a Shariah Advisory Board that provides guidelines for product development on both Asset (deposits) and Liability (Advances) side. The main business units of IBG at BOK comprise of Corporate banking, Commercial banking, Consumer banking, Agriculture Financing and Treasury.
On asset side, IBG provides services through following products:
• Ijarah • Murabaha • Diminishing Musharikah • Musharikah • Mudaraba • Istisna • Wakala • Share Purchase • Import / Export under Islamic Banking • Export Refinancing • Process for Foreign Currency (FCY) • Discounting of Bills through Agency Arrangement • Management of Treasury / FI Pool
On liability side, IBG offers a wide range of deposit related products, Current account based on the underlying Shariah modes of Al-Qard, as well as Savings and Term deposit accounts on the basis of Musharakah, which are designed with flexible features to meet the need of our customers in Shariah compliant manner.
Presently IBG is offering the following types of deposit accounts:
• Current Accounts • Call Deposits • Interest Free PLS Saving Accounts • Riba Free Certificates
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• Riba Free Special Deposit Pool Deposits/Certificate • Riba Free Special Deposit Pool for Banks • Riba Free Special Deposit Pool for Mutual Funds • Riba Free Special Deposit pool for Staff Provident Funds
BRANCH NETWORK:
Established in 1991, the Bank has come a long way and has completed 21 years in banking. Currently, the bank has a total branch network of 79 Branches throughout the country. At present, 36 of its branches are functioning as dedicated Islamic Banking Branches whereas 43 branches are conventional banking branches. The Branch network constitutes 79 branches in important business hubs of the country at present and the Bank plans to enhance the branch network to a total of 100 branches across the country by the end of 2013.
The Branch network provides ATM facilities and on-line services to its customers. The Bank is poised to have presence in all major cities and business cities of Pakistan. It has also started its business in cities like Gujrat, Sialkot, Gujranwala, Multan, Havallian, Jhelum, Sargodha, Sahiwal, Hyderabad, Chiniot, Serai Naurang, etc.
PERFORMANCE:
By the Grace of ALLAH Almighty, The Bank of Khyber has been making steady growth and is moving ahead towards achieving its goal of becoming the leading Bank of the region. In its recent history, every year has been a milestone of success, be it profitability, expansion of the branch network, BOK’s contribution to the provincial and national economy and most importantly extending the best possible services to its valued customers.
Within the last couple of years BoK has been revived as a success story as its vital indicators improved substantially. Its deposits as well as advances grew on fast track showing confidence of its customers and corporate image in the business and commercial circles of the country.
JCR-VIS and PACRA have improved BOK’s rating from BBB to “A” over the years and declared the outlook of the Bank as “positive” and “stable”. The Bank also stands complied with the required minimum capital requirement (MCR) as prescribed by SBP. The Bank is quoted on the Karachi Stock Exchange as well, as a public limited company.
As per audited financials for the year ended December 31, 2012, the Bank’s assets stand at Rs.82.177 billion, Deposits at Rs.60.043 billion and Advances at Rs.26.692 billion (net of provisions).
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FINANCIAL HIGHLIGHTS: (Rs. in Million) FINANCIAL YEAR Growth PARTICULARS Over 2008 2009 2010 2011 2012 2011 Deposits 24,732 26,286 36,981 45,548 60,043 32% Advances 12,644 11,836 18,238 22,288 26,693 20% Investments 8,985 17,926 19,853 36,685 45,672 24% Total Assets 31,339 38,811 50,794 68,424 82,178 20% Capital & Reserves 5,678 5,041 5,604 9,700 10,776 11% Profit / (Loss) before Tax 206 (799) 713 1,258 1,569 25% Number of Branches 34 41 50 62 77 Credit Rating BBB+ BBB+ A- A- A
FOREX BUSINESS (Rs. in Million) 2009 2010 2011 2012 Imports 4,827 8,175 12,838 15,355 Exports 2,314 7,014 10,424 14,311 Remittances 82 10,514 13,300 11,406
PROJECTIONS FOR 2013: (Rs. in Million) 2013 2014 Deposits 67,575 77,474
Advances (Net) 36,695 40,000 *100 100 Total Branches (21 new branches to be opened) (No new branches to be opened) *(56 conventional + 44 Islamic banking branches)
THE JOURNEY BEYOND:
Notwithstanding challenging conditions in the country, and especially in the KPK, Bank of Khyber continued its journey of taking its organization to newer heights of professional services, reliability and technological up-gradation. As the year 2012 closed, the tally of branch network touched almost 80 branches nationwide. One of the most exciting developments has been the start of a new state-of-the-art Head Office building project in the provincial metropolis of KPK. It will be yet another feather in the cap, as BOK prepares to move ahead and commence banking operations abroad.
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Apart from prudent policies, committed management with a positive and professional attitude, and diligent staff working as a team helped BOK in setting newest standards of excellence.
Above all, the trust and faith of the customers has been the real driving force that enabled BOK to brace new milestones of success.
Keeping in line with the development and commercial challenges, BOK is poised to tap new vistas and markets. Portfolio diversification is the key for creating a healthy and profitable asset base. For this reason, the Bank has expanded its advances base in newer sectors like sugar, textile, pharma, engineering, etc. and is having some very good corporate houses on its clientele like Engro Foods, Fatima Group, Fazal Group, etc. The Bank has not only entered explored and entered new markets sectorwise but also on geographical basis. Geographical diversification includes more financing in Punjab area which is considered as a major business hub of the country.
Most of the Bank’s advances portfolio comprises of Corporate and SME loans. The Bank has a plan to boost its corporate lending with reputable business groups of the country in future as well. This will also help in improving the Bank’s image and position in the market.
The Bank realizes the importance of SME financing and thus has raised its emphasis on the same by establishing a separate department for dealing with SMEs and identifying and catering to their financing requirements.
During the year 2013-14 and beyond, the Bank has planned to enhance its financing portfolio in the following sectors:
a) Textile b) Sugar c) Chemicals & Pharmaceuticals d) Telecommunication e) Food & Beverages f) Misc. Manufacturing (esp. Export related goods) g) Services h) Brokerage Houses i) Commodity Financing
CONCLUSION:
BOK has entered the 3 rd decade of its journey and is being positioned to cater to the challenges of modern banking through offering a wide range of banking products, being customer centric in terms of quality service and efficiency, develop operational effectiveness and capitalize on available resources for increasing return on stock holders’ equity.
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The Bank’s management aims to take it to newer heights with its core values being; • Highest quality of service • Professionalism • Integrity • Team work • Innovation & utilization of latest technology • Risk Mitigation • Corporate Social Responsibility
Our renewed vigour comes from our past experience that is helping us charter a new course for the Bank in the days to come for newer destinations.
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FUNDS MANAGEMENT
Fund management is the professional asset management of various securities (shares, bonds and other securities) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).
Industry scope The business of investment has several facets, the employment of professional fund managers, research (of individual assets and asset classes), dealing, settlement, marketing, internal auditing, and the preparation of reports for management Board.
Long-term returns It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). For example, over very long holding periods (e.g. 10+ years) in most countries, equities have generated higher returns than bonds, and bonds have generated higher returns than cash. According to financial theory, this is because equities are riskier (more volatile) than bonds which are themselves more risky than cash.
Diversification An investment fund that contains a wide array of securities to reduce the amount of risk in the fund. Actively maintaining diversification prevents events that affect one sector from affecting an entire portfolio, make large losses less likely.
Performance measurement Fund performance is often thought to be the acid test of fund management, and in the institutional context, accurate measurement is a necessity. For that purpose, institutions measure the performance of each fund (and usually for internal purposes components of each fund) under their management, and performance is also measured by external firms that specialize in performance measurement.
Risk-adjusted performance measurement Performance measurement should not be reduced to the evaluation of fund returns alone, but must also integrate other fund elements that would be of interest to investors, such as the measure of risk taken. Several other aspects are also part of performance measurement: evaluating if managers have succeeded in reaching their objective, i.e. if their return was sufficiently high to reward the risks taken; how they compare to their peers; and finally whether the portfolio management results were due to luck or the manager’s skill. The need to answer
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all these questions has led to the development of more sophisticated performance measures, many of which originate in modern portfolio theory.
The Government cautiously regulates its funds and investment and aims to benefit the subscribers of the funds, during and after, their service. The Government of Khyber Pakhtunkhwa is custodian to the contributions made by the subscribers in shape of Provident Fund and Pension fund. Each year the Government pays a hefty amount as interest on the Provident Fund balance and at the same time it receives a considerable burden in the shape of expenditure on pension liabilities. The annual mark up brings heavy toll on the Provincial exchequer. If both these revenue expenditures are put together, it exceeds the Provincial own receipts. Foreseeing this adverse and unfavourable scenario, the Provincial Government has taken certain initiatives like establishment of the General Provident Investment Fund and Pension Fund. The establishment of such funds was also essential to augment and supplement the resources of Khyber Pakhtunkhwa.
The Khyber Pakhtunkhwa Govt. established the following Funds: 1. General Provident Investment Fund 2. Pension Fund 3. Hydel Development Fund 4. Contributory Provident (CP) Fund
General Provident Investment Fund : General Provident Investment Fund was established in the year 1991-92 with initial allocation of Rs. 200 million as equity. Investing Provincial Reserves in safe and well protected instruments for maximum profits and benefits was the prime factor behind the establishment of this Fund. To oversee the affairs of the fund, a Fund Management Board, under the Chairmanship of the Chief Secretary, Khyber Pakhtunkhwa has been established. It has diversified composition comprising members from Finance, Administration, Banking sectors and representative of the subscribers. This gives a more representative and robust outlook to the management of the fund affairs. The Fund is governed by an Act with specified rules of business for running the affairs of the Fund. Moreover, Finance Secretary heads Investment Committee which was constituted to carry out the day to day functions of the Fund. It has a total size of Rs 23,120.43 million (Government contribution Rs. 8750.000 million + unappropriate Profit Rs. 14370.310 million) upto 30 th June, 2013. (Rs. in million) Opening Released During Profit During Cumulative Total Year Balance The Year The Year (end of the year) Till 30.06.07 3050.000 5125.780 8175.780 2007 -08 8,175.78 300 783.859 9,259.64 2008 -09 9,259.64 300 946.741 10,506.38 2009 -10 10,506.38 300 1,117.72 11,924.10
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2010 -11 11,924.10 800 1,491.61 14,215.71 2011 -12 14,215.71 2,000.00 2,001.30 18,217.01 2012 -13 18,217.00 2,000.00 2,903.31 23,120.31
Pension Fund: The Pension Fund was established in 1997-98 with initial allocation of Rs. 150 million as seed money. The creation of Fund was necessitated to meet the ever increasing pension liabilities of the retired Government employees. The Chief Secretary heads the Management Board, constituted to look after this Fund. Upto 30 th June 2013, it will have a total size of Rs 16,550.91 million (Government contribution Rs. 8850.000 million + Profit Rs. 7700.910 million).
(Rs. in million) Opening Released During Profit During Cumulative Total Year Balance The Year The Year (end of the year) Till 30.06.07 3050.000 1875.510 4,925.51 2007 -08 4,925.51 400 389.037 5,714.55 2008 -09 5,714.55 400 564.046 6,678.59 2009 -10 6,678.59 400 727.954 7,806.55 2010 -11 7,806.55 600 989.733 9,396.28 2011 -12 9,396.28 2,000.00 1,363.26 12,759.54 2012 -13 12,759.54 2,000.00 1,791.37 16,550.91
Hydel Development Fund: The Government established Hydel Development Fund in 1992 with an initial allocation of Rs 50 million. The Fund was provided with legal cover through enactment namely Khyber Pakhtunkhwa, Hydel Development Fund Ordinance 2001. The objective of this Fund was to develop Hydel capacity of the Province. The Provincial Govt. has up-to 30 th June, 2013 contributed Rs. 18809.706 million as equity in the Fund; whereas, profit upto 30 th June, 2013 is Rs. 9507.124 million.
This Fund is controlled by a Management Board headed by the Chief Minister, Khyber Pakhtunkhwa, with Minister for Finance, Minister for Irrigation & Power, Chief Secretary, Additional Chief Secretary, Secretary Finance, Secretary Energy & Power as its members. To perform day-to-day business, an Investment Committee was constituted under the Chairmanship of Chief Secretary, Khyber Pakhtunkhwa, with Secretary Energy & Power, Secretary Finance, Managing Director SHYDO, and Director Finance & Admin SHYDO as members.
The Fund has contributed Rs. 2,551.490 million in development of Malakand III HPP and Rs. 425.500 million in Pehur HPP. The Fund also contributes Rs. 1,093.687 million in Feasibility study of Raw Sites in Khyber Pakhtunkhwa, Rs. 1,198.253 million for Construction of Daral Khwar HPP District Swat, Rs. 3.000 million for construction of 69MW Lawi HPP Chitral, Rs. 90.000 million for construction of Karora HPP District Shangla, Rs. 45.000 million for
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construction of Jabori HPP, Rs. 360.000 million for construction of Lawi HPP, Rs. 200.000 million released of Fund for 2012-13.
(Rs. In million) Released Profit Opening Cumulative Total Year During During Balance (end of the year) The Year The Year Till 30.06.07 1810.000 2093.430 3903.429 2007 -08 3,903.429 200.000 133.230 4,236.659 2008 -09 4,236.659 500.000 217.895 4,954.554 2009 -10 4,954.554 10,499.706 1,003.187 16,457.447 2010 -11 16,457.447 800.000 1,700.759 18,958.206 2011 -12 18,958.206 2,000.000 2,329.790 23,287.996 2012 -13 23,287.996 3,000.000 2,028.834 28,316.830
Contributory Provident (CP) Fund: The Contributory Provident Fund (CPF) was established in 2006 with starting allocation of Rs. 50 million. The Fund was given legal cover through enactment namely Khyber Pakhtunkhwa CP Fund Rules, 2006. However, in light of Civil Servants (Amendment) Bill 2013, the scheme is rolled back and concentration is moved towards strengthening of Pension Fund to meet future liabilities.
Financial In general the investments of the fund are grouped into: • Fixed-Income Investments. • Non Fixed-Income Investments.
Fixed-Income Investments are those whose returns are predetermined or known at the time of making the investment. The Fixed Income Investment may include the following category of investments: • Treasury Bills. • Fixed Deposits. • Bonds. • Bank Deposits. • Corporate Finance.
Non Fixed-Income Investments are variable in the value of their returns and tend to have longer gestation periods but in the long term have the advantage of capital appreciation, developmental in nature and generally create jobs within the economy. Included in this category are the following: • Equity (Both listed and unlisted). • Unit Trusts.
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Fund Cell A separate Fund Cell has been established in the Finance Department to manage the affairs of these Funds, which is responsible to maintain accounts of the Funds, conduct audit of the accounts and convene meetings of the Boards / Investment Committees.
According to Law of the Funds, Director General (Commercial) Audit, Lahore is responsible to carryout audit of the accounts of the Funds. Besides, internal audits are conducted on yearly basis through Kabani & Co., Islamabad and Rafaqat Babar & Co. Peshawar Chartered Accountants.
It is quite pleasing that there has been a steady growth in funds due to better management. Funds are being managed professionally, diligently and with extreme caution. Diversified portfolios have been developed to align the investment system and draw maximum advantage by minimizing risks factor with best-recognized financial practices.
The management placed over Rs. 9.865 billion of the Funds in Commercial Banks. Chief Manager, State Bank of Pakistan and Managing Director, The Bank of Khyber guides the Investment Committee. There are mainly two variables which come under consideration while placing funds with Banks i.e. Credit Ratings and Interest Rates.
The management has invested funds in various investment portfolios, so as to secure maximum returns. These investments avenues are:
a) Treasury Securities / Bonds: Treasury Securities are issued by the Government and the same are backed by the full faith and credit of the Government. They are considered to be free from credit risk. The treasury issues two distinct types of securities i.e. T-Bills and PIBs. T-Bills are sold at a discount to par value and interest is received when the par value is paid at maturity (like zero-coupon bonds). The management has invested Rs. 41.953 billion in T-Bills, and around Rs 3.0 billion in PIBs.
c) Mutual Funds: The management has invested over Rs. 41.065 million in various Mutual Funds.
d) Trading: Separate Trading Accounts have been maintained by the Management for active trading in stocks and for financing against shares (CFS). The management allowed trading in blue-chip stocks only.
The Provincial Government of Khyber Pakhtunkhwa looks for ways & means and tools & techniques to modernize these Funds and bring them in harmony with innovative creative and novel concepts of investments, while keeping safety of the Funds its top most priority. Regular third party audits are carried out to ensure this objective.
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ANNUAL DEVELOPMENT PROGRAMME 2013-14
Mission Statement:
• To achieve a sustained growth rate of 7% or above within 3 years to create the required number of jobs and to keep unemployment at within acceptable level.
• This growth will be private sector led supported by a lean and efficient Public Sector providing quality services, business friendly compliance and regulatory regime and a considerably reduced cost of doing business in the Province. The aim is to create internationally competitive firms and markets.
• Commitment to meeting the Millennium Development Goals by 2015 through evidence based accelerated programmes.
• To reduce the incidence of poverty by half in the next three years, through well designed, targeted interventions.
• To create a healthy, educated and tolerant society and an efficient workforce.
