June 16, 2021
Punjab Proposes High Development Spending To Stimulate Growth
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Punjab Proposes High Development Spending To Stimulate Growth

The Pakistan Tehreek-i-Insaf government in Punjab presented its fourth budget enhancing development allocations by 66 percent to Rs560 billion from last year’s Rs337bn as social sector and infrastructure development claim 63pc of the Annual Development Plan 2021-22.

According to the budget document, the increased development financing is targeted at attaining a 4.8 percent growth rate in the next fiscal year. Economic growth-led investment, inclusive and balanced regional development, agriculture sector transformation, human development through better skills, strengthening compliance with sustainable development goals (SDGs), support for public-private partnerships (PPPs), and improving amenities through district development packages are all outlined as guiding principles for the ADP for the following year.

With a 37 percent allocation, the social sector has taken the lead (Rs205bn). Over Rs98 billion would be spent on health and family planning, Rs54.2 billion on education, Rs26.6 billion on local government, and Rs18.776 billion on water supply and sanitation.

With a 37 percent allocation, the social sector has taken the lead (Rs205bn). Over Rs98 billion would be spent on health and family planning, Rs54.2 billion on education, Rs26.6 billion on local government, and Rs18.776 billion on water supply and sanitation.

 

A substantial sum of Rs91.4 billion has been allocated for special initiatives, the details of which have yet to be revealed in the budget documents. Infrastructure development is the second largest claimant in the ADP, accounting for 26% of the total, or Rs145 billion. This includes Rs58.3 billion for road building and maintenance, Rs30.78 billion for irrigation projects, over Rs30 billion for urban development, and Rs19.27 billion for energy projects.

 

Agriculture received the largest share of the Rs57.9 billion allocated to production sectors. Rs5.0 billion has been reserved for livestock and dairy development, while Rs4.0 billion has been allocated for forestry. Industries and skill development would receive Rs12.2 billion, while tourism and mining & minerals would receive Rs1.25 billion and Rs1.45 billion, respectively.

 

With the support of foreign development partners, the province would also execute projects worth over Rs65.2 billion in health, education, skill development, water & sanitation, agricultural, livestock, irrigation, energy, physical infrastructure, urban development, and government sectors.

 

Punjab Urban Land System Enhancement (PULSE), Rural Sustainable Water & Sanitation, and Support to Naya Pakistan Housing Programme are three World Bank-funded programmes. Agriculture Market Development, Greater Thal Canal, Improving Workforce Readiness, and Sustainable Highway Development will all be supported by the Asian Development Bank.

 

In Lahore, the Asian Infrastructure Investment Bank will support a sewerage system as well as one each of surface water and wastewater treatment plants. The IFAD will aid with rural employment and agriculture development, the AFD with heritage regeneration and tourism, the Danish agency with wastewater treatment in Faisalabad, and the JICA with the rehabilitation of the old Jhal Khanuana.

 

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