Planning Commission Ministry of Planning, Development & Reform Government of Pkaistan DEVELOPMENT INSIGHT MAY/JUNE 2018

2018 2019 Development Budget at Glance Public Sector Development Programme (PSDP) 2018-19 has been approved by National Economic Council (NEC) on 24-04-2018 at Rs. 2,043 billion

AJK 25.5 Billion The caretaker government appoints Dr Shamshad Akhtar as Federal Minister for Infrastructure Planning Development and Reform. GB 17 Billion 300 Billion Development She has also been given portfolio of FATA 24.5 Billion Energy Minister for Finance & Revenue and of Special Economic Affairs, Statistics. In Areas 80 Billion addition, she has got the charges of 77 Billion Ministries of Commerce and textile; and Industries and Production as well. Science & Dr. Akhtar has previously served as Incl. Higher Governor of the Central Bank of Information . In her capacity as Technology Education Governor, Ms. Akhtar was also the 57 Billion Chairperson of the Central Bank 12 Billion Board and its affiliates, as well as a Governor of the IMF. She won two consecutive awards as Asia's Best Public Health Water Central Bank Governor from Emerging Markets and from the 35 Billion 65 Billion Banker’s Trust. In 2008, The WALL STREET JOURNAL ASIA also recognised her as one of Asia’s top ten professional women.

/www.pc.gov.pk /PlanComPakistan www.pc.gov.pk DEVELOPMENT INSIGHT

“Regional Connectivity in Asia Now Lies At The Center of The Chinese Led Belt and Road Initiative (BRI), Which Aims to Connect Asia with Europe and China Pakistan Economic Corridor (CPEC)- A Central Part of This Network-is an All-inclusive Economic Corridor for the Region” Deputy Chairman,

ANNUAL PLAN COORDINATION COMMITTEE (APCC) GROWTH TARGET FOR SETS 6.2% GDP FY 2018-19

The Annual Plan Coordination Committee (APCC) meeting was held at Ministry of Planning, Development and Reform in P-Block Auditorium under the chairmanship of Federal Minister, Prof . The meeting was attended by Ministers for planning from the provinces and special areas like Gilgit Baltistan and Azad Kashmir. The purpose of the meeting was to approve various recommendations to finalize the federal and provincial development Budget 2018-2019. The minister emphasized that it is significant to invest in the field of Science and Technology to see Pakistan as one of the developed countries. Minister Iqbal said that the national development budget for the coming fiscal year will be over Rs. 2000 billion. Under the PSDP, the Minister approved allocation of Rs. 47 billion for the development budget of higher education commission (HEC) under PSDP 2018-19. Minister Ahsan Iqbal directed the HECs authorities to prepare doable projects to ensure more comparative higher education based on modern techniques & technology. 01 MAY/JUNE 2018

Pakistan proposes China for the estabishment of a new Joint Working Group (JWG) on “DIGITAL ECONOMY” Fast completion of Gwadar Projects particulary 5 Million Gallon per day water descilination plant was emphasized.

Minister for Planning, Development & Prof. Ahsan Iqbal met with Mr. Ning Jizhe, Vice Chairman NDRC in Beijing. During the meeting Minister presented greetings on election of President Xi Jinping and new Chinese leadership in 13th National Peoples Congress. Discussing CPEC, he said, that CPEC is the most important pillar of Belt and Road Initiative. Due to commitment and sincerity from both sides, the vision of CPEC was fast translating into reality. He maintained that work on CPEC projects had seen positive progress over the past five years in Pakistan. Pakistan has achieved 5.8% GDP growth rate which is highest in last eleven years Minister Iqbal stated that Pakistan has almost overcome energy crisis which was daunting its economy. The Minister stated that the operationalisation of Energy Projects in Sahiwal and Port Qasim is a testament of the high speed with which CPEC projects have been completed. KKH and Multan-Sukkur highway projects are progressing well and contribute significantly towards upgrading Pakistan’s transportation infrastructure. ML1 railways up-gradation project connecting Peshawar to Karachi formed an important part of CPEC's development portfolio and it would benefit people especially along the route and significantly contribute to economic and social development of Pakistan with improved and high speed railway logistics. Minister Iqbal emphasised fast completion of Gawadar projects particularly 5 million gallon per day water desalination plant & early approval of Khuzdar-Basima and D.I.Khan -Zhob-Quetta highway projects. He proposed that Joint Working Groups of CPEC in energy, infrastructure, planning, and agriculture should meet next month to fast track approval of the projects. He emphasised the importance of cooperation in the field of Digital Economy in wake of the emerging fourth industrial revolution and proposed to establish a new Joint Working Group on Digital Economy. The Chinese side appreciated the idea and agreed in principle. It was decided that cooperation in Agriculture sector would be expanded in light of Long Term Plan to boost agricultural productivity of Pakistan. Minister Iqbal highlighted the need for promoting two way trade and proposed establishment of an experts committee to work for promotion of exports from Pakistan to offset pressures from import of plant and machinery in CPEC projects. 02 DEVELOPMENT INSIGHT