Introduction:
Khyber Pakhtunkhwa and its people have been passing through the most challenging times of its history. The province has been at the epicenter of an international conflict for 40 years, especially after the incident of 9/11. Conflict in Afghanistan and within the borders of Pakistan damaged the social and economic fabric of our society to the maximum. Moreover, natural disasters in the last 10 years took a heavy toll on the economy and service delivery in the Province. The earth quack of 2005 left thousands of people dead, injured and homeless. When the Province was in the Phase of recovery from losses of the earthquake, it was hit by a conflict in Malakand leading to the issue of 3 million internally displaced persons (IDP) and damages to the service delivery institutions particularly schools. In 2010 the devastating flood played havoc with the socio-economic infrastructure in most parts of the province. Coupled with this, issues in governance and public management retarded economic growth.
Analysis of the status of the MDGs will be helpful in getting clear pictures of the socio economic conditions of the KP.
Status of Millennium Development Goals in the Province:
Provincial MDGs Report-KP published in 2011 has termed the Millennium Development Goals (MDGs) as unlikely to be achieved by 2015 in Khyber Pakhtunkhwa. Besides the thin resource base available to the province to deal with the high commitments of MDGs, the natural and manmade calamities also substantially hindered the progress towards achieving the set out targets. The provincial progress against the MDGs can be summed as follows:
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Goal-1: Eradicate Extreme Poverty and Hunger:
The first and the most important goal of eradicating extreme poverty & hunger has a mix picture for the province. On one side the head count index estimated as per KP’s own sources included in the Comprehensive Development Strategy (CDS) shows an alarmingly higher side of 39% thereby leaving a huge gap to meet the target of bringing it down to 13%. On the other side the National Nutrition Survey 2011 (NNS) shows a remarkable improvement towards the target as the %age of below 5 years’ age underweight children has been reduced to 24% thereby minimizing the gap towards the target of bringing it to less than 20%. For the 3rd indicator though there are no direct estimates for the caloric intake but the same Nutrition Survey reveals a relatively better off situation for KP as 68.5% populations is food secure whereas 21 % was food insecure but without hunger.
Goal-2: Achieve Universal Primary Education:
The net primary enrolment ratio in 2011-12 is 67% as has been reported by Education Management Information System thereby leaving out a wide gap to touch upon the target. However, the past trends show a remarkable increase of 26% during the last decade despite several natural and manmade disasters having direct impact on children’s education. On the rest of the two indicators of Primary Completion Rate and Literacy Rate standing at 67% and 50% against the targets of 100 and 88 respectively, the province is to go a long way to achieve the targets.
The Govt. along with development partners have taken up several measures to encourage enrolment, reduce drop out and retain students to graduate, which hopefully would yield encouraging results in the years to come provided the security situation does not worsen.
Goal-3: Promoting Gender Equality & Women’s Empowerment:
The provincial Govt. is cognizant of the importance of women education not only for its direct impact on the gender parity index but as a source of improvement in infant and maternal mortality as well as labour participation rates. The progress cannot be termed encouraging but given the socio-cultural environment of the province at least a steady growth pattern is being observed as the Ratio of girls to boys in primary education is at 0.76 against the target of 1, the ratio of literate females to males among 15 to 24 year old is at 0.57 against the target of 1, share of women in wage employment in the non-agriculture sector is at 6.9 against the target of 14.
Goal-4: Reduced Child Mortality:
The infant mortality rate in Khyber Pakhtunkhwa is 63 and under 5 year mortality rate is 75, it shows that there has been little improvement in the indicator over a period of almost decade. The proportion of fully immunized children12-23 months is at 76 against >90, the proportion of children under 12 months immunized against measles is 78.8% against >90 and proportion of children under who suffered from Diarrhea in the last 30 days is at 10 with the target of bringing it down to <90 (Fig are of 2011/12).
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Goal-5: Improving Maternal Health:
The first two indicators relate to reduction in maternal mortality Ratio (MMR) and the proportion of births attended by skilled health personnel where the former stood at 275 in 2006/07 against the target of 140 and later lacks statistics. The third indicator CPR progress is also very slow and not possible to be achieved up to 2015. Progress on total fertility rate is 4.3 (2006/07) against the target of 2.1 and antenatal care coverage is 49 against 100, which shows an upward trend but not enough to achieve the targets.
Goal-6: Combating HIV/AIDS, Malaria and other diseases:
Limited data is available for all the six indicators under this goal.
Goal-7: Ensure Environmental Sustainability:
The indicators of forest covered area and the land area protected for conservation of wildlife area are at 17.4% and 12.4% against 6% & 12% respectively, which are above the MDGs targets. Considerable progress has been made to increase the proportion of population with access to safe drinking water and sanitation as the former stands at 75 against 93 and the later stands at 72 against the target of 90.
MDGs Acceleration Framework:
The MDG Report 2010 and the above status provided the P&D Department with a better insight into what works, what doesn’t and what should be done to expedite the progress. This led to meaningful discussions with UNDP during the last year, which has resulted in principal agreement on preparing the MDGs Acceleration Framework aiming at expediting the progress towards achieving the selected targets till 2015. As of now achievable and important targets have been identified, relevant sectoral reviews of the current situation have been conducted and bottlenecks at all levels right from policy to implementation, mechanisms have been identified and solution mix are underway.
Social Protection Floor Initiative:
Social Protection is defined as, “Public and private actions that enable people to deal more effectively with risks & their vulnerabilities to crisis and changes in circumstances.” The poor in the province not only have low income levels but; they also lack access to the basic amenities of life viz-a-viz education, health, water and sanitation. Due to these factors, the human development indices of the province are extremely morbid. The economic stagnancy coupled with law and order situation has severely impacted the province whose economy does not have the cushion to withstand such upheavals. Besides, inflation, energy crisis, unemployment due to lack of absorption in local economy remained the main features that, impacted the poor households. In this regard, the Government of Khyber Pakhtunkhwa Planning & Development Department has already taken initiative in the social protection. Public Policy & Social Protection Reform Unit (PP&SPRU) project has been launched as social Protection floor for implementing Social Protection Reforms in Khyber Pakhtunkhwa Province.
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Annual Strategy Review 2012-2013:
The Annual Strategy Review is an important tool which helps in devising guiding principles for formulating the upcoming budget. It matches the current trends of the development portfolio to the prevailing strategies comprising of CDS, EGS and PCNA. The findings in ASR 2012-13 are summarized as under:
• Allocations in ADP 2012-13 are closer to the allocations suggested for the Year 3 of the CDS for both local as well as foreign component of the development funds.
• A little deviation from EGS has been observed in the ADP 2012-13 as there is a slight dip in the allocations of productive sectors as compared to the previous year. This gap should be rectified in the upcoming development plans.
• The major chunk of foreign assistance is invested in social sectors; however efforts should be made to draw attention of the donor community towards productive sectors like irrigation, energy and power, mines and minerals and industries etc. In this respect, the Provincial Government may opt for soft loans in the areas as allowed by the EGS. Enhancing the resource base with increase and effective investment in productive sectors with ensure sustained commitment of resources to social sectors.
• The EGS involves a commitment to allocate 70% of the budget for each sector to the ongoing projects while two-third of the remaining budget to be used for consolidation i.e. improvement of services, and one-third for expansion. The Government faces some major challenges in complete alignment to this formula.
• For Agriculture and Irrigation sectors, the CDS has suggested large increases in spending. The EGS also requires significant increase in expenditures especially for Irrigation which is termed as a productive sector. However, the EGS increases are not sufficient to achieve the envisaged CDS targets as it takes longer to achieve the CDS targets in these sectors. In particular, there will be delays in the implementation of small and medium size dams.
• Spending in the major social sectors including education, health and social protection, are relatively stable whereas the recent commitment is in line with the EGS and CDS. For health sector, the EGS consolidation agenda is reflected in plans of the CDS for a switch over from new infrastructure to up-gradation of the existing infrastructure. In education, the consolidation agenda is consistent with the CDS proposals for a major increase in spending on rehabilitation to be led by communities. For social protection, the alignment of recent spending with the CDS seems satisfactory at a sector aggregate level, but this hides the fact that the budget includes nothing yet for health insurance, but includes a much larger allocation than the CDS for microfinance and income generation.
• Budget spending on water and sanitation almost follows the CDS guidelines, although the government is considering how the EGS consolidation agenda should be applied to WATSAN and is trying to ensure that WATSAN is defined consistently in the budget as well as in the CDS and EGS.
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• Housing is classified as a productive sector in the EGS which will help in achieving large increases in expenditure as predicted in the CDS.
• For the Energy Sector, the major commitments both in CDS and EGS to source and identify public sector financing in Hydropower Sector has not materialized. However, this is a high priority area for the Government which has tremendous potential.
• There is a substantial increase in spending on security; however, areas such as Management Information Systems, Improvement in Telecommunication, Bomb Disposal Squad and Welfare of Police need to be focused.
Reforms Agenda:
Keeping in view the above scenario, the present Government of Khyber Pakhtunkhwa has come with full resolve of changing the unfortunate situation through its reformative agenda, with the following mission.
• To achieve a sustained growth rate of 7% or above within 3 years to create the required number of jobs and to keep unemployment at within acceptable level.
• This growth will be private sector led supported by a lean and efficient Public Sector providing quality services, business friendly compliance and regulatory regime and a considerably reduced cost of doing business in the Province. The aim is to create internationally competitive firms and markets.
• Commitment to meeting the Millennium Development Goals by 2015 through evidence based accelerated Programmes.
• To reduce the incidence of poverty by half in the next three years, through well designed, targeted interventions.
• To create a healthy, educated and tolerant society and an efficient workforce.
The Government has firmly resolved to introduce reforms in the following important sectors; a) Education b) Health c) Energy and Power. d) Local Government System. e) Agriculture & Environment.
The new coalition Government has decided to give priority to consolidation and service delivery improvement over expansion through brick and mortar. All the ongoing schemes have been kept intact to give continuity to the development agenda of the province. At the same time new reform-oriented initiatives have been introduced. Public Private Partnership has been given its due importance in major development initiatives like • Mass Transit in Peshawar
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• Sewerage System and upgradation of existing sewerage treatment plant at Warsk Road Peshawar. • Installation of Chairlift at Naran. • Housing Sector • Tourism • Energy & Power
No development can be sustainable without the ownership and participation of the Community. Therefore, community participation in development has been made the corner stone of the development planning process.
There is always a need to protect marginalized section of society. They have been taken care by the introduction of the Social Protection and Poverty Alleviation Programme on modern lines. Institutional and policy reforms not only in the Planning & Development Department but in most of the key sectors will be launched to make governance more futuristic, transparent, participatory and accountable.
Approval of Development Projects in 2012-13:
Every year certain numbers of new projects form part of Annual Development Plan along with on-going projects in various sectors. These projects are approved by project approving fora working at various levels. These include the District Development Committee, Departmental Development Working Party, Provincial Development Working Party, Central Development Working Party and Executive Committee of National Economic Council. In the current financial year, the PDWP held 15 meetings and approved 327 Projects pertaining to different sectors. The size of the Annual Development Program has steadily grown since, the dissolution of One Unit in Pakistan, and emergence of the Khyber Pakhtunkhwa province as a separate unit in 1970-71. (Rs. In Million) Year Size of ADP Revised Size of ADP 1970-71 150.570 124.872 1971-72 124.000 87.404 1972-73 212.543 217.887 1973-74 300.000 285.133 1974-75 400.000 500.000 1975-76 576.700 601.366 1976-77 546.800 640.928 1977-78 617.000 687.642 1978-79 669.000 720.581 1979-80 767.000 702.850 1980-81 818.000 838.350
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1981-82 980.850 1002.323 1982-83 1228.000 1174.275 1983-84 1176.500 1191.500 1984-85 1244.700 1245.424 1985-86 1697.000 1912.787 1986-87 2131.250 2131.250 1987-88 2472.250 2471.050 1988-89 2164.235 2164.235 1989-90 2197.625 2198.649 1990-91 2506.171 2851.434 1991-92 4813.715 4881.569 1992-93 6575.385 5002.873 1993-94 4959.000 4764.638 1994-95 6963.974 7349.212 1995-96 7665.634 8081.917 1996-97 8711.517 5659.089 1997-98 4884.740 5498.215 1998-99 6072.386 7771.653 1999-2000 5745.220 8057.541 2000-2001 9212.509 7272.140 2001-2002 7986.220 8710.147 2002-2003 13673.261 11289.186 2003-2004 14696.006 12882.982 2004-2005 16195.025 15365.249 2005-2006 21000.000 24397.398 2006-2007 26630.432 26542.103 2007-2008 39462.131 32913.949 2008-2009 41544.935 39000.603 2009-2010 51156.956 46330.546 2010-2011 69283.682 64977.526 2011-2012 85141.000 84473.628 2012-2013 97458.000 88130.610* 2013-2014 118000.000 (*Includes PSDP of Rs. 3721.102 Million)
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ADP Trend 1970-2013 140 120 100 80 60 40 Rupeesin Billion 20 0 1970-71 1972-73 1974-75 1976-77 1978-79 1980-81 1982-83 1984-85 1986-87 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 2000-2001 2002-2003 2004-2005 2006-2007 2008-2009 2010-2011 2012-2013
ADP Year
Review of ADP 2012-13: The original size of the ADP 2012-13 was Rs.97458.000 million, which included foreign aid component of Rs.23258.000 millions. The provincial government’s contribution in the ADP was Rs.74200.000 million. The provincial program comprised of 941 projects included 667 ongoing and 274 new projects out of which, 252 projects were completed.
Sources of Funding of ADP 2012-13: (Rs. In Million) S.No Source of funding Allocation %age A Provincial Budget 74,200.000 76% B Total Foreign Assistance 23,258.000 24 % i. Grants 19,562.646 84 % ii. Loans 3,695.354 16 % Total A+B 97,458.000
Original & Revised Sector-wise allocations for ADP 2012-13-: The original sectoral allocations of local resources in ADP 2012-13 and revised allocation after re-appropriation are given as under:
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Revised Budget %age Estimates/ S# Sector Estimates %age %age Utilization Utilization Allocation (against B.E) Allocation 1 Agriculture 1453 2 1045 1.4 72.0 2 Auqaf 100 0 78 0.1 78.1 3 Building 1036 1 959 1.3 92.5 4 Districts ADP 1672 2 1672 2.3 100.0 5 DWSS 3194 4 3710 5.0 116.2 6 E&P 1137 2 8251 11.2 725.4 7 E&SE 7116 10 438 0.6 6.2 8 Env 57 0 55 0.1 96.7 9 Finance 8160 11 8821 12.0 108.1 10 Food 438 1 499 0.7 114.0 11 Forestry 570 1 472 0.6 82.8 12 Health 7575 10 5226 7.1 69.0 Higher 13 5064 7 6194 8.4 122.3 Education 14 Home 3725 5 2801 3.8 75.2 15 Housing 1854 2 1421 1.9 76.7 16 Industries 2516 3 1742 2.4 69.3 17 Information 211 0 148 0.2 70.3 18 Labour 72 0 1 0.0 1.5 19 Law & Justice 465 1 531 0.7 114.2 20 Mines & Min. 517 1 412 0.6 79.7 21 Pop. Wel. 183 0 134 0.2 73.0 22 Reg. Dev. 4704 6 3829 5.2 81.4 23 R&D 713 1 511 0.7 71.7 24 Roads 9736 13 13156 17.9 135.1 25 S/Welfare 493 1 447 0.6 90.6 26 Sports 685 1 725 1.0 105.8 27 ST&IT 594 1 417 0.6 70.2 28 TKPK 2480 3 2784 3.8 112.3 29 Transport 200 0 101 0.1 50.6 30 U/Dev 3406 5 3257 4.4 95.6 31 Water 2858 4 3628 4.9 126.9 32 R&R 1215 2 184 0.2 15.1 Total 74200 100 73649.998 100 100
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Main Features of Annual Development Program 2013-14:
The outlay of ADP, 2013-14 is Rs 83000.000 million, which is an increase of 12% over the local share of last year’s development program. The ADP comprises of 983 projects, with 609 ongoing & 374 new. Formulated on the basis of priorities of the development departments solicited under the Comprehensive Development Strategy & Economic Growth Strategy, the ADP envisages substantial allocations for all the development sectors. The details of source of funding are tabulated below:
Sources of Funding of ADP 2013-14: (Rs. In Million) S.No. Source of funding Allocation % age A Provincial Budget 83000.000 70 B Total Foreign Assistance 35000.000 30 i. Grants 30695.28 0 88 ii. Loans 4304.72 0 12 Total A+B 118000.000
Source of funding for ADP 2013-14
100000 70 %
50000 30 % 88 % of TFA
0 12 % of TFA Provincial Rupeesin Billion Total Foreign ADP 2013-14 Budget Grants Assistance Loans
Provincial Total Foreign Grants Loans Budget Assistance ADP 2013-14 83000 35000 30695.28 4304.72
Formulation of ADP 2013-14:
The ADP-2013-14 has been formulated after an intensive consultative process. The process included a series of sessions with all the development departments, Finance Department, Advisor to CM for Planning and Development Department and the Chief Minister, in order to seek their guidance.
