Annual Plan

2018-19
 Layout of the Annual Plan 2018-19

Description Page No.

Foreword iii
Review committee v
Executive summary vii
Abbreviations and acronyms xvii
Chapters
1. Macroeconomic framework – Growth, investment and savings 1
2. Public Sector Development Programme 9
Pillar-I Putting people first – Developing human and social capital
3. Population 17
4. Basic and college education 25
5. Health 35
6. Labour and employment 41
7. Skill development 49
8. Poverty alleviation and sustainable development goals 53
9. Social welfare 61
10. Gender and women empowerment 65
11. Youth and sports 69
12. Religious pluralism and interfaith harmony 77
13. Mass media, culture and national heritage 79
Pillar-II Achieving sustained, indigenous and inclusive growth
14. Fiscal, monetary and capital market development 89
15. Trade and commerce – Balance of payments 97
16. Balanced development – Focus on the less developed regions 107
17. Physical planning and housing 113
Pillar-III Governance, institutional reform and modernisation of the public sector
18. Institutional reforms and governance 119
Pillar-IV Energy, water and food security
19. Energy 129
20. Water 141
21. Food security and agricultural development 147
22. Nutrition 159
23. Environment and climate change 163
Pillar-V Private sector and entrepreneurship-led growth
24. Manufacturing, mineral and commerce sectors 169
Pillar-VI Developing a competitive knowledge economy through value-addition
25. Higher education 179
26. Science and technology 187
27. Information and communications technology 193
Pillar-VII Modernising transportation infrastructure and greater regional connectivity
28. Transport and logistics 199
 FOREWORD
Pakistan’s economy has revived and shown positive growth over the past five years. When this
government assumed charge in June 2013, the economy was struggling with stagnant growth,
unsustainable fiscal and external deficits, flagging investment and a crippling energy scenario.
These issues were systematically addressed by the government to create a conducive economic
environment.
The growth rate of 5.8 percent registered in 2017-18 is the highest in past 13 years. The
government raised $1bn through the sukuk and $1.5bn via the euro bond, indicating confidence
of global capital markets in our economy. Stock market is reviving again after the turbulence
observed during past few months. Average growth for the period 2013-14 to 2017-18 is around
4.8 percent compared to 2.8 percent during 2008-2013. Inflation has been contained at around
3.8 percent for July-March 2017-18. Low inflation and improved consumer confidence, according
to Nielsen Global Survey of Consumer Confidence and Spending Intentions of January 2018, have
helped Pakistan to become one of the top growing markets in the Middle East and Africa region.
Growth prospects in agriculture have improved as a result of government’s support policies, CPEC
investments and improved energy supply along with better law & order situation. The
establishment of ‘Special Economic Zones’ also offer prospects for accelerated growth and
investment in the country. CPEC also provides the opportunity to harness the youth bulge.
Pakistan’s demographic profile coupled with immense opportunities under CPEC can take
Pakistan into a bright era of persistent growth and development. The challenge is to sustain
macroeconomic stability and achieve higher GDP growth rate in order to overcome the problems
of unemployment and poverty. Implementation of CPEC carries bright chances of providing
decent jobs in construction, logistics, transport & communication and trade & commerce.
Pakistan’s ranking in terms of Global Competitiveness Index (GCI) has improved. It was at 115 th
position in 2017-18 compared to 122nd position in 2016-17 out of the total 138 countries. Position
on innovation pillar improved by 15 points from 75th to 60th spot, while our economy’s rank in
business sophistication moved up by 14 places from 95th to 81st in 2017. The overall investment
climate in Pakistan is improving. This is testified by the latest Perceptions and Investment Survey
of Overseas Investors’ Chamber of Commerce and Industry (OICCI) which identified cement, non-
metallic, food and the services sectors as promising for lucrative returns in Pakistan.
In this backdrop, economic growth prospects are positive for 2018-19 with the revival of
agriculture sector, strong performance of the industry, pickup in private sector credit,
macroeconomic and political stability coupled with improved security situation and enhanced
energy supplies. The economy has moved forward from a decade old low-growth trap to high
growth trajectory, but there is still a lot more to be achieved to realize the full economic potential
of the country. The macroeconomic and growth targets set in the Annual Plan 2018-19 are, in my
assessment realistic and achievable.
The document is an outcome of concerted efforts of a dedicated team of professionals at the
Planning Commission. I wish to place on record my appreciation for the efforts of the Review
Committee to ensure the quality and consistency of this document.

Sartaj Aziz
Deputy Chairman, Planning Commission
Islamabad, April 20, 2018
 Review Committee

Sr. # Name and designation Status

1. Dr. Muhammad Nadeem Javaid Chairman
Chief Economist

2. Dr. Ali Bat Khan Member

Joint Chief Economist

3. Mr. Rai Nasir Ali Khan Member

Joint Chief Economist

4. Mr. Zafar Ul Hassan Member

Chief

5. Dr. Aamer Irshad Member

Chief

6. Mr. Shahid Naeem Member

Chief

7. Mr. Javed Sikandar Member

Chief

8. Dr. Muhammad Afzal Secretary and Convener

Chief

9. Mr. Abdul Ahad Coordinator

Assistant Chief
EXECUTIVE SUMMARY
 Executive Summary

Macroeconomic Framework

Economic recovery continued its journey towards higher growth trajectory and touched highest
growth of 5.8 percent during the last 13 years. The growth was broad based and evenly
contributed by all sectors i.e. agriculture (3.8 percent), manufacturing (6.2 percent) and services
(6.4 percent). This economic recovery is efficiency driven as investment inched up slightly to
16.4 percent of GDP in 2017-18 against 16.1 percent during previous year while national savings
remained at 12.1 percent of GDP in 2017-18.

GDP is targeted to grow by 6.2 percent during 2018-19 with 3.8 percent contribution from
agriculture, 7.6 percent from industry and 6.5 percent from services. The growth targets are
subject to favourable weather, continuation of prudent economic policies, revived agriculture
sector, persistent growth in industrial sector, pick-up in private sector credit and planned
execution of early harvest projects under CPEC will contribute to achieve the growth targets.

Public Sector Development Programme

Public Sector Development Programme (PSDP) is the driver of economic growth besides
ensuring the equitable socio-economic development. Besides Federal PSDP, provinces, public
sector enterprises and local authorities also invest their resources for development in the
country. For 2017-18, the National Development Outlay was set at Rs2,113 billion, including
Federal PSDP at Rs1,001 billion and Provincial ADPs at Rs1,112 billion.

The overall size of national development outlay for 2018-19 at Rs2,043 billion is with foreign
assistance component Rs339 billion. The size of the federal PSDP is Rs1,030 billion while that of
Provincial ADPs is Rs1,013 billion. Transport and communication sector has been given highest
priority Rs400 billion followed by energy sector Rs237 billion to overcome shortage of power in
the country. Substantial funds Rs135 billion are earmarked for social sectors education/ higher
education Rs57 billion, Prime Minister’s Youth Programme Rs10 billion, Rehabilitation of TDPs
and Security Enhancement Rs90 billion and Gas Infrastructure Development Cess
Rs5 billion have also been budgeted in federal PSDP 2018-19. An allocation of Rs62 billion has
been made for Special Areas including AJ&K Rs22 billion, Gilgit-Baltistan Rs15 billion, and FATA
Rs25 billion to formulate their Annual Development Programmes 2017-18. Rs10 billion has also
been caped for FATA 10 years Plan.

Population

Population growth has emerged as a major challenge. Provisional results of the population
census 2017 show that Pakistan experienced average population growth of 2.4 percent
between 1998 and 2017. Persistent high population growth is diluting the benefits of economic
growth and exerting pressure on existing resource base. To address this problem, Government
is formulating a population policy in consultation with stakeholders. Provincial governments,
international development partners and civil society organizations are expected to align their
programmes to achieve the objectives of national population policy.
x Executive Summary

School and College Education

School and college education is facing multifarious challenges including low enrolment and
completion rate, quality of education, outdated curriculum and examination standards
inconsistent with job market. Government is committed to address these challenges through
teachers’ training, provision of missing facilities in school and colleges, updating curriculum and
improving the system of examinations. Provincial governments need to play their role in
improving the education service delivery and contribute to social and economic wellbeing. The
education processes would be improved by investing more on the capacity building of teachers
and education managers. Monitoring and evaluation system needs to be improved to achieve
the targets of access, equity and quality of education.

Health

Major challenges in health include access to primary and secondary health care with necessary
back up support in rural areas where all health outlets function as a focal point for the control
of communicable / non-communicable diseases and improving family planning services.
Improving governance is necessary to achieve efficiency of the public health spending.
Government has strengthened the Health Information System with a view to have periodic
update of the disease burden and monitor plans to address this issue. Civil Registration and
Vital Statistics (CRVS) as the reporting tool for SDG 3 will also be strengthened.

Key initiatives to broaden health coverage include increase in the number of medical and
paramedical staff, establishment of disease surveillance and response system, indigenous
production of vaccines and enforcement of health regulations. Micro health insurance schemes
would be made part of existing social safety nets to extend health coverage to vulnerable
segments. Awareness campaigns for disease prevention will be launched to control incidence of
preventable diseases, while hepatitis and cancer will be key therapeutic areas for capacity
enhancement.

Labour & Employment

Unemployment has decreased from 6.24 percent in 2012-13 to 5.94 percent as per latest
available LFS conducted in 2014-15. Higher GDP growth during last five years has helped absorb
the unemployed workforce. Moreover, about 3.66 million Pakistani workers went abroad for
jobs. Increased public spending under Federal and provincial development outlay in 2017-18
will lead to further employment generation. The planned initiatives skill development, higher
economic growth and CPEC related investments in energy and infrastructure projects would
help in reducing unemployment further. The Plan focuses on promoting technical and
vocational training through public-private partnership in market led trades.

Skill Development

Skills development is one of the priority areas of the government to sustain growth and fulfil
the vision of becoming a prosperous society. National TVET policy will help improve TVET sector
and promote competency based technical training, efficiency in labour market and quality
training to unemployed educated youth and disadvantaged groups. Prime Minister’s youth
training Programme and Prime Minister’s Youth Skill Development Programme are being
implemented all over the country to improve availability of trained workforce in the country.

Annual Plan 2018-19

Executive Summary xi

Poverty Alleviation and Sustainable Development Goals

Pakistan’s poverty headcount has persistently declined over the last decade. Poverty headcount
based on national poverty line declined from 50.4 percent in 2005-06 to 29.5 percent in 2013-
14. To ensure inclusive and balanced socioeconomic development, Pakistan has started
reporting status of Multidimensional Poverty Index. The incidence of MPI also declined from
55.2 percent in 2004-05 to 38.8 percent in 2014-15. Targeted poverty reduction programmes
like BISP, PM’s Youth Initiatives, relative political stability, recovery of economic growth and
targeted interventions under PPAF and strengthened provincial social protection apparatuses
have been important drivers of decline in poverty. In 2018-19, both the federal and provincial
governments are committed to continue their support for poverty alleviation efforts and
expansion of social safety net programmes as well in the form of flagship programmes like BISP,
Prime Minister’s Programme for Youth, Prime Minister’s Health Insurance Schemes etc.
Social Welfare

The plan focuses on providing enabling environment for sustainable community development,
people participation, entrepreneurship opportunities and provision of need based social
services in remote areas. Voluntary work and mobilizing local resources will be promoted by
providing technical, social and financial assistance. Promotion of inclusive education, protecting
senior citizens rights, day care facilities, human rights protection and promotion of
entrepreneurship opportunities are important intervention area of the plan. The plan focuses
on formulation of unified guidelines and standardized framework for welfare and
empowerment of vulnerable. "Center for Social Entrepreneurship” will have social impact
promoting and encouraging stakeholder’s participation in employment generation and
resolving social problems.

Gender and Women Development

Women’s participation in socio-economic development through gender mainstreaming is

another priority area. Right based approach to develop women’s economic, social and
development rights, entitlements and sensitization on gender issues is being encouraged. The
representation of women in decision making bodies, participation in electoral process,
opportunities for women entrepreneurship are promoted. The plan envisages implementation
of goals and objectives outlined in Vision 2025 and SDGs.

Youth and Sports

Significant majority of Pakistan’s population, around 63 percent, are youth. This energetic
human resource need to be harnessed to achieve the growth targets. Youth would be
productively engaged in sports, health and education, entrepreneurship, vocational training,
culture and media to contribute in the economic and social development. An amount of
Rs3,044.157 million was allocated for sports facilities during 2017-18, which has been enhanced
to Rs2281.891 million in 2018-19.

Religious Pluralism and Interfaith Harmony

The diversity of the society signifies the need to develop a pluralistic society where people with
different beliefs can live in peace and harmony. To promote interfaith harmony an equitable
framework and national guidelines for identical development of all communities is being

Annual Plan 2018-19

xii Executive Summary

developed in consultation with stakeholders. Tolerance among different segments of society

would be enhanced by promoting peace and harmony.

Mass Media Culture and National Heritage

To improve outreach and promote local culture, Rs811.788 were allocated for projects of PTV,
PBC and the cultural institutions at federal level. In addition, funds were also allocated for up-
gradation of studio and transmission of equipment of PTVC, institutional strengthening of
PEMRA and implementation of code of conduct of PEMRA. In 2018-19, thrust has been given to
speedy completion of the projects which are at advanced stage. Funds to the tune of Rs815.00
million have been allocated for the Mass Media and Culture Sector.

Fiscal, Monetary and Capital Market Development

During July-December 2017-18, fiscal deficit stood at 2.3 percent of GDP as compared to 2.5
percent during the corresponding period of last year. During 2018-19, the government will
make efforts to adhere to the policy of fiscal consolidation to maintain fiscal deficit in
manageable limits and within the ceilings of Fiscal Responsibility and Debt Limitation Act, 2005.
The SBP changed its monetary policy stance and raised policy rate by 25bps to 6.0 percent in
January 2018 in order to pre-empt overheating of the economy amid external sector pressures.
Credit to private sector registered an increase of Rs469.2 billion as compared to its last year’s
expansion of Rs438.6 billion. Average CPI registered an increase of 3.8 percent during July-
March 2017-18 compared to 4 percent during the corresponding period of last year. Average
CPI inflation during 2018-19 is projected at around 6 percent. Capital market is expected to
remain vibrant during 2018-19 as a result of the measures to be adopted by the SECP.

Trade and Commerce - Balance of Payments

Current account deficit is estimated to rise by 4.9 percent of GDP by the end of 2017-18.
Exports grew at 13.1 percent while imports grew at 11.5 percent. Remittances registered a
growth of 3.4 percent in 2017-18 while FDI increased by 21.9 percent. In the coming year,
exports are targeted to increase by 12.5 percent while imports are projected to increase by 4.8
percent. Remittances are targeted to reach level of US$ 21.2 billion in 2018-19 while current
account deficit is projected to remain at around 4 percent of GDP during 2018-19.

Balanced Development

An amount of Rs61.5 billion was allocated during 2017-18 to improve the socio-economic
conditions of the people of special areas. Additionally, Rs90 billion were allocated for
rehabilitation of TDPs. For 2018-19, an allocation of Rs64 billion is proposed for special areas
(FATA, AJK & GB), with FATA having a share of 42 percent, whereas AJK and Gilgit Baltistan
would share 34 percent and 23 percent respectively.

Physical Planning & Housing Section

Rapid urbanization has tremendously increased the urban challenges including shelter, access
to improved water & sanitation services, besides, healthcare, education and recreation
facilities. To address the urbanization issues and challenges in line with the Vision 2025, Rs22
billion has been allocated in 2018-19 to various ministries, divisions and departments.
Important programmes include Sustainable Urban & Regional Development Plans and Smart

Annual Plan 2018-19

Executive Summary xiii

Cities, Planned Peri-Urban Development; and Establishment of Bureau of Infrastructure

Development.

Governance and Institutional Reforms

Government has taken number of initiatives for making government open, transparent,
accountable, and responsive to citizens. During the 2017-18 investments were made to
enhance/ improve the capacity and service delivery of public sector especially in justice sector,
revenue collection, and ease of doing business, regulatory framework, financial management,
law and order, data collection, administrative structure and trade management system. These
reforms initiatives will continue to strengthen and enhance the capacity of the institutions.

Energy

The overall energy supply situation has improved. 6,735 MW generation capacity and one
billion cubic feet gas per day through import of LNG is expected to be added in national grid and
Sui system respectively. For evacuation of additional power generation, the NTDC transmission
system has been strengthened by adding 2,700 MVA and 4,340 MVA on 500 kV and 220 kV
network respectively. To overcome the load of oil transportation on roads, Techno-Economic
feasibility of White Oil Pipeline project envisaging 427 Km pipeline from Sheikhupura to
Peshawar has been completed. Work on various blocks at Thar is going on by various
companies.

Water Resources Development

The Annual Plan 2018-19, in line with National Water Policy 2018, Pakistan Vision 2025 and 12 th
Five Year Plan, aims at construction of small/medium and large dams and development of
Irrigation & Drainage infrastructure to improve water use efficiency and modernize conveyance
system. An amount of Rs42.636 billion is stipulated for water sector development projects in
2018-19. A target of 134.50 MAF of water availability at farm gate has been set for the year
2018-19 and Rs1,000 million has been allocated for the implementation of emergent small
flood schemes under “Normal/Emergent Flood Programme”.

Agriculture and Food Security

Agriculture growth gained momentum after fall out in 2015-16. Recovery in agriculture growth
is attributed to support provided by the public sector in the form of farmer’s relief package
and policy backup. Upsurge in international commodity market increased the output prices
in Pakistan to benefit the net incomes of the farmers and enabled them to make more
investment on their crops. A growth of 3.8 percent has been targeted in 2018-19 from the
agriculture sector. Major contributors of agriculture GDP i.e. livestock and crops are expected to
grow by 3.8 percent and 3.6 percent, respectively. Government efforts to reduce the cost of
production, improved regulatory measures and increased commodity prices would be
instrumental to support the targeted growth rate of 3.8 percent.

Nutrition

Good nutrition leads to have healthy and prosperous life. Various nutrition programmes are
being implemented in the provinces. The Federal Ministries are in the process of formulating
nutrition programmes in order to improve the nutrition situation through innovative

Annual Plan 2018-19

xiv Executive Summary

approaches and creating awareness and behaviour change. The NCHN will serve as think tank
for evidence generation and innovative researches, capacity building and awareness hub to
help in setting future planning and decision making for up scaling nutrition.

Climate Change and Environment

Pakistan is developing an investment framework to reduce GHG emission. 100 million new
indigenous plants will be planted under Green Pakistan Programme for revival of forestry with
an estimated cost of Rs3.652 billion. An amount of Rs738.9 million has been allocated for
revival of wildlife. The total allocation for the development of sector stood at 1,423 million.

Manufacturing

Rs554.291 million have been allocated for development projects of GSP in PSDP 2017-18 for
geological mapping of about 12800 sq. km. area in the country. Mineral exploration and
Geological Mapping projects include iron ore, coal, copper, gold in Punjab and Balochistan,
Lead-Zinc-Barite investigations in Balochistan, Khyber Pakhtunkhwa (KPK) and Sindh, limestone,
iron occurrences, salt, phosphate, bio stratigraphic studies in Sindh and copper-gold prospects
in Punjab, Sindh, Balochistan and KP.

Higher Education

The government allocated Rs35.663 billion for development projects for Higher Education
Commission in the PSDP 2017-18. In addition, HEC also got Rs5.287 billion for PM’s Laptop
Scheme and Rs0.6 billion for Afghan Scholarship Scheme. Important initiatives in 2017-18
include access to higher education at district level, developing university infrastructure, relating
academic research to industrial products and improving quality and governance of higher
education institutions. In 2018-19 the focus will remain on continuing efforts for district level
access to higher education by establishing more universities / campuses, providing about 1000
indigenous and foreign PhD scholarships to the fresh graduates’ scholars and faculty members
as well improving visibility of Pakistani universities at global level. An allocation of Rs25.5 billion
has been made in PSDP 2018-19.

Science and Technology

The government allocated Rs2,538.727 million for 33 development projects, of which eight
projects will be completed. Ministry of Science & Technology has an allocation of Rs2,503
million for the year 2018-19 for 44 projects. Important initiatives in 2017-18 related to
infrastructure development, upgradation of R&D labs of organizations under MoST, research in
cutting edge technologies, bridging gap between R&D organizations and industry, capacity
building and incentivizing SMEs for certifications. The focus in coming year will remain on
formulating S&T Policy, research in emerging technologies, developing R&D infrastructure,
undertaking mega initiatives like electrics cars, indigenous satellites, crop varieties and
awareness / framework for productivity, quality and innovation.

Information and Communication Technology

A phenomenal growth has been seen in telecommunication sector in the recent past. Yet there
is still a huge untapped potential for growth to extend the coverage to the remote areas of the
country. IT exports contribute meagre share in the overall exports compared to the potential in

Annual Plan 2018-19

Executive Summary xv

this sector. Initiatives such as Development of Technology Parks, Support Programme for
enhancing IT exports and Innovation Fund Programme to kick-start development of low cost,
high impact applications and systems in the public sector will pave the way for future and for
rapid transformation of ICT sector in the country.

Transport and Logistics

Transport is a key driver of socioeconomic development. Transport adds value to goods brought
to markets, links rural markets to cities and global supply chain and driving economic
development. The Government, cognizant of this fact, has invested large amounts of human
and financial resources into the development of the transport sector. Vision 2025 seeks to
establish an efficient and integrated transportation system to facilitate the development of a
competitive economy. The backbone of the economic corridor is transport infrastructure and
connectivity on the basis of Transport Plan of CPEC (2014-2030). CPEC transport plan aims to
connect Kashgar with Gwadar and Karachi through Kashgar, Gilgit, Islamabad, Lahore, Multan,
Sukkur, Karachi, Peshawar, Quetta, D.I. Khan, Hyderabad, Karachi and Gwadar. The transport
sector projects will facilitate the freight traffic movement from the SEZs in Pakistan & Western
China along the economic corridor. National Transport Policy aims at achieving world class
standards for Pakistan’s transport sector, guide the development in transport sector and sets
priorities for the future long-term development of the sector. The PSDP for 2017-18 provided
an outlay of Rs414.225 billion for the federal programme under Transport &Logistics sector,
while an allocation of Rs303.976 billion has been made for the development programme in
2018-19.

Annual Plan 2018-19

 Acronyms and Abbreviations

ADP Annual Development Programme

AEDB Alternative Energy Development Board
AMCs Asset Management Companies
APCC Annual Plan Coordination Committee
BISP Benazir Income Support Programme
BPD Barrels Per Day
CAMB Centre for Applied Molecular Biology
CCI Council of Common Interests
CDWP Central Development Working Party
CCP Competition Commission of Pakistan
CGT Capital Gains Tax
CSF Coalition Support Fund
CWHR Council for Works and Housing Research
DEMP Directorate of Electronic Media and Publications
ECO Economic Cooperation Organization
ELTR English Language Teaching Reforms
ERRA Earthquake Reconstruction and Rehabilitation Authority
FDI Foreign Direct Investment
FEG Framework for Economic Growth
FRDL Fiscal Responsibility and Debt Limitation
FP&RH Family Planning and Reproductive Health
GAIN Global Alliance for Improved Nutrition
GCI General Cognitive Index
GDP Gross Domestic Product
GNP Gross National Product
GPI Gender Parity Index
GSP Geological Survey of Pakistan
ICT Islamabad Capital Territory
HEC Higher Education Commission
HIES Household Intergraded Household Survey
ICT Information and Communication Technology/Islamabad Capital Territory
IMF International Monetary Fund
MoPD&R Ministry of Planning, Development and Reform
MoIPC Ministry of Inter-Provincial Coordination
MDGs Millennium Development Goals
NAVTTC National Vocational and Technical Training Commission
NAG National Art Gallery
NDA Net Domestic Assets
xviii Acronyms and Abbreviations

NEC National Economic Council

NIE National Institute of Electronics
NHSR&C Ministry of National Health Services, Regulations and Coordination
NEPRA National Electric Power Regulatory Authority
PAEC Pakistan Atomic Energy Commission
PARC Pakistan Agriculture Research Council
PBC Pakistan Bureau of Statistics
PBC Pakistan Broadcasting Corporation
PEMRA Pakistan Electronic Media Regulatory Authority
PCRET Pakistan Council for Renewable Energy Technologies
PCRWR Pakistan Council of Research in Water Resources
PCSIR Pakistan Council for Scientific and Industrial Research
PDHS Pakistan Demographic and Health Survey
PDL Petroleum Development Levy
PMD Pakistan Meteorological Department
PNAC Pakistan National Accreditation Council
PNCA Pakistan National Council of Arts
PNRA Pakistan Nuclear Regulatory Authority
PRI Pakistan Remittance Initiative
PSDP Public Sector Development Programme
PSEs Public Sector Enterprises
PSF Pakistan Science Foundation
PSLM Pakistan Social and Living Standard Measurement Survey
PSQCA Pakistan Standards and Quality Control Authority
PTVC Pakistan Television Corporation
PTA Pakistan Telecommunication Authority
OGRA Oil and Gas Regulatory Authority
SAFTA South Asian Free Trade Agreement
SDGs Sustainable Development Goals
SROs Statutory Regulatory Orders
SSGCL Sui Southern Gas Company Limited
SNGPL Sui Northern Gas Company Limited
SECP Securities and Exchange Commission of Pakistan
SMEs Small and Medium Enterprises
STFP Strategic Trade Policy Framework
SECMC Sindh Engro Coal Mining Company
TDS Tariff Differential Subsidy
TDPs Temporarily Dislocated Persons
WTO World Trade Organisation

Annual Plan 2018-19

CHAPTERS
Chapter 1|ECONOMIC FRAMEWORK–
GROWTH, INVESTMENT AND
SAVINGS

Economy sustained upward growth trajectory during 2017-18 with highest GDP growth in
past 13 years. Macroeconomic indicators remained stable and depicted an optimistic
economic outlook. Real sector showed strong performance on the back of significant growth
in agriculture sector and steady growth in industry. Large Scale Manufacturing (LSM)
accelerated and private sector credit grew steadily which led to spurred private sector
activities. Average inflation was contained at around 3.8 percent and policy rate inched up
slightly to 6 percent after staying at a multi-decade low level for the first half of 2017-18.

Review of Annual Plan 2017-18

The Annual Plan for 2017-18 targeted real GDP growth of 6 percent based upon sector-wise
growth projections for agriculture, industry and services sectors at 3.5 percent, 7.3 percent
and 6.4 percent, respectively.
These growth targets were
envisaged based on better 8.0 GDP Growth (%)
performance in agriculture, large- 5.8
5.5
scale manufacturing as well as 6.0
improved energy supply, steps 4.0 5.6 5.0 3.8 4.1 5.4
4.6
4.1
taken for creating investment
2.6 3.6 3.7
friendly environment and 2.0
implementation of CPEC and 0.0 0.4
related projects. Resultantly, GDP
2016-17
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

grew at 5.8 percent which is the 2017-18

highest growth rate in past 13
years, though; it remained
slightly below the target.

Agriculture

Agriculture sector contributes 19

percent towards GDP growth and Agriculture Growth(%)
employs around 42 percent of the
labour force. There is enormous 10
potential to enhance economic
0
200…
200…
200…
200…
200…
201…
201…
201…
201…
201…
201…
201…
201…

contribution of agriculture sector

through improving productivity and
-10
value addition as Pakistan lags
behind its regional competitors in Agriculture Important Crops
terms of yield in many important
Other crops
crops.

Annual Plan 2018-19

2 Economic Framework – Growth, Investment and Savings

During 2017-18, agriculture sector was targeted to grow by 3.5 percent on the basis of
expected growth of important crops (2 percent), other crops (3.2 percent), cotton ginned
(6.5 percent), livestock (3.8 percent), fishing (1.7 percent) and forestry (10 percent).
Agriculture sector registered growth of 3.8 percent surpassing the target of 3.5 percent, the
highest since 2004-05. Important crops grew by 3.6 percent while other crops registered
growth of 3.3 percent. Livestock, Forestry and Fishing grew by 3.8 percent, 7.2 percent and
1.6 percent, respectively.

Wheat crop production was estimated at 25.5 million metric tons (MMT) for 2017-18. The
wheat crop harvest for 2017-18 dropped by 4.4 percent compared to the last year due to
unfavourable weather conditions - low rains in arid area and reduced area under wheat
cultivation. Similarly, production of maize declined by 7 percent in 2017-18 compared to the
last year.

Production of rice increased from 6.8 MMT in 2016-17 to 7.4 MMT in 2017-18, registering a
growth of 8.7 percent, whereas production of sugarcane grew by 7.8 percent over the last
year’s production.

Cotton production registered a growth of 11.9 percent with 11.9 million bales in 2017-18.
This growth emanated from improved pest control, better off take of fertilizers and
pesticides, and increase in crop area due to lucrative prices. The sporadic pest infestations
stressed crop yield to a limited extent due to vigilant management practices by the farming
community. However, cotton from Punjab decreased as compared to last year. Sindh
province achieved its maximum cotton arrivals during past 9 years at the level of 4.024
million bales with previous maximum arrivals of 3.65 million bales recorded during 2009-10.

Therefore, with strong contribution from its sub-sectors, agriculture sector registered a
growth of 3.8 percent which is the highest in past 13 years. The fertilizer subsidy scheme
reduced input cost for the farmer and had a positive impact on overall yield. The
disbursement of institutional credit for agriculture was also 39.4 percent higher than that in
2016-17.

Industry

Industrial sector plays a significant

role in the economic development
of a country. It contributes 21
7 Industry (Growth %)
percent towards GDP and employs 6
23.4 percent of total employed 5
labour force in Pakistan. The 4
industrial sector registered a growth 3
of 5.8 percent during 2017-18 2
against the target of 7.3 percent.
1
Growth, however, remained a bit
higher than the last year’s growth of 0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
5.4 percent. This is the highest
growth since 2007-08 in industrial LSM Manufactuing Industry
sector. Manufacturing sector was
the major contributor to this growth followed by construction, mining & quarrying and
electricity & gas distribution with their respective shares of 64.8 percent, 13.5 percent, 13.2

Annual Plan 2018-19

Economic Framework – Growth, Investment and Savings 3

percent and 8.5 percent. Improved energy supply for industry, better law & order situation,
availability of cheap finances, lower expenses on fuel consumption, and private sector credit
off-take contributed to the industrial growth.

Manufacturing sector grew by 6.2 percent compared to the target of 6.4 percent set for
2017-18 and growth of 5.8 percent achieved in 2016-17. LSM grew by 6.1 percent and
dominated the overall industrial sector as it accounts for 10.8 percent of GDP and 80
percent of manufacturing. The growth in LSM came from improved energy supplies,
increased domestic demand for consumer durables, private sector credit pickup backed by
expansionary monetary policy and growth in construction activities emanating from CPEC
investments. The subsectors showing considerable growth included electronics (45.3
percent), iron & steel products (34 percent), automobiles (21.2percent), non-metallic
mineral products (12 percent), coke & petroleum products (9.5 percent), paper & board (9
percent), rubber products (6.6 percent) and engineering products (5.6 percent). The growth
in iron & steel products is attributed to increased activity in construction and infrastructure
projects initiated under China-Pakistan Economic Corridor.

The growth in Large Scale Manufacturing was somewhat restricted by the negative growth in
wood products (-3.8 percent), fertilizers (-7.3 percent) and leather products (-5.3 percent).
The growth in textile sector and chemicals sector remained marginal at 0.5 percent and 0.08
percent respectively. Mining and Quarrying sector posted a growth of 3 percent for 2017-18
missing the target of 3.5 percent for the year. Small scale & household manufacturing
achieved the targeted growth of 8.2 percent for 2017-18. Electricity & gas generation and
distribution sector grew by 1.8 percent compared to the targeted growth of 12.5 percent.
Though the production of electricity increased, but due to low tariff and high construction
cost for new projects, the gross value addition was limited for the year. Construction sector
showed growth of 9.1 percent in 2017-18 compared to the growth of 9.8 percent during
2016-17.

Services

Services sector continues to

play a key role in the Growth in Service Sector (%)
economy being the biggest
sector in terms of its share in 12
the GDP (around 60 percent) 10
as well as in total
employment (35 percent). 8

6
During 2017-18, services
remained a leading sector in 4
terms of growth as it met its 2
target of 6.4 percent. Services
sector contributed to GDP 0
growth by 3.85 percentage 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
points compared to the Services W, R & T
contribution of agriculture T, S & C F&I
(0.73 percentage points) and
industry (1.21 percentage points). Services sector growth was achieved due to strong growth
in retail & wholesale trade (7.5 percent), general government services (11.4 percent), and
Annual Plan 2018-19
4 Economic Framework – Growth, Investment and Savings

finance & insurance (6.1 percent). Other private services showed steady growth of 6.1
percent whereas transport, storage & communication grew by 3.6 percent and housing
services maintained the growth of 4 percent.

Investment and Savings

Infrastructure, construction and allied sectors remained vibrant in 2017-18, and encouraged
investment in the country and fostered conducive environment for growth. Total investment
for 2017-18 was recorded at 16.4 percent of GDP compared to 16.1 percent in 2016-17.
Fixed investment to GDP ratio grew from 14.5 percent in 2016-17 to 14.8 percent in 2017-18
on the back of increased public investment. Though private investment registered growth of
9.8 percent in 2017-18, yet it has the potential to grow further due to the improved
investment milieu and ongoing CPEC and related activities. Notwithstanding inflationary
expectations, Government shifted borrowing from scheduled banks to State Bank to create
space for credit to private sector.

National Savings grew at 11.5 percent of GDP compared to 12 percent during 2016-17.
Increased consumption led to subpar growth of savings, given the inverse relationship
between the two. Though commodity producing sectors have shown steady growth over the
past three years, there is room for increased investment in these sectors for sustained
growth. In order for investment to reach a level which accelerates growth beyond 6 percent,
domestic savings need to grow at a faster pace. However, growth in savings lagged behind
the required level. The lack of national savings led to increased reliance on external
resources for investment. This transpired an increase in current account deficit.

Outlook 2018-19
The economy is envisaged to show positive growth in 2018-19 as well. Commodity producing
sectors are expected to continue growing with agriculture maintaining its growth pace while
industrial growth accelerating on the back of LSM. With persistent growth in agriculture and
manufacturing, services sector will continue to provide impetus to overall growth. Inflation,
though showing an upward trend, is expected to average at around 6 percent. Investment
climate is expected to further improve by reducing cost of doing business and enhancing
ease of doing business in Pakistan. Therefore, growth of GDP for 2018-19 is targeted at 6.2
percent with contributions of3.8 percent from agriculture, 7.6 percent from industry and 6.5
percent from services. The growth targets are subject to favourable weather and continuity
of prudent economic policies.

Agriculture

Agriculture sector is targeted to grow by 3.8 percent on the basis of expected contributions
of Important Crops (3 percent), Other Crops (3.5 percent), Cotton Ginned (8.9 percent),
Livestock (3.8 percent), Fishery (1.8 percent) and Forestry (8.5 percent) [Annexure–I]. The
production targets for Important Crops such as wheat and cotton are achievable given that
the quality and quantity of agriculture inputs is ensured and weather conditions remain
favourable. This includes timely availability of water, certified seeds, fertilizers, pesticides
and agriculture credit facilities.

Sharif crops may be affected due to an expected shortage of water by 33 percent at the time
of sowing and 11 percent later in Sharif period. However, cotton crop is expected to improve
Annual Plan 2018-19
Economic Framework – Growth, Investment and Savings 5

further over 2018-19 provided that the water intensive crop of sugarcane is discouraged in
cotton producing areas. The revival in cotton prices in the international market has spurred
prices in the domestic market. Resultantly, area under cotton cultivation is expected to
increase due to the expectations of lucrative profit margins. Wheat is expected to meet its
target in 2018-19, while sugarcane and rice are expected to grow at a slower pace after
registering strong growth during 2017-18. In other crops, pulses have a substantial potential
to grow. The production targets for ‘mooing’ and ‘mash’ are set higher to spur production, in
particular, to substitute imports.