Program Coordinator World Bank Ms. Fei Deng Called on Secretary Planning Commission Mr. Shoaib Ahmed Siddiqui

Secretary Planning Commission Mr. Shoaib Ahmed Siddiqui held a meeting with Program Coordinator World Bank Ms. Fei Deng at the Ministry of Planning, Development and Reform in . The meeting discussed various initiatives under CPEC and the development projects funded by World Bank. Ms. Fei Deng appreciated the efforts and cooperation of Minister for PDR Prof. Ahsan Iqbal and the work being done in the Ministry under the supervision of Secretary Planning Mr. Shoab Ahmed Siddiqi.

National Consultation Workshop on Climate-Resilient Development

Ministry of Planning Development & Reform in collaboration with Ministry of Climate Change and World Bank organized a National Consultation Workshop on climate resilient development. Mr. Sartaj Aziz, Deputy Chairman Planning Commission was the chief guest of the event. While addressging the event, Mr. Sartaj Aziz said that due to sliting of dams in Pakistan, the capacity to store water has decreased whereas the issues of water scarcity have become a big challenge for the country.

The government of Pakistan has for the first time given the framework for National Water Policy. The New National Water Policy emphasizes construction of new water reserviors and also on enhancing water storage capacity. In this relevance, it is pertinent to mention here that Planning Commission has endorsed a budget of Rs815 million for development of the portfolio of Ministry of Climate Change (MoCC) from Public Sector Development Programme (PSDP) fund and also approved the Indicative Budget Ceiling (IBC) by a tentative amount of Rs815 million. 03 MAY/JUNE 2018

Ministry Launches Performance Contracting System for effective Planning & Management

Secreatary Planning Commission Mr. Shoaib Ahmad Saddiqui chaired a meeting of the senior officials of the Ministry of Planning Development & Reform. He said that the Ministry has initiated a new project of “Performance Contracting System” under the vision of Minister Ahsan Iqbal. The project is initiated under the light of modern management of governance systems. All the chiefs of the sections will be preparing a performance contract of their annual activities to be further approved by the secratry Planning Commission. Those preparing the contracts timely will be marked as plus one while failing to do so would be mark negatively for their honorarium incentive. The practice aims to enhance productivity and efficiency of the Ministry’s personnels.

Pakistan & Afghanistan agree to hold meetings of the sub-working groups on regular basis to fast track economic development

A high level delegation led by Dr. Humayun Qayumi, Chief Advisor on Infrastructure and Technology to President of Afganistan called on the Deputy Chairman Planning Commission Mr. Sartaj Aziz. The two sides discussed avenues of economic corporation, trade, energy and connectivity. Extending warm and cordial welcome to the delegation Mr. Aziz said that the people of Afghanistan have suffered from many years and they deserve rapid improvement in economic and social sector. Mr. Aziz further maintained that improved regional connectivity can assist supporting growth and development and that pakistan is ready to gain meaningful role in terms of extended corporation in multi-sector avenues both the sides agreed to hold meetings of the sub-working groups on regular basis to fast track economic development 04 DEVELOPMENT INSIGHT

Launch of “THE CPEC SUMMIT 2018” Minister Prof. Ahsan Iqbal entitled as “Champion of CPEC”