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Highlights of ADP 2013-14:
In view of the allocated resources, the following order of priority has generally been observed: • 12% increase in Local Component of ADP • 51% increase in Foreign Assistance of which about 88% is grant. • Enhanced allocations for completion of 404 Projects • Throw-forward on the lower side, 1.9 yrs. • Sustained emphasis on EGS in the proposed ADP 2013-14. • Priority to consolidation than expansion • Priority to Health, Education, Energy & Power, Sports, Tourism & Youth Affairs • Provisions for reform initiatives especially in Health, Education, IT, Skill Dev., Mines & Minerals, Agriculture and Local Government • Priority to mega projects • Encouraging Public Private Partnership • Mass Transit System for Peshawar • Schemes to address traffics and sanitation issues in Peshawar • Social Protection for marginalized communities • Third Party Validation • Peshawar Uplift Project • Beautification of Peshawar Project • Technical University at Shabqadar Road – Charsadda
Sector-Wise Allocation:
The size of ADP, 2013-14 is Rs. 118000.000 Million which includes Foreign Assistance of Rs. 35000.000 million. There are 983 projects in the ADP, of which 609 are on-going and 374 are new. The sector-wise allocation for ongoing and new schemes is as under:
(Rs. in Millions) Schemes Schemes Total (On Going) (New) Sector No Allocation No Allocation No Allocation
Agriculture 35 1069.18 16 463.024 51 1532.204
Auqaf, Hajj 2 15.124 12 90.876 14 106.000 Building 32 1030.655 4 185 36 1215.655
District's ADP 0 0 1 1672.33 1 1672.330
DWSS 10 1521.182 10 1740.574 20 3261.756
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E&SE 41 6262.08 18 1845.06 59 8107.140
Energy & Power 16 1044.881 12 373 28 1417.881 Environment 9 32.44 2 24.559 11 56.999 Finance 10 750.845 10 3135.448 20 3886.293 Food 6 420.233 2 80 8 500.233 Forestry 32 444.459 14 125 46 569.459 Health 62 5718.887 36 2279.19 98 7998.077 Higher Education 20 3940.546 18 1782 38 5722.546 Home 24 2866.964 11 836.003 35 3702.967 Housing 8 949 1 0.001 9 949.001 Industries 41 1757.173 30 1480.413 71 3237.586 Information 4 177.01 4 33.528 8 210.538 Labour 0 0 3 22.5 3 22.500 Law & Justice 12 533.677 8 285 20 818.677 Mines & Mineral 7 327.499 8 259 15 586.499 Population Welfare 4 204.971 2 19.83 6 224.801 Regional Development 16 2452.056 23 12307.565 39 14759.621 Relief & Rehabilitation 2 238.602 4 1208.833 6 1447.435 Research & 8 318.127 9 485.73 17 803.857 Development Roads 74 8108.077 33 2150.252 107 10258.329 Social Welfare 21 392.805 10 100 31 492.805 Sports, Tourism 23 544.9 16 326.1 39 871.000 ST&IT 21 431.15 6 140 27 571.150 Transport 8 133.276 2 33 10 166.276 Urban Development 9 2442.08 11 2250.012 20 4692.092 Water 52 1815.793 38 1322.5 90 3138.293 Sub-Total 609 45943.672 374 37056.328 983 83000.000 Foreign Assistance 35000.000
Grand Total 118000.000
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Information Housing Labour 0.3 % Sector Wise Allocation ADP 2013-14 1% 0.003% Law & Food Mines & Justice Home Mineral 1% 4% Relief & 1% E&SE 1% Rehabilitation ST&IT Finance 10% Transport 2% 1% 4% 0.2 % Higher Education District's ADP 7% 2% Popn W 0.3 % Health Research & 10% Development 1% Regional Development 18% DWSS Roads 4% 12% Water Social 4% Welfare 1%
Industries Auqaf, Hajj 4% 0.12 % Building Energy & Power 1% 2% Urban Development 6% Sports, Tourism 1% Environment Forestry Agriculture 0.1 % 1% 2%
Foreign Assistance
For the year 2013-14, the size of foreign assistance is Rs.35000.000 million for 66 projects . Out of the total Foreign Assistance the grant portion comprises Rs. 30695.280 million whereas; loan component is Rs. 4304.720 million. The sector wise allocation of foreign assistance is tabulated as under:
Fore ign S.No Sectors Allocations %age Assistance 1 Agriculture 472 2 1.3 % 2 DWSS 289 2 0.8 % 3 Elementary & Secondary Education 15969 15 45.6 % 4 Energy & Power 805 1 2.3 % 5 Forestry 150 1 0.4 % 6 Health 2090 7 6.0 %
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7 Home 2981 5 8.5 % 8 Industries 1221 4 3.5 % 9 Regional Dev. 2590 8 7.4 % 10 Research & Dev. 845 5 2.4 % 11 Roads 5438 7 15.5 % 12 Social Welfare 113 3 0.3 % 13 Water 132 1 0.4 % 14 Law 225 1 0.6 % 15 Urban Development 537 2 1.5 % 16 Finance 1143 2 3.3 % Total 35000 66 100
The individual contributions of Provincial Government’s development partners are as under: (Rs. In millions)
S.No Donor Grant Loan Total
1 DFID 14861.129 14861.129 2 E U 5069.656 5069.656 3 JICA 514.195 3000 3514.195 4 MDTF 2804.28 2804.28 5 INL 1972.176 1972.176 6 USAID 1315 1315 7 ADB 1304.72 1304.72 8 KFW 1130.049 1130.049 9 UNDP 875.88 875.88 10 NORAD 466.501 466.501 11 World Bank 450 450 12 GIZ 400.1 400.1 13 SDC 341 341 14 CIDA 237.25 237.25 15 Italian Debt Swap 147.764 147.764 16 CVF Japan 110.2 110.2 17 UNICEF 0.1 0.1 Total 30695.280 4304.720 35000
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World Bank Grant Position CVF Japan 1% 0.35 % SDC CIDA Itallian Debt Swap NORAD GIZ 1% 1% 0.48 % UNICEF 2% 1% 0.0003 % UNDP ADB KFW 3% 0% 4% USAID 4%
INL DFID 6% 48%
MDTF 9%
E U 17% JICA 2%
SDC E U Loan Position World Bank 0% DFID 0% CIDA UNDP 0% 0% GIZ 0% 0% 0% Itallian Debt Swap KFW NORAD 0% 0% ADB 0% 30%
JICA USAID 70% 0%
INL 0% MDTF 0%
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Sector-wise Investment Programs in ADP 2013-14:
Education: Vision A progressive KPK with equal access to education for all Policy • Accelerate achievement of Millennium Development Goals by 2015 • Standardizing Primary Education across the Province • Encouraging the completion of full primary schooling by all children • Addressing gender disparity by promoting gender equality, affirmative action and the empowerment of women • Enhancing the quality of education infrastructure, facilities and services • Removing gender and ethnic disparities by promoting universal access to education • Enabling tertiary educational institutions to be autonomous and accountable in terms of finance, administration and academics • Reforming college level education through the development of career placement and other linkages with the job market
Education plays pivotal role in the progress of nations. Pakistan in general and Khyber Pakhtunkhwa in particular lags behind in the field of education from many countries of the region. The overall literacy rate in Pakistan is 56% (69 % male & 44 Female) whereas in Khyber Pakhtunkhwa the literacy rate is 49% (68% Male & 33 % Female).. 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. 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. An amount of Rs.13829.686 Million is allocated for funding of 97 projects, out of which 61 are ongoing and 36 are new projects, the following targets will be achieved during the year:
• 100 new Government Primary schools will be established on need basis. • 50 Primary schools will be upgraded to Middle level in deficient Union Councils. • 50 Middle schools will be upgraded to High level in deficient Union Councils. • 25 High schools will be upgraded to Higher Secondary level in deficient Union Councils. • 50 Science Labs will be established in High & Higher Secondary Schools. • 500 additional classrooms will be constructed Government Schools. • 500 early Childhood Education room will be constructed in existing Primary Schools. • 500 Primary schools will be provided with basic facilities.
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• Faculty will be engaged for BS-4 year degree programme. • Furniture and lab gears will be purchased for Govt. Colleges. • Construction of Libraries. • Performance incentives for teachers.
Health: Vision
Work towards a healthy population in partnership with the private sector and civil society and develop effective and efficient healthcare systems targeted towards women in reproductive age and critical illness coverage.
Policy • Up gradation and optimal usage of health care facilities leading to measurable improvement in primary, secondary and tertiary health care. • Building upon and improving health delivery systems and health management systems with measurable impact on Health MDGs 4, 5 & 6 • Social protection for low income and vulnerable income groups. • Capacity building for evidence and outcomes based planning with emphasis on data analysis research. • Focusing on Community led community health programs and public private partnerships.
The Provincial government is committed to provide better health delivery system to all the segments of the population. Being a high priority sector, the government has committed to provide modern and vibrant health care system to its people. The new development portfolio is designed in consonance with the global indicators of the Millennium Development Goals and aims to provide better health delivery system to all segments of the population. The Provincial Government is committed to provide quality health care services to the people of Khyber Pakhtunkhwa and in this connection has pursued the policy of reforms for strengthening the health care service delivery system. Main emphasis has been on completion of ongoing infrastructure, human capital development and effective monitoring. At the same time Maternal and Child Health care and prevention of communicable diseases have been the priority areas. To enhance the coverage of outreach primary health care services from the present 55% to 80% within 03 years and to ensure minimum health services at primary healthcare level, a new initiative, with donors support, Integration of Vertical Programs project will be launched with a cost of Rs.17 billion. An amount of Rs 7998.077 million is allocated for 98 projects out of which 62 are ongoing and 36 are new projects. The following targets will be achieved in this sector:
• Under TB Control Program, 36000 TB patients will be provided free treatment. • 800 Poor patients will be provided free cancer treatment. • Construction of Gaju Khan Medical College Swabi. • Improvement and Standardization of two DHQ Hospitals Kohistan & Hangu will be completed.
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• Construction Accident & Emergency Department in DHQ Hospital Kohat, Mardan D.I Khan will be completed • Establishment of Sixteen new BHUs will be completed. • Under Social Health Protection scheme, a package of free health services will be provided to the poorest of the poor through insurance scheme. • Construction of Paramedical Staff hostel at LRH, Peshawar will be completed. • Establishment of Paeds surgery ward & purchase of equipment for surgical ICU at LRH Peshawar.
Social Welfare and Women Development: Vision To develop an integrated and comprehensive social protection system for general population of KPK especially women, deprived, poor and the most vulnerable segments of the society
Policy 1. Build strategies that reduce poverty, protect household consumption and support capacity building and productive inclusion 2. Build healthy living facilities for the most vulnerable groups including , base of the pyramid women and children and destitute senior age group citizens 3. Capacity building of the vulnerable groups by imparting skills to make them contributory members of the society while earning livelihood for themselves 4. Build safety nets through service chain for the welfare of the poorest 5. Work on eradicating drug menace; and medico-legal protection of women, children and old age prisoners 6. To invest in women development to reduce gender disparity
In Social Welfare and Women Development sector, focus is laid upon providing social cushion to the deprived and marginalized segments of society especially, women. In the proposed development plan, the department will mainly continue its ongoing projects which include schemes for well-being and safeguarding of destitute women, orphans, children, beggars, drug addicts and special persons.
Under the Tanzeem Lissail-e-Wal Mahroom project various activities pertaining to health, education and social welfare will be carried out for the vulnerable groups in the province. An amount of Rs. 492.805 million has been earmarked for 31 Projects of which 21 are ongoing and 10 are new. The following targets have been envisaged for the year:
• Establishment of welfare home in Khyber Pakhtunkhwa • Construction of Darul-Qafala & Drug addicts rehabilitation center at Peshawar. • Establishment of Darul-Aman in Dera Ismail Khan. • Construction of working women hostel in Khyber Pakhtunkhwa. • Strengthening of women skills development/ Dastakari centers in Khyber Pakhtunkhwa.
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Tourism, Sports, Culture and Museums:
Tourism Vision
Promote Khyber Pakhtunkhwa as a preferred tourist destination, nationally in the short-to- medium term and globally in the long term
Policy 1. Develop a Tourism Policy for KP Province 2. Develop a Public-Private Partnership (PPP) Framework for Increased private sector investment in KP tourism sector 3. Increase tourist traffic in the province by at least 10% every year over the next five years 4. Ensure maximum investment (domestic and foreign) in the tourism sector over the next five years
Sports Vision
Develop a competitive advantage in sports through state of the art facilities and infrastructure, accessible to all citizens of the province
Policy 1. Promotion of sports through various interventions from gross root level 2. Restoration, upgradation and creation of state of the art infrastructure 3. Research and Development 4. Development of the state of the art infrastructure with cutting edge sports facility
Performance of Tourism sector is interconnected with the Law & Order situation, better infrastructure and performance of other sectors. Considering these factors, the government is committed in promoting this sector on priority basis. During the Financial Year 2013-14, 17 Archeological sites would be rehabilitated. The heritage site of Takht Bhai will also be improved for the facilitation of Buddhist tourists. The traditional festivals of Shandur, Kalash, and other similar activities will be held in order to provide ample opportunities to the tourists for recreation. Play grounds throughout the Province will be developed. An amount of Rs.871.000 million has been allocated for 39 projects, out of which 23 are ongoing and 16 are new.
• Construction of sports stadium at District Swabi. • Establishment of international standard multipurpose Gymnasium at Abbottabad. • Establishment of Sports Academy for the Talented Youth of Khyber Pakhtunkhwa. • Holding of traditional & Tourism festivals, Broghal, Shandoorr, Kalash, Food festivals and Khan Pur festival.
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• Construction of Water sports Tourism facilities at Khan Pur. • Construction of Kund Pedestrian, Wooden Bridge
Auqaf, Hajj & Minority Affairs: Vision
Ensuring adequate protection, conservation and sustainable use of Auqaf properties- mosques and shrines and promotion of religious harmony
Policy 1. Safe guarding and promoting the rights of minorities 2. Better management and maintenance of Auqaf properties as per the provisions of The North-West Frontier Province Auqaf Properties Ordinance 1979 3. Improving facilities at mosques and shrines and ensuring security around mosques in order to provide peaceful environment for the devotees. 4. Explore, Identify, and document historic shrines in neglected and far-off areas.
This sector has been provided with an allocation of Rs.106.000 million for 14 projects, out of which 2 are ongoing and 12 new. The sector’s new portfolio will majorly focus upon the welfare of minorities and proposals have been framed for improvement of their residential colonies, educational institutions & worship places. Besides, programs for skill enhancement program, scholarships for needy students and mass awareness campaigns for the rights of minorities have also been incorporated. In addition to this, the department will also implement projects pertaining to promotion of religious activities and improvement of Deeni Madaris in the province. Major projects are as following:
• Promotion of religious / minority activities in Khyber Pakhtunkhwa. • Pilot Project for Establishment of Model Deeni Madaris (5 for male & 5 for female) in rented buildings in Khyber Pakhtunkhwa. • Special Package for Kalsh Minority (phase-II). • Improvement of minority Educational Institutions in Khyber Pakhtunkhwa.
Roads: Vision
Up gradation and maintenance of a modern road network under optimal and efficient development and management regimes.
Policy • Enhance existing road densities through construction and upgrading of existing network • Rehabilitation of roads that have outlived their design life • Construction of missing road links • Preparing Asset Management Plan for the Provincial Road Sector
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• Developing secondary arteries linking national motorways and trade corridors to promote economic growth • Improving Road Safety and undertaking improvements in road design and specifications • Dualization of main arteries and improving geometry of existing roads
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 JICA assisted rural road rehabilitation project for providing a sustainable road chain in the rural areas. The department with the assistance of JICA will execute a mega project wherein it will construct 478 km’s of roads and 11 bridges in the province by 2015. The sector has been allocated Rs. 10258.329 million for 107 projects. The following targets have been envisaged for the year: The following targets will be achieved: • 521 km’s black topping roads would be constructed & dualized in Peshawar, Abbottabad, Shangla , Swabi, Bunair , Haripur , Chitral and Nowshera. • 14 RCC bridges would be completed. • 35 steel bridges would be completed.
Drinking Water Supply and Sanitation: Vision
To provide adequate and safe water supply and extending sanitation coverage to un-served and underserved areas
Policy • Provision of potable water which is not adverse to human health, with a focus on un- served, underserved, brackish and rain-fed areas • To introduce community participation in the planning, management and development of water supply and sanitation infrastructure, facilities and services • To halve by 2015, the proportion of people without access to safe drinking water • To halve by 2015, the proportion of people without access to sanitation • To develop the technical and financial capacities of water supply utilities and local governments for improvements in water supply and sanitation
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, along with 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. In the new development year, the Public Health Engineering department will further expand the existing coverage of clean drinking water and sanitation facilities in the province wherein new water supply schemes will be implemented, old village based water supply schemes will be
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rehabilitated and dilapidated pipe lines will be replaced. Besides three mega gravity water supply schemes will be accomplished in Abbottabad & Chitral districts. Similarly feasibility of greater water supply scheme for Peshawar will be completed. The sector has been allocated Rs.3261.756 million for 10 ongoing and 10 new projects. The following targets have been envisaged: • Construction of water supply schemes in Khyber Pakhtunkhwa. • Construction of sanitation scheme in Khyber Pakhtunkhwa. • Gravity Flow Water supply Scheme Mansehra • 118 water supply schemes will be completed. • 485 ongoing water supply schemes, old/ rusted will be completed. • Water Supply scheme Kotaka Barghu Adamzai District Lakki Marwat. • Rehabilitation of existing old Water Supply Scheme.
Building: Vision
Constructing and maintaining residential and office accommodation facilities in the public sector to render functionally adequate services in cost efficient manner in order to ensure conducive environment for an effective public service system.