Industry

Industrial sector is targeted to grow by 7.6 percent during 2018-19. Manufacturing sector is
targeted to grow by 7.8 percent with LSM growth rate of 8.1 percent, small scale &
household manufacturing 8.2 percent, construction 10 percent and electricity generation &
distribution and gas distribution by 7.5 percent. Major investments made in energy sector
under CPEC arrangements are expected to result in increased production of electricity
during the 2018-19. Mining and Quarrying sector is projected to grow by 3.6 percent.
Industry is expected to show consistent growth in 2018-19, as its various subsectors showed
encouraging growth in 2017-18.

The Industrial sector is expected to get boost from improved energy supply, public sector
expenditure and the mega-initiatives under CPEC to develop infrastructure, energy
resources, roads, railways and bridges. Credit to private sector expanded by Rs469.2 billion
in July-March 2017-18 as against expansion of Rs438.5 billion in July-March 2016-17 showing
steady credit uptake. Given that the private sector credit uptake gains momentum, the
private sector investment in industrial sector is expected to rise in 2018-19. Similarly,
construction in housing sector and the infrastructure projects, particularly those under CPEC,
are expected to augment production of cement, iron and steel. Overall, it is expected that
improved energy availability, higher public spending particularly on infrastructure projects,
better law & order situation and lower interest rate will contribute towards achieving the
target of industrial sector growth for 2018-19.

Services

Growth prospects for services sector are bright given the momentum it gained during past
three years. Services sector is targeted to grow by 6.5 percent. Retail & wholesale trade, and
transport, storage & communication, having share of 18.3 percent and 13.4 percent in total
GDP, are closely associated with the commodity producing sectors of the economy. Any
uptick in the economic activity of agriculture and manufacturing will translate into increased
growth in wholesale & retail trade, and transport, storage & communication.

In this backdrop, wholesale & retail trade is targeted to grow at 7.8 percent. Rapid pace of
digitization of financial services is expected to substantially increase the number of people
having bank accounts and help document the true potential of economy. Thus finance &
insurance is expected to grow at 7.5 percent. Tourism is another potential area for boosting
growth in service sector. World Travel & Tourism council forecasts that Pakistan has the
potential to earn 3 percent of GDP from tourism. There is potential for increasing the
broadband penetration and cellular density as the Government is keen in technology
upgrade, setting up IT parks and enhancing the capacity of IT & software industry. Thus
transport, storage & communication sector is set to grow at 4.9 percent. General
Annual Plan 2018-19
6 Economic Framework – Growth, Investment and Savings

government services, other private services, and housing services are expected to grow at
7.2 percent, 6.8 percent and 4 percent respectively.

Investment and Savings

Investment target for the year 2018-19 is kept at 17.2 percent of GDP in order to achieve
sustained and inclusive growth. Fixed investment is expected to grow by 15.6 percent of
GDP in 2018-19. National Savings as percentage of GDP are targeted at 13.1 percent (Annex-
II). The investment target is achievable given improvement in ease of doing business,
affordable energy supply, and prospects of higher profits and enhanced capacity utilization
rate. The spill over effect from public investment under CPEC is expected to catalyze private
sector and foster public private partnership. The expected technology and innovation spill
over from interaction of Chinese and Pakistani business will improve production in all
sectors. Further, the lagged impact of current investments, including CPEC investments by
Government, private local and foreign investors coupled with prudent monetary and fiscal
policy is expected to bolster the economy.

Annual Plan 2018-19

Economic Framework – Growth, Investment and Savings 7

Annex-I
Gross Domestic Product
(2005-06 Prices)

percent Change
Items 2016-17 2017-18 2018-19
Revised Target Prov. Target
A) Agriculture 2.0 3.5 3.8 3.8
Important Crops 2.2 2.0 3.6 3.0
Other Crops -2.7 3.3 3.3 3.5
Cotton Ginned 5.6 6.5 8.7 8.9
Livestock 3.0 3.8 3.8 3.8
Forestry -2.4 10.0 7.2 8.5
Fishery 1.2 1.7 1.6 1.8
B) Industry 5.4 7.3 5.8 7.6
Mining & Quarrying -0.4 3.5 3.0 3.6
Manufacturing (I+II+III) 5.8 6.4 6.2 7.8
I) Large-Scale Manufacturing 5.6 6.3 6.1 8.1
II) Small & Household 8.2 8.2 8.2 8.2
III) Slaughtering 3.6 3.7 3.5 3.8
Electricity Generation & Gas Distribution 5.8 12.5 1.8 7.5
Construction 9.8 12.1 9.1 10.0
Commodity Prod. Sector (A+B) 3.8 5.5 4.8 5.8
C) Services 6.5 6.4 6.4 6.5
Wholesale & Retail Trade 7.5 7.2 7.5 7.8
Transport, Storage & Communications 4.4 5.1 3.6 4.9
Finance and Insurance 10.8 9.5 6.1 7.5
Housing Services 4.0 3.9 4.0 4.0
General Government Services 5.9 7.0 11.4 7.2
Other Private Services 8.0 6.7 6.1 6.8
GDP(BP) 5.4 6.0 5.8 6.2
Source: Pakistan Bureau of Statistics; Planning Commission

Annual Plan 2018-19

8 Economic Framework – Growth, Investment and Savings

Annex-II
Macroeconomic Framework
(Current Market Prices)

(Rs billion)
2016-17 2017-18 2018-19 2016-17 2017-18 2018-19
Items Revised Prov. Target 2015-16 2016-17 2017-18
Growth ( percent)
GDP (BP) 30,018 32,407 36,371 10 8 12
Indirect Taxes (Net) 1,945 1,990 2,103 16 2 6
GDP (mp) 31,963 34,396 38,474 10 8 12
Net Factor Income from
1,745 1,817 1,908 -2 4 5
Abroad
GNP (mp) 33,707 36,214 40,382 9 7 12
External Resources Inflow
1,321 1,691 1,556 160 28 -8
(net)
Total Resources/ Uses 35,028 37,905 41,938 12 8 11
Total Consumption 29,884 32,256 35,329
Total Investment 5,144 5,649 6,609
Fixed Investment 4,633 5,099 5,993
Public incl. General Govt. 1,427 1,728 1,850
Private 3,206 3,371 4,143
Changes in Stocks 511 550 616
National Savings 3,823 3,958 5,052
percent of GDP
Total Investment 16.1 16.4 17.2
Fixed Investment 14.5 14.8 15.6
Public incl. General Govt. 4.5 5.0 4.8
Private 10.0 9.8 10.8
National Savings 12.0 11.5 13.1
External Resources Inflow
4.1 4.9 4.0
(net)
Memo Items
Inflation 4.1 4.0 6.0
GNP (mp) Per Capita (Rs) 170,877 180,204 196,234
Source: Pakistan Bureau of Statistics and Planning Commission

Annual Plan 2018-19

Chapter 2|PUBLIC SECTOR DEVELOPMENT
PROGRAMME

The Public Sector Development Programme (PSDP) is an integral part of public investment
which plays a key role in resource utilization through an efficient and effective
implementation of development projects and programmes to achieve targets as envisaged
in Vision 2025. PSDP is formulated through broad consultations and active involvement of
stakeholders with the objective to undertake development projects /programmes ensuring
equal sectoral and regional distribution of resources.

Performance Review 2017-18

The National Economic Council (NEC) approved Public Sector Development Programme
(PSDP) 2017-18 in May 2017 at Rs2,113 billion with federal component of Rs1,001 billion
and provincial programmes (ADPs) at Rs1,112 billion. The PSDP 2017-18 included Rs357
billion of foreign aid (Rs162 billion in Federal PSDP and Rs195 billion in Provincial ADPs).
While formulating PSDP 2017-18, priority was given to ongoing projects, projects financed
with firm foreign aid commitment, CPEC projects, education including higher education,
health and the projects of special areas.

The PSDP 2017-18 was prepared in consultation with all stakeholders while adhering to the
following guidelines:

The PSDP 2017-18 was prepared in consultation with all stakeholders while adhering to the
following guidelines:
 Projects falling under the sectoral priorities and those contributing to achieve goals
set under Vision 2025 and 11th Five Year Plan were given priority.
 Projects having identifiable intended tangible outcome relevant to achieving SDGs
by 2030, to which, Pakistan is a committed signatory were made part of PSDP.
 Full rupee cover was provided to foreign aided projects.
 Appropriate funds were allocated to on-going projects at fairly advanced stage of
completion. The projects initiated under CPEC and projects supporting CPEC were
also allocated required funds to ensure on time completion. Projects awarded on
EPC contract were financed as per requirements of the contract within the available
resources.
 The provisions of 18th Amendment in terms of division of subjects between the
Federal and Provincial governments were also kept in view.
 Efforts were made to allocate atleast 20-25 percent of the total cost of new projects
in the PSDP 2017-18.
Transport & Communications Sector remained government priority with an allocation of
Rs411 billion followed by Energy Sector at Rs403 billion including self- financing by NTDC /
GENCOs etc. of Rs316 billion. Health and Population Sectors were allocated Rs54 billion

Annual Plan 2018-19

10 Public Sector Development Programme

followed by Education Sector (Rs44 billion) including Higher Education, Physical Planning &
Housing (Rs43 billion) and Water Sector (Rs38 billion).

The Ministry of Planning, Development and Reform undertook regular and quarterly review
of PSDP 2017-18 twice. The Ministries/ Divisions were advised to share financial and physical
progress of their ongoing projects and indicate projects likely to be completed by June 30,
2018. In the review meetings, it was emphasized inter-alia that:
 Maximum efforts be made to complete the ongoing projects by the end of FY 2017-
18 so as to ensure that benefits of development reach to the people of Pakistan.
 Re-appropriations of funds be suggested from slow moving to the fast moving
projects to ensure timely completion.
 Ministries / Divisions were requested that PC-Is of budgeted un-approved projects
may be processed for approval for utilization of allocated funds.
It was assured to Ministries/ Divisions that Ministry of Planning, Development and Reform
would support their proposals for adjustments/ re-appropriation within the sector to
facilitate completion of the projects that are at an advance stage of implementation.
Moreover, within the available fiscal space, additional funds were also provided in some
cases to complete fast moving projects.

Accordingly, Ministry of PD&R authorized re-appropriation of Rs10 billion from 65 slow

moving projects to 77 fast track projects through re-appropriations/ adjustments in the
PSDP. Moreover, within the available fiscal space, additional funds were also provided to
complete fast moving projects. As a result, it is expected that 54additional projects would
be completed by June, 2018 having total cost of Rs32 billion.

Under release strategy of the Finance Division, 20 percent allocated funds were released in
each of the first two quarters and 25 percent in the 3rd quarter. The remaining 35 percent
of the allocation is being released in the 4thquarter of the financial year. As part of
transparency, the project-wise rupee released amount is uploaded on weekly basis on the
website of Ministry of Planning, Development and Reform. As of April 19, 2018, total
release of funds stood at Rs623 billion (62 percent of allocation), of which rupee release
has been at Rs483 billion (58 percent of Rupee allocation) compared to the admissible limit
of 65 percent. Non-release of funds to un-approved projects and projects where Ministries
could not complete codal formalities has been an issue. This gap may be filled as there is a
likelihood of over disbursement of foreign aid as 86 percent of budgeted amount of foreign
assistance has actually disbursed upto February, 2018. Total funds released / disbursed are
given below:

Federal PSDP-Allocation and Releases (2017-18)

(Rs billion)
Original Size Releases
Rupee Component 839 #483 percent
58
Foreign Aid 162 *140 86
Total 1,001 623 62
#Upto April 19, 2018 *February 28, 2018

Annual Plan 2018-19

Public Sector Development Programme 11

PSDP 2018-19
PSDP 2018-19 has been formulated in line with overall development agenda of the
government and people friendly policies. The efforts have been made to align PSDP with
development objectives as enunciated in the seven pillars of the Vision 2025 and for
achieving Sustainable Development Goals (SDGs). The plan is people centric and promotes
national integration. It has been formulated by adopting inclusive, consultative and
participatory approach. The PSDP is in accordance with the division of subjects between the
Federal and Provincial Governments in the post 18 th Amendment scenario.

The National Development Outlay 2018-19 has been approved by the National Economic
Council at Rs2,043 billion including block allocation of Rs100 billion for new projects by next
government. The break-up of approved National Development Outlay 2018-19 is in Table
below.

National Development Outlay (2018-19)

(Rs billion)
Rupee F. Aid Total
Federal PSDP 750 180 930
Provincial ADPs 854 159 1,013
Total 1,604 339 1,943
Block allocation for new
100 - 100
projects by next government
Grand Total 1,704 339 2,043

The PSDP size including PPP mode financing has increased from Rs1,001 billion in 2017-18 to
Rs1,030 billion in year 2018-19 which shows an increase of 3 percent. Provincial ADPs would
be Rs1,013 billion. Federal government continues support to the Provinces even after 18 th
amendment in the area of health, education and infrastructure will also boost provincial
growth trajectory.

The Ministry of Planning, Development and Reform after detail discussions in bilateral
meetings distributed the available resources among Ministries / Divisions keeping in view
respective ongoing portfolio and future programmes. Ministries / Divisions were advised to
prepare their development portfolio for 2018-19 in the light of following guidelines:
 Ensure that the projects fall under sectoral priorities and contribute to achieving
high level goals set under Vision 2025 and 11th Five Year Plan.
 Identify projects that may be undertaken on innovative modes of financing (PPP,
community participation, cost sharing by NGOs).
 Include projects having identifiable and tangible outcome for achieving SDGs by
2030.
 Provide full rupee cover to foreign aided projects.
 Allocate appropriate funds to on-going projects which are at a fairly advanced stage
of completion.
 The projects initiated under CPEC and supporting schemes may be allocated
required funds to ensure on time completion. Projects awarded on EPC contract

Annual Plan 2018-19

12 Public Sector Development Programme

should be financed as per requirements of the contract within the indicative ceiling
for 2018-19.
 To follow provisions of 18th Amendment in terms of division of subjects between the
Federal and Provincial governments.
 Allocate at least 20-25 percent of the total cost of new projects in the PSDP 2018-19
for taking a felt start.
 In case of lesser allocation, executing agencies would not start work without prior
approval of the Ministry of Planning, Development and Reform.
A major portion of the Federal PSDP 2018-19 about 63 percent of the size has been
earmarked for on-going projects. The Ministries / Divisions and the Executing Agencies
would be required to process PC-I’s of un-approved projects for approval of the competent
forum by 31st August, 2018 so that allocated funds are utilized. Total number of schemes in
the PSDP 2018-19 is 1235 including 726 ongoing and 509 new schemes.

Sector-wise allocation of the PSDP 2018-19 is as follows:

Sector-wise allocations in the Federal PSDP (2018-19)

PSDP 2018-19 Share

Sector
(Rs billion) (percent)
Infrastructure 575 62
- Power 80 9
Self-Financed (outside budget) 157 17
- Transport and Communications 400 43
- Water 65 7
- Physical Planning and Housing 30 3
Social Sector 135 14
- Education (Incl. Higher Education) 57 6
- Health and Population Welfare 37 4
- Pak. SDGs Community Dev. Prog. 5 1
- Others 36 4
Science and information Technology 12 1
Governance 18 2
Special Areas (AJ&K, GB, FATA) 72 8
Production 5 1
ERRA 8 1
TDPs and security enhancement etc. (managed by
105
Finance Division) 11
Total 930 100
Block allocation for new project by next
100
government
Grand Total 1,030

Ministry-wise details of development schemes included in the PSDP 2018-19 are given in
Annex-I.

Annual Plan 2018-19

Public Sector Development Programme 13

Following are the main features of PSDP 2018-19 with an overall view of development
efforts made by the government since 2013.
 Infrastructure is very important not only to attract foreign investment but also to
reduce the cost of doing business. Accordingly, infrastructure Sector has been
allocated 62 percent of the total development budget. Highest priority has been
accorded to transport and communications sector with an allocation of Rs400
billion. This includes Rs310 billion for national highways, Rs39 billion for Railways
and Rs44 billion for other projects including Aviation schemes like Gwadar
International Airport.
 In the transport sector, projects like Multan – Sukkur and Lahore – Abdul Hakeem
Sections of Lahore – Karachi Motorways are at a fairly advanced stage of
implementation, Thakot – Havelian, Dualization of Yarik – Mughalkot – Zhob Section
of N-50, Jaglot – Skardu Road, Eastbay Expressway Gwadar and Mirpur – Mangla –
Muzaffarabad – Mansehra Road are a few flagship projects initiated by the
Government during its tenure.
 Railway which remained neglected for decades was given boost during the last 4-5
years whereby allocations (2013-2018) has increased from Rs16 billion to Rs43
billion. During 2018-19, government despite fiscal difficulties has financed railway
main line, commonly known as ML-1 with modest allocation. This would not only
modernize railways network but would also give boost to CPEC trade.
 To increase railway capability and modernize its infrastructure, new projects namely
Establishment of Dry port near Havelian (2018-22) (CPEC) (Rs380.8 billion),
Improvement of Infrastructure Maintenance Services (Rs06 billion) and Acquisition
of Land for Gawadar Connectivity (Rs10.7 billion) will be initiated during 2018-19.
 Energy was the hardest hit sector of the economy before 2013. The menace of load
shedding had brought about a collapse of all activities in trade, manufacturing and
social life of the nation. This was really a gigantic challenge for the government in
2013 and subsequent years. During the period 2013-18 an allocation of Rs1.5 trillion
in this sector add up 10,000MW Units electricity to the national grid.
 CPEC offers a ‘game-changer’ opportunity for economic growth and employment for
our people and future generations. It would be a source of regional and national
integration boosting trade opportunities and changing socio-economic fabric of the
country. Special security requirement of CPEC projects are met by providing 1
percent cost of CPEC projects. CPEC related projects would enter into their third
year of implementation during 2018-19. In FY 2018-19 new projects costing Rs835
billion will be added in the CPEC and its supporting projects. Thirty one projects for
development of Gawadar are part of the PSDP 2018-19 with an estimated cost of
Rs137 billion.
 Pakistan is facing acute water scarcity requiring special interventions. To conserve
water and its augmentation during FY 2018-19, water sector allocation has been
enhanced from Rs36 billion in CFY to Rs65 billion during 2018-19. Government has
made special allocation to start construction of Bhasha Dam and Mohmand Dam
(Rs23 billion and Rs2 billion, respectively). Others water sector projects includes 7
new schemes worth of Rs849 billion to be started in FY 2018-19 to conserve and
augment the water resources. These new schemes are National Flood Protection
Plan-IV, Diamer Basha Dam Project (Dam Part), CRBC 1st lift cum Gravity Project D.I.
Annual Plan 2018-19
14 Public Sector Development Programme

Khan, Mohmand Dam Hydropower Project (Dam Part), Lining of K.B Feeder Upper
Canal for Water Supply to Karachi City, Rehabilitation and Modernization of Sukkur
Barrage (90 percent WB, 10 percent federal) and Construction of Feeding Canal to
Manchar Lake to eradicate contamination.
 For fast track development of Special Areas, Rs62 billion (AJK Rs22 billion, GB Rs15
billion and FATA Rs25 billion), have been allocated. Special Areas have been
authorized to ensure that fruit of development reach to the common man.
 Government assigns high priority to human resource development in the country.
An amount of Rs57 billion has been allocated for Education Programmes including
Higher Education. A few initiatives in the Higher Education Sector include Enterprise
Resource Planning System and IT Training for 100,000 Youth, Modernization and up-
gradation of Labs in Engineering Universities, Establishment of Center of Excellence
in Cyber Security, Robotics & Automation and Establishment of Center of
Cooperation of Civilizations.
 Availability of power has encouraged the entrepreneurs to expand production, thus
creating surplus for export. To display export items and attract importers holding
expos is very important. Beside construction of expo centers in Peshawar, Islamabad
and Quetta, expo center of Karachi costing Rs8,000 million is proposed to be
upgraded.
 The health and population subjects are the responsibilities of provincial
governments after 18th amendment. However, in view of its importance, the federal
government continued supplementing the efforts of the Provincial Governments to
improve quality of life is financing major programmes of health and population with
an allocation of Rs37 billion, Expanded Programme of Immunization, Control of
Hepatitis, Malaria and Blindness programmes. Resources have been earmarked to
finance Prime Minister National Health Programme Phase-II, Construction of Federal
Medical College, Islamabad, Establishment of Centre for Neurosciences at PIMS,
Islamabad and Cancer Hospital, Islamabad.
 Capacity issue in civil services needs attention. Therefore, to resolve capacity issues,
a programme costing Rs500 million is being initiated for training of senior and
middle level officers in international institutions of repute.
 To bridge the gap between demand and supply of financial resources, NHA has been
requested to undertake projects of atleast Rs100 billion during 2018-19 on Public
Private Partnership (PPP) mode of financing. To assist the private sector,
government would finance the feasibility studies for which Rs5 billion have been
allocated.
 To bring FATA in the mainstream, ten year FATA development plan with total outlay
of Rs100 billion has been approved by the government. During 2018-19, an hefty
amount of Rs10 billion has been made for implementation of the plan.
 Engaging youth in productive activities is very important to keep them away from
undesirable activities. Programme to build 100 stadiums all over the country costing
Rs2,500 million has been initiated in consultation with Provincial Governments on
50:50 cost sharing basis.

Annual Plan 2018-19

Public Sector Development Programme 15

 Similarly, 400 vocational training institutes on cost sharing basis with the Provincial
Governments are proposed to be set up all over the country. This would bridge the
supply and demand gap of technical manpower required for CPEC projects.
 Development takes root in an environment of peace and security. Special
development programme to enhance security and rehabilitating infrastructure to
ease out resettlement of Temporarily Dislocated Persons (TDPs), initiated during
2015-16 will continue with an allocation of Rs105 billion.
 Funding has been done to support programmes on RBOD I, II and III, 5 Combined
Effluent Treatment Plants in Karachi, K-IV and S-III.

Annual Plan 2018-19

 PILLAR-I
Putting People First – Developing
Human and Social Capital
Chapter 3|POPULATION

Rapid population growth is a major problem that confronts Pakistan as it lies at the
centre of the country’s social, economic and political problems. The recent Population
Census- 2017 has served as an eye – opener for the government and stakeholders to work
on a rigorous population planning and strategy. With a population growth rate of 2.4
percent reported in Census-2017 with a total population of 207.774 million, it is of utmost
importance for Pakistan to ensure resource mobilization in an effective manner to control
the rapid population growth. The government is well aware of the high population growth
rate and working to formulate a comprehensive action plan to deal with the challenging
situation of country. Moreover, due to certain social barriers, it is sometime difficult to
implement an aggressive population control action plan smoothly and effectively. Major
findings of the Population Census-2017 are given in Table No. 1 and Table No -2 as under:

Table-1: Composition of Pakistan’s Population

Population - 2017 1998-
2017
Sex
Administrative House Average
Total Ratio
Units Holds Male Percent Female Percent Transgender annual
Population 2017
Growth
Rate
Pakistan 32,205,111 106,449,322 51.23 101,314,780 48.76 10,418 207,774,520 105.07 2.40
Rural 20,012,797 67,300,171 50.91 64,886,593 49.08 2,767 132,189,531 103.72 2.23
Urban 12,192,314 39,149,151 51.79 35,428,187 46.87 7,651 75,584,989 107.47 2.70
Source: Pakistan Bureau of Statistics

The population growth rates of provinces give a very alarming picture and enforce the need
for some concrete measures to be taken by the Provincial Population Welfare Departments
and Special Areas. Despite the fact that after devolution, Population has been made a
Provincial subject, but the Federal Government has extended every possible support to the
population welfare programmes of the Provinces & Special Areas and allocated funds
through the Public Sector Development Programme (PSDP) to the maximum extent.
Following table provides a picture of provincial population growth rates.

Table-2: Population of Provinces, FATA, ICT and their Population Growth Rates

Provinces Total Population Provincial Growth Rate

Punjab 110,012,442 2.13
Sindh 47,886,051 2.41
Khyber Pakhtoonkhwa 30,523,371 2.89
Baluchistan 12,344,408 3.37
FATA 5,001,676 2.41
Islamabad 2,006,572 4.91
Source: Pakistan Bureau of Statistics

Annual Plan 2018-19

20 Population

Performance Review 2017-18

The regional neighbouring countries of Pakistan have very effectively controlled the
demographic and family planning indicators. Pakistan is confronted with a very high Total
Fertility Rate (TFR) and very low Contraceptive Prevalence Rate (CPR). Pakistan’s Crude Birth
Rate (CBR), Infant Mortality Rate (IMR) and Maternal Mortality Rate (MMR) are also very
high. The demographic indicators of Pakistan are as follows:

Table-3: Demographic Indicators

Indicator 2017
Population Growth Rate (Percent)* 2.40
Total Fertility Rate (TFR)** 3.57
Crude Birth Rate (Per 1000)** 27.3
Crude Death Rate (Per 1000)** 6.9
Contraceptive Prevalence Rate (percent)*** 42.7
Unmet Need of Contraceptives (percent)*** 20
Life Expectancy (Year)** 68.0
- Females 70.1
- Males 66.0
 Median Age 23
 Infant Mortality Rate (per 1,000) 61.4
 Maternal Mortality Rate (per 100,000) 165.6
* Population and Housing Census, 2017
**NIPS: “Updating the Population Projections for Pakistan, Provinces, FATA & ICT (2016)”
***Track20 Project (FP-2020) Office, Islamabad, Pakistan.

Financial Review 2017-18

The Population Welfare Programme (PWP) is being executed by the Population Welfare
Departments of the Provinces and other Federating units through the Federal PSDP. The
Federal Government has supported the Provinces in allocating sufficient funding through the
Federal Public Sector Development Programmes (PSDP). In this regard, an amount of
Rs8,176.064 million was allocated for Provincial Population Welfare Programmes & Special
Areas against which only an amount of Rs31.536 million was released and utilized by FATA,
whereas the allocated funds for Population Welfare Programmes for AJ&K and G.B are yet to
be released and out of allocated amount of Rs7,705.145 million no funds have been released
for the Population Welfare Programmes of Provinces so far during the financial year showing
utilization 0.385 percent of the total allocation of Rs8,176.064 million. Due to non-
submission of PC-Is by all the Provincial governments and Special Areas in time and
ultimately its approval by the competent forum, there exists a gap between the resource
allocation and utilization of funds. Since the salary budget of their employed staff have been
shifted to the current budget, except for FATA, so it is expected that non-salary components
including operational activities may be addressed and tangible accomplishments would likely
to be made by the Provincial governments and Special Areas.

Annual Plan 2018-19

Population 21

Performance Review
Due to the execution of the Provincial Population Welfare Programmes projects at their
level, following tangible accomplishments in the form of Service Delivery Centres have been
made (Table-4).

Table-4: Physical Targets and Performance 2017-18

Service Delivery Outlet Targets 2017-18 Performance 2017-18

Family Welfare Centres (FWC) 3685 3439
Reproductive Health Centre- A 332 261
Mobile Services Units (MSUs) 425 295
Reproductive Health-B Centres 230 209
Source: Respective Population Welfare Departments

The above table shows that the physical targets have not been achieved so far. The major
reason is that outreach and service delivery in rural areas could not be extended. Moreover,
due to major expenditure merely on salary component of employees of Population Welfare
Departments and minimal investment in activities of population planning, the targets could
not be achieved. A significant outcome can be achieved if added focus is made on capacity
building of employees working in the Provincial Population Welfare Departments.

Outlook 2018-19
In order to sensitize policy makers about alarming population growth rate, the government
is planning to formulate Population Commission of Pakistan and Population Task Force. The
task force will work under the proposed Commission. The objectives are to have a
consolidated forum of all stakeholders for devising plan of action according to national
priorities of Pakistan by adhering to religious doctrines; to deliberate on population control
mechanisms by effectively engaging stakeholders; to develop consensus on implementation
of other priority areas of population as mentioned in Vision 2025, 12th Five Year Plan (2018-
23), London Summit on Family Planning 2012 and SDG’s.

The Population Policy has been finalised and is expected to be notified within this year. For
population planning, impact oriented approach has been adopted which would bear
dividend in the long run. The Ministry of Planning, Development and Reform, UNFPA and
UNDP have started joint project to deal effectively the population related SDGs. The
objective of the UNFPA contribution is to mainstream population dynamics across core
national and provincial development plans and strategies as this is consistent with Agenda
2030 and this will improve the general quality of development planning. This project will
cover,
 Support in research and analysis including the impact of population growth and
population dynamics on SDGs achievement in Pakistan.
 Technical support for integrating population priorities into SDGs frameworks, policy
and planning processes and strategy developments across all sectors.
 Strengthening overall data ecosystem for SDGs and population including
coordination, monitoring, reporting, capacity building, online data dissemination

Annual Plan 2018-19

22 Population

and effective use of integrated statistical frameworks for advancing sustainable

development.

Programmes for 2018-19

Financial Plan

Presently Population Sector has been accorded as a high priority sector by the government
in order to control the accelerated population growth rate and to improve the demographic
indicators. The Council of Common Interest (CCI) will decide about the future funding and
amount to be allocated to Population Welfare Programme for 2018-19. The token money of
Rs511 million has been allocated in the PSDP 2018-19 to this Programme.

Physical Targets

Some physical targets for the year 2018-19 for Pakistan are given in the following table.
Some most important activities to be undertaken during the year are also proposed in the
new initiatives.

Table-5: Physical Targets 2018-19

(Cumulative number)

Service Delivery Outlets 2018-19

(Targets)
Family Welfare Centres 3700
Reproductive Health-A Centres 350
Mobile Service Units (MSUs) 550
Reproductive Health-B Centres 260
Source: Population Welfare Departments of provinces and Special Areas.

In order to cope with the challenging Population situation in Pakistan, concerted efforts are
needed on behalf of the Federal as well as Provincial governments. At the Federal level, the
Ministry of National Health Services, Regulations and Coordination (M/o NHSR&C) is taking
measures to ensure implementation of the Family Planning Programme with the support of
all Provinces & Special Areas. Following are the initiatives which provide a glimpse of
Programmes to be taken up during 2018-19.

New Initiatives 2018-19

The government intends to bring reforms in the Population Sector, so that a cross-cutting
strategy is adopted and the Population Sector Organizations are revived for ensuring optimal
efficiency. During the period of this Annual Plan, many historic and most important steps will
be taken to tackle the Population and Family Planning situation in Pakistan. In this regard,
the Provincial and Federating Units’ government will be taken on board to achieve the
desired objectives. These include:

Formation of Population Commission of Pakistan

The formation of Population Commission of Pakistan (PCP) is direly needed and proposed to
be formed. It will have the highest commitments from the Federal and Provincial

Annual Plan 2018-19

Population 23

governments and all other Private Sector Population Stakeholders and Development
Partners in matters related to Population, High Growth Rate and sustainable development.
The lead role for coordinating and overseeing the Population and Family Planning issues will
rest with the domain of the proposed Commission under the chairmanship of the Deputy
Chairman of the Planning Commission and Ministry of Planning, Development and Reform
will have its Secretariat and coordinating role. A comprehensive National Action Plan for
Family Planning and to control the high population growth rate should be the prime task of
the Commission. The role of the Planning Commission will be enhanced in population
related matters as it has the foremost capacity to coordinate with the Provinces and Special
Areas and to put them on the fast track for national priorities, better implementation of the
Population Welfare Programme, for achieving goals of national and international
commitments.

A National Task Force for Population and Family Planning

This Task Force will also be created under this Population Commission to devise Action Plan
and its best implementation, tasks given by the Population Commission, to achieve the
desired objectives and targets of the 12th Five Year Plan and to tackle the other issues from
time to time. This task force will be headed by the Secretary, Ministry of Planning,
Development and Reform.

Functional Integration of Provincial Health and Population Welfare Departments

for Family Planning Services

Population Welfare Departments of the Provinces and Federating Units cannot meet the
mammoth task of controlling the population explosion. So the action of urgent priority
should be the integration and incorporation of Family Planning in Essential Package for
Health Services in Primary Healthcare (EPHS). Availability of trained family planning staff,
free provision of contraceptives and literature containing information about Family Planning
(FP) and Mother and Child Health should be ensured at all Health Service Outlets of not only
of the government but also of the semi-government organisations, corporations and
autonomous bodies.

Revamping of Lady Health Workers Programme

The Lady Health Workers (LHWs) are country’s best work force and LHWs Programme was
initiated to promote and improve the services in Family Planning and Reproductive Health.
But this Programme has lost its major focus and now involves in many activities like different
vaccination programmes and dengue eradication etc and less importance is given to Family
Planning and Reproductive Health (FP & RH). This Programme must be revitalised urgently
and assign top priority to its original function to provide Family Planning (FP) & Reproductive
Health Services. Through this Programme we can provide the services at the doorstep of
masses as this was done in Bangladesh.

Advocacy and Awareness Campaign

A very strong and effective Advocacy and Awareness campaign at National level through
print and electronic media for promoting Family Planning must be launched immediately in
the same manner as previously was done for polio, dengue and measles.

Annual Plan 2018-19

24 Population

Family Planning Education

Family Planning education in colleges and universities must be introduced particularly for
the girls.

National Consensus Building for Population and Family Planning (FP)

Debate in the Parliament and other forums may be initiated for consensus developing
mechanism or modalities and legislation for Family Planning. Parliamentarians can play very
important role in social mobilization, which needs to be convinced of the importance of
focusing on population issues and abnormally high population growth rate.

Ensure Funding for Population and Family Planning

Establishment of a National Fund on Family Planning (as committed by Minister of Finance

statement at London FP-2020 Summit- 2012), which could be performance-based incentive
allocations for best practices and better results.

Involvement of Religious Scholars

The religious Scholars can carry the message to the Union Council level, especially in rural
areas. So we must encourage Family Planning from our mosques and ‘madrasas’. Financial
incentives may also be given to them.

Formation of Population and Family Planning Committees

Population and Family Planning Committees must be formed in every Union Council of the
country to propagate and improve Service Delivery network of Family Planning. The district
governments must be utilised and empowered in this regard.

Free Provision of Contraceptives and Family Planning (FP) Services

Provision of free good quality and wider range of Contraceptives and Family Planning
Services at maximum, if not all, Health and Population Outlets for all eligible married couples
in the country will be ensured. Otherwise government will provide subsidy on the purchase
of long duration and standard contraceptives to the Private Sector, Social Marketing
Organisations and NGOs.

Annual Plan 2018-19

Chapter 4|SCHOOL AND COLLEGE
EDUCATION

Education plays pivotal role in the development and progress of the society. The nations that
prioritize education can produce such a productive human resource which can be a great
cause of development, prosperity and real change in the society. The value system,
knowledge, traditions can be transformed from one generation to another generation
through education. Education can have great impact on political, social and economic
dynamics of a country. It can severely affect on the class system already prevailing in the
country. The input of all kinds can be properly processed through the initiatives of
education. The allocation of more development budget in education sector can minimize the
gap of access, equity and quality.

Out of School Children (OOSC)

It is the major challenge for education system prevailing in the country. Following table
depicts the picture of OOSC at national level:

S. # Level of education Male Female Total

1. Primary (Age 5-9+) 1,979,595 3,046,373 5,025,968
2. Middle (Age 10-12+) 3,063,770 3,337,074 6,400,844
3. High (Age 13-14+) 2,373,914 2,505,819 4,879,733
4. Higher Secondary (Age 15-16+) 3,111,976 3,219,421 6,331,397
Total 10529255 12108687 22637942
(22.64 million approx.)
Source: Pakistan Education Statistics 2015-16, (Academy of Educational Planning & Management, Islamabad)

Reasons for out of School Children

Some major reasons include gender disparity, rural-urban gap, poverty, child labour in
primary school age group more than their nonworking group children, vulnerability of girls
to early marriage and sexual harassment, lack of awareness of the importance of starting
and continuing education, poor health, girls are required to help in the domestic work,
shortage of schools particularly at pre-primary and lower secondary levels, insufficient
school infrastructure and facilities like buildings, water supply, toilets for boys and girls,
boundary walls and electricity, shortage of teachers, teachers training, textbooks,
deficiencies in the teaching–learning process, corporal punishment. All these issues result as
low quality of education as well. Low job opportunities after completion of education at
certain level also make a mind of parents not to send their children to school.

