Punjab Growth Strategy 2023

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Punjab Growth Strategy 2023 REPORT regulations for innovative and high powered equity such as venture capital and crowd funding. The strategy maintains an“”and has identified key sectors of Punjab that are internationally competitive or present areas of future growth. The government will expand its cluster development initia- tives to enhance exports from the province. Finally, the strategy also identifies key sectors for “ ” Development of human capital has the most significant impact on growth and performance of all sectors across the Punjab. The most significant impact is realised in the finance and insurance sector, large-scale manufacturing and construction. The strategy therefore takes a holistic approach to forming strong human capital in the Punjab. The strategy builds on the previous achievements made by the skills sector of training 2 million youth by enhancing this target to and by allocating the resources strategically. The skills training agenda over the next five years will have a balanced focus on skills developed through strongby considering future demand especially in light of CPEC, affirmative action for The human capital formation approach includes a strong focus on improving the education, healthcare, water and sanitation, gender equality and population welfare outcomes. The strategy provides separate treatment to all these key areas of development. Moreover, the strategy has integrated the performance against the key and provides an estimate of progress based on the implementation of the strategy. Public sector investment has a major catalytic impact on growth of the economy. The case of Punjab is not any different, however, unfortunately the historic process of setting ADP priorities have been a result of abstract planning rather based on net growth impact on the economy. The strategy identifies the growth impact of capital investments made by the government in a number of sectors. It also identifies that a single percent increase in ADP results in almost 0.6 percent increase in current expenditures. Using this evidence, the strategy presents ’ The strategy identifies key national policy variables such as, the federal PSDP on water, crop procure- ment and support prices and subsidies on agriculture inputs to have significant growth consequences in the agriculture sector of Punjab. The national export incentives, quantum of electricity generation and distribution, power outages and credit to SMEs all have a high bearing on performance of both large-scale manufacturing and SMEs in Punjab. The level of nominal interest rates has an impact on private investment in agriculture, industry and services and growth of financial and insurance sector. ’ Additionally, the strategy requires a correction of the capital city centric approach and diversification of urbanization by The implementation of the strategy is based on certain conditions and inputs that the government will have to ensure over the period of five years to achieve its strategic targets. Firstly, the PGS requires the provincial government to launch a vigorous fiscal effort to raise its own Chapter 4: Growth Infrastructure: Water Resource Management & Energy Efficiency & Conservation: source revenues. The government will aim in the next five years to increase the provincial revenue to Availability of water is seen as an immediate threat to Punjab’s prosperity and energy sector continues to This will be achieved by further be a key input for growth sectors in the Punjab. This chapter presents the response of Punjab Govern- expansion of the sales tax base and on development of other taxes like the Urban Immoveable Property A large number of villages and citizens have been provided with better drinking water and improved sani- ment to address the key constraints in these sectors. Tax and the Agriculture Income Tax. The government will soon launch its Revenue Mobilization Strategy tation facilities, but there still remain large uncovered areas especially in southern districts. The govern- for the next five years. ment will be focusing on provision of these facilities as per the recently approved policy and action plan. Formation of Human Capital: The strategy realizes that formation of human capital is not linked to education or skills but requires a much broader approach. The human capital domain covers Secondly, the PGS is based on the assumption that Punjab’s share in the NFC Transfers will at least seven specific areas: remain unchanged. The 9th NFC has recently been constituted and the PGS strongly argues that case Irrigation and water are the lifeline of Punjab’s agriculture and industry. The province has targeted to ’This will need a strong increase water availability to at least 71 Million Acre Feet from the existing value of 62 Million Acre Feet. Skilling the Punjab’s Labour Force push from the province’s financial managers and the NFC team. This will require significant investment in improving water course, introducing water conservation and management and building smaller dams to store water. This will involve upgrading agriculture practices Launching Punjab’s Knowledge Economy & Digital Dividends Thirdly, the PGS takes cognisance of the current macroeconomic and fiscal situation and therefore has to move towards more advanced water efficient irrigation technologies. divided the five-year period into two segments; Reforming Education to Harness Punjab’s Human Capital To follow this trajectory, a certain amount of development spending will be required. The PGS requires the The government has developed a comprehensive industrial policy that has shaped up the contours of the Ensuring a Healthy Punjab with lower values in the first two years and then greater jumps from year three onwards. More- strategy. The strategy looks to focus on reducing the cost of doing business, improving environmental over, the strategy also requires stronger planning and governance of the public investment portfolio and compliance, adherence to labour standards and development of stronger clusters. There will be an Focus on Water, Sanitation and Hygiene recommends the as an integrated planning tool for P&D to approve increased focus on SMEs, especially on ensuring adequate and suitable credit and business develop- projects. ment services. Similarly, in agriculture, the focus is going to be on improving productivity and enhancing Women Development-Striving Towards Gender Equality agri-credit and expanding the scope of SMART agriculture. The focus in livestock will be on improving Finally, the PGS requires greater within the province. The strategy makes recom- quality and targeting high value export markets for meat and dairy. Population Welfare mendations to reduce disparities by increasing public investments, taking an targeted approach and establishing stronger public sector administration and implementation units in South Punjab. Urban Development and Housing: This chapter presents the key interventions based on the Punjab Spatial Strategy 2018 that will enable a more organized and diversified urban development in the Punjab. The strategy is presented in nine chapters, the brief details and structure is as follows: Regional Equalization: This chapter provides stark disparities that prevail with the province The PGS has a strong bottom-up approach supported by strong evidence and analysis of the provincial Review of 2018 PGS Targets: This chapter provides a comprehensive review of the perfor- and presents the government’s commitment in addressing these over the next five years. economy. The strategy therefore provides guidance and strategic direction of sectoral priorities that have mance of Punjab against the targets of the previous growth strategy. The chapter uses the evidence been identified by the line departments. This approach ensures better understanding and effective imple- developed under the new growth strategy to trace results achieved. Aligning Priorities with International Committments: This chapter captures the existing efforts mentation of the sectoral plans required under the strategy. The key sectoral priorities are summarised of the Punjab Government to attain compliance with SDGs and to exploit the potential presented by below: The Structure & Performance of the Punjab’s Economy: This chapter provides detailed data and analysis CPEC. It also covers the furture response of the government in making meaningful porgress towards on the structure and performance of the Punjab’s economy, labour force and unemployment dynamics these international committments. and the estimates the district HDI performance of Punjab. The government intends to increase focus on preventive healthcare and attainment of SDGs. The Monitoring & Implementation Framework : This chapter provides the framework for monitor- government plans to expand programmes such as; (i) stunting reduction programme; (ii) prevention and Salient Features of the Punjab Growth Strategy & The Recommended Growth Path: This ing the implementation and the results of the growth strategy along with the responsibility matrix. control of hepatitis; (iii) immunization; (iv) integrated reproductive maternal, new-born and child health; (v) chapter provides the evidence and analysis from the Punjab Growth Model on setting the strategic targets TB control programme; (vi) HIV/AIDs control programme and; (vii) infection control and non-communica- of growth, employment, poverty, SDGs, housing and presents the key growth triggers for the economy ble diseases (NCDs) control programme. In terms of infrastructure, the
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