Policy • Stock taking of existing assets and facilities for comprehensive planning of public housing • Master planning for sequencing developments to cater for building needs under various government departments • Adoption of standardized plans for construction of residences and offices • Provision of adequate infrastructure to Judiciary, Police and Jails to improve security and delivery of justice to common people • Provision of residential facilities for employees in lower grades • Protection/restoration of heritage buildings
The Building sector covers Building at district and provincial level. At district level it covers the public buildings pertaining to District/Tehsil Administration and residential accommodation while at provincial level it includes Civil Secretariat, Pakhtunkhwa Houses, Rest Houses and residential accommodation. The sector has been allocated Rs.1215.655 million for 36 projects. Most of these projects will be developed through public private partnership. The following targets will be achieved:
• Construction of High Rise Flats at Nishter Abad, Peshawar. • Construction of 90 Duplex residential accommodations of different categories for Govt Officers/officials in Hayatabad Peshawar. • Feasibility study and details designing of residential/offices for Govt and in KP.
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Housing: Vision
Constructing and maintaining residential and office accommodation facilities in the public sector to render functionally adequate services in cost efficient manner in order to ensure conducive environment for an effective public service system.
Policy • Stock taking of existing assets and facilities for comprehensive planning of public housing • Master planning for sequencing developments to cater for building needs under various government departments • Adoption of standardized plans for construction of residences and offices • Provision of adequate infrastructure to Judiciary, Police and Jails to improve security and delivery of justice to common people • Provision of residential facilities for employees in lower grades • Protection/restoration of heritage buildings
The department has been mandated to provide adequate housing facilities for the general public as well as the government servants. It is also responsible for acquisition and development of sites through public finances and with the assistance of private sector. Under the proposed program, the department besides pursuing the ongoing interventions will launch new housing scheme in Nowshera district on self- finance basis and also will initiate project for construction of residences & bachelors hostel in the district headquarters of the province. Moreover, it will also plan and provide essential infrastructure for new housing schemes. An allocation of Rs . 949.001 million has been made for implementation of 9 projects, out of which 8 are ongoing and 1 is new. The following target has been set forth:
• Procurement of land for launching of housing scheme along motorway district Nowshera /Mardan.
Urban Development: Vision
To make cities the engines of economic growth
Policy • To improve the overall governance structures/systems of major cities • To promote participatory approaches to urban planning, management and development • To enable urban infrastructure and service providers to deliver high quality infrastructure, facilities and services to inhabitants • To induct the private sector in service delivery in order to reduce the financial burden on public sector agencies
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• To improve the regime for land tenure, delivery of municipal services and access to urban markets • To standardize the formulation and implementation of planning practices in urban areas • To improve the credit worthiness of cities and to enable public private partnerships in the planning, management and development of urban infrastructure, facilities and services • To provide optimally designed Mass Transit Systems in the major cities of the Province.
In this sector various developmental activities will be undertaken to improve infrastructure in the urban area of the province. Urban areas are important to the national economy as these are considered the focal points for trade, commerce and governance. Moreover, bridges, flyovers, extension & widening of roads, will be constructed for an effective load management of traffic in the city. Besides, the government had also initiated a new project “Urban Policy Unit”. Proposed Mandate of the Urban Policy Unit is to assist in formulation of Urban Provincial Planning and policy framework, policies, bye laws and rules. It is to lead inter departmental, inter provincial and inter cities coordination for synergies and integration, and to coordinate with donors on urban matters. This Unit has to undertake capacity building and technical support to line departments in managing urban affairs, and to provide guidance and advice on institutional reforms and organizational restructuring. This unit will formulate economic regeneration and growth strategies for urban clusters and urban region, and will maintain Provincial GIS, and generate research and disseminate innovations in urban sectors. The Urban Policy Unit has started as a Project, but will become a Regular Directorate of the P&D Department. The staff required will also increase with time, as new initiatives are launched. An amount of Rs.4692.092 million has been earmarked for 20 projects, which 9 are on-going and 11 new projects. The following targets will be achieved. • Improvement and rehabilitation of Branch Roads in Peshawar. • Mass Transit facility in Peshawar. • City Strategic Development Plan for Divisional Head Quarters in Khyber Pakhtunkhwa. • Beautification of Peshawar city (through outsourcing). • Peshawar uplift program.
Water: Vision
To enhance Agricultural productivity by ensuring requisite, equitable and reliable irrigation supplies to cultivable lands of KPK.
Policy • Sustainable development of irrigation infrastructure with focus on holistic management and institutional reforms. • Transparent and sustainable management of water resources • Improving irrigation service delivery • Improving on-farm water management
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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 province’s economy is mainly agrarian and it predominantly depends on an effective irrigation system. This year out of the total water sector’s budget maximum resources have been allocated for timely completion of on-going projects including Bazai Irrigation scheme in Malakand& Mardan districts, Khandan Jonali Koch irrigation scheme in Chitral district, Hero Shah minor and remodelling of link channel in upper Swat canal. Besides, the department will also execute diverse projects pertaining to construction of small & medium dams, improvement of irrigation channels, construction of new flood protection works and installation of tube wells. An allocation of Rs. 3138.293 million has been made for the implementation of 90 schemes, out of which, 52 are ongoing and 38 are new. The following targets will be achieved in this sector.
• Bazai, irrigation scheme will be completed & 25200 acres of land will be brought under cultivation in Mardan & Malakand. • Hero Shah minor in upper Swat canal will be completed & 2143 acres of land will be irrigated. • Construction of Barrage on Swat river would be completed. • Construction of Palai Dam Charssada, Darmalak Dam Kohat,Ghole Banda Dam Karak & Mardan Khel Dam Karak will be completed. • It is also planned to start work on 4 small Dams in the next Financial Year. Details of the Dams are: • Preparation of detailed design of Kundal Dam Swabi, Sanam Dam Dir Lower, Jalozai Dam Nowshera & Gadwalian Dam Haripur. • Khandan Jonali Koch irrigation scheme at Chitral will be completed & 1200 acres of land will be irrigated. • Work on detail design and construction of Siran Right Bank Canal Mansehra and Pehur High Level Canal Swabi will be started.
Energy & Power: Vision
To develop the potential of the province in hydel power generation, alternate energy and oil & gas to contribute significantly in the redressal of energy crises in the country and to generate resources for self-sustainability of the Province
Policy • Emphasis on Hydel Power Generation in Khyber Pakhtunkhwa through short, medium and long term interventions. • To raise the capacity of PHYDO and Energy & Power Department to the highest level of excellence. • Associate in Hydel development, Private Parties & Foreign companies (Korea, China) in Partnership with the Govt. of Khyber Pakhtunkhwa and Local private sector
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(Tri Partied Partnership) • Efficient utilization of Net Hydel Profits. • Mitigating the effects of Power short falls by developing feasible alternate energy sources. • Thrust on Thermal Power generation in Southern districts utilizing flare gas. • Developing Hydel policy frame work in Khyber Pakhtunkhwa. • Establishment of Oil refinery in Khyber Pakhtunkhwa in Partnership with PSO.
The Province of Khyber Pakhtunkhwa has been blessed with huge hydel potential and large reserves of oil and gas. The resources are not only contributed in decreasing the gap between the energy demand and supply but also earning billion of rupees for the Province. The Government of Pakistan has signed a loan agreement with the Asian Development Bank for the development of hydro power potential in Khyber Pakhtunkhwa Province. Under this project PHYDO is constructing two new projects having a total capacity of 20 MW. In order to attract private investment, energy and power department through PHYDO has also conducted Pre- feasibility study of 10 raw sites in Khyber Pakhtunkhwa. Moreover, action plan 2011-21 under with PHYDO has started work on the 6 hydel projects having a capacity of 238 MW. In addition to this Government of Khyber Pakhtunkhwa has signed two MOU’s for development of lower Palas valley Hydropower (665 MW and Spat Gah hydropower project 496 MW) at Kohistan under public private partnership with a total cost of US$ 3 billion. In ADP 2013-14, an amount of Rs.1417.881 million has been allocated for 28 schemes. The following targets have been set forth: • Establishment of Oil refinery at Khushal Ghar Kohat. • Feasibility study of potential Raw sites in Khyber Pakhtunkhwa. (Total Capacity 965 MW). • Feasibility study and Construction of 200 MW thermal Power Plant in KP. • Construction of 10 MW of solar Power Generation facility. • Construction of 10 MW of wind Power Generation facility. • Feasibility study way forward for alternate energy potential in KPK (Wind, Solar & Bio- Mass)
Agriculture Sector:
A: Agriculture Vision To enable the Province to meet the challenges of the 21st century and to develop a vibrant agricultural sector that promotes value addition and helps tap international markets for agriculture produce
Policy • To shift from conventional cropping patterns to high value, high yield crops, fruits, and vegetables
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• To minimize the environmental risks associated with unsustainable means of agricultural production • Reforming the agricultural marketing system to improve profitability, productivity and value for money for producers and consumers • To revitalize/reform the agriculture research and extension system of the Province, including the induction of private sector in research and extension
B: FISHERIES Vision
Conserve, manage and develop aquatic resources in public and private sector to meet protein requirement of the masses
Policy • Increasing fish production through replenishment of fish resources in natural water bodies • Aquatic research and conservation program focusing on productivity enhancement, disease control, nutrition, genetics, pollution control and protection of vulnerable species • Promotion of fish and shellfish farming • Promotion of Public Private Partnerships to bring in private sector • Introduction of co-operative fishing to alleviate poverty
C: LIVESTOCK Vision
To create an enabling environment for the livestock sector by removing market distortions, supporting efficient use of public resources and encouraging participation of private sector in the industry to increase the contribution of the sector to the GDP of the province by 20% in 3 years.
Policy • Redefining the role of the public sector in the governance, management, planning and development of livestock related infrastructure, services and facilities • Creation of a demand-driven approach to markets for livestock related goods and services • Recognition that there is a cost for goods and services associated with the delivery of livestock related goods and services • Elimination of resource allocation distortions in the livestock sector • To promote sustainable use of resources in the livestock sector • To develop an independent policy for socially and economically disadvantaged groups
The Khyber Pakhtunkhwa 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. Agriculture can easily attain the status of big industry in the province if proper care and patronage is given to it.
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The province is short in food commodities, hardly producing 40% of local requirements and meets the balance requirement on import from other provinces. Therefore, the primary concern is food security. Provincial agriculture department, therefore, attaches high priority to this aspect and is availing every conceivable avenue that promotes the growth of agriculture. This department has under-taken a number of special/ new initiatives in the last five years under the ADP programs for accelerating agriculture development in Khyber Pakhtunkhwa Province. An allocation of Rs. 1532.204 million has been made for total of 51 projects out of which 35 are ongoing with allocation of Rs. 1069.180 million and 16 are new with allocation of Rs. 463.024 million. The following major targets will be achieved in this sector:
• 300 tons maize hybrid seed will be produced. • 4500 metric tons wheat seed will be procured and distributed among the farming communities to enhance wheat production. • Establishment of Fruit Orchards on 1800 Acres. • Distribution of 50,000 true to type fruit plants. • 100,000 Olive plants will be propagated. • 110 Solar Pumps, Submersible Pumps & Diesel Centrifugal Pumps will be installed. • 25 bulldozers will be purchased. • 200 water courses will be constructed. • New fish hatchery in Govt: sector will be established in Swabi over150 to 250 kanal area where fish seed will be produced and stocked in Tarbela Dam and Khanpur Dam and other water bodies of adjacent districts beside provision to private sector. • 178,030 animals will be treated. • 367,513 animals will be vaccinated
Forestry: Vision
Develop and maintain forestry sector resources in the province in a scientific, environmentally sustainable and socially acceptable manner
Policy • Improved management of forest stock • Increasing forest/ tree cover through cost effective and sustainable plantation through outsourcing mode. • Better use of precious water resources • Developing rangelands for increasing the fodder/ feed resources through reseeding and rotational grazing for poverty alleviation.
Wildlife: Vision
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To protect wildlife resources to maintain bio-diversity and to make them ecologically stable and safeguard them for current and future generations.
Policy 1. Protection, preservation and management of natural habitat of diversified wildlife species endowed to the province 2. Promote wildlife based tourism through development of safaris and trophy hunting Ecologically-balanced wildlife policy
Khyber Pakhtunkhwa has rich forest resources and it is imperative for the Provincial Government to protect its natural wealth. For the management of province’s rich flora & fauna the department has given preference to those areas which were neglected in past hence, majority of new projects have been proposed for afforestation of indigenous as well as fruit bearing species in Malakand & Hazara districts, promotion of urban forestry, integrated watershed management for uplands, sustainable management of bio-diversity in Swat & Chitral districts with the assistance of GIZ, carbon stock assessments of forests, promotion of apiculture in flood affected areas. Besides it will also undertake programs for conservation & propagation of Wildlife in Mardan, Chitral, Swat & Dir districts, enhancement, protection & management of game reserves & management of aquatic resources etc. The sector has been allocated Rs.569.459 million for 46 projects of which 32 are ongoing and 14 are new. The achievements to be made are as under:
• Establishment of Nurseries on 163 Acres of land. • Afforestation over 19055 acres. • Direct sowing over 4900 acres. • Linear plantation over of 2550 Km’s. • 3400 acres area will be brought under rangeland management.
Environment: Vision
Ensure the conservation, rehabilitation and enhancement of the environment and drive sustainable development in the province while mitigating environmental pollution.
Policy • Implementation of the provisions of Multilateral Environmental Agreements (MEAs) • Integrate environmental considerations in the policy and planning processes • Enhance the institutional capacity of Environmental Protection Agency and other Government and non-Government organizations for the efficient management of the environment • Create awareness of environmental issues amongst the youth across educational institutions, civil society and various other stakeholders • Monitoring of pollution level in air, surface water groundwater The Province has always been conspicuous in the environmental arena of the country. It leads the other provinces in preparation of environmental legislation as well as, planning and implementation of Sarhad Provincial Conservation Strategy in 1995. The Environmental
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Protection Agency is basically an advisory body, and its role is to regulate the Pakistan Environment Protection Act 1997 and ascertain its implementation throughout the province. The department plays an important role in dissemination of environmental concerns to the general public through mass awareness campaigns, print and electronic media, monitoring of ambient air quality, water and noise pollution across the province and promotion of environment education.. In ADP 2013-14 an allocation of Rs. 56.999 million has been proposed for this sector for implementing of 11 projects out of which 09 are ongoing and 2 are new. The achievements to be made are as under: • Establishment of EPA complex at Peshawar. • Establishment of Climate Change Unit at EPA Peshawar.
Industries: Vision
To support growth of locally and internationally competitive industries generating employment and technological up gradation. To advocate sustained growth in export, government revenues and industrial and service sector profits.
Policy • Public sector to ensure creation of business enabling environment for the private sector to come forward, grow and prosper. • Business primarily to be left to the private sector. • Ensuing economic activity and growth will lead to increased employment opportunities leading to poverty reduction and increase in earnings and income. • Public Sector to facilitate provision of state of the art infrastructure
Industrial Sector 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. The Sarhad Development Authority (SDA) has acquired 435 acre land for expansion of Hattar Industrial Estate. Besides, industrial estate at Mansehara & feasibility study of industrial estate at Chitral will also be initiated this year. The project of industrial estate at Jalozai at Nowshera is under implementation stage which will further provide investments and job opportunities to the Province. In order to meet the increasing demand for skilled workers in various production and services sectors of the Province, The Technical Education & Manpower department will mainly concentrate on establishing Polytechnic institutes, Commerce colleges, Technical& Vocational Institutes, Government Colleges for Management Sciences through its ongoing and new portfolio. An allocation of Rs.3237.586 million has been made for 71 projects, out of which 41 are ongoing and 30 are new. The following targets have been set forth: • Establishment of Small Industrial Estate at Hattar, Abbottabad, & Darghai Malakand. • Establishment of marble city at Buner. • Establishment of Technical University at Peshawar. • Construction of Building for GTVC Yar Hussain, Ambar , Tor Der, Malakand & Buner. Transport: Vision
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To alleviate the vehicular and commuter traffic congestion issues by providing an alternative urban transport system which is fast, comfortable and is easily accessible.
Policy • To introduce new and improve existing public transport system • To ensure convenient, safe and time efficient transport based on modern technology • To provide jobs and alleviate poverty
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. Keeping in view the transport & traffic issues two new schemes for costing Rs.187.00 million which are “establishment of Transport planning & Traffic engineering unit” (TPU) & “Master planning for urban transportation” are reflected in the coming Annual Development Programme. This sector has been allocated Rs. 166.276 million, for 8 ongoing and 2 new schemes. • Master Planning and establishment of Traffic Management system for Peshawar. • Establishment of Transport Planning & Traffic Engineering Unit.
Regional Development:
A: Regional Development Vision
Removing inter-regional disparities through strategically planned multi-sectoral strategies aimed at sustainable and equitable economic growth across all regions
Policy • In order to remove regional disparities, Allocation of adequate resources to the relatively disadvantaged regions through both domestic and regional sources should be ensured • Create an impetus for multi-sectoral regional development that is sustainable and ensures continuity in the under privileged areas • Target impoverished populations through income generation and social development programs to alleviate poverty in less privileged regions
B: Local Government and Community Development Vision
Enhance the Local Government’s ability to generate revenue and optimally utilize the available resources while meeting the needs of their respective administrative units, including the ability to deliver municipal services and provide infrastructure facilities.