Annual Plan 2018-19

26 School and College Education

Following tables reflect the picture of education in short:

Survival Rate (SR) to Grade-V

(percent)
S. # Province/Area Total Male Female
1. Pakistan 66 67 65
2. Punjab 70 69 71
3. Sindh 62 62 62
4. Khyber Pakhtunkhwa 64 71 56
5. Balochistan 38 52 23
6. AJ&K 81 80 82
7. FATA 47 55 34
8. Gilgit-Baltistan 77 78 76
9. Islamabad Capital Territory (ICT) 100 100 100
Source: Pakistan Education Statistics 2015-16, Academy of Educational Planning & Management, Islamabad

Population that has ever attended school

Urban Rural Total

Male Female Total Male Female Total Male Female Total
Pakistan 83 71 77 66 40 53 72 51 62
Punjab 84 74 79 69 47 58 74 56 65
Sindh 83 71 77 57 25 42 71 50 61
Khyber Pakhtunkhwa 82 53 68 72 33 52 74 36 55
Balochistan 74 43 59 55 17 38 60 25 44
Source: Pakistan Social and Living Standards Measurement (PSLM) Survey 2014-15

Missing Physical Facility

(percent)
Type of missing
Provinces Not-Available
physical facility
Male Female
Pakistan 46.38 28.49
Electricity Punjab 9.12 4.81
Sindh 64.17 58.32
Khyber Pakhtunkhwa 41.69 31.74
Balochistan 80.01 69.32
ICT, Islamabad 1.50 Nil
Pakistan 33.31 20.22
Punjab 0.34 0.32
Drinking Water Sindh 48.06 49.31
Khyber Pakhtunkhwa 30.82 18.52
Balochistan 44.39 39.84
ICT, Islamabad 1.00 12.04
Pakistan 33.52 16.80
Punjab 0.98 0.35
Latrine Sindh 46.95 42.57
Khyber Pakhtunkhwa 17.52 4.43
Balochistan 79.06 59.17
ICT, Islamabad 3.50 3.14
Pakistan 31.34 12.77
Annual Plan 2018-19
School and College Education 27

Type of missing
Provinces Not-Available
physical facility
Boundary Wall Punjab 3.95 0.55
Sindh 43.75 33.28
Khyber Pakhtunkhwa 19.65 2.18
Balochistan 63.92 32.99
ICT, Islamabad 3.00 0.51
Source: data derived from Pakistan Education Statistics 2015-16, AEPAM Islamabad.

Summary of Key Indicators of Basic education

Category 2014-15
Primary NER (Class 1-5 & age 6-10) Male Female Total
Overall 72 62 67
Punjab 73 67 70
Sindh 67 54 61
Khyber Pakhtunkhwa 78 62 71
Balochistan 67 42 56
Middle NER (Class 6-8 & age 11-13)
Overall 39 34 37
Punjab 39 38 38
Sindh 37 30 34
Khyber Pakhtunkhwa 48 31 41
Balochistan 31 19 26
Matric NER (Class 9-10 & age 14-15)
Overall 29 24 27
Punjab 29 29 29
Sindh 29 20 25
Khyber Pakhtunkhwa 34 18 27
Balochistan 19 9 15
Literacy Rates (10 years and older)
Overall 70 49 60
Punjab 71 55 63
Sindh 70 49 60
Khyber Pakhtunkhwa 71 35 53
Balochistan 61 25 44
Adult Literacy Rate (Age 15 years & older)
Overall 68 45 57
Punjab 69 51 60
Sindh 70 46 58
Khyber Pakhtunkhwa 66 29 47
Balochistan 56 18 38
Source: Pakistan Social and Living Standards Measurement (PSLM) Survey 2014-15

Major Causes of Drop Out

 Low access in rural and far flung areas.
 Poverty issue with family.
 Low awareness regarding the benefits of education among parents.
 Missing physical facilities.

Annual Plan 2018-19

28 School and College Education

 Security issues for girls students.

 Less number of female teachers in primary schools.
 Less number of trained teachers particularly in science subjects.
 Lower number of Middle and High schools for effective transition particularly for
girls.
 Low quality of education.
 Low job opportunities after completion of education at certain level.

Performance Review 2017-18

The 18th Constitutional amendment has made great impact on educational system of the
country. Due to devolution of education subject, the policy, planning and execution relevant
to education is major responsibility of Provinces. Federal Government is responsible for ICT,
FATA, GB and AJ&K. Inter Provincial Education Ministers (IPEM) Conference has been
working under the Ministry of Federal Education and Professional Training Islamabad.
Education related issues are being settled in the meetings of this forum. National level
Educational Conference was arranged in July 2017 to carry out reforms initiatives jointly by
Ministry of Planning, Development & Reform and Ministry of Federal Education and
Professional Training under the umbrella of Vision 2025. Basic aim of the conference was to
discuss National Curriculum Framework, reforms in Governance and Assessment system and
finally teacher's training programmes. Purpose of educational conference was to share
reforms evolved through unprecedented levels of regional and provincial consultation. The
initiatives under taken during 2017-18 include: Establishment National Curriculum Council,
Modernization and Standardization of Examination System, Mainstreaming of Madrassahs,
Establishment of Basic Education Community Schools, Improving Human Development
Indicators in Pakistan, Establishment / Up-gradation of schools and colleges and Capacity
building of Education Managers / Principals/ Heads of Institutions, National Endowment
Scholarships for Talent (NEST) scheme to provide scholarships on merit to the needy-cum-
talented students of Pakistan and Renovation & Rehabilitation of Physical Infra structure of
200 Educational Institutions under Prime Minsiter’s Education Sector Reforms Programme in
ICT, Islamabad. The following table shows a glance of education indicators at the national
level:

Pakistan Vision 2025, Pilller-1: Putting People First: Developing Human and Social Capital
th
Benchmarks Target in 12 Current Status
Goals of Vision 2025
(2012-13) Five-Year Plan 2014-15
Increase Primary School enrolment to 100
68 percent 80 67 percent
percent (NER)
Increase (Primary Education) completion
67 percent - 52 percent
rate to 100 percent
Increase literacy rate to 90 percent 60 percent 70 60 percent
Improve Primary and Secondary Gender 0.86 (P) 0.88(P)
Parity Index (GPI) to 1 0.75 (S) 0.87 (S)
Source: Pakistan Social and Living Standards Measurement (PSLM) Survey 2014-15

Achievements against the targets by 2015-16

Indicator
Male Female Total GPI

Annual Plan 2018-19

School and College Education 29

Achievements against the targets by 2015-16

Indicator
Male Female Total GPI
Literacy 10+ 70 49 60 0.70
Youth Literacy 15+ 81 64 72 0.79
GER Primary 105 90 97 0.86
Survival rate to Grade-5 67 65 66 0.96
GER Secondary 39 30 34 0.77
Source: Pakistan Education Statistics 2015-16 (AEPAM, Islamabad)

Federal PSDP 2017-18

Government of Pakistan got a comprehensive view to design and strengthen all the sectors
pertaining to education system of the country. Government took effective initiatives of the
development schemes which include:
 Improving Human Development Indicators in Pakistan with focus on SDGs relating to
Education.
 National Curriculum Council to maintain uniform curriculum standards at the
national level.
 Modernization and standardization of the Examination System to standardize the
assessment system.
 Mainstreaming of the Madaris to formalize and align their system of education with
the formal education system to make their children more productive and fruitful for
society. 3216 students were enrolled in the 100 Madaris through this scheme.
 National Best Teacher Award to honour and incentivize teachers for their relentless
services.
 Establishment of Smart Schools to introduce technology-based blended learning.
 Educational Leadership and Institutional Management Phase-IV for Capacity Building
of Education manager.
 Establishment of Islamabad Model College for Girls, G-13/1, Islamabad.
 Capacity Building of Education Managers.
 Establishment of Islamabad Model College for Boys, G-15, Islamabad.
 National Education Reforms Initiative.
During 2017-18, a sum of Rs7,143.344 million was allocated in the Federal PSDP for basic
and college education. An abstract of development projects in PSDP 2017-18 is as under:

Scheme No. of projects Total Cost Allocation

(Rs million)
Literacy, Curriculum, Mainstreaming of 12 7,426.67 2,945.70
Madrassahs, Capacity Building of Teachers
and Principals
Establishment / uplifting / Renovation / 10 6,611.099 2,637.869
Physical up-gradation of schools and
colleges
Cadet College Kharan 01 1,382.057 500.00

Annual Plan 2018-19

30 School and College Education

Scheme No. of projects Total Cost Allocation

(Rs million)
Digitization of the holding of National 02 62.047 24.775
Archives of Pakistan and Improvement of
Record Preservation
Establishment of F.G. Degree College Kohat 01 138.649 35.000

National Endowment Scholarships for 01 10,000.0 1000.0

Talent (NEST)
Grand Total 27 25,620.522 7,143.344

Provincial Governments ADP 2017-18

During 2017-18, the Government of Punjab allocated Rs55,010.00 million, Sindh Rs16,250.00
million, Khyber Pakhtunkhwa Rs14,000.00 million, Baluchistan allocated Rs7,640.133 million,
AJ&K allocated Rs877.671 million, FATA allocated Rs4,484.773 million and Gilgit Baltistan
allocated Rs1,559.623 million which is equal to Rs99,822.2 million for the basic and college
education. The sectors given preference by the Provincial Governments include: up-
gradation of girls and boys primary school to middle, and secondary levels, improvement of
the physical infrastructure, establishment of the IT and science labs in the Secondary and
Higher secondary schools, Early Childhood Education (ECE) at the primary level, provision of
missing facilities, provision of stipends to girls students up to the matriculation, construction
of new boys and girls schools and colleges, provision of scholarships through endowment
funds and scholarship schemes and strengthening of the Provincial Institutes of Teacher
Education (PITE).

Recommendations to improve Quality of Education and retention of

students
Following measures are recommended to improve quality of education and increase
enrolment and retention:
 Special focus on children in rural areas, especially girls is needed.
 Awareness campaign should be started to convince parents to send their children
particularly girls to schools for education.
 Basic physical facilities should be provided to encourage people to enroll their
children.
 Security measures may be taken to enhance and retain enrolment for female
children.
 Reduce distance to school through infrastructure development;
 Increase the provision of female teachers.
 Provision of social safety nets and linkage of social protection programmes to school
attendance
 Introduction of flexible school hours particularly for working children
 Provision of skill training including formal education.

Annual Plan 2018-19

School and College Education 31

 Increase education budgets, especially in the areas where literacy is low.

 Increase the recruitment of female teachers in remote areas.
 Regularization of Early Childhood Education (ECE) and integrate ECE fully into the
primary education cycle.
 Up-gradation of existing primary schools to lower secondary schools
 Development of such programmes that focus on potential dropouts and working
children
 A separate cadre of Education Managers / Principals may be created for better
management of the institutions.

Outlook 2018-19
The current democratic Government of Pakistan keeping in view the objective of a welfare
state, knowledge society is intended. For this great objective more financial and human
capital are being allocated for capacity building, more access to education for children
belonging to low income and vulnerable areas, decrease gender as well as rural-urban
disparity, improving quality of education for strengthening, attracting, retention of enrolled
boys and girls to decrease dropout rate at all levels. These steps are being taken by the
Government to reflect political commitment with the cause of education for sustainable
development of the country. Being a signatory to the Sustainable Development Goals (SDGs)
at international level, Pakistan has established a strong coordination mechanism needed
with the federal ministries, provincial and area governments to achieve the targets set under
SDGs. Private sector can play a vital role to achieve those targets for which necessary efforts
are being taken by the Federal and Provincial Governments to increase their role as at
present it contributes only 16 per cent of the total educational resources. Following is the
table containing on Sustainable Development Goal 4: “Ensure inclusive and equitable quality
education and promote lifelong learning opportunities for all”.

Sustainable Sustainable Sustainable

Development Development Development National Target Required
Goals National Goals National Goals National Baseline 2030 Policy
Priority Targets Priority Targets Priority Targets 2014-15 Support
National Priority National National Priority
SDG Indicator Priority SDG SDG Indicator
Indicator

Target 4.1: By 4.1.1 Total=57% Total=100%  Mandatory

2030, ensure Proportion of Girls=53.0% Girls=100.0% enrolment of
Quality that all girls children and Boys=60.0% Boys=100.0% all children;
and boys young people:
complete (a) in grades  Improvement
Education free, 2/ 3; (b) at the of quality of
equitable and end of education at
quality primary; and all levels by
primary and (c) at the end establishing
Goal 4: Ensure secondary of lower stringent
inclusive and education secondary quality
equitable leading to achieving at

Annual Plan 2018-19

32 School and College Education

quality relevant and least a assurance at

education and effective minimum all levels of
promote learning proficiency education;
lifelong outcomes level in (i)
learning reading and  Review
opportunities (ii) incentive
for all mathematics, structure for
by sex female
enrolment at
Target 4.5: By 4.5.1 Parity GPI GPI all levels;
2030, indices Primary=0.87 Primary=1.0
eliminate (female/ male,  Food voucher
gender rural/ urban, scheme for
disparities in bottom/ top out of school
education wealth children;
and ensure quintile and
equal access others such as  Improve
to all levels of disability school
education status, infrastructur
and indigenous e at all levels;
vocational peoples and
training for conflict  Introduction
the affected, as of technology
vulnerable, data become for classroom
including available) for instruction;
persons with all education
disabilities, indicators on  Establish
indigenous this list that school
peoples and can be monitoring
children in disaggregated committees
vulnerable at district
situations. level with
multi-
Target 4.6: By 4.6.1 Total = 60.0%, Total = 80.0%, stakeholder
2030, ensure Percentage of Female=49.0% Female=69.0% representatio
that all youth population in Male=70.0%, Male=90.0%, n for more
and a a given age inclusive
substantial group learning
proportion of achieving at environment
adults, both least a fixed that includes
men and level of children with
women, proficiency in special
achieve functional (a) needs,
literacy and literacy and cultural
numeracy (b) numeracy sensitive
skills, by sex girls, etc.
policy for
Target 4.a: 4.a.1 Primary Primary
Build and Proportion of School School
upgrade schools with Infrastructure: Infrastructure:
education access to: (a) Electricity = Electricity =
facilities that electricity; (b) 53.0%; 53.0%;
are child, the Internet Drinking Drinking
disability and for Water = Water =

Annual Plan 2018-19

School and College Education 33

gender pedagogical 67.0%; 67.0%;

sensitive and purposes; (c) Sanitation = Sanitation =
provide safe, computers for 67.0% 67.0%
nonviolent, pedagogical
inclusive and purposes; (d)
effective adapted
learning infrastructure
environments and materials
for all for students
with
disabilities; (e)
basic drinking
water; (f)
single sex
basic
sanitation
facilities; and
(g) basic hand
washing
facilities (as
per the WASH
indicator
definitions)

Target 4.c: By 4.c.1

2030, Proportion of
substantially teachers in:
increase the (a)
supply of preprimary;
qualified (b) primary;
teachers, (c) lower
including secondary;
through and (d) upper
international secondary
cooperation education
for teacher who have
training in received at
developing least the
countries, minimum
especially organized
least teacher
developed training (e.g.
countries and pedagogical
small island training) pre-
developing service or in-
States service
required for
teaching at
the relevant
level in a given
country

Annual Plan 2018-19

34 School and College Education

The development schemes “Establishment of Smart schools” will be implemented through IT

based blended learning to increase analytical and cognitive skills, “Renovation /
Rehabilitation of physical infrastructure of 200 Educational Institutions under Prime
Minister’s Education Sector Reforms Programme in ICT, Islamabad” is under
implementation. The objective of the project is to provide missing physical facilities in the
public sector institutions of Islamabad to create student friendly environment. The students
enrolled in Madaris, mostly, belong to vulnerable classes, the project titled, “Mainstreaming
of Madaris” is under implementation to mainstream the Madaris students with the formal
education so that they could prove themselves more productive for the society. Examination
system of Pakistan up to Intermediate level needs improvements and some critical changes
and reforms. For this objective a project titled, “Modernization and standardization of
examination system” is under implementation. The same project is under consideration to
replicate in all the boards of education in Pakistan under Federal PSDP with title
“Standardization of National Examination System in the Country” to modernize and
standardize the examination system. A state of the art “National Teachers Training Institute”
is under consideration to be established in Islamabad for training of teachers. A project
titled, “Capacity building of Education Managers” will be implemented. The objective of this
project is to enhance knowledge and skills of 350 Education Managers / Officers of five
selected districts of four Provinces i.e. Bahawalpur, Rahim Yar Khan, Tando Muhammad
Khan, Kohistan and Dera Bughti in the fields of Educational Planning, Office Management,
and Financial Management. Under the Prime Minister’s Directive, a project titled “Provision
of Quality Education Opportunities to the students of Balochistan and FATA is under
consideration. The purpose of the scheme is to provide scholarships to 2000 students of
Balochistan and FATA on merit basis to get quality education at well reputed educational
institutions of Pakistan. A Best teachers Awards scheme is under consideration to provide
cash awards and shields in recognition to the services of best teachers throughout Pakistan.
The objective of all the projects is to increase accessibility, improve quality and decrease
gender as well rural – urban disparity at basic and college education level. These efforts are
in line with the Vision 2025.

Programmes for 2018-19

The Federal Government envisages 35 schemes (ongoing 15 and new 20) for basic and
college education for the fiscal year 2018-19. An allocation of Rs8,753.607 million has been
earmarked in the PSDP 2018-19 for these projects. Abstract of development projects relating
to the basic and college education is tabulated below:

Scheme No. of projects Total Cost Allocations

Establishment / Uplifting / 25 19,717.215 3,704.486
Strengthening of schools / colleges /
Cadet College / Renovation and
Rehabilitation of schools and colleges
of ICT
Training and Capacity building of 05 2,334.905 149.121
teachers / Education Managers
Literacy 03 14,346.048 2,800.00
Scholarships 02 13,417.004 2,100.00
Grand Total 35 49,815.172 8,753.607

Annual Plan 2018-19

Chapter 5|HEALTH

Health sector is pivotal to well-being. Productive and healthy population can significantly
contribute to national economic growth. Poor health contributes to catastrophic costs of
illness, limits the cognitive and non-cognitive capabilities during childhood and earning
ability during adulthood. An optimal public health system provides care for the sick,
institutes procedures for public wellness in general and prevents diseases.

Pakistan’s Vision 2025 and the 12th Five Year Plan (2018-23) aspires to improve the health
and well-being of the population of Pakistan with the key objective of addressing
inadequacies in primary/secondary health care facilities; correcting rural/urban biases;
bridging basic nutritional gaps; reducing widespread prevalence of communicable and non-
communicable diseases; improving human resources for health; strengthening disease
surveillance; and improving the pharmaceutical sector to ensure the availability;
affordability and quality of drugs.

To achieve these objectives in the year ahead, focused and concerted efforts of provincial
and area governments would be required with expanding investment in healthcare adapting
to the effects of climate change and natural disasters by means of inter-sectoral
coordination and motivating the human resource and reducing dependence on foreign aids.
Pakistan can become internationally competitive and successful country by increasing living
standards in both the urban and rural areas.

Performance Review 2017-18

To improve health status of the people and to reduce burden of diseases a series of
devolved programmes and projects are on track for which funding was provided by the
federal government. These programmes include Family Planning and Primary Health
Care (FP&PHC), Expanded Programme for Immunization, Malaria Control Programme,
Tuberculosis (TB) Control Programme, HIV/AIDS Control Programme, Maternal Neonatal
& Child Health (MNCH) Programme, Programme for Prevention and Control of
Hepatitis, Programme for Prevention and Control of Blindness, Programme for
Prevention and Control of Avian Influenza and PM National Health Program me.

In addition to the devolved vertical programmes, investment has been focused in the
curative care which includes establishment of a Medical College and Construction of 50 beds
Cardiac Care Hospital at Gilgit-Baltistan, and establishment of three medical colleges in AJK.

In addition to the devolved vertical programmes, investment has been focused in the
curative care which includes establishment of a Medical College and Construction of 50 beds
Cardiac Care Hospital at Gilgit-Baltistan, and establishment of three medical colleges in AJK.

Provincial governments (Punjab in particular) made significant efforts to improve provision

and quality of health services at BHUs and RHCs by equipping with material as well as human
resources and making them operational on 24/7 basis in selected districts. An outreach
initiative in the form of Mobile Health Units was launched to serve the underserved and
under privileged population. Communicable diseases like HIV/AIDS, Hepatitis, Tuberculosis

Annual Plan 2018-19

36 Health

and Malaria were focused and programmes launched for provision of free of cost medicines
for these diseases.

Pakistan Atomic Energy Commission’s (PAEC) 18 cancer hospitals nationwide are providing
diagnostic and treatment facilities to cancer patients. During the 2017-18, five new cancer
hospitals were established and Nuclear Medicine, Oncology and Radiotherapy Institute
(NORI) was upgraded and establishment of a dedicated Cancer Hospital in ICT started to
provide cancer therapeutic, supportive/ allied and palliative care. Federal Breast Cancer
Screening Programme in ICT is operational for early cancer diagnosis and screening.

For evidence based policy, planning, and resource allocations, acceleration and
enhancement of Civil Registration and Vital Statistics System have been the priority areas for
Government of Pakistan. A Technical Support Unit (TSU) has been established to provide
support for effective coordination and formulation of national strategic framework with
collaboration of line ministries / divisions, provincial and area government departments and
international development partners.

Safe Blood Transfusion project with the technical cooperation of GIZ and KFW is in the
implementation process in all the provinces and area governments that will bring down the
incidence of hepatitis and other blood transmitted diseases in the country.

Overall achievements for the health sector include creation of skilled personnel, which
include 4500 new doctors, 400 dentists, 3200 Nurses, 4500 Paramedics and 450 Traditional
Birth Attendants.

Overall the communication and coordination of provinces in issues related to health has
remained weak. The provinces also lack capacity for data gathering, analysis and reporting to
the federal government. As the provinces lack ownership of the vertical programmes, their
accountability remains weak.

The PSDP allocations were made to health sector projects of Ministry of National Health
Services Regulations and Coordination (NHSRC), Capital Administration and Development
Division (CADD) and Pakistan Atomic Energy Commission (PAEC), Ministry of Kashmir
Affairs and Gilgit Baltistan, and Ministry of Interior. There were 49 projects of health sector
with a total cost of Rs55,366.2 million allocated with an expenditure of Rs14,449.6 million.
The details are given in the following table:

Health Sector Projects of PSDP during 2017-18

(Rs million)
Name of Ministry / Organization No of Allocation Expected
Projects Expenditure
Ministry of National Health Services, 22 48,753.4 10,171.6
Regulations and Coordination (NHSRC)
Capital Administration and Development 15 1,855.0 405.2
Division CADD
Pakistan Atomic Energy Commission 05 3,608.4 3,608.4
(PAEC)
Kashmir Affairs and Gilgit Baltistan 04 550.0 410.0
Interior 03 599.4 204.4
Total 49 55,366.2 14,449.6

Annual Plan 2018-19

Health 37

Outlook 2018-19
Priorities for 2018-19 will be aligned with Vision 2025, Sustainable Development Goals and
12th Five Year Plan (2018-23).

Federal government will harmonize interprovincial coordination in the context of the

devolution and will strive to help the local/provincial governments in achieving obligations
like SDGs. The endeavours envisioned in the year ahead will lead to formulate evidence-
based policies and health services which are affordable, accessible and culturally acceptable,
and finally a responsive health system.

In order to track progress on Vision 2025 Goals and Targets, Sustainable Development Goals
and 12th Five Year Plan (2018-23), a governance framework and coordination mechanism will
be established whereby Ministry of National Health Services, Regulations and Coordination,
Provincial/ Area Governments Departments of Health and Planning & Development, and
other stakeholders will establish dedicated Coordination Units which will monitor, report on
and coordinate implementation of development programmes and projects in their
respective domains under direction from Ministry of Planning, Development and Reform. A
Health Sector Performance Monitoring and Delivery Unit (PMDU) will be established within
Health Section to manage targets/ KPIs, progress/ deviation/ impact assessment and
recommendations, risk alert, change management, and stakeholders’ communications. It
will prepare and provide reports, management dashboards & supporting analysis, and liaise
with Coordination Units in each executing federal/ provincial agency.

Provinces need to address their governance issues and enhance their coordination
mechanisms in health. Their commitment to own the devolved resources and programmes
will determine the pace of health related development in their respective provinces.
Improving ownership of health related resources will also improve the issues of
accountability.

Development of a proper disease information system (covering supply and demand side)
and health education and health promotion initiatives will be encouraged for awareness of
the general public. Potable water supply, sanitation, traditional medicine, health legislation
for various regulatory measures and road traffic accidents are other health areas of concern
to be addressed.

Universal access to sexual and reproductive health care services will be promoted which
includes family planning services. Integration of reproductive health into national and
provincial strategies and programmes will be encouraged.

Human Resource for Health (HRH) will be improved through trainings in health management
and improvements in career structure. Structure and functions of health regulatory
authorities like Pakistan Medical and Dental Council (PMDC) and Pharmacy and Nursing
Council etc will be reviewed for improvement. Similarly, Human Resource for Health (HRH)
forecasting will be conducted with focus on increasing population demand and attrition of
manpower through retirement and brain drain.

Efforts will be focused on drug demand reduction and prevention of substance abuse and
devising policies for physically or mentally challenged people. Public health laboratories will
be upgraded, voluntary blood bank services will be developed and DHQ/THQ hospitals will

Annual Plan 2018-19

38 Health

be modernized. There will be initiation of work on indigenous production of cost effective

and quality vaccines and medical devices like cardiac stents. Capacity of Drug Regulatory
Authority will be enhanced to ensure availability of safe and efficacious medicines.

In order to ensure deployment of effective and responsive civil registration and vital
statistics system, an assessment of underserved and marginalized population including
refugees and persons of undetermined origin will be undertaken with technical assistance of
international development partners (UN Organization of Immigration -UNOIM). This will
help in finalizing national strategic framework for acceleration and enhancement of CRVS in
Pakistan.

Cancer will be treated through establishment of more cancer treatment centres/hospitals.

The Government, keeping in view the rising need of Cancer Treatment Facilities, has taken a
new initiative of establishing a state of the art ‘Cancer Hospital’ in ICT. Prevention and
control of non-communicable diseases will be perused passionately through investment in
hospital infrastructure, health education and awareness. Moreover, tobacco use and
tobacco-prevention interventions will be monitored in order to ensure protecting people
from tobacco smoke in both public and work places, help people for tobacco cessation, warn
people against the dangers of tobacco and other narcotics.

The federal government has launched “Prime Minister’s National Health Insurance
Programme” to help improve the health status of the poor and vulnerable by ensuring their
access to quality health care. Resultantly, out-of-pocket health expenses by the poor and
vulnerable population will reduce. Efforts will be made to expand the programme to whole
of Pakistan thereby contributing to achieving universal health coverage.

Health Sector Reforms agenda has been initiated by the Planning Commission under the
patronage and supervision of Minister for Planning, Development & Reform. There will be
development in close collaboration and coordination of Ministry of National Health Services,
Regulations and Coordination and Provincial Departments of Health and other stakeholders
of a centralized integrated disease surveillance system having one health approach with a
strong inter-provincial information sharing mechanism.

Guidelines, rules/ regulations, and Standard Operating Procedures (SoPs) will be developed
and enforced for good clinical practices, good medical laboratory practices and medical
educational institutions to ensure effective health service delivery.

Core capacities of relevant stakeholders will be enhanced in management of emergency and

trauma related cases through health department and the health care facility provided
therein. Moreover, capabilities will be enhanced for human health resources in the field of
International Health Regulations (IHR) to prevent and control cross border and internal
transmission of diseases and to plan effective emergency preparedness.

Provincial governments will continue investment in devolved health vertical programmes

and integrate them with their primary healthcare set up.

The details of PSDP 2018-19 allocations to the Health Sector projects are shown in the
following table:

Annual Plan 2018-19

Health 39

PSDP 2018-19 Allocation to Health Sector Projects

No of
Name of Ministry/ Organization PSDP Allocation
Projects
Ministry of National Health Services Regulations and
54 25,060.164
Coordination (NHSRC)
Capital Administration and Development Division CADD 20 2,454.459
Pakistan Atomic Energy Commission (PAEC) 6 3,616.947
Ministry of Kashmir Affairs and Gilgit Baltistan 3 1,171.00
Ministry of Interior 6 1244.077
Finance Division 3 600.00
Defence Division 1 570.00
Total 93 34,716.647

Annual Plan 2018-19

Chapter 6|LABOUR AND EMPLOYMENT

Employment is a critical link between economic growth, reduction in poverty and income
inequality. It is now increasingly recognized that the creation of productive, remunerative
and decent employment is key mechanism through which benefits of growth can be
distributed to the different segment of society.

The Vision 2025 places great

Decent and productive employment
prominence on inclusive and
As per ILO, the decent work sums up the aspirations
sustainable growth and also envisages of people in their working lives. The ILO defines Pro
that employment opportunities are ductive Employment as “all employment (for wages
important not only for increasing or as self‐employed) that yields sufficient income to
national production levels, but also to allow the worker and his/her family/dependents to
raise the family income and obtain a material standard of living above the pover
consumption, ensure the self-esteem ty line”.
of individuals, reducing income
disparities and thus overall improvement in the social fabric of society.

A sound understanding of the critical relationship between employment and economic

growth helps in formulating
well-connected policies of all SDG GOAL 8— DECENT WORK AND ECONOMIC GROWTH
sectors with a common Promote sustained, inclusive and sustainable economic growth,
objective. A country’s capacity full and productive employment and decent work for all
to generate employment
By 2030, achieve full and productive employment and decent
depends upon its available work for all women and men, including for young people and
resources, technological base persons with disabilities, and equal pay for work of equal value.
and institutional strategies.
Present Government has taken By 2020, develop and operationalize a global strategy for youth
various steps for reviving the employment and implement the Global Jobs Pact of the
economy and accelerating the International Labour Organization.
pace of economic growth.
Take immediate and effective measures to eradicate forced
Realizing a sound base and
labour, end modern slavery and human trafficking and secure
faster growth of the economy
the prohibition and elimination of the worst forms of child
has a direct bearing to control labour, including recruitment and use of child soldiers, and by
unemployment in the country. 2025 end child labour in all its forms.
Presently, the economic growth
(5.8 percent) is almost absorbing
the increasing labour force, leaving a negligible fraction as un-employed.

Performance Review 2017-18

Pakistan being the 6th most populous country and having 9th largest labour force in the
world with population growth of 2.4 percent per annum is adding a large number of youth in
labour force, therefore youth employment is one of the major concerns of the Government.
Employment situation in the country has improved under the present government.
Unemployment rate of 6.24 percent in 2012-13 has decreased to 5.94 percent in 2014-15 as

Annual Plan 2018-19

42 Labour and Employment

per the latest Labour Force Survey. After 2015, Labour Force Survey has not been conducted
due to on-going population census activities. However, on the basis of latest survey 2014-15,
overall participation rate has decreased from 32.88 percent in 2012-13 to 32.27 percent in
2014-15, showing 0.61 percent decrease; male unemployment rate has decreased from 5.41
percent to 4.98 percent while female unemployment rate has decreased from 9.0 percent to
8.97 percent during the period concerned. Due to better financial discipline, consistency and
continuity in economic policies, Pakistan’s economy has gained more strength during the
tenure of present government. GDP grew by 5.8 percent in 2017-18, the highest rate since
2006-07.

Employment Situation and Achievements

Employment situation remained better during the tenure of present government (shown in
table-1). Government has launched Youth Development Programme, including Prime
Minister’s Youth Business Loan Scheme, Interest Free Loan Scheme to the vulnerable &
poor, Prime Minister’s Youth Training Scheme (National Internship Programme) & Prime
Minister’s Youth Skill Development Programme through NAVTTC. Furthermore, CPEC related
investment in energy and infrastructure projects, zero load shedding to industrial sector,
promotion of overseas employment and encouragement of micro entrepreneurship
contributed a lot to control un-employment in the country. During last five years about 3.66
million Pakistani workers went abroad for jobs. The size of Federal PSDP (2017-18) is set at
Rs1, 001 billion with an increase of 178 percent over the PSDP of 2012-13 (Rs360 billion),
resulting further enhancement of the employment generation.

Table-1: Unemployed Labour Force & Unemployment Rate (million)

2013-14 2014-15 2015-16* 2016-17*

Unemployed Labour Force 3.58 3.62 3.69 3.76
Rural 2.06 2.10 2.14 2.18
Urban 1.52 1.52 1.55 1.58
Unemployment Rate ( percent) 5.96 5.94 5.9 5.9
Rural 5.01 5.0 5.0 5.0
Urban 8.02 8.0 8.0 8.0
st
* Source: Labour Force Surveys PBS / Estimates on 1 Jan, 2016 & 2017 Population/ Projected values
for 2015-16 & 2016-17

Employment by Sector
From 1999-2000 to 2014-15
the share of agriculture,
industry and services in
employment changed by -
6.15 percent, +3.94 percent
and +0.68 percent,
respectively. Most of the
decline in agriculture share
has been taken by
manufacturing and
Source: Labour Force Surveys 2013-14 & 2014-15

Annual Plan 2018-19

Labour and Employment 43

services sectors. More investment in manufacturing is the best course of action for sustained
economic development.

Women Employment
Gender equality is an essential basis for peaceful, flourishing and sustainable world.
Providing women with equal access to education, health care, decent work, and
representation in political and economic decision-making processes can lead towards
sustainable economies and benefit societies at large. Pakistan has a Gender Development
Index (GDI) ranking at 121 out of 155 in the 20151. However, it is an encouraging sign that
female participating in the labour market is increasing with the passage of time. During last
fifteen years, women labour force participation has increased by more than 50 percent.
Female unemployment rate slightly
increased from 8.74 percent to 8.97 Gender dimensions of employment
percent during 2013-14 & 2014-15 The world of work for women around the globe is
contrary to contraction in affected by a range of dimensions. These include the
unemployment at national level. division of labour by gender, indicated by
occupational segregation and wage differentials,
harbingers of care economy inequalities that women
Formal and Informal face in the labour market. Most women in
Employment developing countries are engaged in the informal
sector, working without any legal protection as
domestic workers, home-based workers and piece-
Out of the total employed workforce,
rate workers for the manufacturing firms. These
42.27 percent are engaged in agriculture norms reinforce existing inequalities by justifying
sector while 57.73 percent are employed discrimination in the labour market, despite
in non-agriculture sector. Agriculture improvements in education and skills, and,
remains the largest absorber of labor inevitably, shape women’s engagement and
and is known for informal employment. preferences in the labour force.
Source: ILO, World Employment and Social Outlook –
Out of the total employed in non-
Trends 2017
agriculture sector, formal sector
employs only 27.42 percent while remaining 72.58 percent are employed in the informal
sector in 2014-15. However, the informal sector employment has decreased from 73.58
percent in 2013-14 to 72.58 percent in 2014-15.

Table-2: Formal and Informal Employment

2013-14 2014-15
million percent million percent
Agriculture 24.82 43.48 24.60 42.27
Non-agriculture 32.26 56.52 33.59 57.73
i. Formal 8.52 14.93 9.21 15.83
ii. Informal 23.74 41.59 24.38 41.90
Source: Labour Force Surveys of relevant Years

Overseas Employment Opportunities

1
The 2015 Human Development Report (HDR) by UNDP.

Annual Plan 2018-19

44 Labour and Employment

During last five years significant progress has been made in overseas employment
opportunities for Pakistan and about 3.66 million Pakistani workers went abroad for jobs.
The trend of workers going abroad has increased annually from 2013 to 2015 while a fall is
witnessed in years 2016 and 2017. A major decline in manpower to Saudi Arabia was
observed in 2017-18.