The two days mega Summit and Expo held in Karachi was jointly organized by Ministry of Planning, Development & Reform and Dawn Media Group. Various Pakistani and Chinese companies, officials, experts, academia participated in the event. The event was inaugurated by the Prime Minister of Pakistan Mr. . Minister for Planning, Development and Reform Mr. Ahsan Iqbal gave a detail speech on the significance of CPEC. During this summit the efforts made by Hon Minister for PD&R were acknowledged for achieving a national consensus for the vital national project CPEC by leading the dialogue and consultations in the country. It was stated by the CEO Dawn News that due to his efforts, Pakistan has not only made headway on CPEC by implementing its Energy, Gwadar, Infrastructure and Industrial Cooperation sector but also managed to sign the Long Term Plan of CPEC which provides clear guidelines for future journey till 2030. Minister Prof Ahsan Iqbal had also been entitled as Champion of CPEC for his untiring and matchless effrots for making CPEC a successful project. PM of Pakistan presented him the momento during the inaugural session of CPEC SUMMIT!

rd The 53rd Progress review meeting of CPEC 53 CPEC Review Meeting projects was held at the Ministry of Planning, Development and Reform under the approves water desalination Chairmanship of Minister Prof. Ahsan Iqbal. The meeting reviewed the ongoing projects related plant for GWADAR to BOI, Ministry of Communication, Ministry of Port & Shipping, Aviation division, Ministry of Railways, Ministry of Water & Power, Government of Balochistan & Gwadar Development Authority (GDA). Officials from Chinese Embassy at Islamabad, Chinese companies and officials of Provincial Governments participated in the meeting. CPEC Progress Review, an important forum, has contributed immensely to ensure fast tracking of projects and ensured best monitoring.

05 MAY/JUNE 2018

Minister Ahsan addresses “BOAO FORUM 2018 FOR ASIA ANNUAL CONFERENCE” in Beijing

Addressing BOAO Forum for Asia 2018, Minister Ahsan Iqbal said that Belt & Road initiative is very timely. Today the developing economies are facing crises due to low growth where as CPEC is providing us the platform to grow & develop new markets. Minister Iqbal stated that the basic spirit & philosophy behind Belt & Road Initiative (BRI) is that new markets should be produced to generate new demand, while the new demand would bring growth. CPEC, which is flagship project of BRI, is helping Pakistan to produce new demand and new markets through investment in connectivity and infrastructure. CPEC related energy project have helped Pakistan to produce the base load by using coal and renewable energy, maintained the Minister. Minister Ahsan Iqbal further sated that it is success story of Pakistan that we had 175 Billion Tons of coal reserves in one of the most underdeveloped areas of Pakistan that could not be utilized due to lack of finances. With BRI initiative within few months Pakistan will be able to produce its own local coal base energy.

The 54th CPEC progress review meeting was held in th Islamabad. The meeting was chaired by the Fed. Minister 54 CPEC Review Meeting Ahsan Iqbal while it was attended by the Chienes Ambassador Mr. Yao Jing, Secretary Planning Mr. Shoaib announces 100,000 Acres of A. Siddiqui and by the senior officials of the relevent land for GWADAR Master ministries. Minister Iqbal directed provincial and federal agricultural ministries to prepare a road map within 10 City Industrial Zone days to boost exports of agri products in China. The minister remark that CPEC route would now be alingned in such a manner that the new site for federal SEZ would be connected with the route. The minister advised Ministry of Railways & Govt. of Sindh to resolve their matters at the earliest to expedite the work at KCR. Discussing Gwadar Master Plan, Minister Iqabl said that the city of Gwadar is being planned as a smart and safe city on international lines in which 100,000 acres land would be allocated for industrial zones.

06 DEVELOPMENT INSIGHT

CDWP Approved 24 Projects worth

in the month Rs. 19.6 Billion of May 2018 The Central Development Working Party meeting was held here in the Ministry of Planning Development and Reform under the chairmanship of Deputy Chairman Planning Commission Mr. Sartaj Aziz. The meeting approved 24 projects worth Rs. 19.6 billion while 12 projects worth Rs. 781.39 billion were referred to ECNEC for further proceedings. The meeting was attended by Secretary Planning Commission Mr. Shoaib Ahmed Siddiqui, senior officials of the ministry and by the representatives of federal and provincial governments to present their projects. Projects presented for approval includes energy, health, education, manpower, governance, physical planning & housing, Science & Technology, transport & communications, water resources, Agriculture & food, environment, information technology, governance, nutrition, & mass media.