Policy • To enable cities and towns in the Province to become engines of economic growth • To create efficient mechanisms for governance of urban and rural areas that can facilitate the flow of goods and services • To address inter-jurisdictional and intra-jurisdictional issues between cities, towns and villages
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• To build the capacity of local governments to provide municipal infrastructure, facilities and services
The area developments projects are based on the concept of comparative development, in the project place. The mega projects in the province, namely Kala Dhaka Area Development Projects & Kohistan Regional Development Project will help in the main streaming of the respective areas. Provision of potable water & sanitation, pavement of streets and other such interventions will be carried out through different projects. In the Local Development sub- sector, most of fund has been reserved for ongoing projects. However some new projects would be initiated during FY 2013-14, i.e. Public Park at Swabi, development package for Kaghan Development Authority & replacement of chair lifts in Ayubia, Abbottabad. An amount of Rs. 14759.621 million has been allocated for 39 projects out of which 16 are ongoing and 23 are new. The following targets will be achieved in this sector:
• Reforms initiative in Khyber Pakhtunkhwa • District Development initiatives. • Establishment of Water & Sanitation company (WASCO) Peshawar, • Replacement of Ayubia chair lift. • Provision of LED /solar Road lights to selected District of KP. • Procurement of compactor multi loader and mechanical sweeper. • Social Protection & Poverty Alleviation Programme in KP.
Research and Development: Vision
To promote strategic and output based planning to integrate sectoral plans into a coherent policy framework
Policy • Improve delivery of public services • Enhancing the productivity sectors • Reducing poverty, inequality and addressing vulnerability • Enhancement of private sector participation through Public Private Partnership • Ensuring balanced urban, regional and gender development • Accelerated and balanced economic growth
An amount of Rs. 803.857 million has been allocated for 17 projects out of which 8 are ongoing, and 9 are new.
• Provision for multiple indicators cluster survey (MICS-IV). • Restructuring of Planning & Development Department. • Establishment of change management Unit, In P&D Department. • Sub National Governance Programme in KP.
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Science and Information Technology:
Information Technology: Vision
To make the province hub of the information technology and to promote economic growth in the IT sector through enabling IT policies and harness the potential of Information Technology as a key contributor to the development of KPK by providing the people of the KPK easy access to the information technology resources
Policy • Investing strongly in research, training and education. Support the local IT industry through building a province wide infrastructure. • Building infrastructure for the electronic handling of the land records. • IT research funding geared towards educational institutes and organizations • Capacity building in the public IT sector. • Introducing computer based programs and protocols for government departments. • Introduction of of e-governance regimes in key sectors.
The GoKP Science & Technology strategy realizes that the province is under-prepared for the challenges posed by global advancements in Science & Technology. The Khyber Pakhtunkhwa is enriched in natural resources as well as highly qualified man power. Unfortunately, due to improper exploitation and utilization of these natural resources and manpower respectively, the current challenges in S&T could not materialized effectively and efficiently. Keeping in view these challenges & issues, the GoKP will strive its best to ensure sustainable growth and development in the field of S&T in the province. In this regard strong linkages will be established with the relevant stakeholders i,e Universities, R&D organizations, industries etc to promote applied and target oriented research culture. Different initiatives in the realm of e-governance will be introduced to modernize the functioning of Government offices. An allocation of Rs.571.150 million has been made for 27 projects out of which, 21 are ongoing and 6 are new. Some of these are:
• Promotion and Development of Science & Technology in Khyber Pakhtunkhwa. • E- Governance initiatives • Development of MIS for technical institutions in KP.
Mines & Minerals: Vision To increase Mineral sector’s contribution to the GDP by promoting large scale private sector investment.
Policy • Formulation of an efficient and suitable Policy framework for the province. • Formulation of a competitive regulatory framework based on international best practices • Having proper Institutional arrangements in place for efficient management of the Mineral sector and implementation of the Mineral Policy.
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The Khyber Pakhtunkhwa, Province covers a total area of 75421 Sq Km out of which 70% contains mountains & rocks. Being a mountainous region, has tremendous potential in marble, granite and other decorative stones etc, relating to construction industry. Other resources are Nepheline Syenite, phosphates, gemstones, and metallic minerals including gold and base metals and variety of other industrial minerals. The department has been making has more efforts to explore and develop mineral resources by involving private sector due to huge mineral potential of the province. This sector has been allocated Rs.586.499 million for 7 ongoing and 8 new schemes. The following targets will be achieved:
• Geological exploration of Iron, coal and associated minerals in Hazara Division. • Review and formulation of regularity and fiscal regime for mineral development in Khyber Pakhtunkhwa. • Roadmap for implementation of National Minerals Policy 2013.
Labour: Vision
To promote healthy labour management practices for greater socio-economic progress and social justice in the work place by means of worker’s rights protection and ensuring industrial peace. Recognizing the importance of adequate and fair remuneration, workers health and welfare, and under taking special measures including health care coverage for families, education and housing.
Policy • Improvement of working conditions and Environment • Discouraging and combating bonded labor and child labor in the province • Promotion of welfare of industrial and commercial workers • Strengthening of Labor management relations. • Exploring new avenues to absorb skilled labor of the province
Manpower plays a very important role in the overall development of a nation. Labour community constitutes an integral and important part of the manpower of a nation. There are instances that nations endowed with properly managed and satisfied manpower have achieved heights of success even in eve of scarcity of other natural resources. It is an admitted fact that a satisfied workforce can bring about exponential increase in the productivity of a nation. That is why vigilant nations have always been trying to release its workforce from various encumbrances by providing them various facilities. To ensure guaranteed rights to the workers, the Labour Department through its attached Departments, implements various Labour Laws. Similarly for provision of the aforementioned welfare facilities, other organizations/institutions work under the Labour Department. An allocation of Rs.22.500 million has been made for 3 new schemes in this sector.
• Establishment of child and bonded Labour Unit in Labour Department. • Review of Policies, Laws and rules in awake of 18 th amendments. • Establishment of Establishment of Resource Cell and Reporting System in labour Department.
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Food: Vision
To ensure food security and safe and healthy food for the Province.
Policy • To eradicate adulteration of food by 2018 • Better Planning for the sector
In wake of global climatic happenings, rising population and nutrition intake values, it is of paramount important for the government to initiate efforts not only to increase production of staple crops but, also ensure food safety and quality by providing requisite infrastructure in the vicinity of the cropping areas. An amount of Rs.500.233 million has been made for 6 ongoing and 2 new schemes in this sector. • Feasibility study for assessment and detailed designing of food grain godowns in selected district of KP. • Provision of Fork Lifts and Weigh stations in existing Godowns in Khyber Pakhtunkhwa.
Information: Vision
To provide factual and broad based projections of socio-economic, political and religious affairs of the province to the general masses in the print and electronic media. Establishing an adequate institutional framework for protecting and promoting Language, Art and Culture of the Province. Encouraging and inculcating commitment in the youth of the Province for national solidarity within the ideological framework of Pakistan
Policy • Having a definite and dedicated program for the conservation, protection and safeguard of entire cultural heritage in Khyber Pakhtunkhwa. • Promoting Language, Art & Culture of the Province • Expanding the existing net of media coverage by allowing new entrants for television. • Encouraging telecast of documentaries for the projection of culturally enriched province. • Preservation and protection of cultural heritage and tourists attractions by promoting public private partnerships. • Encouraging youth participation in social and political affairs. • Promoting positive values among the educated youth of KP in order to channelize
Due to the advent of fast medium of communication, the entire world today has assumed the shape of a cohesive village where no one can live in isolation. The information department in line with the requirements of the present era has formulated its own communication strategy keeping in view the needs and aspiration of the masses and also ensure the freedom of media as well as welfare of the journalists’ community. An allocation of Rs.210.538 million has been made for 8 Schemes and following targets have been set forth:
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• Construction of Press club at Hangu. • Construction of Press club Hall at Haripur. • Planning Cell at Information department will be established.
Finance:
This sector incorporates schemes pertaining to Finance, Excise & Taxation and Board of Revenue Departments. The proposed projects relate to special & royalty based packages, establishment of Tax facilitation centres, computerization of land records, construction of Patwar khanas and Tehsil revenue complexes in different districts of the province. An amount of Rs . 3886.293 million has been made for 20 schemes.
• Provision of Natural Gas to Tobacco growing district in KP. • Automation of Pension Payment system. • Reforms monitoringt unit, in Finance Department. • KP districts Governance and Community Development Programs.
Law & Justice: Vision
To ensure access to affordable timely and equitable justice
Policy • Improved infrastructure for judicial officers • Capacity building of relevant stakeholders of the legal justice system • Research and Development
In this sector, schemes pertaining to acquisition of lands & construction of judicial complexes, detail designing and master planning for provincial Judicial Academy have been incorporated. An amount of Rs.818.677 million has been made for 20 schemes.
• Construction of joint judicial complex at Karak & Takhte Nasrati. • Replacement of AC plant, Lifts and installation of heavy duty generator in Peshawar High court. • Rehabilitation, improvement and consolidation of judicial infrastructure in Khyber Pakhtunkhwa.
Home: Vision
To ensure effective and professional state provision of public security and law enforcement
Policy • Capacity building of Law Enforcement Agencies • To improved infrastructure for Law Enforcement Agencies • To improved infrastructure for jails • To build capacity for better planning
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In this new sector, projects pertaining to Police, Prisons, and Prosecution Departments and Rescue 1122 have been integrated. In the Police Department’s related schemes, main emphasis will be on completion of ongoing programs. Massive allocations have been envisaged for strengthening Police Support Development Program, with the aim to strengthen Police department for constructing Police infrastructure in the province i.e. Police stations/posts/lines and procure requisite equipment to fight in order to, improve security and safeguard against terrorism. The portfolio of Prisons Department incorporates projects for the construction & rehabilitation of Prisons, Solar energization & provision of water filtration plants & enhancing security measures in jails etc. An amount of Rs. 3702.967 million has been made for 35 schemes.
• Establishment of Project Planning & monitoring and tribal research cell in H&TA departments. • Rule of Law programme in KP. • Peace building initiative for Khyber Pakhtunkhwa. • Construction of instructors hostel at PTC Hangu. • Construction of District Jail Swabi & Dir Upper.
District Development Fund:
The Provincial Government has allocated an amount of Rs.1672.330 million to the Districts for Development under the Provincial Finance Commission Award.
Population Welfare: Vision To promote a healthy and industrious population through smart family planning
Policy • To develop population welfare programme for KP • Initiate pilot projects for population welfare • Capacity building for population welfare department
Population welfare is a vital programmed of national importance. While recognising the need to reduce unwanted fertility, the programme is providing family planning & reproductive health services to the people throughout the province. The programme is mainly focus of birth spacing, mother & child health care. The department aim to achieve population stabilization by 2030 through decline in fertility and mortality rates. An amount of Rs.224.801 million has been earmarked for 4 ongoing & 2 new projects in this sector.
• Renovation and construction of regional training institute Peshawar. • Innovative pilot projects for promotion of Population Welfare Programme.
Relief & Rehabilitation: Vision
Development of safer communities through an effective system for management and prevention of emergencies and disasters