Table-3: Overseas Employment Opportunities

Number of Pakistani Workers Registered Abroad

S.NO Countries 2013 2014 2015 2016 2017

1 UAE 273234 350522 326986 295647 275436
2 Bahrain 9600 9226 9029 8226 7919
3 Malaysia 2031 20577 20216 10625 7174
4 Oman 47794 39793 47788 45085 259065
42362
5 Qatar 8119 10042 12741 9706 11592
6 Saudi Arabia 270502 312489 522750 462598 143363
7 UK 158 250 260 346 340
8 others 11276 9567 6801 7120 8100
259065
Total 622714 752466 946571 839353 496286
Source: Bureau of Emigration and Overseas Employment, M/o Overseas Pakistanis and Human
Resource Development

Regional Situation: Unemployment Rates 259065

The unemployment situation in different countries of the region during previous years is
comparatively better than Pakistan except Afghanistan and Iran. The unemployment
statistics reveals that Pakistan's unemployment rate is higher than that of China,
Bangladesh, India and Sri-Lanka. However, the performance of India is much better with
regard to control of unemployment.

Source: World Bank Employment/Statistics 2017

Regional Situation: Output per Worker

Output per worker as a measure of labor productivity has been constantly low in Pakistan at
a regional level. Countries like Vietnam, Bangladesh, India and Sri Lanka have shown
significant rising trend in enhancing productivity of labor from 1991 to 2017. Pakistan could
only leap forward through significant contribution of productivity which is dependent upon

Annual Plan 2018-19

Labour and Employment 45

the quality of human development. Pakistan needs to invest sizeable proportion of

resources in human capital to compete in the regional framework.

Programmes and Projects

Employment Generation in CPEC Programme

Investment under CPEC is expected to be around US $60 billion. Apart from focusing on
energy, infrastructure and Gwadar projects, 9 Special Economic Zones will be established
under CPEC portfolio, creating tremendous job opportunities and technological
transformation. The early harvest projects under CPEC have created more than 56,0002
direct jobs for Pakistanis. Employment opportunities under CPEC are expected to rise over
the period of next 15 years.

Macro-Economic Stability and Larger Public Sector Development Programme

(PSDP)

Government has taken various policy steps for reviving the economy on sound footing,
resulting in 5.8 percent GDP growth in 2017-18, which is highest since 2006-07, viz. almost
absorbing the increasing labor force. PSDP is also in line with Pakistan’s Vision 2025, where
“Development of Human and Social Capital” is its first pillar. The size of Federal PSDP (2017-
18) is set at Rs1,001 billion with an increase of 178 percent over the PSDP of 2012-13 (Rs360
billion), resulting in further enhancement of the employment generation.

National Labor Protection Framework (NLPF)

The Government of Pakistan took an initiative to develop a National Labor Protection

Framework (NLPF) to ensure a time-bound and concrete action on seven thematic areas
including Child Labor, Forced Labor, Freedom of Association & Collective Bargaining,
Discrimination, Social Dialogue, Labor Inspection and Occupational Safety & Health.

Centre for Rural Economy in Ministry of Planning, Development and Reform

The Centre for Rural Economy (CRE) was established at Ministry of Planning, Development &
Reform in November 2017.The specific objectives are to reduce rural poverty, improve food

2
Center of excellence China-Pakistan Economic Corridor

Annual Plan 2018-19

46 Labour and Employment

security, resilience, and social protection, generate gainful employment in rural areas and
reduce rural-urban gaps and migration, enhance competitiveness and boost export from
rural economy and improve sustainability of natural resources and environment in rural
areas.

Employable Skills through National Institute of Science and Technical Education

(NISTE)

NISTE is playing a pivotal role on imparting employable skills training to youth in various
trades. In order to address the shortage of skilled human resource at all levels in the
country, the present Government is upgrading NISTE into a National Skills University (NSU),
Islamabad. The Bill has been passed by the Senate of Pakistan in March, 2018 to be
materialized by September, 2018.

The National Incubation Centers (NICs)

This initiative is to promote the growing synergy between the public and private sectors to
promote youth-led entrepreneurship in the country. The government has announced setting
up of five incubation centers in Islamabad and four provincial capitals together with
innovation centers. Services include free broadband internet, silent rooms, gaming zone,
curriculum for startup education, best business leaders as mentors, and an innovation lab
designed along international standards.

NAVTTC and Prime Minister’s Youth Skill Development Programme

Prime Minister’s Youth Skill Development Programme (Phase-IV) at an estimated cost of

6196.50 million is under process, where technical training in highly demand driven trades
will be provided to 100,000 Pakistani youth.

Prime Minister’s Youth Training scheme / National Internship Programme

Prime Minister’s Youth Training scheme (2015-18), National Internship Programme, at an

estimated Rs26.690 billion provides on job internship to 150,000 unemployed youth in
almost 100 demand driven trades, along with stipend Rs15,000/- per month for a period of
one year .

National Education Foundation

National Education Foundation (NEF) is implementing PSDP funded project entitled

“Vocational Schools through Public Private Partnership” at estimated cost of Rs487.030
million. The objective of this project is provision of free formal and vocational education
through public private partnership from 6th to 10th, promotion of Public Private
Partnership, produce skilled labour, girls’ empowerment, increase literacy rate, retention
rate, completion rate etc. Almost 13200 students will be skilled in demand driven vocational
trades.

National Talent Pool

National Talent Pool has planned to develop web portal and interface for collection and
dissemination of data of High level Manpower in Pakistan and abroad and arrangement of

Annual Plan 2018-19

Labour and Employment 47

visits of expatriate Pakistani professionals for short to long term placement in various
institutions of the country.

Annual Plan 2018-19

48 Labour and Employment

Outlook 2018-19
Enormous endeavours by the Government like macro-economic stability, CPEC, Youth
Development Programme with the aim to provide various opportunities to the youth,
including Prime Minister’s Youth Business Loan Scheme, Interest Free Loan Scheme to the
vulnerable & poor, Prime Minister’s Youth Training Scheme (National Internship
Programme) & Prime Minister’s Youth Skill Development Programme through NAVTTC,
promotion of overseas employment and encouragement of entrepreneurship will be helpful
in achieving the targeted level of employment in the country as outlined in the Vision
2025.The targeted GDP growth of 5.8 percent during 2017-18 and prevailing employment
elasticity of 0.463 will not only absorb the growth in labour force, but also clear some portion
of the backlog.

Challenges / Issues
 Decrease in Participation rate and need emerges to reap the benefits of a
demographic dividend.
 Youth unemployment rate is quite high as compared to overall average rate.
 Female participation rate is increasing; but still low as compared to regional levels.
 Higher informal sector employment and lack of decent employment.
 The informal workers are usually deprived of basic rights and majority of them is
employed as contractual labour directly or through sub-contracting practice.
 High ratio of illiteracy and low productivity.
 Lack of demand driven technical education.
 Female workforce participation is required to be increased to 45 percent as per
Vision 2025 target.
 There is a serious mismatch between the jobs demanded by the emerging needs of
the economy and the supply of skills and trained manpower in the country.
 The universities and colleges are producing hundreds of thousands of graduates in
Arts, Humanities and languages, who have lesser job opportunities. While the
economy is moving towards sophisticated sectors such as telecom, information
technology, oil and gas, financial services and engineering goods

3
Final Report of the Panel of Economists “Medium-Term Development Imperatives and Strategy for Pakistan” Chair: Dr.
Hafiz A. Pasha

Annual Plan 2018-19

Chapter 7|SKILL DEVELOPMENT

Technical Education and Vocational Training (TVET) plays an imperative role in creation of
youth employment besides labour productivity & competitiveness and socio-economic uplift
of people. Youth’s engagement could be enhanced through provision of quality training in
demand oriented skill sets enabling them for employment. Nevertheless skills development
needs to be connected to broader growth strategies linking education and skill development
to labour markets, new technology, investment, and macroeconomic policies that ultimately
generate future employment in country. Women are also receiving added attention in this
field.

Government has shown commitment, both in Vision - 2025 and in 12th Five Year Plan
towards building an innovative society through knowledge, technology, and competition by
realizing the vital need of investments in education and skill generation programme. The
prime focus is on transforming general training into industry based training by bridging the
demand-supply gap in skill development. For the purpose various Prime Minister’s
programmes are under implementation focusing on preparation of skilled human resource
for local & international labour market, primarily, national mega projects like China Pakistan
Economic Corridor (CPEC) and other energy related project.

National Technical Vocational Commission (NAVTTC) under PM Youth Skill Development

Programme and Ministry of IPC through National Internship Programme are imparting
training in almost 100 demand driven trades in following priority areas: Construction,
Agriculture, (Dairy & Animal Nutrition Management), Horticulture, IT &
Telecommunications, Electrics, Hospitality, Skill for women, Light Engineering, Energy,
Finance, Engineering , Paramedics, Services etc.

Performance Review 2017-18

During Financial Year 2017-18 an amount of Rs7,511.977 million was allocated to Prime
Minister’s Youth Programmes and PSDP funded Project out of which Rs6,097.584 million has
been utilized.

Physical and financial achievements of PM Youth Programme and other PSDP funded project
for FY 2017-18 are tabulated below;

S. Cost Allocation Utilization

Programmes Targets Achievements
No (Rs million) (Rs million) (Rs million)
Prime Minister 48000 youth
Youth Skill has been
1 Development 2,630.00 205.00 189.564 50,000 trained
Programme
(Phase-III)
Prime Minister 50,000 youth
Youth Skill has been
2 Development 6,196.50 2,928.500 1,531.788 100,000 trained so far.
Programme
(Phase-IV)

Annual Plan 2018-19

50 Skill Development

S. Cost Allocation Utilization

Programmes Targets Achievements
No (Rs million) (Rs million) (Rs million)
Prime Minister’s 34,000 youth
Youth Training provided on
3 26,690.911 4,328.477 4,326.232 50,000
Scheme 201718 job-internship
(Phase –II)
Establishment 12 Workshops
of 12 established
Vocational
workshops through PPP
Schools through
4 Public Private 50.00 50.00 50.00
Enrolment of 2342 students
partnerships
3000 enrolled in 12
(PSDP funded)
students in 12 schools
schools

Other major achievements are as under:

 Establishment of 05 Centres of Excellence (one at Islamabad and one each at
provinces).
 Accreditation of 1380 TVET Programmes/Discipline of 326 Institutes and 07
Qualification Awarding Bodies (QABs) under TVET Reforms Support Programme.
 Development of CBT Qualifications for various levels of National Vocational
Qualification Framework (NVQF), curriculum and teaching and learning material for
NVQF qualifications teaching and learning Manuals (TLM) for demand driven trades
under PM Youth Skill Development Programme, and implementation of National
Vocational Qualifications Framework.
 Assessment of CBT Qualifications, Recognition of Prior Learning (RPL) and
recognition of Current Competencies and implementation of 12 CBT Qualifications in
50 Institutes across the country.
 Trained 500 Assessors for conducting formative and summative competency based
assessment from across the country, 100 teachers for conducting CBT, 100
principals/managers, up scaled the capacity of institutes and up-gradation of
labs/workshops.
 Establishment of 4 Sector Skill Councils in different industrial sectors for
institutionalized involvement of industry in TVET reform.
 623 trainees and 26 master trainers of Refrigeration & Air Conditioning
(RAC/HVACR) trade were also provided specialized training under the Montreal
Protocol.
 In addition, under NAVTTC-UNHCR Skill Development Programme (2017-18) almost
1800 trainees (Afghan refugees and Pakistani Nationals) are receiving training.

Outlook 2018-19
National TVET Policy (2018) has been formulated to guide and facilitate skill development
needed for growth strategy. The policy focuses on increasing youth engagement in labour
market as a skilled labour, increasing efficiency of labour market and reforms in TVET sector,
expansion and widening access and equity particularly for women and disadvantaged
groups; capacity building throughout the public TVET system, training programmes for TVET

Annual Plan 2018-19

Skill Development 51

teachers; Fund to stimulate innovative training programme, introduction of competency-

based training and National Vocational Qualifications Framework(NVQF), developing
effective links with the informal sector, establishment of Sectors Skills Councils (SSCs) ,
promotion of entrepreneurship, human resource development through public Private
Partnership (PPP).

National Skill Strategy (NSS), reformulated by NAVTTC, emphasizes on creating a demand-

driven training system responsive to requirement of the job market. The priority areas for
skill development are well aligned with CPEC projects and indigenous clusters such as
agricultural, industrial and mining as well as exportability of skilled workforce.

Programmes for 2018-19

During year 2018-19 an amount of Rs10,811.00 million is proposed to allocate to Ministry of
Federal Education & Professional Training, Ministry of Inter Provincial Coordination (IPC) to
finance its skill development projects/programmes.
 Prime Minister Youth Training Scheme (Phase-III) (National Internship Programme -
2015-18), at estimated cost of Rs26,690.911 million envisages job internship of
50,000 unemployed educated youth in 100 demand driven trades/courses for better
employment. Under this programme, all interns are being paid stipend of Rs15,000
per month.
 Prime Minister Youth Skill Development Programme (Phase IV: 2017-19), at
estimated cost of Rs6,196.50 million, aims to train 100,000 young aspirants in 75
demand driven market oriented trades/courses in various TVET institutions in
collaboration with private sector all over the country.
 Establishment of Vocational Schools in Public Private Partnership (PPP) at
estimated cost of Rs487.030 million. The objective of this project is provision of free
formal and vocational education through public private partnership from 6th to
10th, promotion of Public Private Partnership, creation of skilled labour, girls’
empowerment, increase in literacy rate, retention rate, completion rate etc. There
will be around 13200 skilled students in demand driven vocational trades.
 Establishment of 400 Vocational Training Institutes (VTI) in all over Country, 50:50
sharing with the provinces costing Rs4,000 million with an allocation of Rs600
million with the partnership of provinces aims to provide vocational training. This
will create skilled labor to meet the requirement of local market as well as foreign
demand.
 Establishment of Polytechnic Institute for Boys at Skardu” at an estimated cost of
Rs601.996 million, sponsored by Ministry of Kashmir Affairs & Gilgit –Baltistan. It
aims at provision of 3 years post Secondary Diploma Courses in Civil, Electrical and
Mechanical Technologies with annual intake of 120 (40 each) dropout students per
year with total 600 students in five years period.
 National Talent Pool has planned to develop web portal and interface for collection
and dissemination of data of High level Manpower in Pakistan and abroad and
arrangement of visits of expatriate Pakistani professionals for short to long term
placement in various institutions of the country.

Annual Plan 2018-19

Chapter 8|POVERTY ALLEVIATION AND SUSTAINABLE
DEVELOLPMENT GOALS

Regional Poverty Situation

The agenda 2030 pledges to eradicate poverty in all forms and manifestations by 2030 – as
expressed in the first Sustainable Development Goal. Global poverty alleviation efforts have
produced remarkable results over the period of last two decades and incidence of poverty
has dropped phenomenally. South-Asian region is the largest dwelling of poor population
but poverty eradication efforts in the region have also borne fruits in the recent past. The
graph below shows that extreme poverty in the region has declined across the board
according to the international comparison based upon poverty line of $1.9 per day during
last seven years.

Source: SDGs Index & Dashboard Report, 2017; World Bank Database

This reduction in poverty is primarily driven by increase in disposable income, opportunities

created by higher economic growth, emergence of new technologies, and above all due to
the socially responsible policies by the governments.

Review of the Situation

The target 1.2 of Goal 1 of SDGs calls for all countries to measure and report poverty as per
national definition and with respect to different dimensions (By 2030, reduce at least by half
the proportion of men, women and children of all ages living in poverty in all its dimensions
according to national definitions). In Pakistan, Cost of Basic Need (CBN) approach is being
used as the official measure of poverty, while Multidimensional Poverty Index (MPI)
approach is being used as complementary measure of poverty.

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54 Poverty Alleviation and Sustainable Development Goals

CBN takes into account both food and non-food needs of the household. Based on this CBN
method, the new poverty line was estimated at Rs3,030.32 per adult equivalent per month,
based on the HIES survey (2013-14). Using this methodology, the poverty headcount was
estimated and found that 29.5 percent of the population was living below the poverty line.
For latest available Household Integrated Income and Consumption Survey (HIICS) 2015-16,
the poverty incidence has further decreased by 5.2 percent and poverty headcount for
2015-16 is 24.3 percent.

Over the last decade Pakistan’s poverty headcount has witnessed a persistent decline both
at national and regional levels. Percentage of people living below poverty line has declined
from 50.4 percent in 2005-06 to 24.3 percent in 2015-16. Poverty in both rural and urban
areas has also been on the declining trend with poverty headcount of 12.5 percent in Urban
and 30.7 percent in rural areas in 2015-16. Targeted poverty reduction programmes like
BISP, relative political stability and strong recovery from low GDP growth rate of 0.4 percent
in 2008-09 to 4.5 percent in 2015-16 are some of the important reasons that can be
attributed to decline in the poverty headcount in Pakistan since 2005-06 [See Table-1].

Table-1: CBN based Poverty Headcounts (Percent)

Regional
Year National
Urban Rural
2005-06 50.4 36.6 57.4
2007-08 44.1 32.7 49.7
2010-11 36.8 26.2 42.1
2011-12 36.3 22.8 43.1
2013-14 29.5 18.2 35.6
2015-16 24.3 12.5 30.7
Source: M/o PD&R

Vision 2025 has also recognized that poverty is indeed a multidimensional phenomenon,
encompassing not only monetary deprivations but also the inaccessibility of healthcare,
education and other amenities of life. Responding to the requirement, Planning Commission
started using Multidimensional Poverty Index (MPI) to discern the nature and extent of
deprivations in all its dimensions. This will help in provision of an indicator for inclusive and
balanced socioeconomic development and it is a demand arising from our commitment to
Sustainable Development Goals. As shown in Fig-2, incidence of MPI has declined from 55.2
percent in 2004-05 to 38.8 percent in 2014-15.

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Poverty Alleviation and Sustainable Development Goals 55

Box 1: A Conceptual Note on the MPI

The MPI complements consumption based poverty measures by reflecting deprivations that
individuals face in other dimensions such as education, health and standard of living. Based on
the Alkire- Foster methodology, the index has three dimensions and captures the severe
deprivations that each person experiences with respect to education, health and standard of
living. MPI is the product of two components:
 Incidence of poverty (H): the percentage of people who are identified as multi-
dimensionally poor, or the poverty headcount.
 Intensity of poverty (A): the average percentage of dimensions in which poor people are
deprived. In simple terms it means how intense, how bad the multidimensional poverty
is, on average, for those who are poor.
To tailor the measure to Pakistan's context and public policy priorities, 15 indicators were used
for this national measure, instead of the 10 employed for the global measure. Within these 15
indicators, three indicators were included under the dimension of education (years of schooling,
child school attendance, and educational quality), four under health (access to health
facilities/clinics/Basic Health Units (BHU), immunisation, ante-natal care, and assisted delivery)
and eight under living standards (water, sanitation, walls, overcrowding, electricity, cooking fuel,
assets, and a land/livestock indicator specifically for rural areas). Each of the three dimensions
carries an equal weight of 1/3 of the MPI. Overall, a person must be deprived in 1/3 of these
weighted indicators to be identified as multi-dimensionally poor.

Applying this measure to data from the Pakistan Social and Living Standards Measurement
(PSLM) survey for the 2014/15 period, it is found that the country's Multidimensional Poverty
Index stands at 0.197. This indicates that poor people in Pakistan experience 19.7 percent of the
deprivations that would be experienced if all people were deprived in all indicators. Secondly, it
must be noted that the MPI is a product of two essential components: the poverty “headcount”
and the “intensity” of deprivation. Using the same data from the 2014/15 PSLM survey, the
country's multidimensional poverty “headcount ratio” was estimated at 38.8 percent of the
population. This means that 38.8 percent of the population of Pakistan is poor according to the
MPI. The average intensity of deprivation, which reflects the share of deprivation which each
poor person experiences on average, is 50.9 percent.

Similar trends are evident across all provinces and regions, with the exception of Azad
Jammu & Kashmir (AJK) which experienced an increase in multidimensional poverty
between 2010/11 and 2012/13. In terms of relative change in its MPI, Punjab accounts for
the highest relative reduction (40.2 percent), while Balochistan experienced the slowest
progress in reducing multidimensional poverty, with a relative change of only 17.7 percent.
The new estimations of multidimensional poverty will be carried out after availability of new
PSLM or NCMICS data set.

Strategy for Poverty Alleviation

The government recognises social protection/social safety nets as a means to mitigate risks
and vulnerabilities and to reduce poverty. The Government’s vision for social protection is to
develop an integrated and comprehensive social protection platform focused on the needs
of the poorest and most vulnerable. The critical areas of investment, reflected in the Vision
2025 document, aim to enhance the effectiveness of social protection instruments through
strengthened administration and the expanded scope of the Government’s income support
programme.

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56 Poverty Alleviation and Sustainable Development Goals

Benazir Income Support Programme

Launched in July 2008, BISP is now the largest single cash transfer programme in Pakistan.
Since its inception, it has disbursed approximately Rs554 billion as cash transfers plus
conditional education cash transfers (CCTs) to enhance primary school enrolment and
attendance. The initiative aims to enrol approximately 2 million children in primary schools
by December 2018. Since its start in October 2012, over 1.9 million children have been
enrolled and a total of about Rs5.81 billion has been disbursed until December 2017. The
number of BISP beneficiaries has increased from 3.73 million in 2012-13 to around 5.6
million as of 31st December 2017. Quarterly cash grant has also gradually been enhanced
from Rs3,000/- per family to Rs4,834/- in 2016-17.

Cash transfers have contributed to reduce poverty among beneficiaries by 7 percentage

points relative to non-beneficiaries having similar characteristics. BISP also maintains the
National Socio-Economic Registry (NSER) -a database containing information on the
socioeconomic status of over 27 million households across Pakistan except two agencies of
FATA. BISP plans to launch an exit strategy model in 2018-19.BISP is in the process of
designing a new programme on nutrition Conditional Cash Transfer to prevent the
malnutrition amongst children of BISP beneficiary households and on immunization
Conditional Cash Transfer (CCT) to promote immunization in the beneficiary households.

Zakat
Zakat funds are provided either through respective local Zakat Committees or indirectly
through institutions i.e. educational, vocational, social institutions, hospitals to the needy,
destitute, poor, orphans, widows, handicapped and disabled for their subsistence or
rehabilitation. During 2017-18 Rs8 billion were distributed amongst the deserving families at
provincial and federal level.

Pakistan Micro Finance Sector

Micro credit institutions are playing a role in achieving inclusive economic growth. The
performance of micro credit within the microfinance industry shows that micro credit
distribution has increased from Rs136.9 billion to Rs202.7 billion in 2017 since 2016. Micro
insurance sector also posed similar growth with Rs 198.7 billion worth of micro insurance in
2017 as compared to Rs150.5 billion in 2016.

Prime Minister’s Youth Programme

Under this programme, initiatives like PM Youth Business Loan Scheme, PM Youth Skill
Development Programme and PM Interest Free Loan Scheme were launched. Under the PM
Youth Business Loan Scheme up till now an amount of Rs20.5 billion has been disbursed
against 20,499 cases. Yet again an amount of Rs9.5 billion as interest free loans has been
disbursed to almost 401,120 beneficiaries. Out of these more than 60,000 were BISP
beneficiaries with 64 percent female borrowers.

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Poverty Alleviation and Sustainable Development Goals 57

Pakistan Poverty Alleviation Fund

Working on a community-driven integrated development model for poverty alleviation,
PPAF has disbursed an amount of Rs187.9 billion through its 130 Partner Organizations in
130 districts across the country. During first two quarters of 2017-18, it disbursed Rs779
million to its partner organizations (POs).

During the same period, a total of 483 Community Organizations (COs) were formed and
2,186 community and PO staff members were trained (39 percent women) under
Institutional Development and Social Mobilization component. Similarly, under Livelihood
Enhancement and Protection (LEP) component, 1,126 individuals received
skills/entrepreneurial trainings (41 percent women) and 1,424 productive assets were
transferred to ultra and vulnerable poor (30 percent women). Around 259 Water and
Infrastructure sub-projects were completed benefiting 143,936 persons (55 percent
women). Overall, these projects and interventions benefited around 446,000 poor and
marginalized population including 57 percent women beneficiaries during the reporting
period.

Provincial/Area Governments’ Performances

Punjab has provided 2537 loans worth Rs54.256 million under Punjab Social Protection
Authority (PSPA) during 2017-18. About 75,000 poor households have been enlisted in
Khidmat Card data and beneficiaries have been receiving Rs3,600/- on quarterly basis for
their livelihood. Under Southern Punjab Poverty Alleviation Project (SPPAP), 350 low cost
houses were constructed for the poorest widows of the project area. Moreover, small
ruminant (2 goats package) were provided to 5500 poor people; vocational and
entrepreneurship training to 3000 unskilled people was also provided. Around 78,500
trainees (including 40 percent females) were provided skill development trainings under
DFID Assisted “Skill Development Programme”. For SDGs, an SDG Advisory Council has been
constituted to oversee all the work on SDGs. District Focal Persons and District SDGs
Committees have been notified and District SDGs Localization Plans are being finalized for
adoption and implementation in Bhakkar and Rajanpur districts.

Sindh is currently preparing a specific and targeted Poverty Reduction Strategy (PRS) and
Community Driven Local Development Policy (CDLD). The strategy is being developed by
building upon the Government of Sindh’s flagship Union Council Based Poverty Reduction
Programme. Sindh has allocated approximately 20 to 25 percent of the ADP budget and
about 10 to 15 percent of the recurrent budget to pro-poor activities and schemes in the
budget of 2017-18. Sindh government is envisaging possibilities to further increase the
shares of specific pro-poor expenditure over the coming years. Allocations for development
budget for Water Supply and sewerage sector has substantially increased to Rs28.7 billion
and would be increased by more than 30 percent in order to meet the demand of clean
drinking water and safe disposal of sewage by 2020-21.

In Khyber Pakhtunkhwa, the Employees Social Security Institution under the provision of
Chapter-V of the Provincial Social Security Ordinance 1965 has been providing certain
benefits through its network of medical outlets in the province, to the employees of
industrial and commercial establishments in the event of sickness, maternity, employment
injury or death and for matters ancillary thereto. Up to the year 2017-18 (till December

Annual Plan 2018-19

58 Poverty Alleviation and Sustainable Development Goals

2017) the Institution has managed to extend Social Security scheme to 81,000 workers of
industrial and commercial establishments including their 486,000 dependants.

Gilgit Baltistan government is aiming at reducing poverty through development of tourist

destinations, handicraft sectors and other youth development initiatives. Infrastructure
development under CPEC would play a leading role for development of this sector in the
region. During 2017-18, on special directives of the Prime Minister of Pakistan, Special
Protection Unit (SPU) Gilgit-Baltistan has been included in the federal PSDP at a cost of 2.668
billion.

In FATA, incidence of Multidimensional poverty is highest with 73.3 percent. For reducing
poverty education and health were given special consideration for funds allocation in 2017-
18. 21 percent of FATA ADP funds were allocated for education for 187 different schemes.
For health, an amount of Rs1,644.373 million was allocated for 122 different schemes.

Pro-Poor Expenditure Trends

Pro-poor expenditures in 14 different sectors impacting the poor amounted to Rs1,134
billion in 2017-18 compared to Rs1,017 billion in last year, thereby registering 11.5 percent
growth. Sectoral breakdown shows that population planning, health and expenditures under
Bait-ul-mal posted highest growth rates between 2016-17 and 2017-18. Whereas
expenditures in WASH and education grew by 11.6 percent and 6.8 percent respectively
during the same period (See Table 3 below).

Table-3: Sectoral Pro-Poor Expenditures

Sector 2016-17 (H1) 2017-18 (H1) Growth

Rs million Rs million (percent)
Roads, Highways & Bridges 149,765 139,057 -7.1
Environment, Water supply & Sanitation 22,913 25,570 11.6
Education 310,155 331,276 6.8
Health 111,867 144,600 29.3
Population Planning 3,038 4,900 61.3
Social Security & Welfare 25,090 28,783 14.7
PM SDGs Programme 0 32,637
BISP 49,798 48,303 -3.0
Pakistan Bait-ul-mal 1,578 2,021 28.1
Overall Pro-Poor Expenditure 1,017,483 1,134,069 11.5
Source: PRSP Secretariat, Ministry of Finance

Progress on Sustainable Development Goals

Sustainable Development Goals (SDGs) are crucially important for Pakistan’s future
development paradigm and that is why it has endorsed this global agenda by incorporating
them in its development Vision 2025. Parliament declared SDGs as Pakistan Development
Goals. Pakistan is the first country to establish dedicated SDG Support Units in Parliament at
federal and provincial levels to monitor and evaluate the progress.

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Poverty Alleviation and Sustainable Development Goals 59

Pakistan has performed well on economic front but its progress on two other pillars is yet to
reach the desired levels. National Framework on SDGs is an effort to steer the public policy
in this direction. National Economic Council has recently approved this framework with the
objectives:
 A growing economy which meets basic needs of all,
 Human resource development policy that can sustain the growth momentum,
 Infusion of knowledge and technology into business processes, ensuring water, food
and energy security to the citizens,
 Peaceful and secure environment where people can nurture their optimum
potential to contribute to national development,
 A society free from all kinds of discrimination so that those who are marginalized
can be provided with a minimum level of social protection and healthcare,
 A conservation policy that leaves a better resource base of land, water and forests
for the next generation.
National framework for SDGs is a minimum imperative for sustained development. Some
SDG goals and targets are more urgent than others. An extensive prioritization exercise was
undertaken to transform SDGs into national goals and targets. The prioritization of SDGs in
the national framework is presented below:

Category – I

The goals in category-1 require immediate policy intervention as desirable outcomes can be
achieved in the short run.
 Food security through sustainable agriculture
 Improved nutrition and healthy life
 Equitable quality education
 Improved drinking water and hygiene facilities
 Affordable and clean energy
 Responsive institutions to ensure peace and security
 Access to affordable, reliable and sustainable energy for all
Category – II

These goals requiring relatively longer timeframes and consistent policy support include the
following:
 Accelerating the rate of poverty reduction through coordinated interventions
 Empowerment of women and girls through institutional strengthening to reduce all
forms of discriminations.
 Building resilient infrastructure and smart cities not only in the main urban centers
but also in rural areas.

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60 Poverty Alleviation and Sustainable Development Goals

Category –III

The goals in this category have long gestation periods and will require major institutional
reforms to achieve desired outcomes:
 Mitigating the impact of Climate Change
 Conservation and sustainable use of marine resources
For many SDGs, the increasing role of provincial and local governments will be critical. These
include food security, nutrition, quality education, improved health facilities, clean drinking
water, improved access to sanitation and sustainable agriculture. The institutional and
human resource capacity of the provincial and local governments to implement the
multifaceted objectives of SDGs is varied and needs to be upgraded. The framework also
reiterates importance of localization of SDGs which will provide an opportunity to local
governments to ensure inclusiveness and sustainability for the achievement of SDGs. In this
regard, a Local Government Summit was organized by Planning Commission to sensitize local
governments of their role and responsibilities for implementing SDGs.

A major challenge in monitoring actual performance is availability of data to monitor

progress. A comprehensive data gap analysis report has been prepared to facilitate effective
monitoring of SDGs – which was not the case in MDGs era. In coordination with data
generating and reporting agencies a strategy has been developed for reliable and regular
reporting of the SDGs related indicators.

Outlook 2018-19
Pakistan has taken SDGs as highest priority and adopted them as National Development
Goals. SDGs are broad based agenda with poverty alleviation as a top priority, so the
patronage of 2030 agenda at the highest level has brightened the prospects for accelerated
socio-economic development and poverty eradication. Federal and provincial governments
are committed to continue their support for poverty alleviation efforts and expansion of
social safety net programmes in 2018-19 as well in the form of flagship programmes like
BISP, Prime Minister’s Programme for Youth, Prime Minister’s Health Insurance Schemes
etc.

Annual Plan 2018-19

Chapter 9|SOCIAL WELFARE

Economic growth and benefits of social development promote social inclusion of the poor
and vulnerable people by empowering them, building cohesive, resilient societies, and
making institutional facilities accessible to socially excluded segments of society. Social
Welfare encompasses policies and programmes to mitigate the vulnerability of marginalized
segments of society. The Annual Plan envisages providing an enabling environment and
tangible opportunities through policies, programmes, action plans, guidelines and projects
for promotion of social justice, ensuring protection, well being and promote equity in the
country. The initiatives would address the needs of downtrodden, marginalized, needy and
vulnerable segments of the society i.e. poor women, children, older people, persons with
disabilities and transgender people etc. Annual plan foresees realization of goals of Vision
2025, Five Year Plan 2018-23 & SDGs to reduce poverty and vulnerability in the society
through institutional care, rehabilitation of the needy and vulnerable people and protection
of Human Rights. The plan also aims at providing an enabling environment for development
of a national framework for equitable socio-economic development in line with
constitutional obligations, national priorities, local needs and international commitments.

The social sector is facing several challenges i.e. inadequate coverage and funding, scattered
community development initiatives, need of voluntary services, social case work facility at
schools, lack of community mobilization, weak social welfare departments, research on
emerging issues and strengthening of social fabric. The Plan focuses on coordinated national
planning through public sector development programmes, effective private sector
participation and review of existing national social welfare policies and strategies.

Performance Review 2017-18

Funds amounting to Rs254.0 million were allocated in PSDP,2017-18 to four new
development schemes of Ministry of Human Rights i.e. Implementation of Action Plan for
Human Rights in Pakistan with an allocation Rs12.00 million and utilized Rs7.770 million,
Institutional strengthening of Ministry of Human Rights with an allocation Rs30.00 million
and utilized Rs20.00 million, Acquisition of land for construction of building for National
Institute of Human Rights with an allocation Rs112.00 million and construction of working
women hostel in G-6/2, Islamabad with an allocation Rs100.00 million but could not be
utilized due to non-approval of the projects. In addition to that an amount of Rs52.00
million was allocated for two ongoing development schemes of Ministry of Human Rights i-e
Helpline for legal advice on violations of human rights with an allocation of Rs25.0 million
out of which whole amount have been utilized and establishment of National Institute of
Human Rights with an allocation of Rs27.00 million and utilization is Rs19.140 million.

Funds amounting to Rs65.859 million were allocated to Capital Administration &

Development Division for three ongoing development schemes of special education
including “Up gradation of National Special Education Centre for Hearing Impaired Children
from Higher Secondary to Graduation Level, Islamabad with an allocation Rs25.60 million
and utilization is Rs17.507 million, Establishment of Resource Unit for autistic children at
National Special Education Centre for Mentally Retarded Children Islamabad with an

Annual Plan 2018-19

62 Social Welfare

allocation Rs20.00 million and utilization is Rs10.289 million and Establishment of

Orthopaedic workshop at National Special Education Centre for Physically Handicapped
Children, Islamabad, with an allocation Rs20.259 million and utilized Rs11.00 million. The
utilization of the allocated amount against the projects enhanced education, training and
rehabilitation opportunities for Persons with Disabilities, promotion and protection of
human rights, capacity of stakeholders for achieving the targets envisioned in development
plans.

The promotion of innovative ideas through business plans competitions leading to the
solution of social issues/ problems, a Centre for Social Entrepreneurship at a cost of
Rs178.43 million established in Ministry of Planning, Development & Reform was allocated
Rs40.0 million in PSDP- 2017-18. Out of the allocation, Rs17.00 million has been utilized. The
project is unique in nature for addressing social issues through innovative business plans.
The project has succeeded in development of a network with federal and provincial
stakeholders and effectively contributed in different entrepreneurship activities. The
agreement has been signed with the British Council for addressing of social issues and
promotion of employment in the country.

Outlook 2018-19
The Plan envisages to create awareness on the constitutional, legal and international
obligations, establish integrated mechanisms to achieve social welfare objectives by
reaching to disadvantaged groups, education and research for developing professional
expertise through universities and centres of excellence and social enterprises and make
adequate financial provision for expansion and strengthening of the social welfare services
through mitigating and managing the socio-economic risk and vulnerability.