Transport & Communication Section 2 Projects worth Rs.112 million were approved while 6 were refered to ECNEC Water Resources Sector CDWP 3 projects worth Rs. 1596 million were approved however 2 sent to ECNEC Highlights Physical Planning and Housing Section 4 projects worth Rs. 2087.5 million were approved Science and Technology Section 6 projects worth Rs. 6539 million approved Agriculture & Food Section 2 projects worth Rs.1057million approved Environment Section 2 projects referred to ECNEC, 1 project worth Rs.1848 million was approved. Information Technology Section A project worth Rs. 26998.9 million referred to ECNEC

Balochistan Water Resources Development project worth Rs.15526 million Construction of Peshawar-Torkham Motorway Project worth Rs.41440.50 Million Pakistan Railways existing main line-1 (ML1) worth Rs.381038, Dualization of Mardan Sawabi road worth Rs. 9550 million Major Projects: Establishment of NUST Campus at Quetta worth Rs.2622.866, Construction of Hostel/Sports Facilities at Karakoram International University worth Rs 316.390 Pakistan Space Centre worth Rs. 26998.9 million 07 MAY/JUNE 2018

Ministry of Planning Development & Reform LAUNCHES PRODUCTIVITY, QUALITY & INNOVATION (PQI) Initiative in Islamabad

It is not how much we utilize; it is about how well we utilize our resources to produce better results” Minister Ahsan Iqbal

Ministry of Planning, Development and Reform launched competitiveness in the nation. The event aimed to the productivity, quality and innovation initiative at enhance the five priority sectors i.e. surgical instruments, International Islamic University, Campus, trucking, food processing, gems and jewelry and Islamabad. Minister for Planning Mr. Ahsan Iqbal gave the value-added textiles. key note address while Deputy Chairman, Planning The cross-departmental. Sectoral Teams of PQI Project will commission Mr. Sartaj Aziz gave the closing remarks in the monitor progress of implementation, advice and suggest ceremony. The event was attended by the ambassadors, course corrections, and report to the Project Management chambers of commerce, Pakistan Business council and the Committee on a fortnightly basis. The initiative will engage representatives of academia and Industry. with some of Pakistan’s most productive, quality conscious The launch of PQI initiative will test the ability of a number and innovative companies through a ‘PQI Flagship of government agencies, international donors, consultants Company’ Programme and specialists to work together for improving 08 DEVELOPMENT INSIGHT

Islamabad Metropolitan Corporation To Get 13 Billion Under PSDP Funds! Islamabad Rawal Lake Gets 3 Billion for Water Treatment Plant Federal Miniser Ahsan Iqbal chaired a meeting with the construction of an ideal transport infrastructure for Mayor of Islamabad Metropolitian, Deputy Mayor, and Islamabad capital territory are also included in the current Chairmen Union Councils of Islamabd capital territory in PSDP budget 2018-19. In this relvance, Islamabad Rawal the auditorium of Ministry of Plannign Development and Lake is to get Rs. 3 Billion for the water treatment plants to Reform. The meeting was held to discuss and review preserve the Lake from contaminated water. various development projects of Islamabad Capital The PSDP development budget has also allocated the Territory for which PSDP has reserved Rs. 13 Billion in its amount for the reconstruction of Islamabad , current development budget 2018-19 . Minister Iqbal hoticulture, and for its sports grounds. Minister Ahsan stated that a signifacnt amount has been allocated for Iqbal announced that Rs. 2 Billion have been reserved for road construction, street pavement and water drainage the town hall of Islambad Metropolitian Corporation and system for the villages that comes under Islamabad Capital its office complex making Islamabad Muncipal Corporation territory. He maintained that Water Projects and an ideal institution within Pakistan.