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Policy • Development of a safer and resilient community to through pro active approach towards emergencies and disaster management, community awernce and training • to have positive socio-economic impact on the society by reducing disabilities and deaths due to injuries
The provincial government’s endeavours in creating Relief, Rehabilitation & Settlement department infact indicates the paradigm shift in its approach from the traditional post disaster response and rehabilitation measures to development of a plausible roadmap to address pre- disaster measures such as mitigation, preparedness and response. The department had played a proactive role in the relief and rehabilitation operations during and post flood in 2010. The department’s future initiatives have been incorporated in the new sector wherein it is intended to undertake multitude activities in the province. These include establishment of ware houses, preparation of Monsoon contingency plan, district & community based Disaster Management Strategies, Capacity building of related stakeholders throughout the province etc. An allocation of Rs.1447.435 million has been made for 6 Schemes and following targets have been set forth:
• Establishment of Emergency rescue services (Rescue 1122) in DI Khan & Swat. • Disaster mitigation and preparedness in KP. • Purchase of land for flood damaged schools in Khyber Pakhtunkhwa.
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www.financekpp.gov.pk Annex-I CDL LIABILITIES AS ON 01-07-2013 (Rs. in million) Description Rate of mark up Outstanding Balance (a) Cash Development Loans 1993-94 15.94% 844.313 1994-95 15.59% 413.052 1997-98 8.50% 1616.510 1999-2000 11.21% 265.492 SUB-TOTAL (a) 3139.367 (b) SAP Tied Loans. 1992-93 15.24% 63.291 1993-94 15.94% 625.467 1994-95 15.59% 246.524 1999-2000 11.21% 1076.411 SUB-TOTAL (b) 2011.693 (C) Cash Development Loans For SCARP Tube well Projects handed over by WAPDA to the Government of Khyber Pakhtunkhwa. Discription Rate of mark up Outstanding Balance 1998-99 17.71% 2.555 1999-2000 11.21% 975.275 2000-01 11.70% 754.167 2001-02 10.72% 430.436 2002-03 7.42% 212.050 2003-04 7.20% 12.071 2005-06 9.79% 321.538 2007-08 10.14% 649.431 2008-09 13.80% 100.000 SUB-TOTAL (c) 3457.523 GRAND TOTAL (a+b+c) 8608.583
109 www.financekpp.gov.pk Annex-II DETAIL OF PREMATURE DEBT RETIREMENT (Rs. In Million) Amount Financial Rate of Saving Per S.No Name of Loans Retired Year Markup Annum Prematurly i SAP Tied 1995-96 15.94% 195.917 ii SAP Tied 1998-99 17.71% 1,375.200 iii Scarp 1996-97 16.31% 540.944 2002-03 iv Scarp 1997-98 18.03% 809.000 v Scarp 1998-99 17.71% 1,148.305 vi CDL 1996-97 16.31% 420.299 vii CDL 1998-99 71.71% 1,197.126 Total (a) 5,686.791 1,074.817 i CDL 1989-90 15.93% 1,866.387 2003-04 ii SAP Tied 1995-96 15.94% 125.447 Total (b) 1,991.834 384.084 i CDL 1986-87 14.66% 1,160.866 ii CDL 1987-88 15.28% 649.213 iii Scarp 1989-90 15.93% 249.335 2004-05 iv Scarp 1987-88 15.28% 230.964 v Scarp 1986-87 15% 167.094 Total (c) 2,457.472 449.246 i CDL 1981-82 13% 13.707 ii CDL 1982-83 13% 148.105 iii CDL 1983-84 13% 237.824 iv CDL 1984-85 15% 466.135 v CDL 1985-86 15% 661.222 vi CDL 1988-89 14.84% 637.413 vii Scarp 1981-82 13% 3.154 2006-07 viii Scarp 1982-83 13% 35.718 ix Scarp 1983-84 15% 129.564 x Scarp 1984-85 15% 92.863 xi Scarp 1985-86 15% 180.402 xii Scarp 1986-87 14.66% 12.174 xiii Scarp 1988-89 14.84% 130.504 Total (d) 2,748.785 872.101 i CDL 1990-91 15.93% 1,922.752 ii Scarp 1990-91 15.93% 359.661 2007-08 iii Scarp 1991-92 14.51% 249.115 iv Scarp 1992-93 15.24% 421.081 Total (e) 2,952.609 626.720 i CDL 1991-92 14.51% 1,319.117 ii CDL 1992-93 15.24% 1,378.172 iii Scarp 1993-94 15.94% 367.338 2010-11 iv Scarp 1994-95 15.59% 381.541 v Scarp 1995-96 16% 591.059 Total (f) 4,037.227 1,027.552 Grand Total (a+b+c+d+e+f) 19,874.718 4,434.520
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FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2013 (Figures in million) First Balance as Rate of No. of S.No Description Installment on Interest Installments Due from 1.7.2013 1 IDA-54-Pak (Highway Project) 0.75% 80 half yearly 15-10-1974 *0.004 2 IDA-678-Pak (3rd Education Project) 0.75% 80 half yearly 15-2-1987 *0.274 3 IDA-683-Pak (Flood Damages Restoration Project) 0.75% 80 half yearly 15-5-1987 *1.040 4 IDA-755-Pak (Hazara Forestry Project) 0.75% 80 half yearly 1-4-1998 *0.170 IDA-877-Pak (Salinity Control & Reclamation Project 5 0.75% 80 half yearly 1-4-1989 *10.316 Mardan) 6 IDA-892-Pak (4th Primary Education Project) 0.75% 80 half yearly 1-9-1989 *0.579 IDA-1113-Pak (Bannu Leather Goods Services Control 7 0.75% 80 half yearly 1-8-1991 *0.470 Project) 8 IDA-1163-Pak (On-Farm Water Management Project) 0.75% 80 half yearly 1-12-1991 *1.105
9 IDA-1239-Pak (Irrigation System Rehab: Project) 0.75% 80 half yearly 1-10-1992 *1.542 10 IDA-1487-Pak Command Water Mangt Project 0.75% 80 half yearly 15-6-1994 *2.069 11 IDA-1499-Pak (Small Industries Dev. Board Project) 0.75% 80 half yearly 15-1-1995 *0.097 12 IDA-1602-Pak (2nd Primary Education Project) 0.75% 80 half yearly 1-11-1995 *8.251 13 IDA-1603-Pak (On-Farm Water Mangt. Project) 0.75% 80 half yearly 1-11-1995 *1.973 IDA-1888-Pak (2nd Irrigation System and Rehabilitation 14 0.75% 50 half yearly 1-8-1998 *2.412 Project) IDA-2003-Pak (1988 Flood Damages Restoration 15 0.75% 50 half yearly 15-9-1999 *1.638 Project) 16 IDA-2154-Pak (2nd Agriculture Research Project) 0.75% 50 half yearly 1-11-2000 *2.475 17 IDA-2240-Pak (Family Health Project) 0.75% 50 half yearly 1-11-2001 *9.245 18 IDA-2593-Pak (Social Action Program) 0.75% 50 half yearly 1-8-2004 *3.952 19 IDA-2999-Pak (National Drainage Programme) 0.75% 50 half yearly 15-11-2007 *1.464 20 IDA-3050-Pak (Social Action Programme-II) 0.75% 50 half yearly 15-9-2008 *6.284 IDA-3687-Pak NWFP Structural Adjustment Credit (SAC 21 0.75% 50 half yearly 15-12-2012 **5568.385 I) 22 IDA-3776-Pak (Provincial HIV AIDS Control) 0.75% 50 half yearly 15-6-2013 *3.417 IDA-3906-Pak (Second NWFP Community Infrastructure 23 0.75% 50 half yearly 15-9-2014 *38.486 Project) IDA-3932-Pak NWPF Structural Adjustment Credit (SAC 24 0.75% 50half yearly 15-9-2014 *90.000 II) IDA-3932-I Pak NWFP Structural Adjustment Credit 25 0.75% 50 half yearly 15-9-2014 *50.000 (SAC II) 26 IDA-4177-Pak (Developmental Policy Credit-I) 0.75% 50 half yearly 15-9-2006 *93.039 27 IDA-4316-Pak (Developmental Policy Credit-II) 0.75% 50 half yearly 29-9-2007 *129.359 28 ADB-433-Pak (Aquaculture Dev: Project) 0.75% 60 half yearly 1-5-1990 *0.097 29 ADB-495-Pak (On Farm Water Mangt. Project) 1% 60 half yearly 15-5-1991 *0.963 ADB-723-Pak (Chashma Command Area Development 30 1% 60 half yearly 15-12-1994 *17.082 Project) 31 ADB-758-Pak (Farm to Market Roads Project) 1% 50 half yearly 1-4-1996 *1.227 ADB-759 Pak (Science Education for Secondary School 32 1% 60 half yearly 15-5-1996 *0.858 Project) 33 ADB-838-Pak (Chitral Area Dev. Project) 1% 60 half yearly 15-12-1997 *12.076
34 ADB-850-Pak (3rd Health Project) 1% 50 half yearly 1-3-1998 *5.103
35 ADB-851-Pak (Fruit and Vegetable Marketing Project) 1% 50 half yearly 15-4-1998 *0.562 ADB-874-Pak (Chashma Right Bank Irrigation Project 36 1% 50 half yearly 15-4-1998 *3.722 Stage-II) 37 ADB-916-Pak (2nd Aquaculture Dev: Project) 1% 50 half yearly 15-1-1999 *1.596
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FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2013 (Figures in million) First Balance as Rate of No. of S.No Description Installment on Interest Installments Due from 1.7.2013
38 ADB-917-Pak (2nd Farm to Market Road Project) 1% 50 half yearly 1-2-1999 *9.266 ADB-957-Pak (1988-Flood Damages Restoration 39 1% 50 half yearly 1-10-1999 *1.841 Project) 40 ADB-973-Pak (Livestock Development Project. 1% 50 half yearly 15-2-2000 *1.367 ADB-976-Pak (Swabi Salinity Control and Reclamation 41 1% 50 half yearly 15-12-1999 *13.225 Project) 42 ADB-977-Pak (Primary Education Girls Project) 1% 50 half yearly 15-6-2000 *3.232
43 ADB-1004-Pak (2nd Urban Dev: Project ) 1% 50 half yearly 15-6-2000 *37.950 ADB-1146-Pak (Chashma Right Bank Irr: Project Stage- 44 1% 50 half yearly 15-3-2002 *48.031 III) 45 ADB-1179-Pak (Barani Area Dev. Project) 1% 50 half yearly 15-3-2003 *16.885
46 ADB-1185-Pak (Provincial Highway Project) 1% 50 half yearly 15-3-2003 *7.058
47 ADB-1200-Pak (Health Care Dev. Project) 1% 50 half yearly 15-3-2003 *2.228 ADB-1209-Pak (Flood Damages Restoration Sectors 48 1% 50 half yearly 15-3-2003 *10.976 Project) 49 ADB-1210-Pak (Teacher Training Project) 1% 50 half yearly 15-2-2003 *4.346 50 ADB-1278-Pak (Middle School Project) 1% 50 half yearly 15-01-2004 *11.895 51 ADB-1294-Pak (Pehur High Level Canal Project) 1% 50 half yearly 15-05-2004 *97.295 52 ADB-1301-Pak Social Action Program-I 1% 50 half yearly 15-9-2004 *10.605 53 ADB-1373-Pak (Technical Edu: Project) 1% 50 half yearly 15-11-2005 *3.216 54 ADB-1401-Pak (Rural Access Road Project) 1% 50 half yearly 1-2-2006 *21.236 55 ADB-1403-Pak (Forestry Sector Project) 1% 50 half yearly 15-5-2006 *34.613 56 ADB-1454-Pak (Primary Education Girls Project-II) 1% 50 half yearly 1-1-2007 *3.036 57 ADB-1493-Pak Social Action Program-II 1% 50 half yearly 15-03-2007 *21.009 58 IFAD-18-Pak (4th Agriculture Dev. Project) 1% 80 half yearly 1-9-1989 *0.379 59 IFAD-83-Pak (On-Farm Water Mangt. Project) 1% 80 half yearly 1-6-1992 *0.258 West German No.8267528 (Hospital Equipment in 60 0.75% 80 half yearly 30-6-1994 ***2.768 Khyber Pakhtunkhwa) West German No. 8267585 (Drinking Water Supply in 61 0.75% 80 half yearly 30-6-1994 ***3.948 Refugees Camps in Khyber Pakhtunkhwa).
(Figures in million) Conversion Foreign Name of Currency rate for Pak Currency Currency 2013-14 U.S. Dollar 858.942 1US$=Rs.99 85035.258 Pak-Rupees 5568.385 DM (German Marks) 6.716 1DM=Rs.67.4351 452.894 Total 91056.537 *US Dollar ** Pak-Rupees *** DM (German mark)
112 www.financekpp.gov.pk Annex-IV DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE AS ON 01-07-2013 (Figures in million) Outstanding First Rate of No. of Allocated Balance/ Amount S.No Name of Loans Installments Interest Installments Share disbursed upto due from 30-6-2013 IDA-2245-Pak (On-Farm Water 1 0.75% 50 half yearly 15-9-2001 *4.590 *2.982 Management Project) IDA-2383-Pak (Environmental SDR 2.196 2 Protection and Resource 0.75% 50 half yearly 15-11-2002 *2.175 *3.107 Conservation Project) IDA-2468-Pak (1992 Flood 3 0.75% 50 half yearly 15-3-2003 *2.500 *1.814 Damages Restoration Project) IDA-2687-Pak (Primary Education 4 0.75% 50 half yearly 15-8-2005 *88.890 *71.111 Project) IDA-2829-Pak (NWFP Community *16.662 5 0.75% 50 half yearly 07/01/2006 *13.746 Infrastructure Project) SDR 10.617
IDA 3516-Pak NWFP Emergency 6 0.75% 50 half yearly 15-6-2011 SDR 16.600 *19.509 Rehabilitation Project IDA-3516-1 Pak (Investment 7 1% 50 half yearly 15-12-2015 --- *10.256 Programme-I) ADB – 1534 Pak Secondary SDR 6.175 8 1% 50 half yearly 02/01/2008 *7.070 Education Project *8.197 ADB – 1671 Pak Women Health 9 1.50% 50 half yearly 15-10-2005 *7.117 *5.189 Project ADB-1672 –Pak- Malakand Rural SDR 30.852 10 1% 50 half yearly 1.9.2008 *36.582 Dev:Project *41.808 ADB-1787 –Pak- Barani Area SDR 40.065 11 1.50% 50 half yearly 15-05-2009 *42.250 Development Project Phase-II *52.000 ADB-1854–Pak NWFP Urban Dev. 12 1.50% 50 half yearly 15-10-2008 SDR 3.038 *3.984 Project ADB-1877 –Pak- Agriculture Sector 13 1.50% 32 half yearly 03/01/2010 *9.477 *7.404 Programme(ASPL-II) ADB-1878-Pak Agriculture Sector 14 Libor + 0.60% 48 half yearly 03/01/2005 *15.588 *6.535 Programme ADB-1900 –Pak- Reproductive 15 1.5% 48 half yearly 15-05-2010 SDR 3.812 *0.286 Health Project ADB-2103 –Pak- WFP Road Dev. 16 Libor + 0.60% 40 half yearly 02/01/2010 **17750.229 **8163.825 Project 17 ADB-2104-Pak Road Dev: Sector 1.50% 48 half yearly 02/01/2013 SDR 3.404 *2.267 ADB-2135 –Pak Restructuring 18 and Vocational Training System 1.50% 48 half yearly 15-05-2013 SDR 7.339 *1.898 Project ADP-2286-Pak Renewable Energy 19 Libor + 0.60% 40 half yearly 15-12-2011 **12508.650 **249.465 Development Sector ADP-2287-Pak Renewable Energy 20 1.50% 48 half yearly 15-12-2014 SDR 6.793 *0.409 Development Sector IBRD-3327-Pak (On-Farm Water 21 0.75% 50 half yearly 15-9-2001 *2.300 *1.495 Mangt. Project Phase-III)
(Figures in million) Foreign Conversion rate for Pak Name of Currency Currency 2013-14 Currency U.S. Dollar 236.962 1 US $=Rs. 99 23459.238 Japanese Yen 8413.290 1 ¥ =Rs. 1.1060 9305.099 Total 32764.337 * US Dollar ** Japanese Yen
113 www.financekpp.gov.pk Annex-V GENERAL REVENUE RECEIPTS (Rupees in Million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14 I-PROVINCAL TAX RECEIPTS 13,862.494 8,164.909 10,287.588
GST on Services 9,886.394 4,289.590 6,000.000
Agriculture Income Tax 22.000 22.000 22.000
Urban Immoveable Property Tax (net) 98.100 92.650 107.910
Registration (Transfer of Property) 72.000 76.000 80.000
Land Revenue 920.000 1,060.664 1,111.173
Tax on Professions 150.000 130.000 165.000
Provincial Excise 30.000 15.000 30.000
Stamp Duties 600.000 570.000 600.000
Receipts under Motor Vehicles Acts 957.000 964.000 1,072.000
Cess on Tobacco and Goods KDF 337.000 245.000 337.000
Electricity Duty 550.000 457.005 507.505
Others 25.000 25.000 25.000
Hotel Tax 15.000 18.000 20.000
Urban Capital Value Tax 200.000 200.000 210.000
II- NON-TAX RECEIPTS 6,238.565 6,235.345 6,632.931
Civil Administration Receipts
Income from Property & Enterprise 136.356 136.356 136.356
Interest 116.356 116.356 116.356
Dividends 16.569 16.569 16.569
Return on Assets Transferred to WAPDA 3.431 3.431 3.431 RECEIPTS FROM GENERAL 132.700 133.600 138.150 ADMINISTRATION Fees from Public Service Commission 18.000 18.000 18.500
Receipt in aid of Superannuation 50.000 50.000 50.000
Weights and Measures 16.700 16.600 17.650
Local Fund Audit 48.000 49.000 52.000
114 www.financekpp.gov.pk Annex-V GENERAL REVENUE RECEIPTS (Rupees in Million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14 Receipts from Law and Order 688.762 727.032 771.824
Administration of Justice 101.230 132.000 137.000
Jails and Convict Settlement 7.000 7.000 7.500
Police,Arm Licence and others fees 580.532 588.032 627.324
Receipts from Social Services 255.874 318.057 369.993
Higher Education Archives & Libraries 105.125 86.925 105.150
Elementary & Secondary Education 3.000 55.000 60.000
Technical Education 21.000 22.000 23.000
Health 114.449 151.782 169.203
Manpower Management 0.500 0.550 0.540
Museums and Tourist Deptt. 11.800 1.800 12.100
Receipts from Community Services 630.000 654.000 674.000
Buildings and Communications 400.000 440.000 450.000
Public Health Engineering 230.000 214.000 224.000
Receipts from Economic Services 1,759.307 1,878.582 1,946.580
Agriculture 125.250 108.750 131.300
Fisheries 20.000 20.000 21.000
Wildlife 12.000 12.500 14.000
Animal Husbandry 51.500 62.375 67.000
Forestry 408.000 500.000 510.000
Irrigation 402.677 411.677 417.000