The development priorities focuses on mainstreaming target population including children,

women with disabilities, youth, persons with disabilities, patients, senior citizen, transgender
etc. to secure their livelihood and income opportunities with participations of development
partners. It further focuses on supporting and promoting grass root initiatives by voluntary
social welfare agencies under technical and financial assistance and their appropriate
welfare measures, promoting inclusive education and vocational training for special children
and persons with disabilities, supporting day care facilities for children of working mothers,
social protection framework for older people and welfare and protection of older people to
ensure their rights of health, participation, care, livelihood and protection etc.

The "Centre for Social Entrepreneurship" established at the Ministry of Planning,

Development & Reform envisage providing opportunities to the unemployed youth, women
entrepreneurs and students having innovative ideas for solution of the social problems. The
centre will organize the business plan competitions with support of the universities/ public &
private stakeholders for solution of the social problems i.e. in education, health, social
welfare, special education gender & women empowerment, environment, poverty
reduction, sensitization etc.

Programmes for 2018-19

The Annual Plan envisages following programme:
 Establishment of National Institute of Human Rights at Islamabad costing Rs58.70

Annual Plan 2018-19

Social Welfare 63

million with allocation of Rs35.50 million.

 Implementation on Action Plan on Human Rights in Pakistan costing Rs57.50 million
with allocation of Rs23.0 million.
 Construction of working women hostel, G-6/2 and G-7/3, Islamabad costing
Rs290.50 million with allocation of Rs60.00 million. The project is to be approved by
the forum.
 Institutional strengthening of M/o Human Rights costing Rs59.50 million with
allocation of Rs43.00 million.
 Acquisition of land and construction of building for National Institute of Human
Rights, Islamabad costing Rs250.0 million with allocation of Rs91.140 million.
 Institutional strengthening of Regional Directorates of Human Rights Lahore,
Karachi, Peshawar and Quetta costing Rs58.500 million with allocation of Rs47.360
million
 Establishment of resource unit for Autistic children at National Education Center for
Special Children, H-8/4, Islamabad costing Rs54.347 million with allocation of
Rs22.00 million. The unit is providing services.
 Up-gradation of National Special Education Centre for Hearing Impaired Children
from Higher Secondary to Graduation Level, Islamabad, costing Rs44.637 million
with allocation of Rs27.130 million.
 Establishment of Orthopaedic workshop at National Special Education Centre for
Physically Handicapped Children, Islamabad, costing Rs20.259 million with allocation
of Rs9.258 million.
 Establishment of Centre for Social Entrepreneurship at M/o PD&R Islamabad costing
Rs178.43 million with allocation of Rs50.0 million

Annual Plan 2018-19

Chapter 10|GENDER AND WOMEN
DEVELOPMENT

Women constitute about 49 percent of country’s population and 22.7 percent of labour
force. Vision 2025 under Pillar-I (Putting People First) includes Gender Equality and Women
Development as an important element of the vision. It recognizes women as key
contributors to the country’s economic future. The Vision further identifies ensuring access
to education, promotion of enterprise, increasing women’s participation in decision making,
taking affirmative action in all public spheres and providing the social, legal and physical
infrastructure as requisites for women’s empowerment. Indicators of women development
while gradually improving are still not sufficient to achieve gender parity that remains
elusive in school enrolment, labour market share and in decision making arena. Vision 2025
and 11th Five Year Plan envisage and provide an enabling environment and equal
opportunities to women for development of their full potential and may enjoy the benefits
of economic growth, prosperity and social development emerged as an outcome of the
initiatives taken by the federal, provincial governments and private sector stakeholders. The
standardized framework and guidelines are still required for equitable socio economic
development of women across all regions and sectors.

The participation of women in the development process of Pakistan is a priority area of the
Plan. Pakistan is committed to meet the Sustainable Development Goals (SDGs) and the
Goal-5 i-e Gender Equality; Ending all forms of discrimination against women and girls. The
government has internalized Sustainable Development Goals (SDGs) as National Goals. The
seven pillars of Vision – 2025 are fully aligned with the SDGs and provide a comprehensive
long-term strategy for achieving inclusive and sustainable growth. The plan envisages
continue efforts by the stakeholder in achieving the goals of the SDG’s pertaining to the
health & education sectors.

Performance Review 2017-18

Many initiatives have been taken for women development & empowerment during 2017-18.
Women’s employment is encouraged, and the government has fixed 10 percent quota for
women in public sector employment; Punjab raised this to 15 percent and Sindh to 25
percent. Punjab has lifted the ban on recruitments and 25,000 posts for women have been
created at different tiers, and 70 percent of jobs in primary education have been earmarked
for women. Punjab Fair Representation of Women Act 2014 ensures 33 percent
representation of women on all boards of statutory bodies, public sector companies, etc.
Women participation in PM’s Youth Loan Schemes was encouraged by 50 percent.

Benazir Income Support Programme (BISP), a flagship social protection programme of the
government designed to provide social assistance to women. BISP also gives interest free
financial assistance to the female beneficiaries under Waseela-e-Haq (Micro-Finance)
programme to start their own business. Vocational and Technical Training of one month to a
year’s duration, to the female beneficiary or her nominee has been provided under the
Waseela-e-Rozgar (Technical & Vocational Training) programme (target is 150,000
beneficiaries) with a monthly stipend for each trainee is Rs6,000. Waseela –e-Sehat (Life

Annual Plan 2018-19

66 Gender and Women Development

and Health Insurance) programmes subsidized health care for beneficiaries and life
insurance to one million women, the premium is paid by the programme. Waseela-e-
Taleem (Primary Education) encouraged beneficiaries families to send their children ages 5-
12 years to school through a co-responsibility cash transfer of Rs200/- per child (limit to
three per family ).

The Government has taken measures to ensure women’s rights as envisaged in the CEDAW.
The ‘Honour Killing” one of the most critical problems facing the country, the present
government has enacted effective legislation to address women’s issues with a view to
safeguard their rights i.e. (Criminal Law (Amendment)(Offences on the pretext of Honour
Act, 2016) and (Criminal Law (Amendment)(Offences Relating to Rape), Act 2016).

Several institutions contributed in securing and promoting women’s rights and National
Commission on the Status of Women (NCSW) is one of them. National Commission on the
Status of Women Act, 2012 provided financially and administratively autonomous body with
the objective of promoting social, economic, political and legal rights of women. The NCSW
prepared a comprehensive roadmap defining goals, priorities and strategies for
empowerment of the women with special focus on issues of home based/informal sector
workers and their inclusion in the labour force, affirmative action for reservations of quotas
in the government jobs including minority communities and initiatives for legislation.

Outlook 2018-19
The Annual Plan envisages the need for a framework of equitable development of women,
gender mainstreaming, through development of gender sensitive need based projects and
action integration of gender dimensions into all sectors of economy. A women right based
approach to develop women’s economic, social and development rights, entitlements and
sensitization on gender issues to be ensured. Support mechanism for women survivor of
violence and in distress is required to be strengthened. The creation of gender based
knowledge through research and gender disaggregated data (including third gender), day
care facilities for children of working mothers.

Funds amounting to Rs254.0 million were allocated in PSDP, 2017-18 to four new
development schemes of Ministry of Human Rights including Implementation of Action Plan
for Human Rights in Pakistan, Institutional strengthening of Ministry of Human Rights,
Acquisition of land for construction of building for National Institute of Human Rights and
Construction of working women hostel in Islamabad. In addition to that an amount of
Rs52.00 million was allocated for two ongoing development schemes of Ministry of Human
Rights i-e Helpline for legal advice on violations of human rights with an allocation of Rs25.0
million and establishment of National Institute of Human Rights with an allocation of
Rs27.00 million. In order to promote innovative ideas based on business plans leading to
solution of social problems, the government established a Centre for Social
Entrepreneurship at a cost of Rs178.43 million focusing on women entrepreneurship and
PSDP allocation of Rs40.0 million. The project is unique in nature for addressing social issues
through innovative business plans and women are equally encouraged to grow as an
entrepreneur.

Annual Plan 2018-19

Gender and Women Development 67

Programmes for 2018-19

The federal and provincial governments, including civil society organizations have envisaged
plans for promoting gender equality and women empowerment through actions comprised
of awareness raising campaigns and allocation of resources under annual development
programmes. The women departments have envisaged initiatives for establishment of
working women hostels, daycare centers for children of working mothers, women crises
centers, guidelines & awareness on work place harassment and shelter homes in the
provinces. The helpline against Human Rights violation, crises centers in the ICT and human
rights Directorate established in the provinces would remain in support to women
addressing their issues. The important initiatives are summarized:
 Continue Services under "Establishment of Helpline for Legal Advice”.
 Construction of working women hostel, G-6/2 and G-7/3, Islamabad.
 Services of National Commission on the Status of Women.
 Continue support to the poverty stricken people under BISP initiatives.
The Plan envisages achieving the unmet goals of Sustainable Development Goals (SDGs)
through short and long term plans; which also includes Goal 5: gender equality. The focus of
the public and private sector stakeholders’ intervention is on addressing issues faced by the
poor, vulnerable and marginalized women living in rural and urban areas through the
programmes like poverty alleviation, income support, protection of women rights, women
packages and affirmative action by the Government.

Annual Plan 2018-19

Chapter 11|YOUTH AND SPORTS

According to latest demographic figures, Pakistan is the fifth largest young country in the
world and out of 207.77 million people, 63 percent (130.90 million) of Pakistan’s population
comprises of youth. Of these, 58.5 million are 20-24 years old while 69 million are under 15.
This exceptional youth bulge which is also called youth dividend offers an opportunity to
invest in youth to leverage its strategic position and to harness their potential for country’s
economic growth. This segment of society is the most affected due to the absence of
national youth policy. Youth needs to be mainstreamed by education, skill, training,
entrepreneurship, employment, engagement, equality, due importance by state institutions
and last but not the least through financial support.

Major policies and programmes have been chalked out for development of Youth under
“Pakistan Vision 2025”. Under the Vision special emphasis has been made on the human
resource development particularly the youth resource development and technical
competence enhancement to tap the latent energies and potential skills of youth to make
them effective managers of change. Moreover, a portfolio of youth development
programme initiated in the year 2013 is successfully being implemented under Prime
Minister’s Youth Programme.

Performance Review of Prime Minister's Youth Programme

The Prime Minister’s Youth Programme has a broad canvas of schemes, enabling youth and
poor segments of population to get good opportunities of higher education through access
to IT, vocational training, entrepreneurship, and on-the-job training for young graduates to
improve probability of getting them productive jobs in the labour market.

Prime Minister’s Youth Business Loan Scheme

Prime Minister’s Youth Business Loan Scheme is

designed to provide subsidized financing for The following six programmes under
Prime Minister’s Youth Programme are
nearly one hundred thousand (100,000)
successfully being implemented:
beneficiaries, through designated financial
institutions namely National Bank of Pakistan  PM’s Youth Business Loan scheme
(NBP) and First Women Bank Ltd.  PM’s Interest Free Loan Scheme
(FWBL).Currently 15 other commercial banks  PM’s Youth Training Programme
have also started lending under the scheme,
 PM’s Youth Skill Development
which offers small business loans ranging from Programme
Rs0.1 – 2.0 million with tenure up to 8 years
including first year as a grace period, and a debt  PM’s Programme for Provision of
: equity ratio of 90 : 10. These loans are being laptops
disbursed to potential entrepreneurs across  PM’s Fee reimbursement Scheme for
Pakistan: Punjab, Sindh, Khyber Pakhtunkhwah,  Less Developed Areas
Balochistan, Gilgit-Baltistan, Azad Jammu &
Kashmir and Federally Administered Tribal Areas (FATA)

Annual Plan 2018-19

70 Youth and Sports

For the promotion of entrepreneurial culture in the country, Small and Medium Enterprises
Development Authority (SMEDA) has taken the initiative of developing pre-feasibility studies
in following fifteen (15) sectors:

1. Agri-Processing 9. Gems &Jewelry

2. Chemicals 10. Horticulture
3. Construction 11. Leather
4. Dairy & Livestock 12. Marble
5. Energy 13. Minerals
6. Fisheries 14. Services
7. Food 15. Textiles
8. Furniture
(Rs billion)
Cases Amt
Total Disbursed (February 2014 – March 2018) 23,014 22.98
Disbursed (July 2017 – March 2018) 2,895 2.844
Recovery (percent) 87%

Interest Free Loan Scheme

Prime Minister’s Interest Fee Loan Scheme is targeted at the socio-economic uplift of
underdeveloped areas. Vulnerable rural and urban poor with a poverty score of up to 40 are
eligible to apply under this scheme. 50 percent of loans are given to female borrowers. The
aim of the scheme is at engaging the population in greater economic activity and
strengthening the process of development. Pakistan Poverty Alleviation Fund (PPAF) is the
executing agency of the scheme, which has engaged 26 partner organizations (POs) having
necessary expertise in the field. Currently the scheme is being implemented in 442 Union
Councils of 45 under developed districts across the country.

Achievements
Number of Loans Disbursed to borrowers (June 2014-March 2018) 409,805
Amount disbursed to borrowers (June 2014-March 2018) 9.7 billion
Number of Loans Disbursed to borrowers (July 2017-March 2018) 91,042
Amount disbursed to borrowers (July 2017-March 2018) 2.4 billion
Women Borrowers 65%
Rate of Recovery 99%

Prime Minister’s Youth Skill Development Programme

Prime Minister’s Youth Skills Development Programme is aimed at providing 6-month free
vocational and technical training courses in demand-driven trades to unemployed youth for
acquiring productive skills for gainful employment. Monthly stipend of Rs3,000 for the
entire duration of course (six months) is paid to each beneficiary of the scheme (Rs4,000 for
trainees from FATA). This scheme focuses students who have passed the eighth grade
(middle level education) and are up to 40 years of age. The scheme has nationwide
outreach. National Vocational and Technical Training Commission (NAVTTC), Ministry of
Federal Education and Professional Training is the executing agency of this scheme. NAVTTC
engages nation-wide public and private sector vocational and technical training institutes
following a competitive evaluation process.

Annual Plan 2018-19

Youth and Sports 71

Total Number of trainees (FY 2014-15 to 2017-18) 150,000

Total Number of trainees (July 2017- March 18) 50,000

Prime Minister’s Laptops Scheme

The Prime Minister’s Laptops Scheme is an attempt to enhance the scope of research and
quality education in the country and to increase the access to information technology.
Annually, 100,000 laptops are distributed among students; both male and female, registered
in an HEC approved public sector educational institution. MS, MPhil, and PhD students
receive laptops under this scheme, while the remaining laptops are distributed among
Masters’ and Bachelors’ students on the basis of merit. The scheme has nationwide
outreach. It has a 1 percent quota reserved for disabled students. The Higher Education
Commission (HEC) and Ministry of Federal Education and Professional Trainings are the
executing agency for this scheme.

Status Update
Laptop Distributed Phase-I Phase-II Phase-III Total
Azad Jammu & Kashmir 2967 2199 1627 6793
Balochistan 4114 3294 2842 10250
Federal Capital 24267 18080 18052 60399
Gilgit-Baltistan 346 513 411 1270
Khyber Pakhtunkhwa 14394 13899 13893 42186
Punjab 32924 45765 44956 123645
Sindh 20988 16250 18219 55457
Total 100,000 100,000 100,000 300,000

100,000 more laptops will be delivered to the eligible students by June, 2018 whereas the
Ministry of Finance has released Rs5.287 billion for the procurement of last tranche of
100,000 laptops as per the approved PC-I. These laptops will be delivered among the eligible
students by September, 2018.

Prime Minister’s Fee Reimbursement Scheme for Less Developed Areas

Prime Minister’s Fee Reimbursement Scheme for Less Developed Areas, aimed at
encouraging the pursuit of higher education, provides 100 percent full tuition fee
reimbursement p for post graduate degrees (MA, MSc or higher level) to students, male and
female, belonging to remote and under-privileged areas of the country. All Students
registered in a Masters/PhD programme in an HEC approved public sector educational
institution, and domiciled in interior Sindh, Southern Punjab (Divisions of Multan,
Bahawalpur and DG Khan), Balochistan, less developed areas of KP (Malakand, Kohistan, DI
Khan, Lakki Marwat, Batagram, Kala Dhaka/Torghar, Hangu, Kohat, Bannu and Karak), GB
and FATA.are eligible to apply under the scheme. Higher Education Commission (HEC)/
Ministry of Federal Education and Professional Training are the executing agency of the
scheme.

Total Number of Beneficiaries (FY 2012-13 to 2017-18) 149,695

Total Amount Disbursed (July 2017- March 18) Rs7,6 billion

Annual Plan 2018-19

72 Youth and Sports

Prime Minister’s Youth Training Programme

Prime Minister’s Youth Training Scheme is aimed at professional development of young

graduates in order to equip them with abilities to avail job opportunities both in the local
and international market by providing 1-year paid on-job- training/internships at private and
public sector departments/organizations to 50, 000 graduates annually. All graduates with
25 years of age, and 16 years of education or 03-years Diploma in Associate Engineering
after Matric/FA along with Madaris graduates having degrees equivalent to that of Masters’
are eligible to apply under this scheme. A monthly stipend of Rs15,000 is paid to each
selected intern for a period of 12 months, based on satisfactory assessment by the
employers concerned. National Internship Programme, Ministry of Inter-Provincial
Coordination is the executing agency of this scheme.

Total Number of Interns Placed Under Phase I & II 95,023

(May 2016to March 2018)
Total Number of Interns Placed Under Phase II (July 2017 to March 2018) 44,797

Outlook 2018-19
Prime Minister’s Youth Programme is a flagship intervention of the federal government for
youth empowerment. The programme is successfully implemented all over the country
through selected financial institutions, recognized training institutes; Pakistan Poverty
Alleviation Fund, Higher Education Commission, Federal Ministry of Education and
Professional Training and Ministry of Inter-Provincial Coordination. Adequate funds have
been allocated to the Programme for the financial year, 2018-19.

Programmes for 2018-19

The detail of allocation for financial year 2018-19 for these six schemes is as follows:

(Rs billion)
S.# Schemes Unit Amount Expected No. of
Beneficiaries
1 Prime Minister’s Youth Business Loan Cases 3.700 3800
Scheme
2 Prime Minister’s Interest Free Loan Scheme Borrowers 3.500 148800

3 Prime Minister’s Youth Training Programme Interns 12.170 50,000

4 Prime Minister’s Youth Skill Development Trainees 1.116 150,000

Programme
5 Prime Minister’s Programme for Provision No. 5.287 100,000
of Laptops
6 Prime Minister’s Free Reimbursement No. 3.700 66,785
Scheme for Less Developed Areas

Annual Plan 2018-19

Youth and Sports 73

Sports
The development of sports sector in the country not only as a matter of achieving physical
fitness but to achieve excellence in national and international level games for bringing glory
and pride to the nation cannot be over emphasized. The Sports is occupying sufficient space
in our annual development programme as well as long term development plans. In the vision
2025, enough thrust has been laid on development of sports at grass roots level to identify
talent along with encouragement to national players and teams to be world champions in
two sports and won at least twenty five (25) medals in Asian Games. This is with particular
reference to Hockey, Cricket, Athletics, Boxing and Squash etc. In order to achieve these
objectives the following initiatives have been taken; Creation of sports facilities and
infrastructure of international standards, Holding of National Games annually with the
primary objective of hunting, grooming and encouraging the local talent and promoting
inter-provincial harmony.

Performance Review 2017-18

During financial year, 2017-18, an amount of Rs3,044.157 million was allocated to four
ongoing and six new projects of Ministry of Inter Provincial Coordination (IPC) out of which
an amount of Rs1,428 million is expected to be utilized fully by end of June, 2018. The
project-wise detail of allocation and utilization is given below:-

(Rs million)
Total
Total Allocation
S.No. Name of Project Utilization
2017-18
2017-18
1 Construction of National Sports City at Narowal 495.550 495.550
Laying of Synthetic Hockey Turf at Swat (Prime
2 55.0 30.0
Minister’s Directive)
Replacement of Synthetic Hockey Turfs at six cities viz
3 Islamabad, Faisalabad, Wah Cantt. Peshawar and 200.0 100.0
Abbottabad
4 Strengthening of Sports Infrastructure 2000.0 600.0
Construction of Boxing Gymnasium at PSB Coaching
5 50.0 20.0
Centre, Karachi
Construction of Boxing Gymnasium at PSB Coaching
6 50.0 20.0
Centre, Quetta
7 Holding of National Games 92.0 162.000
Establishment of Bio-mechanical Lab at Pakistan
8 61.607 0
Sports Complex, Islamabad
9 Laying Synthetic Hockey Turf at Gilgit 15.0 0
Total: 3044.157 1427.5

Holding of National Games

The project costing Rs573.500 million was approved by CDWP on 04-3-2015. The project
envisages holding of Inter-Provincial games annually at Islamabad for five consecutive years
with the primary objective of hunting, grooming and encouraging the local talent and
promoting inter-provincial harmony. An amount of Rs160.8 million has been released to the
project during financial year, 2017-18 which has been fully utilized. The second games with

Annual Plan 2018-19

74 Youth and Sports

the name of Quaid-e-Azam Inter- Provincial Youth Games 2017has successfully been held at
Jinnah Stadium, Pakistan Sport Complex, Islamabad. Around 2700 athletes from four
provinces, Gilgit-Baltistan, Islamabad, Federally Administered Tribal Areas (FATA) and Azad
Jammu and Kashmir (AJK) participated in these games. Both men and women teams took
part in thirteen different sporting events including: athletics, volley ball, tennis, football,
badminton, table tennis, boxing, judo, wrestling etc.

Construction of Sports Complex

A multipurpose sports complex at Narowal is being implemented at a cost of Rs2,498.778

million. During financial year an amount of Rs995.0 million has been released to the project
which will be fully utilized upto June, 2018. The updated overall physical progress of the
project stands at 90 percent. The project envisages construction of various sports facilities
including Cricket Stadium with Pavilion having seating capacity for 5000-10000 spectators;
Grassy Football Ground including athletic track (08 lanes) with Pavilion having seating
capacity of 600 spectators; Construction of Hockey Ground with Astroturf and seating
capacity for 2000 spectators; two Squash Courts including seating steps; two Tennis Courts
including seating steps; Gymnasium & indoor games; one Basketball court; one Swimming
Pool and Training Institute & Academy etc.

Other Sports Projects

During the financial year, 2017-18, CDWP approved the following five new projects of
Ministry of Inter-Provincial Coordination (IPC) which are expected to make headway by June,
2018:-

(Rs million)
Approved
S.No. Name of Project Approval Status
Cost
Laying of Synthetic Hockey Turf at Swat (Prime CDWP 19-
1 154.593
Minister’s Directive) 3-2018
Replacement of Synthetic Hockey Turfs at six cities viz
CDWP 4-12-
2 Islamabad, Faisalabad, Wah Cantt. Peshawar and 523.163
2017
Abbottabad
CDWP 15-1-
3 Strengthening of Sports Infrastructure 2878.450
2018
Construction of Boxing Gymnasium at PSB Coaching CDWP 19-3-
4 133.671
Centre, Karachi 2018
Construction of Boxing Gymnasium at PSB Coaching CDWP 19-3-
5 104.663
Centre,Quetta 2018

Outlook 2018-19
Recognizing the importance of sports in Youth development and Nation building, the
Government took major initiatives for development of new sports infrastructure in the
country (i.e. construction of National Sports City at Narowal) and strengthening of existing
sports Infrastructure at the Pakistan Sports Board (PSB) Coaching Centres at Karachi, Lahore,
Quetta and Peshawar. The project titled “Holding of National Games” is being implemented
successfully. The project is not only cultivating inter-provincial harmony but also helping in
bringing out sports leaders of tomorrow.

Annual Plan 2018-19

Youth and Sports 75

Programmes for 2018-19

The allocation for Sports Sector is Rs3,552.584 million for financial year 2018-19 for
completion of the ongoing projects and initiating some new projects. The project-wise detail
of the allocation under PSDP, 2018-19 is as under:-

(Rs million)
S.No. Name of Project Allocation 2018-19
1. Construction of National Sports City at Narowal 467.01
2. Strengthening of Sports Infrastructure 848.450
3 Replacement of Synthetic Hockey Turfs in six cities viz. 423.163
Islamabad, Faisalabad, Wah Cantt, Peshawar, Quetta and
Abbottabad
4. Laying of Synthetic Hockey Turf at Swat 132.593
5. Promotion of Sports Talent and Regaining Pride 30.000
6. Construction of 100 Stadiums (50:50 sharing with provinces) 1,000.00
7. Other Projects 651.368
Total 3,552.584

The project titled “Strengthening of Sports Infrastructure” envisages providing missing

facilities in different sports complexes and PSB Coaching Centres across the country. An
amount of Rs948.450 million has been allocated to the project under PSDP, 2018-19.
Moreover, an amount to tune of Rs467.401 million has also been allocated to project titled
“Construction of National Sports City at Narowal” to complete the project by December,
2018.

Similarly, an allocation amounting to Rs423.163 million and Rs132.593 million has also been
made for ongoing projects “Replacement of Synthetic Hockey Turfs in six cities viz.
Islamabad, Faisalabad, Wah Cantt, Peshawar, Quetta and Abbottabad” and “Laying of
Synthetic Hockey Turf at Swat” respectively in PSDP, 2018-19. For promotion and
development of sports at grass root level, a sum of Rs1,000 million has been earmarked for
construction of 100 stadiums across the country on 50:50 sharing basis with provinces.

Annual Plan 2018-19

Chapter 12|RELIGIOUS PLURALISM AND
INTERFAITH HARMONY

Pakistan is a country with a population of 207 million people belonging to different religions,
casts and creeds. This diversity signifies the need to develop a pluralistic society where
people with different beliefs can live in peace and harmony. The Constitution of Pakistan,
1973 declares the country as an Islamic Republic and Islam as its state religion that protects
rights of all citizens. Islam has proved to be a guardian of Human Rights throughout the
history. Father of the nation Quaid-i-Azam Muhammad Ali Jinnah made it clear in his speech
of August 11, 1947 which manifests the commitment to the interests and rights of the
minorities and to the promotion of interfaith harmony.

In the recent scenario, many societies are challenged with problems of extremism, cultural
and religious intolerance. This requires international cooperation and collective efforts to
combat all forms of hatred, intimidation, incitement and acts of violence motivated by
intolerance based on religion or belief. The situation warrants to work together to promote
genuine dialogue, cooperation and understanding between all cultures, faiths and
civilizations. Peoples of all religions and civilizations bear equal responsibility to promote this
objective. Cooperation, not confrontation is the way forward. Tolerance in the society is to
be promoted through all mediums and in all areas.

The Annual Plan envisages promoting peace, harmony and tolerance among all segments of
the society and recognizes society's diversity living across the country to promote the
inclusive society. The plan is cognizant of the issues of minorities, to protect their life and
property and making concentrated efforts to uplift socio-economic conditions of minority’s
communities of the country and is committed to enhance efforts for a progressive and
moderate Islamic state.

Performance Review 2017-18

The initiatives taken previously for promotion of Religious Pluralism and Interfaith Harmony
and empowerment of minorities remained continue. Out of these, the remarkable initiatives
are summarized as under:-
 Enactment of Hindu Marriages Act, 2017.
 Enactment of the Punjab Sikh Anand Karaj Marriages Act, 2018.
 The Pakistan Penal Code-1860 provides a complete chapter i.e. Chapter XV which
relates with offences relating to the religion.
 There are 10 reserved seats for minorities in National Assembly and 04 in the Senate
in addition to that there are 23 reserved seats in all Provincial Assemblies.
 Allocation of 5 percent Job Quota for minorities in all Federal Government
Services/Jobs in addition to their participation on the open merit basis.

Annual Plan 2018-19

78 Religious Pluralism and Interfaith Harmony

 Declaration of 11th of August as a “Minorities Day” to recognize the

services/sacrifices and contributions of Minorities in nation building.
 Celebration of Ten (10) religious festivals of minorities at official level in Pakistan in a
year, include Christmas/Easter for Christians, Holi/Diwali for Hindus,
Biasakhi/Birthday of Guru Nank for Sikhs, Nauroze for Zoroastrian, Eid-e-Ridvan for
Bahai’s, Festival of Lights for Buddhist community, Chelum Jhust for Kalasha people.
 In emergency crises faced by minorities in different areas of the country, financial
help of Rs300,000/- to Rs500,000/- are being extended to the victims / their family
members by the M/o Religious Affairs and Interfaith Harmony.
 Grant of financial assistance through Minorities Welfare Fund (MWF).
 Marriage Grant of Rs50, 000/- for marriage of daughters of widows/orphan girls of
minorities community are granted.
 Cultural and religious visits have been encouraged.

Outlook 2018-19
The promotion of religious pluralism and interfaith harmony in the country under a
consistent framework and national level guidelines is envisaged for equitable development
of communities of all religions in all provinces. The framework would be developed in
consultation with national and provincial stakeholders. The communities inhabiting the
length and breadth of the country enjoy equal rights and plan recognizes equal rights of all
citizens and making efforts to ensure and protect basic rights.

The religious pluralism initiatives have been envisaged in Action Plan of Ministry of Human
Rights which has set key priority to protection of the rights of minorities and numbers of
initiatives have been envisaged for promotion and protection of the rights of the minority
community. These include effective operation of the National Commission for Minorities
(NCM) to monitor violation of minorities’ rights, formulation of national policy guidelines
and national plan of action on interfaith harmony and strengthening and enhancing the
effectiveness of Interfaith Harmony Committees established at the district level and
establishment of a federal Task Force to encourage tolerance and interfaith harmony in the
country.

Programmes for 2018-19

The people of every community have rights to enjoy complete religious freedom in Pakistan.
The worship places of the minority’s communities envisaged to be repaired, renovated and
restored across the country, along with ensuring foolproof security arrangements for them.
The religious tourism is to be promoted by the stakeholders.

Many initiatives for achieving interfaith harmony in the country have been envisaged in the
Action Plan of Ministry of Human Rights approved by the Prime Minister for promotion and
protection of human right in the country. Ministry of Human Rights in collaboration with
Ministry of Religious Affairs & Interfaith Harmony and provincial departments planned to
implement these initiatives.

Annual Plan 2018-19

Chapter 13|MASS MEDIA, CULTURE AND
NATIONAL HERITAGE

Pakistan has a very vibrant and dynamic media landscape. The growth of private sector
media (particularly the electronic media) has experienced a boom during the last fifteen
years. There has been a cumulative investment of approximately US $ 4 billion since 2003-04
in the electronic media in Pakistan. As a result, this sector has generated over 250,000 direct
and indirect employment opportunities for the people of Pakistan. Presently, Pakistan’s
mass media sector is growing @ 7 percent per annum. It is also estimated that cumulative
investment in electronic media industry will surpass US $ 5 billion by the end of the current
financial year. This investment has not only resulted in expansion in Mass Media sector but
also has a multiplier effect on increasing job opportunities for skilled and unskilled media
personnel / journalists and expanding work of media production houses, advertising
agencies and promotion of performing art. The Public Sector media is making efforts to
extend high quality Television and Radio signals to the entire population and area of the
country.

Performance Review 2017-18

Mass Media

In order to strengthen and expand coverage of TV and Radio broadcasting to un-served

areas, an amount of Rs811.788 million was earmarked to twelve on-going and fifteen new
projects of Information & Broadcasting Division in PSDP 2017-18. The revised estimates are
Rs291.733 million. The impact of these initiatives will be national integration, harmony and
socio-economic development of the country. Moreover, national culture will be preserved,
promoted and projected for young and future generations. The Sub-sectoral physical and
financial details are given in the succeeding paragraphs.

Mass Media in Pakistan

PTV Stations 7
TV Transmitters 110
Radio Stations (Public Sector) 27
FM Radio Stations (Public Sector) 46
F.M Radio Stations (Operational) (Private Sector) 188
Cable T.V. Licenses 4150
Total TV viewership (Terrestrial, Cable & Satellite) (million) 140
Total Cable & Satellite viewership (million) 75
Total Terrestrial viewership (million) 65
Satellite Channels (Local) 89
Landing Rights Permission Channels 29
Internet Protocol Television (IPTV) 01
Mobile Video & Audio Content Provision Licenses 04
Source: PEMRA, PTV & PBC

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80 Mass Media, Culture and National Heritage

Pakistan Television Corporation (PTVC)

The allocation of PTVC is Rs329.835 million while the revised estimates are Rs145.601
million. The amount has been spent on its ten on-going and three new projects. Most of the
on-going projects are meant for providing TV signals to left-out areas of Balochistan, Khyber
Pakhtunkhwa (KP), Azad Jammu & Kashmir and Punjab. The project for setting-up
Rebroadcast station at Ziarat (Balochistan) is expected to be completed by June, 2018.While
the work on Rebroadcast Stations at Neelam Valley, AJK, Khyber Pakhtunkhwa, Punjab and
Balochistan remained in progress during the financial year,2017-18 and will continue during
the next financial year 2018-19.The project for replacement of analogue studio and
transmission equipment at three PTV centres (i.e. Islamabad, Lahore & Karachi) with High
Definition (HD)/Standard Definition (SD) equipment has been approved by CDWP on
19.3.2018.

Pakistan Broadcasting Corporation (PBC)

The allocation of PBC is Rs267.0 million while the revised estimates are Rs89.4 million. These
funds have been spent on one on-going and three new projects of PBC. The new project
titled “Installation of FM-101 transmitter at Narowal” is expected to be completed by 30th
June, 2018. Similarly, work on the project “100 KW MW Transmitter at Gwadar” remained in
progress during financial year 2017-18 and will continue during the next financial year 2018-
19. Two projects for improvement of radio signals in AJK have been approved recently by
CDWP.

Pakistan National Council of Arts (PNCA)

The Pakistan National Council of the Arts (PNCA) was established to spearhead the
development of art in the country. The council is pursuing to provide conducive
environment for flourishing of arts and cultural activities in the country. The allocation for
PNCA stands at Rs39.953 million. The revised estimates are Rs19.953 million for one on-
going and two new projects. The work on project titled “Up-gradation of Security of National
Art Gallery, PNCA” remained in progress during the financial year 2017-18 and is likely to be
completed by end of the next financial year. The projects for Establishment of Digitalized
Archive Library at National Art Gallery and PC-II to carry out feasibility study and design work
for establishment of Film Academy at H-9, Islamabad have been approved recently by DDWP
of Information & Broadcasting Division.

Pakistan Electronic Media Regulatory Authority (PEMRA)

PEMRA is responsible for regulating the establishment and operation of all broadcast media
and distribution services in Pakistan. It facilitates the private sector in establishing radio,
television, and Cable TV stations in the country. The allocation of PEMRA is Rs155.0 million
while the revised estimates are Rs16.375 million on three new projects. These projects
envisage institutional strengthening of PEMRA through capacity building of officials/officers
of PEMRA, up-gradation capacity of the monitoring system of PEMRA up to 250 TV channels
and imparting training to personnel of media houses for creation of awareness regarding
PEMRA laws, licensing terms and conditions and particularly the code of conduct.

Annual Plan 2018-19

Mass Media, Culture and National Heritage 81

Directorate of Electronic Media & Publications (DEMP)

An amount of Rs10.00 million has been utilized by the only new project of DEMP titled
“Channel Ranking & Data Centre” on purchase of IT equipment and accessories. The project
is for authentic ranking of TV channels which will facilitate decision making in allocating
public sector advertisements to various channels. Moreover, this system has the ability to
store and track the number and duration of advertisements actually run by a particular
channel and saving billions of rupees of the national exchequer.

Associated Press of Pakistan (APP)

An amount of Rs10.00 million has been utilized by the only new project of APP titled
“Security Measures and Revamping of News operation at Islamabad and all provincial
capitals” Security and IT equipment has been procured for improvement in the working of
APP.