Ministry Organises a Farewell Iftar for the Minister of Planning Development & Reform Prof. Ahsan Iqbal

The Ministry of Planning Deveopment political regime, Minister Iqbal 12 Billion whereas in 2018, when he and Refrom organised a farewell Iftar remained very proactive and devoted. is leaving the government, it is Rs. 47 in the honor of Federal Minister Prof He has also been awared with the title billion which helped in initating Ahsan Iqbal on completing the five of Champion of CPEC for his tireless several education projects specially in years tenure of the government. and dedicated efforts to make the the under developed areas. Minister Deputy Chairman Planning project successful. Addressing the Iqbal maintained that he is conent to Commission Mr. Sartaj Aziz, Secretary farewell Iftar, Minister Iqbal stated say that today Ministry of Planning Planning Commission Mr. Shoaib that Infrastructure development and Development and Reform is an active Ahmed Siddiqui, Chief Economist Dr Energy were the priority of his and important ministry of the country Nadeem Javed and senior officals of government but the education sector that has played a very vital role in the ministry attended the farewell. have also seen a tremendous rise. In fulfilling the development agenda of Throughout the five years of the 2012, the education budget was Rs. the country.

09 MAY/JUNE 2018

Sectoral Glimpses of the Ministry of Planning Development & Reform

EMPLOYMENT & PLAN COORDINATION HEALTH SECTION CENTER FOR RURAL ECONOMY RESEARCH SECTION SECTION

The section arranged a Plan Coordination A conference on "Deworm the A seminar on "Successful Rural lecture by Dr. Ishrat Section has been Pakistan" Initiative was organised Development Model in Pakistan" Hussain on 4th May, entrusted to review the under Chair of Member was organized by Center for Rural 2018 at Planning draft chapters of12 th (SS&D).The Secretary Planning Economy (CRE). The objective of Commission launching Five Years Plan by the Commission Mr. Shoaib Ahmed the seminar was to review and his new book, Deputy Chairman Siddiqui was the Chief guest. The discuss the status of rural “Governing the Planning Commission. participants adopted a resolution development in the country, Ungovernable After consultation from to constitute Multi-Stakeholder identify current successful rural Institutional Reforms for the Provinces, the Committee on Deworm Islamabad development models, investigate Democratic Governance”. document will be placed Initiative to developInstitutional existing constraints and barriers of before the NEC for final and Policy Framework for rural areas and explore possible approval. Deworming Islamabad pilot project. way forward.

SDGs section discusses Recommendations of Atkinson Commission Report to Measure, Monitor & Reduce Global Poverty

SDGs section arranged a meeting for the presentation of Ms. Carolina Sanchez, Senior Director, Poverty and Equity. Deputy Chairman Planning Commission Mr. Sartaj Aziz, Chief Economist Nadeem Javed, Member (Social Sector) Asma Haider and a number of experts on poverty participated in the meeting. The presentation was basically to discuss the recommendations of Atkinson Commission report to improve the methods of measuring and monitoring of Global Poverty to reduce inter and intraregional inequalities with the decline in worldwide poverty. Prof. Atkinson Commission has 21 recommendations, 10 in relation to the objectives of measuring and monitoring extreme poverty, 9 pertaining to the role of complementary indicators and 2 concerned with practical issues of implementation. Most of them were adopted by the Bank. The report also highlights important dimensions of data constraints and suggest to developing countries to go beyond the household level data. In addition to the above, the discussion also included the development on the Bank’s part in three different welfare standards namely Societal Poverty Line, Income Class Poverty Lines and Multidimensional Poverty Measure. At the end of the presentation, participants discussed the importance of recommendations in the context of Pakistan.

10 MAY/JUNE 2018

Pakistan turns from an ailing economy to an Emerging Economy

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7 Growth Trends: Fiscal Year 2012-13 to 2017-18

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2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

GDP Agriculture Manufacturing Services LSM

Highlights of the Pakistan Economic Survey for the Year 2017-18

Economy continued to Commercial launch of The agriculture, benefit from The country’s Gross The broadband industrial & service Growth Oriented Domestic Product 3G & 4G penetration jumped sectors of Pakistan Initiatives, recorded 13-year LTE services opened including higher from 3.7 million grew by highest growth of new opportunities for development spending, to 52 million low inflation, revenue 3.8 percent vigilant monetary policy & 5.8 % generation CPEC related investment

Large Scale Industrial sector Manufacturing Services sector Manufacturing growth improved by grew by witnessed a growth of recorded a growth of 5.80 % 6.24 % 6.43% 6.13 % highest in highest in 11 years in last two years highest in 10 years 10 years 11