Industries 3.100 5.000 6.000
Stationery and Printing 55.000 66.000 70.000
Industrial Safety Explosives (Min: Dev) 680.280 692.280 710.280
Registration's Renewel Fee of Ptg Presses 1.500 0.000 0.000
115 www.financekpp.gov.pk Annex-V GENERAL REVENUE RECEIPTS (Rupees in Million) Budget Revised Budget Description Estimates Estimates Estimates 2012-13 2012-13 2013-14 Miscellaneous Receipts 233.122 241.172 234.772
Hydel Power Own Generation 2,402.444 2,146.546 2,361.256
Provincial Receipts (I + II) 20,101.059 14,400.254 16,920.519
III-FEDERAL TAX ASSIGNMENT 183,684.937 160,564.157 198,269.368
Taxes on Income 72,914.518 62,075.212 77,375.842
Custom Duties 19,650.517 19,131.447 22,163.477
Sales Tax 82,011.867 70,337.647 85,865.181
Central Excise 9,108.035 9,019.851 12,864.868
IV-Straight Transfers 22,157.543 19,924.970 27,495.741
Royalty on Crude Oil 11,747.050 12,781.675 16,103.850
Royalty on Natural Gas 4,241.290 3,804.174 5,071.637
Gas Dev: Surcharge 3,700.583 1,915.000 5,127.490
Excise Duty on Natural Gas 2,468.620 1,424.121 1,192.764
V-Net Profit from Hydel Power 6,000.000 6,000.000 6,000.000 Generation
VI-Arrears of Net Hydel Profit 25,000.000 25,000.000 25,000.000 VII-1% of Divisible Pool for War on 22,071.058 19,292.930 23,823.481 Terror VIII-Population Welfare Programme 477.403 743.385 477.000
Total Revenue Receipts ( I to VIII) 279,492.000 245,925.696 297,986.109
116 www.financekpp.gov.pk Annex-VI CURRENT REVENUE EXPENDITURE (Rupees in Million) Budget Revised Budget Classification Estimates Estimates Estimates 2012-13 2012-13 2013-14 General Public Service 127,836.146 125,832.153 59,694.034 Executive and Legislative Organs, Financial and 23,048.095 23,161.079 32,092.492 Fiscal Affairs, External Affairs (Voted) (Charged) 10,362.996 10,334.726 12,035.637 Transfers 93,119.490 90,830.751 13,988.534 General Services 1,286.699 1,486.742 1,555.616 General Public Services not elsewhere defined 18.866 18.855 21.755 Civil Defence - - 59.449 Public Order and Safety Affairs 28,783.827 29,856.936 30,028.891 Law Courts (Voted) 2,094.911 2,516.550 2,622.880 (Charged) 661.499 950.285 948.539 Police 23,576.926 23,752.376 24,042.616 Civil Defined Related Services 10.835 10.699 - Prison Administration and Operation 913.010 1,268.515 1,072.223 Administration of Public Order 1,526.646 1,358.511 1,342.633 Economic Affairs 11,376.305 12,450.499 17,524.015 General Economic, Commercial and Labour Affairs 237.728 231.736 308.425 Agriculture, Food, Irrigation, Forestry and Fishing 8,160.972 8,419.463 11,597.061 Fuel and Energy 172.069 768.922 158.965 Mining and Manufacturing 263.657 300.658 386.367 Construction and Transport (Voted) 2,527.630 2,687.657 5,035.964 (Charged) 4.015 31.435 4.015 Other Industries 10.234 10.628 33.218 Environment Protection 22.479 22.455 29.571 Housing and Community Amenities 193.326 190.673 4,293.132 Housing Development 22.294 22.294 26.370 Community Development 4.000 4.000 20.000 Water Supply 167.032 164.379 4,246.762
117 www.financekpp.gov.pk Annex-VI CURRENT REVENUE EXPENDITURE (Rupees in Million) Budget Revised Budget Classification Estimates Estimates Estimates 2012-13 2012-13 2013-14 Health 7,236.251 7,646.447 19,108.777 Medical Product, Appliances & Equipment 4.252 5.445 39.066 Hospital Services 6,671.540 6,773.923 16,157.588 Public Health Services 18.323 20.753 1,043.948 Health Administration 542.136 846.326 1,868.175 Recreation, Culture and Religion 604.753 642.022 737.289 Recreation and Sporting Services 71.212 103.453 133.988 Cultural services 136.725 160.868 165.715 Broad Casting and Publishing 162.829 160.816 164.753 Religious Affairs 218.723 199.212 246.937 Administration of Information, Recreation 15.264 17.673 25.896 and Culture Education Affairs and Services 10,972.648 11,225.143 72,687.935 Pre-primary and Primary Education Affairs 197.160 185.377 27,601.145 and Services Secondary Education Affairs and Services 124.353 123.150 29,595.672 Tertiary Education Affairs and Services 9,668.838 9,278.692 11,199.480 Education Services not definable by level - - 314.419 Subsidiary Services to Education 119.386 129.932 145.152 Administration 862.911 1,507.992 3,832.067 Social Protection 4,574.265 7,133.672 6,836.907 Administration 4,273.132 6,870.488 5,381.673 Other 301.133 263.184 1,455.234 Total Current Revenue Expenditure 191,600.000 195,000.000 211,000.000
118 www.financekpp.gov.pk Annex-VII DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2012-13 & 2013-14 (Rs. in million) 2012-13 Budget Estimates 2013-14 Annual Foreign DEVELOPMENT PROGRAMME Budget Revised Dev: Project Total Estimates Estimates Program Assistance ANNUAL DEVELOPMENT PROGRAMME Agriculture 1470.300 1060.016 1532.204 471.748 2003.952 Building 1036.400 958.693 1215.655 1215.655 Drinking Water & Sanitatioin 4336.642 4960.397 3261.756 289.242 3550.998 Education 22152.889 16356.113 13829.686 15969.286 29798.972 Environment 57.000 55.103 56.999 56.999 Forestry 719.998 472.182 569.459 150.000 719.459 Health 9933.277 5736.113 7998.077 2090.149 10088.226 Industries 2812.038 2023.388 3237.586 1220.769 4458.355 Auqaf, Hajj & Minority Affairs 100.000 78.053 106.000 106.000 Energy and Power 1832.750 1132.984 1417.881 804.720 2222.601 Regional Development 5904.274 5069.066 14759.621 2589.837 17349.458 Research and Development 1608.895 705.481 803.857 844.800 1648.657 Roads 14669.669 16982.862 10258.329 5437.580 15695.909 Social Welfare 642.005 456.611 492.805 113.200 606.005
Sports, Tourism, Archaeology & Youth Affairs 685.000 725.000 871.000 871.000
Urban Development 3406.000 3257.362 4692.092 537.250 5229.342 Water 3045.289 3713.122 3138.293 132.200 3270.493 ST & IT 593.792 416.900 571.150 571.150 Tameer-e-Khyber Pakhtunkhwa Programme 2480.000 2784.245 0.000 Transport 199.750 101.021 166.276 166.276 Housing 1854.000 1421.390 949.001 949.001 Food 437.503 498.921 500.233 500.233 Labour 72.290 1.074 22.500 22.500 Mines and Mineral 517.147 412.247 586.499 586.499 Information 210.578 148.016 210.538 210.538 Home 4765.183 3390.950 3702.967 2981.219 6684.186 Finance 8159.772 8821.380 3886.293 1143.000 5029.293 Law & Justice 684.750 681.075 818.677 225.000 1043.677 Population Welfare 183.000 133.500 224.801 224.801 Relief & Rehabilitation 1215.479 183.913 1447.435 1447.435 Total ADP (I) 95785.670 82737.178 81327.670 35000.000 116327.670 DISTRICT ADP (II) 1672.330 1672.330 1672.330 1672.330 Total (I+II) 97458.000 84409.508 83000.000 35000.000 118000.000
www.financekpp.gov.pk 119 Annex-VII DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2012-13 & 2013-14 (Rs. in million) 2012-13 Budget Estimates 2013-14 Annual Foreign DEVELOPMENT PROGRAMME Budget Revised Dev: Project Total Estimates Estimates Program Assistance SPECIAL PROGRAMME (PSDP)
Prime Minister Directives (PWP-II) 8.685
Access to Justice Programme (AJP) 34.697
Education 259.645
Swat Development Package 30.699
Health 2220.090
Water 958.810
Regional Development 152.708
Population Welfare Programme 55.768
Total PSDP (III) 0.000 3721.102 0.000 0.000 0.000 Total Annual Development Programme 97458.000 88130.610 83000.000 35000.000 118000.000 (I+II+III)
www.financekpp.gov.pk 120 Annex-VII DEVELOPMENT BUDGET (Rs. in million) Budget Revised Budget PARTICULARS Estimates Estimates Estimates 2012-13 2012-13 2013-14 A-EXTERNAL RESOURCES I-FOREIGN LOANS ADB Development of Renewable Energy in Khyber Pakhtunkhwa 695.354 695.345 804.720 Mass Transit facility in Peshawar (Public Private Partnership/Donor) 0.000 0.000 500.000 JAPANESE / JICA Emergency Rural Road Rehabilitation Project 3000.000 1811.475 3000.000 Sub Total (I) Foreign Loans 3695.354 2506.820 4304.720 II-FOREIGN GRANTS UNDP Strengthening of Rule of Law in Malakand 268.000 266.290 362.880 Refugee affected & hosting Area Programme 250.000 750.000 500.000 Strengthening of Poverty Reduction Strategy Monitoring Project 10.000 26.000 0.000 Sustainable Land Management Programmet o combat Desertification 3.000 and Land Degradation in Khyber Pakhtunkhwa Capacitating Economic Governance & Accelerating MDGs 10.000 SDC INRM (Joint Forestry Management) 0.000 0.000 0.000 Livelihood Programme Hundukush 0.000 0.000 190.000 Water for Livelihoods 0.000 0.000 151.000 NAS/INL Kohistan Area Development Project 150.000 90.842 188.687 Kala Dhaka Area Development Project 120.000 87.500 110.150 Construction of three Police Stations & one Police Line in Swat 203.841 203.841 400.000 Upgradation / Rehabilitation of Road from Chakdara to Madian - Kanjo 500.000 382.508 80.000 to Dhamana Village Construction & Remodeling of Southern Bypass detouring Hayatabad. 800.000 800.000 500.000
Construction of Joint Police Training Centre at Nowshera 568.342 120.000 468.339 Directorate of Human Rights and its District based Resources Centre - with integrated facilities for Public Prosceuters, Govt Pleaders, and 150.000 150.000 225.000 Probation Officers, Govt.of Khyber Pakhtunkhwa WFP Promoting Safe Motherhood Project 749.700 0.000 JICA / JAPAN ASSISTED. Gravity Flow Water Supply Scheme, Abbottabad. 1142.159 1250.000 289.242 Development Partners Coordination Cell P&D 0.000 0.000 Establishment of Working Women Hostel at Hayatabad Peshawar 96.200 10.000 60.200 Establishmnt of Model Fish Farm in Private Sector in Peshawar, 17.800 14.894 6.748 Nowshera and Mardan Reconstruction/Rehabilitation of health facilities 70.844 0.000 Project for Strengthening Routine Immuinization in Khyber Pakhtunkhwa 12.000 0.000 10.000 Capicity Building of Technical Teachers and TVC in Malakand 10.000 0.000 205.205 Establishment of Drug Addicts Detoxification & Rehabilitation Centre 50.000 0.000 50.000 Swabi Capicity Building of Government Officers for Social Participation of 3.000 0.000 3.000 Persons NORAD Basic Education Improvement Project Khyber Pakhtunkhwa. 1.000 30.000 395.500 Assistance to Basic Education Improvement Project for Repair/ 250.000 150.522 71.001 Rehabilitation of Flood Affected Schools in Khyber Pakhtunkhwa
121 www.financekpp.gov.pk Annex-VII DEVELOPMENT BUDGET (Rs. in million) Budget Revised Budget PARTICULARS Estimates Estimates Estimates 2012-13 2012-13 2013-14 UK/DFID Peace Building Initiative for Khyber Pakhtunkhwa Project 750.000
Bridge of Malakand Division SH construction of Abutments/approach and Launching of Steel Bridges under Flood Damages Restoration Project in 0.000 0.000 400.000 Swat, Chitral, Dir Lower & Dir Upper
DFID Assisted Steel Bridge in Affected Area of Malakand 500.000 500.000 700.000 Reconstruction/Rehabilitation of building in Govt. Schools 291.082 314.834 160.644 Strenghthening of Planning Cell E&SE Department 36.312 7.000 12.000 Provision of Stipends to Secondary Schools Girls 1000.000 1000.000 1000.000 Support to Khyber Pakhtunkhwa Education Sector (1st Tranche) 1111.973 0.000 1111.973 Support to Khyber Pakhtunkhwa Education Sector (2nd Tranche) 4026.512 0.000 1415.907 Support to Khyber Pakhtunkhwa Education Sector (2nd Tranche) 0.000 0.000 1560.605 Support to Khyber Pakhtunkhwa Education Sector (3rd Tranche) 0.000 0.000 2726.000 Khyber Pakhtunkhwa ESP Str. Curriculum, delivering on the roadmap, capacity building, delivering Education to all and EEF activities (3rd 4089.000 Tranche) Provisioin of new policy initiatives in E&SE (3rd tranche) 500.000 Sub-National Governance Programm in Khyber Pakhtunkhwa 500.000 0.000 435.000 MDTF Southern Area Development Project 180.000 50.000 500.000 Strengthening of Health Services in Khyber Pakhtunkhwa 500.000 30.000 500.000 Economic Revatalization in Khyber Pakhtunkhwa 240.000 250.000 500.000 Governance Support Programme - Establihsment of PCNA Support Unit 156.170 88.000 246.700 in Khyber Pakhtunkhwa Upgradation / Rehabilitation of Road from Chakdara to Madian - Sharif 133.328 332.586 557.580 Abad to Kanjo Swat Competative Industries Project for Khyber Pakhtunkhwa 0.000 0.000 500.000 USAID
Gomal Zam Dam Command Area Development and On-Farm Water 0.000 0.000 465.000 Management for high value and high efficiency Agriculture Project
Establishment of Urban Policy Unit 134.490 80.000 150.000 Municipal Service Delivery Project 500.000 262.210 700.000 Reconstruction/Rehabilitation of 1173 Government Schools 0.010 0.000 0.000 Italian Debt Swap Development of Model Bio-Gas for Domestic Purpose (Peshawar, 46.500 30.936 15.564 Charsadda, Nowshera, Abbottabad and Haripur Reconstruction of Flood Structures along Kiali (Swat)River in Charsadda 96.000 0.000 132.200 Reconstruction of Flood Protection works alongwith Hajizai-River Kabul 91.000 85.403 0.000 in District Charsadda & Peshawar World Bank Integration of Health Services Delivery with special focus on MNCH, 0.100 0.000 450.000 LHW and Nutrition Programme Local Justice Support Programme 69.750 0.000 0.000 UNICEF
Provision for Multiple Indicators Cluster Survey in Khyber Pakhtunkhwa 95.000 0.000 0.100
CIDA Construction of Abutments and Launching of Canadian SteelBridges 0.000 0.000 200.000 provided to Pak Army for Khyber Pakhtunkhwa Feasibility Study for Mass Transit System in Peshawar 0.000 0.000 37.250
122 www.financekpp.gov.pk Annex-VII DEVELOPMENT BUDGET (Rs. in million) Budget Revised Budget PARTICULARS Estimates Estimates Estimates 2012-13 2012-13 2013-14 GTZ Establishment of Blood Transfusion Centers in Khyber Pakhtunkhwa 0.000 0.000 0.100 Regional Fund Malakand 0.000 0.000 250.000 Sustainable Management of Bio-Diversity in Malakand (Swat & Chitral) 150.000 0.000 150.000 KFW Equipment for Basic Health in Khyber Pakhtunkhwa 523.533 105.315 508.886 Establishment of Drugs Addicts Detoxification & Rehabilitation Center at 0.000 Swabi Strengthening of TB Control Programme, Khyber Pakhtunkhwa 280.000 375.159 396.163 Social Health Protection Initiative for Khyber Pakhtunkhwa 222.000 0.000 225.000 EUROPEAN UNION KP District Governance & Community Dev. Program 0.000 0.000 1143.000 Education Sector Reforms(2nd Tranche) Estt. Of 100 Primary Schools on 0.000 0.000 156.478 need basis and contruction of 10 Playgrounds Construction of 400 Additional Classrooms in Existing Government 220.000 121.943 40.178 Schools in Khyber Pakhtunkhwa Education Sector Reforms Programme 516.000 286.907 Education Sector Reforms (3rd tranches) 2520.000 0.000 1430.000 ESR Upgradation of 50 Primary & 50 Middle Schools, Construction of 15 0 0.000 1300.000 Playgrounds and 350 Addl. Class Rooms (4th tranche) Rule of Law Programme in Khyber Pakhtunkhwa 0 0.000 1000.000 Sub-Total (II) Foreign Grants 19562.646 8252.690 30695.280 A-Total External Resources (I + II) 23258.000 10759.510 35000.000 B-Provincial Contribution 74200.000 73649.998 83000.000 C-Public Sector Development Programme(PSDP) 0.000 3721.102 0.000 Total Development Resources(A+B+C) 97458.000 88130.610 118000.000