Development Communication Project

Development Communication Project is an on-going project which was launched in financial

year 2014-15 under the new initiatives proposed by Ministry of Planning Development &
Reform. The project envisages projection of PSDP funded development programmes. The
project carried out communication through electronic, print and digital media which helped
to increase awareness among people about development strategy and projects being
undertaken for uplift of their socio-economic conditions. Major components of the project
are: generation of development discourse in the country through electronic, print and digital
media and through holding of conferences/seminars/workshops on various sectors of
economy. The project has been allocated Rs212.00 during financial year 2017-18 out of
which Rs100.00 million is expected to be utilized by 30th June, 2018. Fifteen national
conferences/seminars have been organized as part of media campaign for CPEC during
2017-18. The detail of some of the important steps taken under the project during financial
year, 2017-18 are as under:
 Meeting of the Minister for Planning Development & Reform with delegation
from Gwadar Press Club.
 A special series of Programmes for “How Nations Develop” in PTV
Headquarters.
 Interactive Session of the Minister for Planning Development & Reform with
young emerging anchors.
 Media Briefing in respect of 33rd Annual General Meeting & conference for
economic professionals, policymakers and businessmen.
 Round Table Conference on Health issues.
 Round Table Conference promoting Science & Technology.
 Media Briefing in respect of Joint Coordination Committee (JCC).
 Media Briefing for CPEC Summit and Expo at Pak China Friendship Center,
Islamabad.

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82 Mass Media, Culture and National Heritage

The financial review of Mass Media Sector for 2017-18 is as under:-

(Rs million)
Allocation Revised
S.No. Agencies
2017-18 Estimates2017-18
1. Pakistan Television Corporation 329.835 145.601
2. Pakistan Broadcasting Corporation 267.000 89.804
3. Pakistan National Council of Arts (PNCA) 39.953 19.953
Pakistan Electronic Media Regulatory Authority
4. 155.000 16.375
(PEMRA)
4. Department of Electronic Media & Publications 10.000 10.000
5. Associated Press of Pakistan 10.000 10.000
Total 811.788 291.733
Source: Public Sector Development Programme (PSDP)

Culture and National Heritage

National History and Literary Heritage Division deals with preservation and conservation of
the country’s rich cultural heritage and promotion of art and culture. The Division was
allocated an amount of Rs272.703 million for its two on-going and twelve new projects in
PSDP 2017-18 while the revised estimates are Rs123.353 million.

Pakistan Academy of Letters (PAL)

The allocation of Pakistan Academy of Letters (PAL) is Rs149.352 million while the revised
estimates are Rs32.252 million. The utilization has been made on construction of Regional
Offices of Pakistan Academy of Letters (PAL) at Peshawar and Quetta. The project titled
“Construction of Auditorium at Pakistan Academy of Letter, Islamabad” is expected to be
completed by 30.6.2018. The Regional Centres are being constructed for promotion of
regional literature and writers.

National Book Foundation (NBF)

During the year 2017-18 an amount Rs33.351 million has been utilized on completion of the
only on-going project of NBF titled “Construction of National Book Foundation Author’s Club
and Resource Centre, Lahore”. The project is for establishment of a resource centre for
authors.

National Library of Pakistan

Similarly, an amount of Rs10.0 million and Rs8.0 million are likely to be utilized against two
projects of National Library of Pakistan titled “Up-gradation of National Library of Pakistan”
and “Digitalization of Rare Books and Manuscript Collection” respectively. The project
envisages digitalization of a number of rare books and manuscripts of Quaid-e-Azam and
Allama Muhammad Iqbal.

Annual Plan 2018-19

Mass Media, Culture and National Heritage 83

Department of Archaeology and Museum (DOAM)

The project for preservation of Rawat Fort was approved and an amount of Rs6.750 million
was utilized on the project during financial year 2017-18. The fort is a unique military
monument which comprises of rooms / cells for soldiers and a Baradari. The project is for
preservation, restoration and conservation of this historic monument.

Urdu Dictionary Board, Karachi

The twenty two volumes of Urdu Dictionary have been digitalized which is now available on
website. An amount of Rs6.00 million has been utilized on audio recording of the Urdu
Dictionary for correct pronunciation and accent of the Urdu language.

Quaid-e-Azam Mazar Management Board

An amount of Rs27.00 million has been utilized by Quaid-e-Azam Mazar Management Board
on two new projects. These projects include PC-II for establishment of Pakistan Park and
installation and operation of municipal waste water treatment plant at peripheral area of
Mazar-e-Quaid. The project is for treatment of waste water for watering plants and garden
area of the mausoleum.

The financial review of Culture sector for 2017-18 is given below:

(Rs million)
Revised
Allocation
S.No. Agencies Estimates
2017-18
2017-18
1 Pakistan Academy of Letters 149.352 32.252
2 National Book Foundation (NBF) 33.351 33.351
3 National Library of Pakistan 30.00 18.000
4 Urdu Dictionary Board 10.00 6.000
5 Quaid-e-Azam Management Board 40.00 27.000
6 Department of Archeology Museum (DOAM) 10.00 6.750
Total 272.703 123.353
Source: Public Sector Development Programme (PSDP)

Outlook 2018-19
The Pakistan media and communication industry is at the brink of analogue and
venturing into the digital world. It is also an international obligation and Pakistan is
making efforts to meet the requirement of the International Telecommunication Union
(ITU) to switch over to digital standards. In the Television sector, headway has been
made and a pilot digital transmitter, based on the Chinese DTMB standard, is working
successfully. A digital standard will soon be adopted for the TV broadcasts. The radio is
analogue and plans for the digitalization of its network are being chalked out. Pakistan
Broadcasting Corporation is in the process of selection of a digital audio broadcasting
standard for Pakistan.

Annual Plan 2018-19

84 Mass Media, Culture and National Heritage

Programmes for 2018-19

Mass Media Sector

The allocation for next financial year 2018-19 for the Mass Media sector is Rs1,644.055
million. The organization-wise details of allocation for PSDP2018-19are as follows:-

(Rs million)
S.No. Agencies Allocation 2018-19

1. Pakistan Television Corporation 1,190.938

2. Pakistan Broadcasting Corporation 197.656

4. Pakistan National Council of Arts (PNCA) 81.356

5. Pakistan Electronic Media Regulatory Authority (PEMRA) 117.175

6. Department of Electronic Media & Publications (DEMP) 46.870

7. Associated Press of Pakistan Corporation (APP) 10.060

Total 1,644.055
Source: Public Sector Development Programme (PSDP)

An amount of Rs1,190.938 million has been earmarked for PTVC in PSDP 2018-19. Keeping in
view the targets, the entire amount has been allocated to seven on-going and eight new
projects of PTVC which include four projects of Rebroadcast stations for left out pockets of
Balochistan. The work on setting-up of RBSs in Neelum Valley AJK, Balochistan and Khyber
Pakhtunkhwa will remain in progress in the year, 2018-19. Priority has been given to near
completion and fast track projects.

Similarly, an amount of Rs197.656 million has been allocated for four on-going projects of
Radio Pakistan under PSDP, 2018-19.

An amount of Rs81.356 million has been earmarked for PNCA to carry out the remaining
work on three on-going projects. Similarly, an amount of Rs117.175 mullion has been
earmarked for three ongoing projects of PEMRA. The on-going projects each of Department
of Electronic Media & Publications and Associated Press of Pakistan with an allocation of
Rs46.87 million and Rs10.06 million respectively have been included in PSDP, 2018-19.

Culture

The total allocation for next financial year 2018-19 for the Culture sector is Rs550.597
million out of which Rs154.258 million has been allocated for six on-going projects and
remaining Rs396.339 million has been allocated for six new projects. The organization-wise
detail is as follows:-

(Rs million)
S.No. Agencies Allocation 2018-19
1 Pakistan Academy of Letters (PAL) 476.92
2 Department of Archeology & Museum (DOAM) 10.00

Annual Plan 2018-19

Mass Media, Culture and National Heritage 85

S.No. Agencies Allocation 2018-19

3 National Library of Pakistan 45.00
4 Quaid-e-AzamMazar Management Board 22.338
5 National Book Foundation 26.339
Total 550.597

Pakistan Academy of Letters will complete six ongoing projects for construction of Regional
offices of Pakistan Academy of Letters at Dadu (Sindh), Peshawar, Quetta, Muzaffarabad,
Giltgit-Baltistan and FATA for which funds to tune of Rs95.00 million have been allocated in
PSDP 2018-19. An amount of Rs250 million has been allocated for construction of Faiz
Ahmed Faiz Cultural & Arts Complex at Kala Qadir, the hometown of Faiz Ahmed Faiz.
Moreover, an amount of Rs45.00 million has been allocated for two on-going and one new
project of National Library of Pakistan. An amount of Rs22.338 million has been allocated for
completion of an on-going project of Quaid-e-Azam Mazar Management Board in PSDP
2018-19. An amount of Rs26.339 million has been earmarked to National Book Foundation
(NBF) for up-gradation of Braille Complex at Karachi.

Annual Plan 2018-19

 PILLAR-II
Achieving Sustained, Indigenous
and Inclusive Growth
Chapter 14|FISCAL, MONETARY AND CAPITAL
MARKET DEVELOPMENT

Effective fiscal consolidation measures taken by the government have yielded to reduce
overall fiscal deficit to 5.8 percent of GDP during 2016-17 from 8.2 percent of 2012-13.
These include enhancement of consolidated revenue through improvement in efficiency of
tax machinery, reduction in tax exemptions/concessions, rationalisation of current
expenditure and subsidies, realisation of low cost foreign borrowing and bringing foreign
exchange stability.

The FBR’s tax collection recorded an average annual growth of 14.7 percent during the last
four years. Resultantly, tax-to-GDP ratio increased from 9.8 percent in 2012-13 to 12.4
percent in 2016-17 which is in line with the target envisaged in Pakistan Vision 2025. The
monetary policy remained supportive to the fiscal policy to strengthen the monetary and
financial sectors and to ensure availability of cheap credit to the private sector. The
government continued the reform process to develop capital market to strengthen
confidence of the investors. Pakistan Stock Exchange resultantly showed a significant
improvement during the last four years.

Review of Fiscal Developments 2017-18

Federal budget 2017-18 targeted fiscal deficit at 4.1 percent of GDP through increased
measures for revenue mobilisation and expenditure rationalisation. Total revenue during
July-December 2017-18 stood at Rs2,385 billion, registering an increase of 19.8 percent over
the collection of Rs1,991 billion during the corresponding period of last year. Tax revenue
stood at Rs2,027 billion with a growth of 16.4 percent whereas non-tax revenue stood at
Rs358 billion, posting a growth of 43.4 percent. Within non-tax revenue heads, substantial
increase was witnessed in collections of profits of postal department / PTA, windfall levy
against crude oil, dividends, and surplus profits of the SBP. Provincial non-tax revenue also
recorded a phenomenal growth of 82.3 percent. A summary of consolidated fiscal
operations is given at Table-1 whereas their details are at Annex-1.

Table-1: Consolidated Fiscal Operations (July-December 2017-18)

(Rs billion)
Jul-Dec Jul-Dec Percent As Percent of GDP
Item
FY18 FY17 Change Jul-Dec FY18 Jul-Dec FY17
Total revenue 2,384.7 1,990.6 19.8 6.9 6.2
a. Tax revenue 2,026.9 1,741.2 16.4 5.9 5.4
- FBR’s tax revenue 1,730.1 1,467.3 17.9 5.0 4.6
b. Non-tax revenue 357.8 249.4 43.4 1.0 0.8
Total expenditure 3,181.0 2,789.7 14.0 9.2 8.7
a. Current 2,545.2 2,241.6 13.5 7.4 7.0
b. Development 613.9 497.4 23.4 1.8 1.6
Fiscal deficit 796.3 799.1 2.3 2.5
GDP (current market prices) 34,396(P) 31,963
Source: Finance Division

Annual Plan 2018-19

90 Fiscal, Monetary and Capital Market Development

The FBR’s tax collection recorded at Rs1,730 billion during the period under review as
compared to Rs1,467 billion during the comparable period of last year with a growth of 17.9
percent. Collection of both direct and indirect taxes grew by 14.9 percent and 19.9 percent,
respectively. Within indirect taxes, customs duties registered a substantial growth of 29.7
percent. Sales tax collection grew by 19.6 percent whereas federal excise duty declined by
2.6 percent. The increase in collection of customs duties is attributed to levy of regulatory
duty on a number of essential and luxury items and revision of rates.

Total expenditure during the period

under review stood at Rs3,181 Box-1: Tax Amnesty Scheme, 2018
Government introduced a tax amnesty scheme “Foreign
billion, registering a growth of 14
percent over the corresponding Assets (Declaration and Repatriation) Ordinance, 2018”
period of last year. Increase in in a bid to widen tax base. According to the scheme, the
th
development expenditure (23.4 declaration and repatriation can be made during 10
th
percent) was more than that of April 2018 and 30 June 2018. The due date for the
current expenditure (13.5 percent). payment of tax chargeable shall be the date on which
The share of development declaration is made. The foreign assets declared and
expenditure in total expenditure repatriated into Pakistan shall be chargeable to tax at
increased from 17.8 percent in H1- the rates specified below:
FY17 to 19.3 percent in H1-FY18. S. Rate (As % of
Both federal PSDP and provincial No.
Foreign Assets
the Value of
ADP expenditures increased by 22.1 Foreign
percent and 28 percent, Assets)
respectively. Other development 1. Liquid assets not repatriated 5%
expenditure (non-PSDP) also grew Immovable assets outside
2. 3%
Pakistan
by 6.5 percent. Net lending to PSEs
Liquid assets repatriated and
was recorded at Rs2 billion as
invested in Government
compared to its retirement of Rs6.4 securities up to 5 years in US
billion in H1-FY17. dollars denominated bonds
3. with six-monthly profit
The fiscal performance remained on 2%
payment in equivalent Rupee
track during the first half of 2017-18 (rate of return 3%) and
with a deficit of 2.3 percent of GDP payable on maturity in
against the annual target of 4.1 equivalent Rupees
percent and 2.5 percent of 4. Liquid assets repatriated
comparable period of last year due
to higher growth of total revenue and comparatively lower growth of current expenditure.
The analysis of financing-mix of fiscal deficit during the period under review reveals that the
government relied more on domestic than external resources. Within domestic resources,
greater reliance was on bank borrowing to the tune of Rs332 billion.

Pakistan’s gross public debt stock as on 31st December 2017 stood at Rs22,821 billion,
registering a growth of 6.6 percent over the debt stock as on 30th June 2017. The built-up in
public debt was on account of both domestic and external debts which grew by 4 percent
and 12.6 percent, respectively. Net government debt stood at Rs20,879 billion during the
same period, posting a growth of 6.3 percent. Gross public debt was 67 percent during 2016-
17 which was slightly below the previous year’s level of 67.7 percent.

Annual Plan 2018-19

Fiscal, Monetary and Capital Market Development 91

Fiscal Outlook 2018-19

The government will adhere to the policy of fiscal consolidation during 2018-19 to maintain
the fiscal deficit in manageable limits and within the ceilings of Fiscal Responsibility and Debt
Limitation Act (FRDLA), 2005. The FBR will continue its tax reform programme for
broadening the tax net and reforming the tax administration. The debt management
functions will be primarily focused on i) fulfilling the financing needs at lowest possible costs
consistent with prudent degree of risks, ii) broadening the investor base and a well-
functioning domestic debt capital market, iii) lengthening the maturity profile of domestic
debt, and iv) mobilization of maximum available soft external financing.

Total inflows of external financing are expected to be US$ 11,653.9 million during 2018-19
with project loans US$ 4,835.2 million and programme loans US$ 1,818.6 million. The
summarized position is given at Table-2 below:

Table-2: Projected Inflows of External Financing 2018-19

(US$ million)
Source Amount
Bilateral 3,130.8
Multilateral 3,523.1
Eurobond 3,000
Commercial 2,000
Total 11,653.9
Source: Economic Affairs Division and Finance Division

Review of Monetary Developments and Inflation 2017-18

The Monetary Policy Committee (MPC) of
the SBP met regularly at bi-monthly Box-2: Policy Rates (%)
frequency to review and deliberate on Jun-13 9.0
general macroeconomic conditions and Sep-13 9.5
their projections. It gives due consideration Nov-13 to Sep-14 10.0
to economic growth, financial stability, Nov-14 9.5
monetary growth and balance of payments Jan-15 8.5
position in addition to inflation. In this Mar-15 8.0
perspective, the MPC cautiously followed May & Jul-15 6.5
an accommodative policy stance and kept Sep-15 to Apr-16 6.0
the policy rate at 5.75 percent from May May-16 to Nov-17 5.75
2016 to January 2018. This rate was Jan & Mar-18 6.0
increased to 6 percent in January 2018 in
Source: State Bank of Pakistan
order to pre-empt overheating of the
economy amid external sector pressures. The decisions are aimed at reinforcing economic
growth along with stability in financial system and foreign exchange market within the
overarching objective of price stability. The policy rate was maintained at 6 percent in the
monetary policy announced in March 2018 with a view to allow time for the impact of
recent monetary developments to expand.

Money supply as measured by broad money (M2) expanded by Rs771 billion (5.3 percent)
during 1st July 2017 to 30th March 2018 as compared to its expansion of Rs756 billion (5.9

Annual Plan 2018-19

 92 Fiscal, Monetary and Capital Market Development

percent) during the corresponding period of last year (Table-3). Net Foreign Assets (NFA) of
the banking system contracted by Rs473 billion (-78.5 percent) as compared to their
contraction of Rs285 billion (-28.3 percent) during the corresponding period of last year. Net
Domestic Assets (NDA) of the banking system increased by Rs1,244 billion (8.9 percent) as
compared to their expansion of Rs1,041 billion (8.8 percent) last year.

Table-3: Monetary Aggregates

(Rs billion)
Stocks at Monetary Impact
st
Factors Affecting Broad Money (M2) Growth End of from 1 July to
Jun-17 30-Mar-18 31-Mar-17
A. Net Foreign Assets of the Banking System 602.0 -472.8 -284.8
B. Net Domestic Assets of the Banking System (1+2+3) 13,978.8 1,243.7 1,040.9
Growth 8.9% 8.8%
1. 1. Net Government Sector Borrowing (a+b+c) 8,955.6 804.2 568.7
a. Borrowings for Budgetary Support 8,282.1 858.3 704.0
i. From SBP 2,350.1 2,236.7 801.6
ii. From Scheduled Banks 5,932.0 -1,378.5 -97.5
b. Commodity Operations 686.5 -58.4 -137.9
c. Others -13.0 4.4 2.6
2. 2. Credit to Non-Government Sector (a+b+c+d) 6,011.3 644.2 639.1
a. Credit to Private Sector 5,197.5 469.2 438.6
b. Credit to Public Sector Enterprises (PSEs) 822.8 174.0 197.0
c. PSE Special Account-Debt Repayment with SBP -24.2 0 0
d. Credit to Non-Banking Financial Institutions (NBFIs) 15.2 0.9 3.5
3. 3. Other Items (Net) -988.0 -204.7 -166.9
Broad Money (M2) (A+B) 14,580.9 770.9 756.1
Growth 5.3% 5.9%
Source: State Bank of Pakistan

The government borrowed from the SBP for budgetary support to the tune of Rs2,237 billion
and retired loans of commercial banks worth Rs1,378 billion. Last year, the government
adopted the same strategy when it borrowed Rs802 billion from the SBP and retired loans
amounting to Rs98 billion to commercial banks. Under commodity operations, the
government retired (net) Rs58 billion (mainly in wheat and fertilizer) as against comparable
period of last year’s retirement of Rs138 billion.

Credit to private sector registered an increase of Rs469 billion as compared to its last year’s
expansion of Rs439 billion. Credit to private sector is expanding due to easy monetary policy,
improved power supply and existence of solid domestic demand. Retirement of loans to
scheduled banks by the government and recent increase in policy rate will improve supply of
loan able funds available with the banks. In particular, bank’s portfolio of working capital
and fixed investment loans expanded. Credit to PSEs expanded by Rs174 billion as compared
to its expansion of Rs197 billion last year. Credit to Non-Banking Financial Institutions
(NBFIs) recorded an expansion of Rs1 billion as compared to its expansion of
Rs3.5 billion last year.

The insurance industry in Pakistan is small as the sector comprises of 38 non-life insurance
companies, 9 life insurance companies and one reinsurance company. Presently, the share
of insurance sector in GDP is negligible (0.13 percent) and showed a growth of 2.13 percent
in FY 18.

Annual Plan 2018-19

Fiscal, Monetary and Capital Market Development 93

On average, CPI registered an increase of 3.8 percent during July-March 2017-18 as

compared to 4 percent during the corresponding period of last year (Table-4). Increase in CPI
was mainly driven by relatively high value of core inflation and increase in international oil
prices. However, it is well below the target of 6 percent for 2017-18. A gradual build-up of
domestic demand also exerted an upward pressure on prices which is evident from an
increase of 5.4 percent recorded for core inflation during July-March 2017-18. Average WPI
during July-March 2017-18 registered an increase of 2.7 percent as compared to 3.8 percent
during the comparable period of last year. Average SPI (for all income groups combined)
remained unchanged at 1.5 percent.

Table-4: Average Price Indices (Percent)

(Base Year: 2007-08)

July-March
Index
2017-18 2016-17
Consumer Price Index (CPI) 3.8 4.0
- Food 2.0 3.8
- Non-food 5.0 4.2
- Core (non-food non-energy) 5.4 5.1
Wholesale Price Index (WPI) 2.7 3.8
Sensitive Price Indicator (SPI)* 1.5 1.5
*SPI for all income groups combined
Source: Pakistan Bureau of Statistics

Monetary and Inflation Outlook 2018-19

Monetary expansion during 2018-19 will be in line with the projected GDP growth and CPI
inflation. During 2018-19, higher monetary expansion is expected on the basis of better
energy supplies to manufacturing sector, higher aggregate demand, expansion in private
sector loans and growing bank financing for CPEC-related activities. Based on these factors
as well as depreciation of rupee and increase in global oil and commodity prices, average
inflation during 2018-19 is expected to remain at around 6 percent.

The State Bank of Pakistan’s Strategic Plan 2016-20 aims at implementing a flexible inflation-
targeting (FIT) regime. As part of efforts to implement FIT, the SBP is going to undertake
strategic efforts regarding decisions on aligned inflation and economic growth targets in
consultation with the relevant ministries. In order to provide better forward guidance to
important stakeholders, capabilities of inflation forecasting suite would be further
enhanced.

Review of Capital Market Developments 2017-18

The current year witnessed significant developments in the capital markets of Pakistan. The
Securities and Exchanges Commission of Pakistan (SECP) continued to implement the Capital
Market Development Plan (2016-18) with vigour and focus, providing the market with a
clear direction. During the period under review, SECP introduced various structural, legal
and fiscal reforms aimed at strengthening risk management, increasing transparency,
improving governance of capital market infrastructure institutions and enhancing investor
protection in line with its objectives to develop a fair and competitive capital market. Some
of the key initiatives of SECP during 2017-18 include:

Annual Plan 2018-19

94 Fiscal, Monetary and Capital Market Development

 Implementation of electronic dividend mechanism under the Companies Act, 2017

 Amendment in CDC regulations to facilitate listed companies
 Amplification of relevant regulation for public offering of twenty percent shares of
PSX and commencement of formal trading of PSX shares on its trading platform
 A revamp of PSX rule book to strengthen enforcement capacity of CRO and RAD
 Approval of CDC and NCCPL regulations and relevant amendments
 SECP’s approval of Commodity Murabaha products to meet the financing needs of
Islamic Financial Institutions (IFIs) through Shariah modes
 Development of Centralized E-IPO System (CES)
 Licensing of Non-bank Finance Companies (NBFCs) to conduct the business of
investment advisory
 Approval of Modaraba Bill, 2017
 Formulation of Technical Committee on Insurance (TCI) to implement the National
Financial Inclusion Strategy (NFIS)
Performance of Pakistan Stock Exchange

Pakistan Stock Exchange recorded

an overall oscillating trend during
2017-18. The benchmark KSE-100
Index witnessed a declining trend
after July 2017 and it showed
rising tendency after end October,
2017. The decline may be
attributed to uncertain political
environment. However, due to its
potential, the market responded
positively to every optimistic
indication. As of July 1, 2017, the market capitalization was Rs9.19 trillion whereas as on
March 31, 2018, it stood at Rs9.37 trillion. It was 27.2 percent of GDP by end March, 2018,
well below the developed stock market (50 percent) which indicates the potential scope for
further improvement.

During this period, 23,918 new mutual fund investor accounts were opened and 23 new
funds (including 18 Islamic funds) were launched. This growth has been the direct
consequence of SECP’s extensive outreach programme for investors’ education and
awareness through digital & print media, and engagements to spread the awareness about
capital markets.

Morgan Stanley Capital International (MSCI) reclassified Pakistan Indexes from Frontier
Markets (FM) to Emerging Markets (EM) from June, 2017 coinciding with the May 2017
Semi-Annual Index Review. This reclassification is a reflection of improvement in
international investors’ market accessibility in Pakistan.

Most of the world stock market indices showed positive trends, registering modest to high
gains except KSE-100, SHANGHAI (COMPOSITE) and FTSE 100 which registered losses during

Annual Plan 2018-19

Fiscal, Monetary and Capital Market Development 95

the period under review. Table-5 presents percentage changes in the leading world stock
market indices from end June 2017 to end March 2018.

Table-5: Regional Comparisons

Index (Month End) June-17 March-18 Percent Change

KSE 100 46,565 45,560 -2.2
S&P BSE SENSEX INDEX 31,222 32,969 5.6
SET-THAILAND 1,579 1,776 12.5
SHANGHAI (COMPOSITE) 3,192 3,169 -0.7
FTSE Bursa MALAYSIA 1,769 1,863 5.3
DOW JONES 21,350 23,644 10.7
S&P 500 INDEX 2,423 2,582 6.6
NASDAQ COMP 6,140 6,870 11.9
FTSE 100 INDEX 7,339 7,057 -3.8
NIKKEI 225 20,056 21,454 7.0
HANG SENG-HK 25,784 30,093 16.7
Source: Securities and Exchange Commission of Pakistan

Prospective Capital Market Reforms/Initiatives 2018-19

The regulations of the market infrastructure institutions shall continue to be reviewed for
improvements and better consistency with legislative developments such as incorporation of
the Securities Act, 2015, Futures Act, 2016 and various rules and regulations framed there
under. In order to revisit the REIT Regulations 2015, stakeholder views have been sought to
foster growth of REIT industry in Pakistan. The draft Insurance Bill, 2017 has been finalized
and sent to the Ministry of Finance for initiation of formal legislation process on June 01,
2017. The draft Rules for regulating the business of credit and surety ship have been drafted
by the SECP. The Rules will be notified after necessary approvals of the Competent
Authority. The Draft General Takaful Accounting Regulations, 2018 shall result in bringing
uniformity in the accounting treatment by general Takaful and general window Takaful
operators and also in reporting of their financial statements.

Annual Plan 2018-19

96 Fiscal, Monetary and Capital Market Development

Annex-1
Consolidated Fiscal Operations
(Rs billion)

As Percent of GDP
Jul-Dec Jul-Dec Percent
Item
2017-18 2016-17 Change
Jul-Dec Jul-Dec
2017-18 2016-17
Total revenue 2,384.7 1,990.6 19.8 6.9 6.2
A) Tax revenue 2,026.9 1,741.2 16.4 5.9 5.4
a) Federal 1,850.5 1,595.5 16.0 5.4 5.0
i) FBR’s taxes 1,730.1 1,467.3 17.9 5.0 4.6
- Direct taxes 673.8 586.4 14.9 2.0 1.8
- Indirect taxes 1,056.3 880.9 19.9 3.1 2.8
Customs duties 282.6 218.0 29.7 0.8 0.7
Sales tax 690.5 577.5 19.6 2.0 1.8
Federal excise duty 83.2 85.4 -2.6 0.2 0.3
ii) Other taxes 120.4 128.1 -6.0 0.4 0.4
b) Provincial 176.4 145.7 21.1 0.5 0.5
B) Non-tax revenue 357.8 249.4 43.4 1.0 0.8
a) Federal 293.3 214.1 37.0 0.9 0.7
b) Provincial 64.5 35.4 82.3 0.2 0.1
Total expenditure 3,181.0 2,789.7 14.0 9.2 8.7
A) Current expenditure 2,545.2 2,241.6 13.5 7.4 7.0
a) Federal 1,656.0 1,473.5 12.4 4.8 4.6
- Markup payments 751.4 647.4 16.1 2.2 2.0
- Defence 393.4 336.3 17.0 1.1 1.1
b) Provincial 889.3 768.1 15.8 2.6 2.4
B) Development expenditure & net lending 615.9 490.9 25.4 1.8 1.5
a) Development expenditure 613.9 497.4 23.4 1.8 1.6
i) PSDP 558.8 445.7 25.4 1.6 1.4
- Federal* 242.1 198.3 22.1 0.7 0.6
- Provincial 316.8 247.4 28.0 0.9 0.8
ii) Other development expenditure 55.0 51.7 6.5 0.2 0.2
b) Net lending 2.0 -6.4 - - -
Statistical discrepancy 19.9 57.2 -65.2 0.1 0.2
Fiscal deficit 796.3 799.1 - 2.3 2.5
Financing 796.3 799.1 -0.4 2.3 2.5
a) External 384.1 240.9 59.5 1.1 0.8
b) Domestic 412.2 558.2 -26.2 1.2 1.7
- Bank borrowing 331.8 407.1 -18.5 1.0 1.3
- Non-bank borrowing 80.4 151.1 -46.8 0.2 0.5
Primary balance -44.9 -151.7 - -0.1 -0.5
Revenue balance -160.5 -251.0 - -0.5 -0.8
GDP (current market prices) 34,396** 31,963
*Net excluding development grants to the provinces (Rs6.0 billion in H1-FY18; Rs1.3 billion in H1-FY17)
** Provisional
Source: Finance Division

Annual Plan 2018-19

Chapter 15|TRADE AND COMMERCE –
BALANCE OF PAYMENTS

Global economic developments and domestic environment has helped improvement in

export performance with double digit growth during ongoing fiscal year. However,
challenges on external front were unrelenting due to persistent rise in imports mainly in the
context of CPEC and modest growth in remittances. Exports witnessed growth of 12.2
percent in July- Feb 2017-18 but this progress was overshadowed by 17.3 percent increase in
imports, resulting in persistent rise in trade and current account deficits; and subsequently
enhanced pressure and ultimate draw down of foreign exchange reserves by US$ 3.8 billion
in first eight months of 2017-18.

Slowdown in workers’ remittances started last year owing to slow economic activity in Gulf
Cooperation Council (GCC) countries and Saudi Arabia as well as tight financial regulations in
USA along with post Brexit impact, from where the country receives major chunk of its
remittances. During July-Feb 2017-18, the situation has improved as the remittances have
witnessed growth of 3.4 percent as compared to similar period last year.

Performance Review 2017-18

Annual Plan 2017-18 envisaged exports of US$ 23.1 billion, which was higher than US$ 22
billion recorded during 2016-17. Import target was kept at US$ 48.8 billion against US$ 48.7
billion actually observed during 2016-17. Trade deficit was set to be contained at US$ 25.7
billion as compared to US$ 26.7 billion in 2016-17. Current account deficit was targeted to
be US$ 9 billion in 2017-18 (2.6 percent of GDP) while it was US$ 12.6 billion (4.1 percent of
GDP) in 2016-17. Workers’ Remittances and Foreign Direct Investment (net) were projected
to be US$ 20.7 billion and US$ 4.2 billion, respectively. The actual performance against these
targets is appraised in subsequent paragraphs.

Balance on Trade

Trade deficit widened significantly to US$ 19.7 billion in the first eight months of 2017-18 as
compared to US$ 16.2 billion in the same period last year. Annual Plan’s target of trade
deficit for 2017-18 may be exceeded as increase in exports is being outpaced by soaring
import bill.

Table-1: Balance of Payments

(US$ million)
July-Feb Percent
2016-17
2016-17 2017-18 Change
Current Account Balance -12,621 -7,216 -10,826 50.0
Balance on Trade in Goods -26,680 -16,170 -19,691 21.8
Exports 22,003 14,231 15,970 12.2
Imports 48,683 30,401 35,661 17.3

Annual Plan 2018-19

98 Trade and Commerce – Balance of Payments

July-Feb Percent
2016-17
2016-17 2017-18 Change
Balance on Trade in Services -4,339 -2,760 -3,531 27.9
Balance on Primary Income -5,048 -3,064 -3,148 2.7
Balance on Secondary Income 23,446 14,778 15,544 5.2
Workers' Remittances 19,351 12,410 12,835 3.4
Financial Account 10,198 6,061 7,217 19.1
of which:
Direct Investment (Net) 2,663 1,625 1,936 19.1
General Government 5,040 1,292 2,390 85.0
Disbursements 9,414 3,888 4,747 22.1
Amortization 4,374 2,596 2,357 -9.2
Reserves & Related Items -1,946 -1,008 -3,775 274.5
Source: State Bank of Pakistan

Exports

After remaining on declining path for three consecutive years in a row, exports started
picking up pace with the beginning of ongoing fiscal year. Exports of goods (FOB) increased
by 12.2 percent from US$ 14.2 billion during July-Feb 2016-17 to US$ 16 billion in Jul-Feb
2017-18. Exports for 2017-18 are estimated to be around US$ 24.9 billion against the target
of US$ 23.1 billion (Annexure-I). Balance on trade in services deteriorated from US$ -2.8
billion in July-Feb, 2016-17 to US$ -3.5 billion in July-Feb, 2017-18.

Table-2: Contribution of Various Groups in Exports

(US$ million)
Point percent
July-Feb
percent Absolute Contribution Contribution
Commodities
2016- 2017- Change Change to Change in to change in
17 18 Exports Exports
A. Food Group 2,335 2,842 21.7 507 3.8 32.8
Rice 1,033 1,262 22.1 229 1.7 14.8
B. Textile Group 8,205 8,794 7.2 588 4.4 38.1
Cotton Yarn 844 860 1.9 16 0.1 1.0
Knitwear 1,550 1,756 13.3 206 1.6 13.3
Bed Wear 1,414 1,477 4.5 64 0.5 4.1
Readymade Garments 1,499 1,696 13.1 196 1.5 12.7
C. Petroleum Group & Coal 114 265 131.6 151 1.1 9.7
D. Other Manufactures 2,010 2,219 10.4 209 1.6 13.5
Surgical Goods & Medical
222 249 12.2 27 0.2 1.7
Instruments
Chemicals and Pharma. Pro. 528 697 31.9 169 1.3 10.9
E. All Other Items 639 729 14.2 91 0.7 5.9
Total Exports 13,303 14,849 11.6 1,546 11.6 100
Source: Pakistan Bureau of Statistics

Initiatives of the government for promotion and facilitation of exports; such as reduction in
mark-up rates on Export Re-finance Facility (ERF) and the Prime Minister’s Rs180 billion
Export Package have started to produce results. The positive impact of Package is apparent

Annual Plan 2018-19

Trade and Commerce – Balance of Payments 99

in the value-added textile and other non-traditional export items as major contribution to
increase in exports came from knitwear (13.3 percent), readymade garments (12.7 percent)
and chemical and pharm. products (10.9 percent) (Table-2). Impact of depreciation is likely
to become more visible in upcoming months.

Imports

Imports (FOB) increased by 17.3 percent from US$ 30.4 billion during Jul-Feb 2016-17 to US$
35.7 billion in Jul-Feb 2017-18. Imports are estimated to get to the level of US$ 54.3 billion
by the end of outgoing fiscal year, against target of US$ 48.8 billion envisaged in Annual Plan
2017-18 (Annexure-I).