123 www.financekpp.gov.pk Annex-VIII ANNUAL DEVELOPMENT PROGRAMME SINCE 1971-72 ON WARD (Rs. In Million) Year Size of ADP Revised Size of ADP 1971-72 124.000 87.404 1972-73 212.543 217.887 1973-74 300.000 285.133 1974-75 400.000 500.000 1975-76 576.700 601.366 1976-77 546.800 640.928 1977-78 617.000 687.642 1978-79 669.000 720.581 1979-80 767.000 702.850 1980-81 818.000 838.350 1981-82 980.850 1,002.323 1982-83 1,228.000 1,174.275 1983-84 1,176.500 1,191.500 1984-85 1,244.700 1,245.424 1985-86 1,697.000 1,912.787 1986-87 2,131.250 2,131.250 1987-88 2,472.250 2,471.050 1988-89 2,164.235 2,164.235 1989-90 2,197.625 2,198.649 1990-91 2,506.171 2,851.434 1991-92 4,813.715 4,881.569 1992-93 6,575.385 5,002.873 1993-94 4,959.000 4,764.638 1994-95 6,963.974 7,349.212 1995-96 7,665.634 8,081.917 1996-97 8,711.517 5,659.089 1997-98 4,884.740 5,498.215 1998-99 6,072.386 7,771.653 1999-00 5,745.220 8,057.541 2000-01 9,212.509 7,272.140 2001-02 7,986.220 8,710.147 2002-03 13,673.261 11,289.186 2003-04 14,696.006 12,882.982 2004-05 16,195.025 15,365.249 2005-06 21,000.000 24,397.398 2006-07 26,630.432 26,542.103 2007-08 39,462.372 32,913.949 2008-09 41,544.935 39,000.603 2009-10 51,156.956 46,330.546 2010-11 69,283.682 64,977.526 2011-12 85,141.000 84,473.628 2012-13 97,458.000 *88,130.610 2013-14 118,000.000 (*Includes PSDP of Rs. 3721.102 million)
124 www.financekpp.gov.pk Annex-IX GROWTH IN CURRENT REVENUE BUDGET & REVENUE RECEIPTS SINCE 1974-75 ON WARD (Rupees in million)
Provincial Total Current Non- Receivable as Provincial Total Provincial Net Capital Federal Tax Net Grants from Deficit/Surplus Year Others Provincial Revenue Obligatory per Arbitration Tax Receipts Own Receipts Receipts Assignment Profits Federal Govt. Revenue Account Receipts Receipts Expenditure Grant Award
74-75 B.E 55.0 85.6 140.6 (-) 6.0 194.5 --- 22.0 351.1 432.6 (-) 81.5 --- 81.5 R.E 51.4 102.4 153.8 (-)19.2 211.3 --- 88.8 434.7 551.8 (-) 117.1 96.9 20.2 75-76 B.E 51.6 104.9 156.5 7.1 305.3 --- 110.7 579.6 699.5 (-) 119.9 --- 119.9 R.E 72.2 113.1 185.3 7.9 329.3 --- 151.3 673.8 705.4 (-) 31.6 31.6 --- 76-77 B.E 74.5 120.1 194.6 6.9 367.7 --- 104.8 674.0 862.2 (-) 188.2 138.2 50.0 R.E 83.7 93.1 176.8 2.2 373.6 --- 123.3 675.9 955.9 (-) 280.0 223.6 56.4 77-78 B.E 88.7 127.2 215.9 (-) 6.8 401.1 --- 104.8 715.0 1149.1 (-) 434.1 398.7 35.4 R.E 93.4 119.4 212.8 14.8 426.9 --- 107.6 762.1 1137.0 (-) 374.9 352.6 22.3 78-79 B.E 96.8 135.5 232.3 12.7 461.8 --- 104.8 811.6 1314.3 (-) 502.7 456.8 45.9 R.E 96.6 201.3 297.9 (-)10.8 512.3 --- 108.5 907.9 1391.2 (-) 483.3 468.4 14.9 79-80 B.E 101.3 162.8 264.1 11.2 562.8 --- 104.8 942.9 1557.1 (-) 614.2 566.9 47.3 R.E 123.0 209.9 332.9 14.8 736.9 --- 104.8 1189.4 1674.8 (- ) 485.4 475.0 10.4 80-81 B.E 127.4 250.0 377.4 12.3 881.3 --- 104.8 1375.8 1877.6 (-) 501.8 445.8 56.0 R.E 143.2 260.7 403.9 13.2 1060.4 --- 107.3 1584.8 2031.8 (-) 447.0 447.0 --- 81-82 B.E 154.4 276.6 431.0 12.3 1203.1 --- 104.7 1751.1 2292.9 (-)541.8 531.6 10.2 R.E 174.7 282.6 457.3 37.0 1132.6 --- 106.4 1733.3 2538.9 (-) 805.6 805.6 --- 82-83 B.E 188.7 296.2 484.9 16.6 1223.6 --- 104.8 1829.9 2714.7 (-) 884.8 874.8 10.0 R.E 212.0 308.0 520.0 24.8 1223.6 --- 105.4 1873.8 2989.7 (-) 1115.9 1115.9 --- 83-84 B.E 212.0 340.2 552.2 16.0 1364.3 --- 104.8 2037.3 3454.3 (-) 1417.0 1396.0 21.0 R.E 238.3 374.6 612.9 50.7 1374.6 --- 116.6 2154.8 3705.2 (-) 1550.4 1550.4 --- 84-85 B.E 257.5 375.4 632.9 66.8 1537.4 --- 104.8 2341.9 4334.7 (-)1992.8 1992.8 --- R.E 264.3 395.9 660.2 70.1 1457.0 --- 119.3 2306.6 4512.1 (-) 2205.5 2205.5 --- 85-86 B.E 288.9 412.3 701.2 75.0 1622.0 --- 104.7 2502.9 5201.0 (-) 2698.1 2698.1 --- R.E 284.1 414.1 698.2 51.8 1622.0 --- 130.7 2502.7 5453.7 (-) 2951.0 2951.0 --- 86-87 B.E 307.2 430.2 737.4 52.8 1622.0 --- 104.8 2517.0 6466.3 (-) 3949.3 3949.3 --- R.E 303.6 434.5 738.1 34.6 1615.6 --- 130.3 2518.6 6811.8 (-) 4293.2 4293.2 --- 87-88 B.E 309.3 466.1 775.4 34.6 1831.3 --- 104.7 2746.0 7382.9 (-) 4636.9 4636.9 --- R.E 338.6 619.5 958.1 72.5 1988.6 --- 111.4 3130.6 7997.1 (-) 4866.5 4866.5 --- 88-89 B.E 369.2 531.1 900.3 74.6 2204.5 --- 104.8 3284.2 8685.1 (-) 5400.9 5400.9 --- R.E 374.7 556.3 931.0 174.8 3030.5 --- 136.9 4273.2 8607.4 (-) 4334.2 4022.6 311.6 89-90 B.E 369.3 581.8 951.1 159.6 3330.2 --- 104.8 4545.7 9291.2 (-) 4745.5 3735.8 1009.7 R.E 405.6 714.5 1120.1 197.4 3934.0 --- 134.8 5386.3 9385.6 (-) 3999.3 3574.7 424.6 90-91 B.E 391.6 691.6 1083.2 202.4 4356.0 --- 104.8 5746.4 10558.7 (-) 4812.3 3475.6 1336.7 R.E 430.5 759.8 1190.3 72.8 4301.6 --- 132.0 5696.7 10281.7 (-) 4585.0 4029.7 555.3 91-92 B.E 440.3 799.7 1240.0 25.4 6582.4 5987.5 204.8 14040.1 12732.3 (+) 1307.8 ------R.E 435.7 864.3 1300.0 20.7 6444.1 5999.9 402.5 14154.8 12737.3 (+) 1417.5 --- 926.4 92-93 B.E 527.2 972.8 1500.0 19.6 7304.0 6800.0 204.8 15828.4 14370.8 (+) 1457.6 ------R.E 688.8 958.8 1647.6 19.7 7366.0 5680.0 205.2 16038.5 14579.0 (+) 1459.5 --- 1938.9 93-94 B.E 639.0 1031.0 1670.0 9.3 8277.2 7500.0 204.8 17661.3 16511.3 (+) 1150.0 ------R.E 634.2 1040.8 1675.0 9.3 9392.1 5482.0 209.5 17785.9 16635.9 (+) 1150.0 --- 2898.8
125
www.financekpp.gov.pk Annex-IX
Provincial Total Current Non- Receivable as Provincial Total Provincial Net Capital Federal Tax Net Grants from Deficit/Surplus Year Others Provincial Revenue Obligatory per Arbitration Tax Receipts Own Receipts Receipts Assignment Profits Federal Govt. Revenue Account Receipts Receipts Expenditure Grant Award
94-95 B.E 686.4 1128.0 1814.4 11.7 11139.0 7800.0 4.8 20769.9 19189.9 (+) 1580.0 ------R.E 724.3 1272.7 1997.0 17.6 11454.7 6500.0 10.0 21279.3 19404.5 (+) 1874.8 --- 2718.9 95-96 B.E 875.8 1236.0 2111.8 12.8 13873.1 7970.0 4.7 23972.4 21972.4 (+) 2000.0 ------R.E 810.2 1487.3 2297.5 13.9 14345.1 6000.0 4.8 24631.3 23564.0 (+) 1067.3 --- 4140.8 96-97 B.E 803.3 1596.3 2399.6 15.2 16226.7 8500.0 4.8 27146.3 26862.0 (+) 284.3 ------R.E 1006.7 1754.1 2760.8 629.1 16134.5 6000.0 4.8 28029.1 25800.0 (+) 2229.1 --- 5154.9 97-98 B.E 1407.9 1867.1 3275.0 (-) 775.0 15064.0 9423.0 3310.0 30297.0 30058.5 (+) 238.5 ------R.E 1167.7 1714.1 2881.8 (-)381.8 14086.4 6000.0 3327.6 29337.0 29451.0 (-) 114.0 --- 6270.4 98-99 B.E 1472.8 2124.9 3597.7 (-) 752.3 16018.6 10466.0 3674.0 33004.0 33004.0 ------R.E 1389.3 2262.8 3652.1 (-)646.6 14579.5 6000.0 3675.3 31726.3 32004.0 (-) 277.7 --- 7497.4 99-2000 B.E 1705.4 2336.5 4041.9 (-)830.2 16867.7 11624.0 4078.0 35781.4 35493.0 (+) 288.4 ------R.E 1592.7 2336.0 3928.7 (-)827.9 16613.6 6000.0 4057.3 35395.7 35263.5 (+) 132.2 --- 8847.2 2000-01 B.E 1740.9 2509.1 4250.0 (-) 955.0 21227.5 12899.0 4310.7 41732.2 39132.2 (+) 2600.0 R.E 1381.8 2207.7 3589.5 (-) 648.2 19217.8 6000.0 3827.6 31986.7 33673.3 (-) 1038.4 --- 10331.9 2001-02 B.E 1862.3 2096.1 3958.4 (-) 776.2 21552.2 14328.0 4258.6 44067.3 45040.4 (-) 973.13 398.5 R.E. 2020.1 1943.4 3963.5 (-)953.5 19411.8 6000.0 3898.0 32323.2 34623.0 (-) 559.845 1195.1 2002-03 B.E 1987.9 2089.9 4077.9 (-)1262.9 22728.3 15904.0 3898.0 46767.1 48564.0 (-) 1796.9 159.0 R.E 2140.4 2103.4 4243.8 1047.9 22872.2 6000.0 3898.0 37039.3 36171.6 867.7 221.0 13761.6 2003-04 B.E 2148.5 2009.8 4158.3 1788.5 25750.4 17653.0 3898.0 51459.7 47114.7 4345.1 R.E 2019.1 1999.8 4018.9 3125.2 25660.3 6000.0 3898.0 39577.2 38400.0 1177.2 --- 15737.7 2004-05 B.E 2278.7 2149.4 4428.1 3132.0 29344.1 8000.0 4500.0 46272.2 42650.0 3622.2 --- R.E 2339.8 2210.7 4550.5 --- 30215.0 6000.0 45000.0 45265.5 42650.0 2615.5 17911.5 2005-06 B.E 2528.5 2365.5 4894.0 3132.0 35458.2 8000.0 10000.0 58352.2 51062.0 7290.2 --- R.E 2633.9 2555.2 5189.1 --- 36805.1 6000.0 5000.0 65462.8 60693.0 (-) 8799.6 12473.2 20302.6 2006-07 B.E 3053.6 2741.4 5795.0 --- 44034.5 8000.0 9712.5 67542.0 54500.0 (+) 13042.0 R.E 3049.5 2682.3 5731.8 --- 44645.1 6000.0 9765.3 66142.2 55173.6 (+) 10968.5 22932.9 2007-08 B.E 3809.1 3172.7 6981.8 --- 55690.1 6000.0 11907.8 80579.7 61000.0 (+) 19579.7 R.E 3904.6 3075.2 6979.8 --- 55954.2 6000.0 11349.1 80283.1 61450.0 (+) 18833.1 0.450 25826.2 2008-09 B.E 4737.3 3473.4 8210.7 71445.8 6000.0 14432.2 100088.7 67300.0 (+) 32788.7 --- R.E 3749.2 3425.5 7174.7 69965.7 6000.0 13183.3 96323.7 75600.0 (+) 20723.7 1682.0 29008.8 2009-10 B.E 5991.9 3655.7 9647.6 83218.5 6000.0 14822.5 113688.6 80000.0 (+) 33688.6 --- R.E 3497.0 4711.8 8208.8 93998.7 16000.0 15207.4 133414.9 109000.0 (+) 24414.9 11506.6 32509.0 2010-11 B.E 15559.5 3155.2 19556.7 --- 173033.6 31000.0 198590.3 127958.0 (+) 70632.3 ------R.E 4135.6 5583.2 9718.8 182294.2 155939.5 31000.0 4047.0 200705.3 139500.0 (+) 61205.3 2011-12 B.E 4529.2 6014.4 10543.6 --- 191245.0 31000.0 --- 232788.3 149000.0 (+) 83788.3 ------R.E 12571.5 6345.7 18917.2 --- 189058.4 31000.0 2264.3 241239.9 161000.0 (+) 80239.9 ------2012-13 B.E 13862.5 6238.5 20101.0 --- 228391.0 31000.0 --- 279492.0 191600.0 (+) 87892.0 ------R.E 8164.9 6235.3 14400.2 --- 231525.4 31000.0 245925.6 195000.0 (+) 50925.6 ------2013-14 B.E 10287.6 6632.9 16920.5 --- 281065.6 31000.0 --- 297986.1 211000.0 (+) 86986.1 ------
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GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2013-14
BUDGET REVISED BUDGET ESTIMATES 2013-14 POSTS D.No DEPARTMENTS ESTIMATES ESTIMATES 2013-14 2012-13 2012-13 SALARY NON SALARY TOTAL
1 PROVINCIAL ASSEMBLY 433,255,000 476,562,000 529 327,030,000 190,562,000 517,592,000
2 GENERAL ADMINISTRATION 1,583,507,000 1,929,729,000 2,319 934,995,000 897,133,000 1,832,128,000
FINANCE, TREASURIES AND LOCAL FUND 3 644,533,000 570,425,000 1,204 2,152,869,000 433,464,000 2,586,333,000 AUDIT
PLANNING & DEVELOPMENT AND BUREAU OF 4 212,268,000 179,046,000 323 180,581,000 61,921,000 242,502,000 STATISTICS
5 INFORMATION TECHNOLOGY 49,098,000 45,224,000 96 37,417,000 16,762,000 54,179,000
6 REVENUE & ESTATE 834,229,000 708,412,000 7,579 2,130,162,000 1,372,735,000 3,502,897,000
7 EXCISE & TAXATION 115,769,000 113,865,000 1,143 276,689,000 182,762,000 459,451,000
8 HOME AND CIVIL DEFENCE * 1,407,579,000 1,265,127,000 1,142 436,046,000 696,868,000 1,132,914,000
9 JAILS & CONVICTS SETTLEMENT 913,010,000 1,268,515,000 2,632 706,552,000 365,671,000 1,072,223,000
10 POLICE 23,355,613,000 23,514,912,000 68,284 20,016,828,000 3,764,570,000 23,781,398,000
11 ADMIISTRATION OF JUSTICE 2,941,925,000 3,625,330,000 6,460 3,053,819,000 795,524,000 3,849,343,000
12 HIGHER EDUCATION, ARCHIVES & LIBRARIES 5,390,615,000 5,444,445,000 10,494 5,424,128,000 630,965,000 6,055,093,000
13 HEALTH 10,330,374,000 10,797,888,000 45,948 16,933,682,000 5,873,323,000 22,807,005,000
14 COMMUNICATION & WORKS 436,703,000 436,703,000 8,091 2,061,680,000 199,661,000 2,261,341,000
ROADS HIGHWAYS & BRIDGES (REPAIR) AND 15 2,019,780,000 2,225,018,000 - - 2,668,717,000 2,668,717,000 BUILDINGS & STRUCTURES (REPAIR)
16 PUBLIC HEALTH ENGINEERING 167,032,000 164,379,000 10,053 2,104,140,000 2,142,622,000 4,246,762,000
17 LOCAL GOVERNMENT 58,329,000 76,685,000 2,272 541,737,000 1,059,997,000 1,601,734,000
18 AGRICULTURE 1,238,666,000 1,198,405,000 6,259 2,116,062,000 797,807,000 2,913,869,000
19 ANIMAL HUSBANDRY 438,017,000 436,347,000 3,635 1,097,540,000 368,662,000 1,466,202,000
20 CO-OPERATION 22,808,000 22,808,000 355 122,658,000 17,362,000 140,020,000
21 ENVIRONMENT & FORESTRY 1,117,283,000 1,316,510,000 4,101 1,122,504,000 152,618,000 1,275,122,000
22 FORESTRY (WILDLIFE) 253,455,000 289,773,000 930 226,286,000 63,500,000 289,786,000
23 FISHERIES 65,827,000 62,698,000 495 137,106,000 31,777,000 168,883,000
24 IRRIGATION 2,799,913,000 2,899,100,000 7,204 1,829,261,000 1,292,897,000 3,122,158,000
25 INDUSTRIES 80,748,000 149,160,000 289 111,502,000 72,870,000 184,372,000
MINERAL DEVELOPMENT AND INSPECTORATE 26 336,950,000 301,197,000 565 195,725,000 168,754,000 364,479,000 OF MINES
27 STATIONERY AND PRINTING 78,790,000 78,504,000 186 54,968,000 33,136,000 88,104,000
28 POPULATION WELFARE 207,679,000 148,021,000 3,037 774,516,000 298,404,000 1,072,920,000
29 TECHNICAL EDUCATION AND MANPOWER 1,732,692,000 1,599,033,000 4,621 1,846,266,000 126,175,000 1,972,441,000
30 LABOUR 95,266,000 95,149,000 347 126,773,000 49,050,000 175,823,000
INFORMATION, CULTURE & PUBLIC 31 265,896,000 264,414,000 376 141,575,000 132,590,000 274,165,000 RELATIONS
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GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2013-14
BUDGET REVISED BUDGET ESTIMATES 2013-14 POSTS D.No DEPARTMENTS ESTIMATES ESTIMATES 2013-14 2012-13 2012-13 SALARY NON SALARY TOTAL
SOCIAL WELFARE, SPECIAL EDUCATION & 32 189,469,000 193,544,000 2,080 692,107,000 236,217,000 928,324,000 WOMEN EMPOWERMENT
33 ZAKAT & USHER 116,994,000 124,466,000 297 106,412,000 27,713,000 134,125,000
34 PENSION 21,581,796,000 21,581,796,000 - - 24,000,000,000 24,000,000,000
35 SUBSIDIES 2,500,000,000 2,500,000,000 - - 2,500,000,000 2,500,000,000
GOVERNMENT INVESTMENT & COMMITTED 36 9,000,000,000 9,000,000,000 - - 10,000,000,000 10,000,000,000 CONTRIBUTION
AUQAF, RELIGIOUS, MINORITY & HAJJ 37 101,729,000 74,746,000 44 18,460,000 94,352,000 112,812,000 AFFAIRS
38 SPORTS, TOURISM & MUSEUMS 187,010,000 255,935,000 733 191,446,000 111,778,000 303,224,000
39 DISTRICT NON SALARY 9,164,714,000 10,558,060,000 - - 100,000 100,000
40 GRANT IN LIEU OF OCTROI AND ZILA TAX 3,536,107,000 3,536,107,000 - - 3,740,718,000 3,740,718,000
41 HOUSING DEPARTMENT 22,294,000 22,294,000 39 18,390,000 7,980,000 26,370,000
42 DISTRICT SALARY 71,138,443,000 67,551,744,000 - 100,000 - 100,000
43 INTER PROVINCIAL COORDINATION 23,914,000 23,974,000 56 23,491,000 6,978,000 30,469,000
44 ENERGY AND POWER 72,069,000 702,247,000 95 36,232,000 22,733,000 58,965,000
45 TRANSPORT 75,162,000 57,371,000 258 81,963,000 27,958,000 109,921,000
46 ELEMENTARY & SECONDARY EDUCATION 681,068,000 945,297,000 184,248 56,440,559,000 4,112,378,000 60,552,937,000
RELIEF, REHABILITATION SETTLEMENT & 47 4,018,622,000 6,606,035,000 1,251 407,710,000 4,744,868,000 5,152,578,000 CIVIL DEFENCE
-- DEBT SERVICING ( INTEREST PAYMENT ) 6,263,000,000 6,293,053,000 - - 7,196,057,000 7,196,057,000
DEBT SER. ( APPRO. FOR REDUCTION OR -- 3,300,000,000 3,269,947,000 - - 3,973,344,000 3,973,344,000 AVOIDANCE OF DEBT)
TOTAL (REVENUE BUDGET) 191,600,000,000 195,000,000,000 390,070 125,237,967,000 85,762,033,000 211,000,000,000
C A P I T A L E X P E N D I T U R E
48 LOANS AND ADVANCES 6,003,000,000 6,003,000,000 - - 6,290,000,000 6,290,000,000
DEBT SERVICING (LOAN FROM FEDERAL -- 7,939,000,000 7,939,000,000 - - 8,710,000,000 8,710,000,000 GOVT.DISCHARGED)
TOTAL (Capital Buget) 13,942,000,000 13,942,000,000 - - 15,000,000,000 15,000,000,000
GRAND TOTAL (Revenue + Capital) 205,542,000,000 208,942,000,000 390,070 125,237,967,000 100,762,033,000 226,000,000,000
C A P I T A L E X P E N D I T U R E - FOOD (ACCOUNT-II)
STATE TRADING IN FOOD GRAINS AND 49 78,286,372,000 21,684,966,000 1,112 291,698,000 85,708,302,000 86,000,000,000 SUGAR
-- DEBT SERVICING (FLOATING DEBT ) 9,500,000,000 9,500,000,000 - - 12,000,000,000 12,000,000,000
TOTAL Capital Budget (Account-II) 87,786,372,000 31,184,966,000 1,112 291,698,000 97,708,302,000 98,000,000,000
128 www.financekpp.gov.pk