Table-3: Major Contribution to Increase in Imports

(US$ million)
Percent
July-Feb Contribution
Percent Absolute
Commodities to absolute
Change Change
increase in
2016-17 2017-18
imports
A. Food Group 3,966 4,217 6.3 251 4.4
Edible Oil (Soya & Palm) 1,244 1,453 16.8 209 3.7
B. Machinery Group 7,812 7,559 -3.2 -253 -4.4
Power Generating 2,185 1,776 -18.7 -409 -7.2
Telecom 882 1,004 13.8 121 2.1
C. Transport Group 1,981 2,905 46.7 924 16.2
Road Motor Vehicles 1,586 1,899 19.7 313 5.5
D. Petroleum Group 6,683 9,015 34.9 2,332 40.9
Petroleum Products 4,193 4,912 17.1 719 12.6
Petroleum Crude 1,584 2,507 58.3 923 16.2
E. Textile Group 2,010 2,154 7.1 143 2.5
F. Agri Chemicals Group 4,849 5,683 17.2 834 14.6
Plastic Material 1,209 1,505 24.5 296 5.2
Fertilizer 471 583 23.8 112 2.0
G. Metal Group 2,713 3,457 27.4 744 13.0
Iron & Steel Scrap 650 1,035 59.3 385 6.8
Iron & Steel 1,322 1,561 18.1 239 4.2
H. Miscellaneous Group 784 856 9.2 72 1.3
I. All Others 2,594 3,253 25.4 659 11.5
Total Imports 33,392 39,099 17.09 5,706 100
Source: Pakistan Bureau of Statistics

Surge in import bill is mainly attributed to petroleum group with highest share in imports
(40.9 percent) followed by transport group (16.2 percent), agri. chemical group (14.6
percent) and metal group (13 percent) (Table-3). However, imports of machinery group,
constituting 19 percent of total imports, showed decrease of 3.2 percent after a constant
surge in the past due to CPEC related early harvest projects. Imports of power generation
machinery and construction & mining machinery seem to be tapering off with decline of 19
Annual Plan 2018-19
100 Trade and Commerce – Balance of Payments

percent and 29 percent, respectively. Petroleum products and crude petroleum in quantum
terms added US$ 706.5 million to rise in import bill (Table-4) while rest of the increase is
attributed to rise in global crude oil prices which are recorded at 57 $/bbl in July-Feb 2017-
18 as compared to 49 $/bbl in similar period last year.

Table-4: Import in Quantum Terms ( July – Feb )

(US$ million)
2016-17 2017-18 Percent Change Impact
Palm Oil (000 MT) 1,674.8 1,823.5 8.88 109.7
Pulses (000 MT) 746.2 437.1 -41.43 -250.0
Petroleum Products (000 MT) 10,514.6 10,835.9 3.06 145.7
Petroleum Crude (000 MT) 5,277.3 6,797.8 28.81 560.8
Fertilizer Manufacturing. (000 MT) 1,256.4 1,578.3 25.62 119.0
Plastic Material (000 MT) 795.4 980.5 23.27 284.2
Iron Steel & Scrap (000 MT) 2,516.8 3,566.1 41.69 304.7
Iron & Steel (000 MT) 2,078 2,335 12.38 172
Rubber Tube & Tyres (000 Nos.) 4,050 4,783 18.11 35.7
Total Imports ($ Million) 33,392 39,099 17.09
Non-Oil Imports ($ Million) 26,709 30,084 12.63
Non-Oil Non-food Imports ($ Million) 22,743 25,867 13.74
Source: Pakistan Bureau of Statistics

Workers’ Remittances

Historically, workers’
remittances have Flow of Workers' Remittances
served as neutralizing 25,000
factor to keep current 18,72019,91719,351
20,000 15,838
Million US$

account deficit low. The 13,922 12,835

15,000 13,187 12,410
remittances increased
from US$ 12.4 billion 10,000
during Jul-Feb 2016-17 5,000
to US$ 12.8 billion -
during Jul-Feb 2017-18
depicting growth of 3.4
percent for 2017-18
while growth for
2016-17 was negative (2.1 percent). Remittances from Saudi Arabia and other GCC countries
registered decline of 8.7 percent and 3 percent, respectively while increase of 43 percent, 12
percent and 2.3 percent was recorded for EU countries, USA and UAE, respectively. Given
this backdrop, remittances are estimated to reach at US$ 20 billion by the end of 2017-18.

Annual Plan 2018-19

Trade and Commerce – Balance of Payments 101

Current Account Balance

Annual Plan 2017-18 envisaged current account deficit of US$ 9 billion (2.6 percent of GDP)
while deficit of US$ 12.6 billion (4.1 percent of GDP) is actually recorded during 2016-17
(Annex-I). With estimated trade deficit of US$ 29.4 billion and remittances of US$ 20 billion
by the end of 2017-18, the current account is likely to be in deficit by US$ 15.4 billion (4.9
percent of GDP) (Annex-I).

Capital and Financial Account

Under the financial account, inflows of US$ 7.2 billion are received during July-Feb 2017-18
as against US$ 6 billion recorded during corresponding period of last fiscal year (Annex-I).
The amortization payments decreased to US$ 2.4 billion from US$ 2.6 billion and
disbursements increased from US$ 3.9 billion to US$ 4.7 billion during period under review.
Foreign direct investment (net) increased to US$ 1.9 billion in July-Feb 2017-18 as compared
to US$ 1.6 billion during last year. Foreign portfolio investment (net) was recorded at US$
2.3 billion which was US$ 0.7 billion in same period last year. An amount of US$ 2.5 billion
are raised through issuance of Sukuk and Euro bonds.

Reserves & Related Items

Reserves and related items observed a decline of US$ 3.8 billion in July-Feb 2017-18 while a
decline of US$ 1 billion was observed in the corresponding period last year.

Exchange Rate

Average monthly exchange rate during February 2018 stood at Rs110.4 per US$ which is
same as in January 2018 while it was Rs104.7 per US$ during February, 2017; depicting
depreciation of 5.2 percent as compared to February last year. Real Effective Exchange Rate
(REER) declined to 113.3 (Base 2010 = 100) in February 2018 while it was 125.9 in February
2017, showing depreciation of 10 percent.

Outlook 2018-19
Trade Account: Based on positive global outlook, improved domestic infrastructure, energy
supply and business environment, exports in 2018-19 are projected to reach at US$ 28
billion from US$ 24.9 billion estimated for 2017-18. On account of higher growth trajectory
and planned economic activities under CPEC, imports are expected to increase by 4.8
percent and reach the level of US$ 56.9 billion in 2018-19 from an estimated total of US$
54.3 billion for 2017-18, implying trade deficit of US$ 29 billion in 2018-19 (Annex-I).

Current Account Balance: Given higher level of imports, resurgence of exports and only
modest growth in remittances, current account deficit is projected to be contained at US$
13.3 billion (4 percent of GDP) during 2018-19 as against estimated deficit of US$ 15.4 billion
(4.9 percent of GDP) by the end of ongoing fiscal year (Annex-I).

Capital and Financial Account: Capital inflows are projected to increase from estimated US$
519 million in 2017-18 to US$ 720 million in 2018-19. General government disbursements
during 2018-19 are expected to remain at the level of US$ 9.4 billion against US$ 9 billion
estimated for 2017-18 whereas amortization is projected at US$ 6.6 billion for 2018-19
Annual Plan 2018-19
102 Trade and Commerce – Balance of Payments

against US$ 4.8 billion estimated for 2017-18. Foreign direct investment (net) is targeted at
US$ 4.1 billion for 2018-19 against estimated US$ 3.2 billion by the end of 2017-18.

Overall Balance: Given projections for current, capital and financial account balances,
overall balance is anticipated to result in US$ 1.5 billion addition to reserves by the end of
2018-19. Details are given in Annex-I.

Programmes for 2018-19

Effective policy measures are planned to strengthen external sector of the economy by
further reinvigorating exports, curbing unnecessary imports, enhancing remittances and FDI
inflows. Strategic Trade Policy Framework (STPF) will be devised in synchronization with
other policies so that targets become realizable. Moreover, issues pertaining to trade
licensing, delayed refunds, dispute resolutions and advance taxes will be addressed. Tariff
rates will be reduced on the imported raw materials especially being used as input in export
oriented industries. Cultivation of pulses and edible oil will be encouraged as a low hanging
fruit to ease the pressure on import bill.

Flexible exchange rate will be managed to support exports and to curb undue imports. SBP
will devise monetary policy aligned with external sector stability, and keep track of REER
taking into account export competitiveness of Pakistan with its trading partners. CPEC
initiatives of infrastructure development and industrial co-operation will continue to attract
FDI inflows. Board of Investment has planned to organize overseas investment promotion
events in various countries of Europe, Middle East, and other regions to highlight business
and investment opportunities in Pakistan.

Bureau of Emigration & Overseas Employment recorded that during July-Feb 2017-18, about
299,206 Pakistanis proceeded abroad. During 2018-19, more than 400,000 Pakistanis are
estimated to go abroad for the purpose of employment. Ministry of Overseas Pakistanis &
HRD will finalize National Emigration and Welfare Policy for Overseas Pakistanis in 2018-19.
Committee for Skills Up-gradation and Overseas Employment Promotion will proactively
assess manpower demand abroad in various sectors on regular basis and will arrange skilled
manpower accordingly.

Pakistan Remittance Initiative (PRI) will continue its efforts to ensure that migrants use
formal channels to send remittances and to accelerate the flow of home remittances
through banking channels. In this context, State Bank of Pakistan has already launched M-
Wallet Scheme and ‘Asaan Remittance Account’ for promotion of home remittances.

Annual Plan 2018-19

Trade and Commerce – Balance of Payments 103

Annex-I
Balance of Payments
(US$ million)
Jul-Feb 2017-18 2018-19
Item 2016-17
2016-17 2017-18 Proj. Estimate Proj.
Current Account Balance -12,621 -7,216 -10,826 -8,991 -15,396 -13,300
Balance on Trade in Goods -26,680 -16,170 -19,691 -25,731 -29,396 -28,891
Exports (FOB) 22,003 14,231 15,970 23,097 24,885 27,996
Imports (FOB) 48,683 30,401 35,661 48,829 54,282 56,887
Balance on Trade in
-4,339 -2,760 -3,531 -2,399 -4,980 -4,880
Services
Balance on Primary Income -5,048 -3,064 -3,148 -4,427 -4,863 -4,913
Balance on Goods, Services
-36,067 -21,994 -26,370 -32,557 -39,240 -38,685
and Primary Income
Balance on Secondary
23,446 14,778 15,544 23,566 23,844 25,384
Income
Workers' Remittances 19,351 12,410 12,835 20,673 20,009 21,209
Capital Inflows 375 251 230 371 519 720
Financial Inflows 10,198 6,061 7,217 10,003 11,289 14,066
Direct Investment (Net) 2,663 1,625 1,936 4,183 3,245 4,145
Portfolio Investment
-250 686 2,285 1,080 3,143 4,670
(Net)
Other Investment 7,785 3,750 2,996 4,740 4,901 5,251
General Government 5,040 1,292 2,390 3,684 4,200 2,763
Disbursements 9,414 3,888 4,747 9,484 9,000 9,363
Amortization 4,374 2,596 2,357 5,800 4,800 6,600
Other Sector 2,298 1,607 544 2,275 1,885 3,135
Net Errors and Omissions 102 -104 -396 - - -
Reserves and Related Items -1,946 -1,008 -3,775 1,384 -3,587 1,485
Memorandum Items
Current Account Balance
-4.1 -3.6 -4.8 -2.6 -4.9 -4.0
(percent of GDP)
Exports FOB (growth rate
0.1 -0.8 12.2 6.8 13.1 12.5
percent)
Imports FOB (growth rate
18.0 12.5 17.3 7.6 11.5 4.8
percent)
Source: SBP & Planning Commission Estimates

Annual Plan 2018-19

104 Trade and Commerce – Balance of Payments

Annex-II
Major Exports
(US$ million)
Jul-Feb 2017-18 2018-19
Commodity 2016-17
2016-17 2017-18 Estimate Proj.

A. Food Group 3,617 2,210 2,766 4,471 4,976

Rice 1,575 993 1,211 2,021 2,150
Others 2,042 1,217 1,556 2,449 2,827
B. Textile Group 12,457 8,186 8,851 13,580 15,236
Cotton Yarn 1,140 749 825 1,226 1,320
Cotton Cloth 2,123 1,428 1,427 2,157 2,262
Knitwear 2,334 1,530 1,726 2,632 2,995
Bed Wear 2,156 1,411 1,558 2,373 2,721
Readymade Garments 2,279 1,484 1,645 2,569 2,961
Others 2,425 1,583 1,670 2,623 2,976
C. Other Manufacture 3,658 2,310 2,710 4,425 5,122
Sports Goods 551 351 356 569 664
Leather Tanned 379 246 228 357 412
Leather Manufactures 487 310 405 648 748
Chemical and Pharmaceutical Products 1,113 664 952 1,619 1,869
Cement 242 186 147 195 233
Others 886 553 622 1,037 1,197
D. All Others 2,271 1,525 1,642 2,409 2,662
Exports (FOB) 22,003 14,231 15,970 24,885 27,996
Source: SBP & Planning Commission Estimates

Annual Plan 2018-19

Trade and Commerce – Balance of Payments 105

Annex-III
Major Imports
(US$ million)
Jul-Feb 2017-18 2018-19
Commodity 2016-17
2016-17 2017-18 Estimate Proj.
A. Food Group 5,417 3,478 3,656 5,698 5,860
Tea 517 362 363 533 550
Palm Oil 1,775 1,149 1,274 1,889 1,987
Others 3,125 1,967 2,020 3,276 3,323
B. Machinery Group 7,410 5,053 5,726 7,926 7,918
Power Generating Machinery 1,337 1,013 1,086 1,347 1,263
Construction & Mining Machinery 159 88 136 143 120
Electrical Machinery & Apparatus 1,317 811 1,265 1,662 1,755
Telecom 1,023 612 867 1,195 1,232
Others 3,574 2,530 2,372 3,578 3,547
C. Transport Group 2,643 1,608 1,966 2,885 2,928
Road Motor Vehicles 1,774 1,144 1,414 1,959 1,953
Others 869 464 551 927 975
D. Petroleum Group 10,607 6,768 8,620 13,623 14,555
Petroleum Products 6,380 4,144 4,905 7,789 8,118
Petroleum Crude 2,765 1,778 2,493 3,899 4,187
Others 1,462 846 1,222 1,934 2,249
E. Textile Group 3,589 2,448 2,446 3,644 3,733
F. Agri. & Other Chemical 7,123 4,566 5,289 7,783 8,086
Fertilizer Manufactured 572 398 543 767 807
Plastic Materials 1,875 1,183 1,443 1,981 2,084
Others 4,676 2,986 3,303 5,035 5,196
G. Metal Group 3,674 2,293 3,051 4,303 4,600
Iron and Steel Scrap 969 523 837 1,105 1,264
Iron and Steel 1,980 1,335 1,654 2,590 2,698
Others 724 435 559 607 639
H. All others 8,220 4,187 4,907 8,421 9,208
Imports (FOB) 48,683 30,401 35,661 54,282 56,887
Source: SBP & Planning Commission Estimates

Annual Plan 2018-19

Chapter 16|BALANCE DEVELOPMENT –
FOCUS ON LESS DEVELOPED
REGIONS

Sustainable economic growth requires a balanced growth approach for all regions of the
country. To achieve this objective, federal government is making its all efforts to fully utilize
economic potential of all areas including less developed and special areas. A total of 51
districts out of 123 have been identified as less developed districts in all provinces by the
respective provincial governments, 4 districts are in Punjab, 29 in Baluchistan, 10 in Khyber
PakhtunKhwa and 8 districts in Sindh (list attached at annex-I). Further Special areas i.e.
Federally Administered Tribal Areas (FATA), Azad Jammu & Kashmir (AJ&K) and Gilgit-
Baltistan (GB) are included in LDRs. These areas are blessed with plenty of natural economic
potentials that can be utilized to address the issues of poverty and socio economic
inequality.

In addition to various federal development programmes/projects, special block allocations

are made by the federal government for the social & economic development of these less
developed Special Areas. The local administration is authorized to make sector-wise
allocations as per their needs and priorities. It is the major contribution by the federal
government to decentralize financial resources at grass root level to achieve economic
efficiency and speed up development process in special areas. During previous year, major
development initiatives by federal government included a special allocation of Rs90 billion to
address the issue of relief and rehabilitation of IDPs.

Performance Review 2017-18

During the period under review, efforts have been made by the federal government in
collaboration with local administration to achieve desired developmental targets in Special
Areas. Financial & Physical progress during 2017-18 is given below:-

Financial Progress

During the CFY 2017-18, an amount of Rs205 billion was allocated for 301 development
projects in Public Sector Development Programme other than block allocation for less
developed districts and special areas. The funds allocated by federal government are aimed
to supplement the efforts of the provincial governments. A province wise summary of
allocation in PSDP, 2017-18 in less developed districts is at Annex-II.

In addition, block allocations were provided to special areas. An amount of Rs61.5 billion
was earmarked as block allocation for development activities in three Special Areas out of
which an amount of Rs43.898 billion have been utilized by 31st March 2018. Details given
below:

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108 Balanced Development: Focus on Less Developed Regions

Table: Agency/Division wise Allocations & Utilization for 2017-18

(Rs billion)
Utilized
Agency/ Ministry/Division Allocation Utilization
(percent)
Special Areas
Azad Jammu & Kashmir (Block
22.00 14.14 64
Allocation)
Gilgit Baltistan (Block Allocation) 15.00 15.00 100
Federally Administrated Tribal Area
24.50 15.60 64
(Block Allocation)
Sub Total Block Allocation 61.50 44.74 73
st th
*utilization is upto 31 March 2018 and will be updated after 4 quarter releases

Physical Progress

During the period, the allocated amount was utilized to finance the development projects of
different sectors i.e. infrastructure projects, education, health & food security, industries
and production, information technology, petroleum and natural resources, science and
technology , ports and shipping, information and broadcasting and aviation. The projects of
other sectors are being implemented through various ministries/divisions. A total of 301
projects are being implemented in less developed districts, out of which 6 in Punjab, 7 in
Sindh, 50 in KPK, 143 in Balochistan, 27 in AJK, 40 in GB, 18 in FATA and 10 are implemented
in multiple districts. Due to these interventions, significant improvement in the development
indicators of these areas has been noted.

Funds provided in the form of Block Allocation by federal government were utilized in
multiple sectors as per needs of local administrations.

During FY 2017-18, in AJ&K, 154 development projects have been completed. Through these
development activities 100 km of rural, 125 km double lane and 478 km link roads, 500
irrigation channels repaired/constructed, 10 tourist resorts, 2 sports stadiums, 1 polytechnic
institutes have been constructed/established. Electricity connections were provided to 6700
consumers. Skills trainings were imparted to 600 individuals including 300 women. A total of
121 educational buildings have been constructed/ upgraded and IT labs were established in
200 middle and higher secondary schools.

In Gilgit Baltistan, 350 development projects in various sectors were completed, which
includes construction of 225 Km new single roads, 30 Km metalled roads, 3 RCC bridges, 6
Water Supply schemes and construction of 40 KM irrigation channels. In Education sector,
labs & libraries facilities have been provided in 20 colleges and 123 Secondary/Higher
Secondary Schools. Further 547 scholarships awarded to medical and engineering Students.
In health sector 60 dispensaries and 7 hospitals have been established/upgraded. During the
year 8 number of power projects having a capacity of 3.6 MW have been completed and
added in the system to overcome the power shortage.

In Federally Administered Tribal Areas (FATA), ADP 2017-18, the allocated amount has been
distributed amongst 15 different sectors spread over 7 Agencies and 6 Frontier Regions.

Annual Plan 2018-19

Balanced Development: Focus on Less Developed Regions 109

During the CFY 354 schemes under various sectors are fully funded for completion. For early
completion of development projects in FATA 70 percent funds of FATA ADP had been
allocated to 709 ongoing schemes and remaining 30 percent funds were provided to 394
new schemes. 187 projects of education sector, 122 health, 105 Public Health Engineering,
158 Communication, 71 Housing, 28 power, 53 To achieve the objective of empowering
rural development and 76 projects in irrigation the people of less developed areas
sector has been executed through block National Economic Council (NEC) has
allocation of FATA. FATA Administration has approved Enhancement of Sanctioning
also been facing the challenge of limit of development of Special areas (AJ&K
reconstruction and rehabilitation of and FATA). Now AJKDWP can approve
Temporarily Displaced Persons (TDPs) which locally funded development project up to
remained priority during 2017-18. Rs90 billion cost of Rs400 million and FATADWP
was allocated for rehabilitation of TDPs in PSDP sectioning limit has also increased to Rs400
million previously it was Rs200 million.
In addition, 3 Area Development projects are being implemented under Narcotics Control
Division (NCD). These schemes aim to eliminate poppy cultivation and other illicit trades in
remote areas, through making these areas accessible to local administration. Under these
projects, 35 km rural roads, 10 irrigation schemes, 14 water supply schemes have been
constructed and agricultural inputs have been distributed among the farmers.

Outlook 2018-19
A number of steps have been taken to ensure maximum decentralization of administrative
and financial powers. During FY 2018-19, priority is accorded to those ongoing projects
which are near completion to ensure that the benefits of these projects should reach to the
people. In order to improve the socio economic indicators of less developed areas. FATA
reforms have been prepared and presented in Council of Common Interest (CCI) for
integration of FATA with Khyber Pakhtunkhwa. These reforms are a step to address the issue
of deprivation and mainstreaming of people of FATA. It also envisages a 10 year socio-
economic development plan for FATA.

China-Pakistan Economic Corridor (CPEC) is also a major initiative undertaken by the present
government. In special areas, various projects in infrastructure and energy sectors are being
implemented through CPEC. These projects include industrial zone in Bhimber, AJ&K,
Mohamand Marble city, special economic zone in Moqpondass, Gilgit-Baltistan. These
projects would bring a considerable improvement in socio-economic condition of less
developed areas.

Programmes for 2018-19

Financial

The development programme for FY 2018-19 proposes Rs64.6 billion for Special areas (FATA,
AJ&K and GB). Out of proposed allocation, an amount of Rs64 billion has been earmarked as
block allocation, local administration is authorised to allocate funds to respective sectors
according to the needs. An amount of Rs0.6 billion has been set aside for the projects under
M/o Interior & Narcotics Control. Detail of the proposed allocations is given below:

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110 Balanced Development: Focus on Less Developed Regions

Agency-wise allocations for 2018-19

(Rs billion)
Agency/ Ministry/Division Allocation 2018-19
Ministry/Division
Narcotics Control Division 0.10
Interior Division (ICT) 0.50
Sub Total 0.60
SPECIAL AREAS
Azad Jammu & Kashmir (Block Allocation) 22.00
Gilgit Baltistan (Block Allocation) 15.00
Federally Administrated Tribal Area (Block
27.00
Allocation)
Total (Special Areas) 64.00
Grand Total (Min./Div./Sp.Areas) 64.60

Physical

In AJ&K, 200 km of rural roads, 125 km double lane & 478 km of link roads will be
constructed, 3000 entrepreneurs are targeted to provide credit assistance, 01 polytechnic
institution and 150 buildings of educational institutions will be constructed/up-graded. 200
IT labs will be established in Middle, Higher secondary schools and skill trainings in various
disciplines will be imparted to 600 individuals including 300 women. 10 tourist resorts are
planned at potential sites. Moreover electricity connections will be provided to 5000
consumers. Agricultural inputs & micro credits facilities would be provided to farmers to
increase productivity.

Gilgit Baltistan Government would prioritize hydro power generation as its top priority from
its local resources. In the year 2018-19, approximately 19 MW hydro power will be
generated. For infrastructure development 270 km shingle roads, up gradation of 200 km
shingle to metalled roads, and 600 Meter bridges are to be constructed. In energy sector 30
number of hydro power projects will be completed. 19 projects in health sector are targeted
for completion during the year. Government of GB has indicated economic transformation
project costing Rs12 billion. The project would bring 50000 acres of additional land under
command, and 400 KM farm to market access roads would be constructed.

In FATA, the funds allocated through block allocation will be distributed amongst various
sectors spread over 7 Agencies (Bajaur, Khyber, Kurram, Mohmand, North & South
Waziristan and Orakzai) and 6 Frontier Regions (FR Bannu, D.I. Khan, Kohat, Peshawar, Tank
and Lakki Marwat). Administration of FATA is committed to an accelerated development
process, with a special focus on the re-settlement, rehabilitation of Temporarily Displaced
People (TDPs). Efforts are being made for provision of appropriate livelihood and
income/employment generating opportunities.

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Balanced Development: Focus on Less Developed Regions 111

Annex-I
Less Developed Districts in Pakistan

Khyber Special
Punjab Sindh Balochistan
PakhtunKhwa Areas

Dera
Umerkot Batagram Pishin Lasbella
bughti
Layyah
Kila Dera Turbat
Tharparkar Dir upper
abdullah murad /kech

Badin Hangu Chagai jamali Panjgur

Rajanpur Azad Jammu
Karak Zhob Jaffarabad Gwadar & Kashmir
Kashmore Gilgit
Kohistan Loralai Jhal magsi Noshki Baltistan
Muzzafar- &
Lakki marwat Kila Kachhi Sherani
garh Qamber Federally
Shangla saifullah /bolan Washuk administered
Tribal
Musa Areas
Tank Kalat Harnai
Dadu khail

Lodhran Buner Barkhan Mustung Sibbi

Jacobabad Chitral Ziarat Khuzdar Awaran

Sanghar Kohlu Kharan

Annual Plan 2018-19

112 Balanced Development: Focus on Less Developed Regions

Annex-II

Summary of Allocation of Funds in PSDP 2017-18

for Less Developed Areas
(Rs billion)

No of Expenditure Allocation
Province / Area Total Cost
Projects Upto June,2017 2017-18

Punjab 6 49.37 23.53 10.38

Sindh 7 59.05 27.74 4.03
Khyber Pakhtunkhwa 50 1,010.46 147.51 37.20
Balochistan 143 799.13 240.95 75.53
AJK 27 223.19 113.46 10.15
Gilgit – Baltistan 40 80.39 8.22 16.93
FATA 18 43.58 8.02 4.60
Multiple District 10 712.51 392.67 46.23
Total: 301 2,977.69 962.10 205.07

Annual Plan 2018-19

Chapter 17|PHYSICAL PLANNING AND
HOUSING

The process of urbanization and economic development in Pakistan has been mutually
interdependent. The population census 2017 revealed an overall increase of 57 percent in
the total population (excluding Azad Kashmir, and Gilgit-Baltistan) of the country in the last
19 years; however, urbanization has increased from 32.52 percent in 1998 to 36.38 percent
in 2017.

The tremendous challenge of absorbing such a massive number of people in urban areas and
providing them with shelter, food, employment, healthcare, education, municipal services
and recreation facilities is made more difficult given shortage of urban facilities and
resources, skilled manpower and good governance. Despite the challenges, urban areas
demonstrate immense economic potential to generate growth in the country. The urban
development is a provincial issue and urban planning a local one, however, the immense
contribution and, indeed, economic potential, of urban areas to the national trade and
economy gives the Government of Pakistan good reason to focus on addressing the
challenges of urbanization and suggest areas for reforms.

In the context of the Vision 2025, the federal government is focusing to develop consensus
amongst provincial governments and to produce a national urban & regional policy
framework for coherent and sustainable urban development through city specific
development strategies. However, key objectives include management of urbanization to
achieve sustainable urban development; develop national infrastructure to support urban &
regional development; knowledge sharing for understanding and resolving intricate urban
and regional development issues and to financially and administratively manage towns and
cities through their own resources and private sector involvement; and promote green,
energy efficient and affordable housing for all, including up-gradation of the slum areas and
Katchi Abadis.

Performance Review 2017-18

During the year 2017-18, the government’s focus was to implement physical Planning &
Housing programmes / projects in a coordinated manner to address the increasing issue of
rapid urbanization and to make efforts to address the challenges posed by ambitious
Sustainable Development Goals (SDGs). The Key challenge related to SDG-6 is to provide
access to safe drinking water and sanitation facilities and remove/reduce disparities; where,
despite efforts, gaps still exist (access to improved sanitation 76 percent and improved
water 91 percent). The Vision 2025 also lays emphasis on provision of safe drinking water
and improved sanitation through an integrated development strategy, therefore, federal
government in collaboration with provincial governments is making all out efforts to combat
water related issues through provision of matching grants to provincial government for
water supply & sanitation projects, besides, encouraging them to increase in allocation as
well as reallocation of public investments.

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114 Physical Planning and Housing

To achieve the objectives of 11th Five Year Plan, in Federal PSDP 2017-18, an amount of
Rs43.5 billion was allocated to different federal ministries and line departments for
implementation of physical planning & housing sector programmes / projects. Major
allocations were made to water supply and sanitation, construction of government offices,
residential buildings, and housing projects. It is estimated that at the end of 2017-18,
approximately Rs21 billion would be spent on the development of projects related to the
physical planning and housing sector. Similarly, the provincial governments allocated
substantial amount for the execution of projects relating to the sector, i.e., Punjab Rs73.9
billion, Sindh Rs7.069 billion, Khyber Pakhtoonkhwa Rs18.16 billion, Balochistan Rs7.21
billion and Azad Jammu and Kashmir Rs1.52 billion.

The important projects during 2017-18 include Gwadar Port Smart City Master Water
Distribution Network for RCB/CCB based on Khanpur Dam Water, Source (Phase-III), Greater
Karachi Water Supply Scheme (K-IV) Phase-II, Greater Karachi Sewerage Plan (S-III), Gwadar
Smart Environmental Sanitation System and Landfill Project. Necessary facilities of fresh
water treatment, Water Supply and Distribution Gwadar (CPEC); 5 MGD Reverse Osmosis
Sea Water Desalination Plant for Gwadar. Construction of Judicial and Administration
Complex in Mauve Area Islamabad, Construction of Office & Residential Facilities for Frontier
Corps Balochistan, Construction of Office & Residential Facilities for FC Khyber Pakhtunkhwa,
Construction of Office & Residential Accommodation for GB Scouts, Construction of ANF
Police Station Sust, Business Complex R.O Plant (0.2 MGD), Construction of Regional Tax
Office at Islamabad, Construction of MCC Gwadar, New Secretariat Block at F-5, besides,
several other schemes pertaining to water supply, sewerage, under SDGs programme in
country.

Outlook 2018-19
 To facilitate Ministry of Housing & Works, Pakistan Housing Authority, National
Housing Authority and FGEHF, besides, Provincial Governments to initiate housing
programmes / projects, particularly for low-income residents.
 Provision of technical and financial assistance to provincial governments for devising
and implementing physical planning & housing programmes / projects including
social housing, urban water supply, sanitation & solid waste management
infrastructure / services to meet rapidly increasing demand.
 Facilitate provincial / local governments to launch programmes on Public-Private-
Partnership mode to improve of existing service delivery and to improve
performance of local service delivery organization.
 To initiate urban land management programmes in collaboration with provincial
/local governments to improve the efficiency of urban land markets, through
appropriate and affordable land use, building standards and regulations.
 To complete all on-going development projects where sufficient physical and
financial progress has been achieved in the last fiscal year.

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Physical Planning and Housing 115

Programmes for 2018-19

An allocation of approximately Rs22 billion has been made for the physical planning and
housing sector programmes proposed to be implemented by various ministries, divisions
and departments.

Detailed Feasibility Study for the In order to avoid cost and time over run for all construction
construction of government projects, approval of PC-II containing feasibility study,
buildings / infrastructures / facilities detailed design, elevation, façade of the buildings /
infrastructures / facilities along-with detailed cost
estimates and environmental impact assessment before,
submission of PC-I to start of actual construction /
development works. The construction will be allowed after
approval of a PC-I prepared on the basis of PC-II.
Sustainable Urban & Regional To achieve the objectives of Vision 2025, Provincial
Development Plans and Smart Cities Governments will be encouraged to prepare / develop
Sustainable Urban & Regional Development Plans as well as
Smart City Master Plans like Gwadar; especially cities on
CPEC corridor.
Planned Peri-Urban Development Local administrations will be encouraged to launch Peri-
Plans Urban and Regional Development Programmes to ensure
planned development as well as building control
mechanism in the country.
Establishment of Bureau of Efforts will be made to establish Bureau of Infrastructure
Infrastructure Development Development for enhanced private sector participation
with modalities for public- private partnerships in the
management of infrastructure and framework to provide
improved and efficient water supply and other services.
Completion of important ongoing To achieve targets of SDGs, Ministries / Departments will
projects be encouraged to complete ongoing projects; especially
where more than 50 per cent physical progress has been
achieved.

Annual Plan 2018-19

 PILLAR-III
Governance, Institutional Reform
and Modernisation of the Public
Sector
Chapter 18|GOVERNANCE AND
INSTITUTIONAL REFORMS

Governance means all the functions that coordinate and control an organization’s resources
and actions. Its scope includes ethics, resource-management processes, accountability and
management controls. It involves interaction of public, private & corporate sectors and civil
society communicating with each other and synergistically working together for better
service delivery. Good governance is perhaps the single most important factor in eradicating
poverty and promoting development as it addresses economic institutions and public sector
management, including transparency and accountability, regulatory reform, and public
sector skills and leadership.

Democratic Governance, Institutional Reforms and Modernization of Public Sector together

are the constituents of the 3rd Pillar of the Vision 2025 which emphasizes on a new paradigm
of participatory and collaborative planning. Bad governance cannot deliver quality services
reliably to the citizens. Thus an important requirement for transforming governments for the
future to ensure transparency and accountability through citizen feedback is by the adoption
of open government and open data.

Performance Review 2017-18

The government has undertaken number of initiatives to improve governance indicators. An
amount of Rs6.75 billion including foreign aid of Rs1.09 billion was allocated for the
governance sector development schemes in PSDP 2017-18 and an amount of Rs5.9 billion
have been spent. Some of the major initiatives are discussed as under:

Public Sector Management Efficiency

Justice Sector Reform: Access to Justice Programme (AJP) was launched in 2001 with a
programme loan from Asian Development Bank of US $ 350 million for ensuring security and
equal legal protection for citizens; greater transparency and accountability in the
performance of administrative justice in institutions especially judiciary and police; and
improvements in judicial and non-judicial legal services. The top priority AJP remained to
reduce backlog of pending cases, institutional delays, particularly for the poor and
vulnerable segments of the society. The initiatives undertaken under AJP include
construction of new courtrooms, judicial complexes, judges’ residencies, record rooms,
judicial lockups, bar rooms and general amenities like public sheds and baths in the courts
premises, district jails, new barracks in existing jails to overcome the problem of
overcrowding in jails, and establishment of training centres for judges, police and prison
personnel’s etc. The CDWP recommended the revised project “Federal Programme under
Access to Justice Programme” for smooth implementation of sub projects being
implemented under the umbrella programme. In addition, several legislations have been
promulgated to reform the Judicial System and improve the transparency in the country. The
legislations made during 2017-18 include Witness Protection Act 2017, Security and Benefit
Act, 2017; Benaami Transactions Prohibition Act, 2017: The Alternate Dispute Resolution

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120 Governance and Institutional Reforms

Act, 2017; The Cost of Litigation Act, 2017; The Public Interest Disclosure Act, 2017; and The
Right for Access to Information Act, 2017.

Revenue and Doing Business Reforms: FBR has taken number of incentives to improve
service delivery, enhance resource mobilization efforts, and increase Tax-to-GDP ratio and
public sector management efficiency. A high powered Implementation Committee headed
by the Advisor to the Prime Minister on Revenue for reviewing the recommendations of Tax
Reform Commission (TRC) was constituted. The Committee has broadly divided TRC
recommendations into long, medium and short categories. Powers of FBR to issue
concessionary SRO have been withdrawn/ reduced. Number of filers has been increased
from 700, 000 in Year 2012-13 to more than 1.3 million in Year 2017-18. To rationalize the
import tariff structure and to reduce the general tariff, slabs peak tariff of 30 percent was
reduced to 20 percent. To broaden the tax net, different rates of adjustable withholding of
income tax for the income tax filers and non-filers on certain transactions have been
introduced. The higher rates of tax for non-filers compel non-filers to file returns. Pakistan
has signed an agreement with Afghanistan (Afghan-Pakistan Transit Trade Agreement). The
importers as well as the carrier of Afghan cargo have to submit bank guarantees which are
released only on verification that the goods have reached Afghanistan and will not pilfered
inside Pakistan. Quarterly Withholding Audit Plan (QWAP) has been introduced to conduct
the audit of maximum withholding agents every year. SAP system of AGPR has been updated
to provide data of 1/5th Sales Tax deductions which is then used for monitoring of the
remaining 4/5th Sales Tax. Tax amnesty scheme has been introduced to enhance the tax
revenue. 107 new sites being added to existing WAN bringing total number of connected
sites to 306. 754 new laptops have been purchased for functional users in FBR. New Data
Centre at a cost of PKR. 100 million is being constructed.

A project titled “Development of Integrated Transit Management System (ITTMS) under ADB
Regional Improving Border Service” is being implemented which will reduce dwell time for
cargo clearance and its onward dispatch. Land to construct the system at Waga and other
stations has been acquired. Under another project titled “Security Improvement in Karachi
and Port Qasim”, 03 Fixed and 01 Mobile Scanners have been installed. This will help to
provide fundamental element of a secured global supply chain, routed through Pakistan
towards landlocked countries in the region.

According to the recently published World Bank's flagship Doing Business Report 2018,
Pakistan slipped by three points and now ranks at 147 out of 190 economies. However, it
registered progress on the Distance to Frontier (DTF) by 51.65. DTF shows the distance of
each economy to the “frontier,” which represents the best performance observed on each
of the indicators across all economies in the Doing Business indicators. There has been
recognized progress around four reforms in Doing Business Report 2018– from ease of
starting a business to property registration, minority protection and cross border trade
facilitation. Reforms across these areas have contributed to improved image of Pakistan.
Pakistan is currently pursuing 44 reforms across a range of indicators aimed at registering
property, enforcing contracts, dealing with construction permits and starting a business.

Public Financial Management: Project titled “Institutional Strengthening of Finance Division’

was launched to enhance the capacity of Finance Division which will be completed by 30th
June, 2018. Debt Management Strengthening Programme at the cost of Rs160 million is
being implemented to maintain and update data on internal and external debt. The software
for debt management is being updated in Finance and Economics Affairs Divisions. A system

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Governance and Institutional Reforms 121

of public financial management along with existing financial management procedures is

being introduced/ reviewed with the support of EU assistance. The project titled “Financial
Inclusion and Infrastructure Support Project” has been initiated for fostering healthy
competition in financial market. A project at a total cost of Rs157.0 million was launched for
assessing and Strengthening the Competition Regime in Pakistan with the assistance of the
World Bank. A feasibility study was carried out to enhance the capacity of Pakistan Mint
Lahore

Reform and Innovation in Government: During the year, number of activities has been
initiated under the project titled “Reform and Innovation in Government for High
Performance”. Data collection for first ever citizen satisfaction survey on quality of public
services has been completed and result will be available during the CFY. Consultation to
prepare performance contracts for the year 2018-19 of eleven ministries / divisions has been
made. E-office initiative has been launched in Ministry of Planning, Development & Reform
which provided IT equipment, trained 300 officers which have promoted e-governance
culture. Five provincial consultative workshops on Civil Service Reforms have been
conducted at provincial headquarters i.e. Karachi, Lahore, Peshawar, Muzaffarabad and
Gilgit. A firm has been hired to undertake Training Need Assessment of the National School
of Public Policy. The TNA will be finalized by the end of this calendar year. The criteria for
promotion have been changed by enhancing required training marks from 15 to 35. E-filling
has been introduced in Ministry of Planning, Development and Reform as well as Ministry
has been certified as ISO 2015/9001.

Public Information and Statistical Management: SDGs Support Units have been established
in Ministry of Planning, Development and Reform at Federal and provincial P&D’s in all four
provinces to provide support for strengthening, coordinating, reporting and monitoring
mechanism for SDGs. 6thPopulation and Housing Census have been conducted to determine
the actual country’s human and other resources which will help in policy planning. The PBS is
also implementing two important projects i.e. “Change of Base of National Accounts from
2005-06 to 2015-16” and “Up gradation of Rural Area Frame for the Conduct of
Census/Survey”. The project of Change of Base Year will be completed during the CFY. The
work on up gradation of Rural Area Frame has been affected due to census.

Law and Order and Police Reforms: For improvement of law and order in the country,
National Security Policy and National Action Plan (NAP) are being implemented in
collaboration with all provincials’ governments and law enforcement agencies at federal
level. Radd-ul-Fasaad Operation against terrorists in the entire country is being implemented
successfully by the security agencies. Mandatory re-verification exercise through fingerprint
recognition of subscribers on mobile telephones has been carried out.

Pakistan Cyber Crime and Social Media laws have been introduced to regulate and eliminate
Cyber and Social media crime. A project on Establishment of Model Police Stations in
ICT/Police Reforms is being implemented to improve the image of ICT Police at a total cost of
Rs998 million. The project is under revision under which 14 ICT police Stations will be
converted into model police stations. To strengthen the law enforcement agencies in
Balochistan, the project titled “Raising of Balochistan Constabulary” is being implemented at
a total cost of Rs5.4 billion. Provincial Government has taken the ownership of the project as
the force recruited under the project has been shifted to the provincial regular budget. To
provide security to the CPEC projects, a special security force has been established. To

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122 Governance and Institutional Reforms

secure and manage the border security with Afghanistan, border fencing is being carried on
and new FC units are being established in KPK and Balochistan.

Young Development Fellowship Programme: Planning Commission launched Young

Development Fellows Programme to ensure the active participation of youth in national
development. So far three batches of Young Development Fellows (YDFs) have completed
their fellowship successfully .The recruitment of 4th batch of YDFs has been completed under
the programme. So far, the programme has groomed about 120 young women and men in
the area of public policy, planning, and development process in accordance with the
emerging national and international needs.

Governance Reforms in Provinces

Punjab

A five years governance reform agenda was developed by the Government of Punjab with
the assistance of the World Bank to improve service delivery and citizens’ satisfaction with
public services. The focus of reform agenda was on three areas i.e. Transparency and Access
to Services; Results-Based Management for Service Delivery; and Resource Mobilization and
Value for Money. These programmes are being implemented by the Punjab Information
Technology Board (PITB); the Punjab Resource Management Programme (PRMP); the Punjab
Procurement Regulatory Authority (PPRA); and the Excise and Taxation Department. The
objectives of the programme are (i) citizens receiving information about key services
through the Citizen Contact Centre (CCC); (ii) services provided by field workers in nine (09)
targeted districts; (iii) increase in property tax collection efficiency in digitized districts. The
programme is being implemented in seven target departments of Government of the Punjab
namely (i) Agriculture Department (AD) (ii) Excise & Taxation (E&T) Department (E&TD) (iii)
Higher Education Department (HED) (iv) Irrigation Department (ID) (v) Livestock & Dairy
Development Department (L&DD) (vi) Local Government & Community Development
Department (LG&CD) (vii) School Education Department (SED). Considerable improvement
has been made in public sector governance and resource management in the programme.
The focus has been shifted on results for improved public service delivery, greater
accountability, simplified business procedures, enabling business environment, harnessing
the potential of various sectors to the best possible use.

In addition, the Government of Punjab launched a 100-Day Doing Business Reform Plan to
facilitate businesses and start-ups to improve the investment environment in the province.
The plan is in line with Punjab Growth Strategy 2018 which sets the target of achieving 8
percent economic growth. The Government of Punjab is also implementing Punjab Financial
Management Reform Strategy which aims at enhancing fiscal space, reducing transaction
costs, maximizing returns on public spending and building capacity of human resource for
PFM.

To curb corruption, bribery and slow pace of service delivery, the Government of Punjab is
already implementing Proactive Governance Model in selected government departments to
seek citizen feedback on public services. The programme has not only helped to improve the
governance system but also creates deterrence for corruption in the system by empowering
a common man to connect the government directly.

Annual Plan 2018-19

Governance and Institutional Reforms 123

Sindh

The Government of Sindh took various initiatives during this financial year to improve
transparency and good governance through reforms in public sector. A project titled “Sindh
Public Sector Management Reform” is being implemented with the assistance of World Bank
amounting to US$ 50 million. The key objectives of the programme are to increase revenue
mobilization through tax policy reforms and increased administrative efficiency in tax
collection; enhance performance of public financial management/ public procurement
system and strengthened the management and transparency of the development portfolio.

The Government of Sindh is implementing Sindh Tax Revenue Mobilization Plan 2014-19 to
deliver results that cover a wide range of cross-cutting tax policy and tax administration
issues including tax simplification, modernization of tax administration and taxpayer
facilitation. The Government through Finance Department entered into an agreement with
IBA to help revitalize its SPSMRP programme by providing services in the broad areas of
cooperation including, tax policy research; building frameworks for tax projections and
revenue forecasting on recurrent basis; designing, sourcing and implementing research in tax
policy and administration; human resources development; and sourcing faculty for the
capacity building programmes.

In addition, efforts are being taken by Sindh Revenue Board for increased automation and
enhancing Tax base which has achieved the revenue targets with efficient and effective
manner. A Debt Management Unit was also established in Finance Department to keep the
Debt Management system in the province for consolidating Debt Database, Formulating a
Debt Management Strategy and undertaking Debt Sustainability Analysis, designing an
Operational Risk Management Plan. Debt Manual has also been prepared for effective
implementation of Debt Management System in the province. Public Financial Management
Reform Strategy (2014/15 -2019/20) is being implemented which is based on the principles
of transparency, accountability, equity, fiscal discipline and efficiency in the management
and use of public resources for improved service delivery and economic development. The
PFM Action Plan 2014-15 to 2024-25 was prepared to implement PFM Reform Strategy.

Khyber Pakhtoonkhwa

A Performance Management Reform Unit in is established to improve the performance of all

tiers of provincial government through innovative use of IT. PMRU has spearheaded multiple
reforms to improve governance at the district and provincial levels. A Citizen's Portal is a
step forward towards establishing responsive governance in the province to improve service
delivery. These complaints are automatically forwarded to the concerned Deputy
Commissioner for appropriate remedial actions. The internet application enables the
government to communicate directly with the citizens to make routine and emergency
announcements. Under e-governance initiative, various programmes have been launched to
transform and modernize the working of provincial government departments.

In addition, Sub-National Governance (SNG) programme is being implemented with the

support of UK Government's Department for International Development (DFID). District
Delivery Challenge Fund (DDCF) has been established to improve public services through a
combination of strengthened local governance and the promotion of innovative service
delivery approaches. The government of Khyber Pakhtoonkhwa has also taken important
initiatives to improve governance and development outcomes in the province. Right of

Annual Plan 2018-19

124 Governance and Institutional Reforms

information Act, provision of mandatory service delivery and Citizen Feedback Model has
also been made operational to curb corruption, bribery and snail paced service delivery.
Comprehensive Development Strategy (CDS), introduction of output/ performance based
budgeting (OBB), gender response budgeting, development of Health Sector Strategy (HSS),
Education Sector Plan, Police Reforms and Social Protection Strategy, as well as the
establishment of the office of the Provincial Ombudsman have been initiated. The aim of
these initiatives is to reform government of Khyber Pakhtoonkhwa to conduct its business in
an effective and efficient manner.

Balochistan

With the financial assistance of Multi Donors Trust Fund (MDTF), a Governance Support
Project was launched by the Government to improve delivery and efficiency of the core
government departments through institutional strengthening and support to line
departments. To enhance the capacity of government officials in the area of project
management, monitoring & evaluation, and appraisal, financial management, procurement
etc. trainings have been conducted at National Institute of Management (NIM), Pakistan
Planning and Management Institute (PPMI) and Lahore University of Management Sciences
(LUMS). Partnerships with local academic institutions have been established to address the
emerging issues and challenges in the province, with mutual agreement, trust and
dedication and to develop linkages for specialized services and improved governance.
Following interventions have been undertaken in collaboration with local academic
institutions. The journalists working in development sector have also been provided training
at PPMI.

A performance management system has been developed with the support of Balochistan
University of Information Technology, Engineering and Management Sciences (BUITEMS).
Citizens’ pre-budget consultative workshops for women at divisional level have become
regular activity which is being conducted with collaboration of Sardar Bahadur Khan Women
University Quetta. Planning and Development Department, Anti-Corruption Establishment
Balochistan and Provincial Ombudsman Office have been strengthened. Hotlines in Anti-
corruption establishment and Provincial Ombudsman are being established to facilitate the
citizens of the far-flung areas of the province for lodging corruption complaints and
grievances. Ten Year governance plan is being formulated and establishment of Public Policy
& Research Institute is at final stage.

Outlook 2018-19
Governance is a cross cutting issue and perhaps the single most important factor in ensuring
objectives of effective service delivery. Steps are needed to address issues relating to
improving participation and to get people’s, civil society, especially voluntary organizations
involved in enhancing the effectiveness of PSDP investment and service delivery. To check
deterioration in governance and exploitation of the public resources, empowerment of
marginal and excluded classes would be needed. To increase the public-private interface,
corporate governance will be improved by developing legal and regulatory frameworks.
Variety of measures will be undertaken to make the public sector more efficient, which
includes modernization of public sector institutions, civil service reforms; performance
management reforms, procedural reforms; procedural regulations and controls; tax and
judicial reforms. To increase transparency, fair play and make systems faster and user

Annual Plan 2018-19

Governance and Institutional Reforms 125

friendly, smart governance would be needed. Effective monitoring and evaluation should be
encouraged and supported.

Programmes for 2018-19

An amount of Rs6.95 billion including foreign aid of Rs2.26 billion has been proposed for the
governance sector in 2018-19. The allocation indicates an increase of 3 percent over the last
year’s allocations.

The reforms programmes/initiatives in the areas of performance evaluation, service

delivery, civil service, judicial, systems and procedures, tax administration, procurement,
financial management, police, e-governance, open government, enforcing property rights,
and public sector enterprises will be continued. Capacity of line ministries/ divisions/
departments and regulatory authorities will be enhanced to deliver public services and to
manage the state affairs in an effective manner. E-office/ e-filling system will be promoted
for quick delivery of services. Access to Justice Programme will be reviewed and will be
implemented efficiently. Citizen Client Charter, Performance contracts for eleven selected
ministries, 3rd Pakistan Governance Forum, implementation of National Action Plan/
National Security Policy, Financial Management Reform, Electoral Reform and Civil Service
Reform would be the priority areas for the Year 2018-19. The programmes which are already
under implementation at Federal and Provincial levels will continue during 2018-19.

Annual Plan 2018-19

 PILLAR-IV
Energy, Water and Food Security
Chapter 19|ENERGY

To bridge the energy demand supply gap, 6,735 MW is expected to be added in the National
Grid which includes 50 percent addition from renewable energy and about 2,000 MW
imported coal based power plants under CPEC during 2017-18. Further, 1 Billion cubic feet
gas per day through import of LNG added in the Sui systems. For evacuation of additional
power generation, the NTDC transmission system has been strengthened by adding 2,700
MVA and 4,340 MVA on 500 kV and 220 kV network respectively. Moreover, all Distribution
Companies (DISCO’s) under their Secondary Transmission and Grid (STG), Distribution of
Power (DOP) and Energy Loss Reduction (ELR) programmes have enhanced their distribution
systems.

To cope with the additional gas through import, SNGPL has undertaken system
augmentation Project (phase-X) for providing RLNG / gas to power plants and completed
1,044 Km Pipeline through infrastructure.

To overcome the load of oil transportation on roads, Techno-Economic feasibility of White

Oil Pipeline (WOP) project envisaging 427 Km pipeline from Machike (Sheikhupura) to Taru
Jabba (Peshawar) has been completed. The project will be implemented on Built, Own,
Operate and Transfer (BOOT) basis. It is planned to finalize the BOOT and other allied
agreement during 2017-18.

Work on various blocks at Thar is going on by various companies. Under the joint venture
project between Govt. of Sindh and Engro Group, the Sindh Engro Coal Mining Company
achieved mine depth of about 126 meters and four (4) dewatering wells are operationalized.

Performance Review 2017-18

Fuel Sector
Oil and Gas

During 2017-18, annual production of crude oil was 32.88 million barrels against target of
35.45 million barrels showing 93 percent achievement. The domestic production of natural
gas was 1.48 trillion cubic feet (TCF) against the target 1.51 trillion cubic feet showing 98.0
percent achievement. The Liquefied Petroleum Gas (LPG) production of 800,000 tons
surpasses the target of 750,000 tons showing 107 percent achievement. A total of 68 wells
including 39 exploratory and 29 development wells drilled. Detail is given at annex-I.

Indigenous crude oil production met only 15 percent of total petroleum products
requirements of 26.4 million tons, while 85 percent met through imports of crude oil and
refined products.

The Oil Marketing Companies (OMC’s) constructed new/ additional oil storages having
combined storage capacity of Petrol 56,494 metric tons and Diesel 40,932 metric tons at
different locations i.e. Mehmoodkot, Machike, Daulatpur, Mandra, Sarai Naurang, Port

Annual Plan 2018-19

130 Energy

Qasim, Shikarpur and Sahiwal. Marketing of Euro-IV/ V specification Diesel Oil has been
allowed under deregulated environment w.e.f. September, 2017.

The OGRA issued 88 licenses including 35 for operation/ marketing of LPG storage/ filling
plants and 2 for construction of LPG Air Mix plants in the franchise area of SSGCL. Moreover,
OGRA complaint department received/ processed 3,876 complaints from all over the country
regarding issues like delay in provision of gas connection, excessive/ estimated billing due to
sticky meter, late delivery of gas bills and low pressure of gas etc. On OGRA intervention, gas
utilities provided 496 gas connections and a relief of Rs1,341.30 million to consumers.

Gas Consumers Addition and Pipelines Construction

Both Sui gas companies in their respective jurisdictions added 650,339 new connections and
total of 14,168 Km transmission and distribution pipelines against target of 416, 973 and
12,253 Km respectively. Detail is given at Annex – II.

Due to existing limited pipeline capacity and to cater for additional RLNG, 30” dia x 125 Km
transmission pipeline from Sindh University, Jamshoroto Pakland, Karachi has been started
and will be completed during the CFY by the SSGCL. Moreover, rehabilitation of 12” x 344 Km
Quetta Pipeline Project (QPL) has been completed. The SSGC has also commissioned
four (04) LPG Air Mix plants in Gawadar, Noshki, Kot Ghulam Muhammad
and Surab.

The SNGPL has undertaken system augmentation Phase-X for providing RLNG /gas to power
plants and completed 1044 Km Pipeline infrastructure development works. To cater the low
pressure problems, 12” dia x 104 Km pipeline in swat is under progress and will be
completed by the end of June, 2018.

To overcome the load of oil transportation through roads, Techno-Economic feasibility of

White Oil Pipeline (WOP) project envisaging 427 Km pipeline from Machike (Sheikhupura) to
Taru Jabba (Peshawar) has been completed. The project will be implemented on Built, Own,
Operate and Transfer (BOOT) basis.

Liquefied Natural Gas (LNG) and Natural Gas Import

During 2017-18, the Pakistan State Oil handled 6.5 million tons of LNG against the target of
9.0 million tons. The curtailment of LNG was due to slightly belated commissioning of 2 nd
LNG terminal. Due to supply of re-gasified LNG into the system, almost all the sectors
received enhanced gas supply particularly Compressed Natural Gas (CNG) sector.

Gas Pipeline Projects

In February 2018, new construction phase from Afghanistan to Pakistan under

Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project of 56” dia, 1,680 km
length and gas volume of 3.2 billion cubic feet of natural gas per day (bcfd) launched in
Turkmenistan. The project is expected to be completed by 2020.

Iran-Pakistan Gas Pipeline Project (IP) envisaging laying of 42“ dia, 1,931 Km pipeline having
750 MMCFD capacity could not proceed well due to sanctions on Iran. The Petroleum

Annual Plan 2018-19

Energy 131

Division is in process of resolving all the outstanding issues including amendments in the Gas
Sales Purchase Agreement (GSPA).

Coal Sector
The Geological Survey of Pakistan (GSP) continued various surveys and exploratory drilling
operations for coal exploration under the following PSDP funded projects;
 Appraisal of Newly Discovered Coal Resources of Badin Coal Field and its adjoining
areas of Southern Sindh.
 Exploration of Tertiary Coal in Central Salt Range, Punjab.
 Exploration and Evaluation of Coal in Nosham and Bahlol Areas, Balochistan.
Thar Coal Development

Work on various blocks Block-I, II, III, VI etc at Thar operated by Sino Sindh Resources Pvt Ltd
(SSRL), Sindh Engro Coal Mining Company Ltd (SECMC)/Engro Power Thar Ltd, Asia Power
Group Ltd and Sindh Carbon Energy Ltd respectively. Under the joint venture project
between GoS and Engro Group, the SECMC achievements include mine depth of about 126
m and four (4) dewatering wells are operational. The Sino-Sindh Resources (Pvt) Ltd (SSRL)
also completed land and socioeconomic survey and appointment of renowned Chinese EPC
contractors to initiate development and civil works. Moreover, Asia Power Group Ltd in
block-III has completed feasibility study and got approved by the Sindh Coal Authority (SCA).

Outlook and Programmes for 2018-19

Targets for domestic crude oil and natural gas production are fixed at 33.50 million barrels
and 1.473 TCF respectively. The supply demand gap in both oil and gas sectors will be met
through import of crude oil and petroleum products. The indigenous gas supply will be
supplemented through LNG imports to the tune of 9.0 million tons.

Total 90 wells (50 exploratory and 40 developments) are planned to be drilled by the
Exploration and Production (E&P) companies. OGRA proposed construction of ten (10) new
oil storages having combined capacity of Petrol 304,445 metric tons and Diesel 446,355
metric tons. Moreover, ten (10) new OMC’s are expected to be established in year 2018-19.

Both SNGPL and SSGCL have plans to add 1,121,295 new connections and 12,898 Km of
transmission and distribution pipelines in their respective systems/ networks.

To cater for additional up country RLNG transmission, SNGPL will construct RLNG-3 (42”dia x
770 KM from Sawan to Lahore) pipeline project XI having 1.2 BCFD capacity. The Project will
be completed by 2019. The SNGPL will install 03 LPG Air Mix Plants in Gilgit and Chitral. The
SSGCL will also construct thirty (30) LPG Air Mix Plants in Balochistan.

The OGRA proposed 33 licenses to LPG sector which include 25 licenses for operation/
marketing of LPG storages and filling.

The TAPI project activities including signing of Gas Transportation agreement, Pipeline
service rules, transit fee agreement and completion of FEED work would be implemented
during 2018-19. The implementation on IP project will be reviewed in consultation with the

Annual Plan 2018-19

132 Energy

Iranian counterpart to discuss and finalize all outstanding issues including amendments in
the GSPA for preparing revised implementation framework for completion of the project.

The “Machike-TaruJabba Oil Project” activities planned for the year 2018-19 includes
completion of land acquisition/ ROW for the project and start of construction by the BOOT
contractor.

Pak Arab Refinery Limited (PARCO) has proposed to set up state of the art PARCO Coastal
Refinery having capacity of 250,000 barrels per day at Hub, Baluchistan, Estimated cost of
the project is over US$ 5 billion. The project is expected to be completed by end 2023.

The Geological Survey of Pakistan (GSP) will continue exploratory drilling and surveys under
the following three on-going projects:
 Appraisal of Newly Discovered Coal Resources of Badin Coal Field and its adjoining
areas of Southern Sindh.
 Exploration of Tertiary Coal in Central Salt Range, Punjab.
 Exploration and Evaluation of Coal in Nosham and Bahlol Areas, Balochistan.
In addition to above, the GSP also proposed initiation of new project i.e. Exploration of Coal
in Dara Adam Khel (FATA), Khyber Pakhtunkhwa.

The Sindh Engro Coal Mining Company (SECMC) with their Chinese contactors will continue
its mining project of 3.8 million tons per annum capacity for supplying Thar coal to 2x 330
MW power plants at Block–II. During 2018-19 the process of over burden removal will
continue and coal production of about 1.2 million tons is also targeted.

Performance Review 2017-18

Power Sector
A total of 3,330 MW against the target of 6,715 MW has been actualized/commissioned, the
remaining 3,405.7 MW is expected to be added by June, 2018 and the target will be fully
achieved accordingly. The addition power generation comprised of about 50 percent in
renewable energy and 2,000 MW imported coal based power plants under CPEC. Project
wise details are attached at Annex-III.

The installed capacity on June 2017 and June 2018 is given as below;

Electricity Installed Capacity as on June 2017 (27,453 MW )

Nuclear Bagasse Hydel
5% 1% 26%

Gas
Wind
36%
2%

Solar
1%
Coal imported
5%

Oil RLNG/NG Domestic Coal

6% 1%
17%

Annual Plan 2018-19

Energy 133

Electricity Installed Capacity as on June 2018 (34,188 MW )

Bagasse
Nuclear 1%
4%
Hydel
31%
Gas
31%

Wind
3%
Solar
1%
Coal imported
6%
Oil
RLNG/NG Domestic Coal
15%
7% 1%

Transmission & Distribution System

During 2017-18, the NTDC transmission system has been strengthened by an addition of
2,700 MVA and 4,340 MVA on 500 kV and 220 kV systems respectively for evacuation of
additional power to the National Grid. The existing transmission lines were extended by
1,157 km and 372 km on 500 kV & 220 kV respectively. Detail is given below:-

Transmission & Distribution

Transmission Capacity addition

Items Units Targets 2017-18 Achievements up to June-2018

Transmission MVA 500 kV 220 kV 500 kV 220 kV

MVA 4800 6360 2700 4340

Transmission Km 1853 809 1157 372

A total of 14,675 villages were electrified and 0.96 million connections were added as a
result the number of connections increased up to 28 million. In addition, the distribution
lines i.e. 132 kV lines extended by 358 km. Further, to cope with increasing power demand,
all Distribution Companies (DISCO’s) enhanced their capacities through implementation of
Secondary Transmission and Grid (STG), Distribution of Power (DOP) and Energy Loss
Reduction (ELR) programmes. Detail is attached as Annex-IV.

Annual Plan 2018-19

134 Energy

Regional Power Connectivity

Central Asia South Asia (CASA) transmission project envisaging lying of 1,200 km
transmission lines for1,300 MW from hydel power generation from Tajikistan and Kyrgyz
Republic through Afghanistan to Pakistan, 1,000 MW will be available to Pakistan. The
project will not only connect the power transmission lines but will also promote regional
connectivity. The core power agreements including Power Purchase Agreements (PPAs)
between respective countries have been signed by the parties.

An amount of Rs86.7 billion was allocated in PSDP 2017-18 for power sector projects. In
addition Rs317 billion also envisage by WAPDA / NTDC / PEPCO through their own resources.

Outlook and Programmes for 2018-19

During 2018-19, power generation capacity of 2,270 MW including 450 MW from renewable
energy will be added, which will increase the existing installed capacity from 34,188 MW to
36,458 MW. The project wise details are attached at Annex-V.

The transmission capacity will be enhanced by 3,150 MVA and 6,956 MVA on500 KV and 220
kV network respectively. Further, about 1,396 km and 203 Km transmission lines of 500 KV
and 220 KV network will be constructed respectively detail is given below:

Transmission Capacity Addition

Items Targets 2018-19

Transmission 500 kV 220 KV
Transmission capacity (MVA) 3,150 6,956
Transmission line (km) 1,396 203

The average distribution losses reported by DISCOs are 18.5 percent which are considerably
higher than the global average of around 8 percent. Besides increasing the efficiency, higher
losses will be curtailed through DISCO’s Power Distribution enhancement projects like STG’s
and ELR. Moreover, necessary measures including incorporating all costs in the tariff
structure and to enhance the recovery of receivables by Discos will be taken to address the
persistent circular debt issue.

Regional Power Connectivity

The implementation of Central Asia South Asia (CASA) project will continue 2018-19, the
bidding process for the transmission line will be completed and actual work will be started.

An amount of Rs56 billion is allocated in PSDP 2018-19 for power sector projects of
generation, transmission and distribution. In addition Rs159 billion is also envisaged by
WAPDA / NTDC / PEPCO through their own resources.

Annual Plan 2018-19

Energy 135

Annex – I
Annual Plan (2018-19) Energy (Fuel Sector)
Oil and Gas Achievements and Targets

Expected
Targets achievement Per cent Targets
S.No Items Units
2017-18 up to 30-06- Achievements 2018-19
2018
1 Production
1 Million
Crude Oil 35.45 32.88 93 33.50
1.1 Barrels
1
Gas Trillion cft 1.51 1.48 98 1.47
1.2
1
LPG Tons 750,000 800,000 107 880,000
1.3
2 No of wells drilled Nos. 100 68 68 90
3
Exploratory Nos. 66 39 59 50
2.1
3
Development Nos. 34 29 85 40
2.2

Annual Plan 2018-19

136 Energy

Annex –II
Gas Consumers, Transmission and Distribution Addition
Achievements and Targets

S.No Items Units Targets Expected Achievements Targets

2017-18 Achievement In per cent 2018-19
up to 30-06-
2018
Gas Consumers Added
1 SNGPL
1 Nos. 301,125 545,047 181 1,000,00
Domestic
1.2 0
1 Nos. 1,100 3,180 289 3,000
Commercial.
1.3
1 Nos. 25 122 488 300
Industrial
1.4
1 Nos. 302,250 548,349 181 1,003,30
Sub Total SNGPL
1.5 0
2. SSGCL
2 Nos. 114,300 101,700 89 115,582
Domestic
2.1
2 Nos. 384 280 73 2,205
Commercial.
2.2
2 Nos. 39 10 26 208
Industrial
2.3
2 Nos. 114,723 101,990 89 117,995
Sub Total SSGCL
2.4
Total
2 SNGPL + Nos. 416,973 650,339 156 1,121,29
2.5 SSGCL 5
3 Transmission & Distribution Extension by Gas Companies
3
SNGPL
3.1
Transmission
3 & Km 10,930 13,219 121 11,420
3.2 Distribution
4 SSGCL
Transmission
4 & Km 1,323 949 72 1,478
4.1 Distribution
Total
4 SNGPL + Km 12,253 14,168 116 12,898
4.4 SSGCL

Annual Plan 2018-19

Energy 137

Annex –III
Generation Capacity Addition 2017-18

Sr. # Name of Project Agency Fuel Capacity Addition Commissioning

(MW) Date
1 Patrind PPIB Hydro 147 COD achieved
2 Bhiki PPIB RLNG 399 COD achieved
3 Haveli Bahadur Shah PPIB RLNG 421 COD achieved
(1*ST)
4 Balloki PPIB RLNG 1198 COD achieved
5 Port Qasim (Unit-I) PPIB Imp. Coal 660 COD achieved
6 Thall Power AEDB Bagasse 15 COD achieved
7 CHASHNUPP-IV PAEC Nuclear 340 COD achieved
8 Artistic Wind AEDB Wind 50 COD achieved
9 Jhimpir Power AEDB Wind 50 COD achieved
10 Hawa Wind AEDB Wind 50 COD achieved
Capacity commissioned (A) 3329.64

1 Ranolia HPP PEDO Hydro 17 Apr. 2018

2 Machai Canal HPP PEDO Hydro 3 Apr. 2018
3 Golen Gol HPP Unit-I WAPDA Hydro 35 Apr. 2018
4 Tarbela 4th Ext. Unit-I WAPDA Hydro 470 Apr. 2018
5 Neelum Jhelum Hydro Unit-I WAPDA Hydro 242 Apr. 2018
6 Neelum Jhelum Hydro Unit-II WAPDA Hydro 242 Apr. 2018
7 Karora HPP PEDO Hydro 12 Apr. 2018
8 Golen Gol HPP Unit-II WAPDA Hydro 35 Apr. 2018
9 Tarbela 4th Ext. Unit-II WAPDA Hydro 470 Apr. 2018
10 Neelum Jhelum Hydro Unit-III WAPDA Hydro 242 Apr. 2018
11 Neelum Jhelum Hydro Unit-IV WAPDA Hydro 242 Apr. 2018
12 Almoiz Industries Limited AEDB Baggase 36 May. 2018
13 Tarbela 4th Ext. Unit-III WAPDA Hydro 470 May. 2018
14 Golen Gol HPP Unit-III WAPDA Hydro 35 May. 2018
15 Port Qasim Power Project PPIB Imp. Coal 660 Jun. 2018
(Unit-II)
16 Daral Khwar HPP PEDO Hydro 37 Jun. 2018
17 Jabori HPP PEDO Hydro 10 Jun. 2018
18 M/s Three Gorges Second Wind AEDB Wind 49.5 Jun. 2018
Farm Pvt. Ltd.
19 M/s Three Gorges Third Wind AEDB Wind 49.5 Jun. 2018
Farm Pvt. Ltd.
20 M/s Hartford Alternative Energy AEDB Wind 49.3 Jun. 2018
(Pvt.) Limited
Generation Capacity to be added upto June 2018 (B) 3,405.7
Total Addition upto June 2018 (A+B) 6,736

Annual Plan 2018-19

138 Energy

Annex-IV
Electricity Consumers Addition/ Achievements and Targets

Type of Consumers Units Achievement 2017-18 Target 2018-19

Domestic Nos. 790,050 1,442,678
Commercial Nos. 72,374 130,477
Industrial Nos. 7,010 12,778
Others Nos. 3,880 6,725
Total Nos. 873,314 1,592,658
Electrification of Villages Nos. 14,675 -

Annual Plan 2018-19

Energy 139

Annex-V
Target 2018-19 Power Generation

Name of Project Agency Fuel MW Commissioning

Date
1 M/s Tricon Boston (Pvt.) Limited (A) AEDB Wind 50 Jul. 2018
2 M/s Tricon Boston (Pvt.) Limited (B) AEDB Wind 50 Jul. 2018
3 M/s Tricon Boston (Pvt.) Limited (C) AEDB Wind 50 Jul. 2018
4 Engro Powergen Project (Unit-I) PPIB Dom. Coal 330 Oct. 2018
5 RLNG based power plant at Trimun, Jhang PPDB Imp. LNG 830 Nov. 2018
(GT NO.1 & 2)
6 M/s Zephyr Power Pvt. Ltd. AEDB Wind 50 Nov. 2018
7 HUB Power Company Ltd. (Unit-I) PPIB Imp. Coal 660 Dec. 2018
8 Chanar Energy Limited AEDB Bagasse 22 Dec. 2018
9 Shahtaj Sugar Mills Ltd. AEDB Bagasse 32 Jan. 2019
1 Hunza Power (Pvt.) Ltd. AEDB Bagasse 49.8 Feb. 2019
0
1 Koto HPP PEDO Hydro 41 Feb. 2019
1
1 Etihad Power Generation Limited. AEDB Bagasse 74.4 Feb. 2019
2
1 Indus Energy Limited. AEDB Bagasse 31 Apr. 2019
3
Total 2,270

Annual Plan 2018-19

Chapter 20|WATER

Water Sector’s Annual Plan 2018-19, addresses sectoral issues, policies and future strategies
based on National Water Policy and Vision 2025. It envisages adopting Integrated Water
Resources Management (IWRM) approach with guiding principles of equity, efficiency,
participatory decision making, sustainability, affordability and accountability.

The prime resolve of Annual Plan (2018-19) is to prioritize and line up investments for water
sector in the light of National Water Policy and 12th FYP so as to create new storage facilities
and increase system efficiency for water conservation with a broader objective to achieve
water-energy-food security. This plan recognizes the need to introduce appropriate
measures, reforms and knowledge based interventions to make water infrastructure and
management system more efficient and sustainable. National Water Policy provides
framework and guiding principles to achieve water security while 12th FYP sets milestones
for system augmentation and resource conservation. This Annual Plan will act as means to
ensure implementation of National Water Policy and 12th FYP.

Performance Review 2017-18

During the fiscal year 2017-18, major focus remained on timely completion of on-going
priority projects intended to achieve the planned targets of Vision 2025 and 11th Five Year
Plan. In pursuance, an amount of Rs36.75 billion was allocated for the water sector’s
development programmes/projects during the year 2017-18, out of which more than 30.00
billion has been utilized.

Major Achievements During 2017- 18

 National Water Policy has been finalized in consultation with all stakeholders across
the board. The same awaits approval of the Council of Common Interests (CCI).
 Completion of Kachhi Canal Project (Phase-I) in Balochistan Province to convey
irrigation water to Kachhi Plain (about 72,000 acres) for the first time in history. An
amount of Rs10,000 million has been utilized for completion for Phase-I in FY 2017-
18.
 Commissioning and Operationalisation of Rainee Canal Project in Sindh Province for
irrigating 0.185 million acres (Phase-I).
 Operationalisation of Gomal Zam Dam in FATA/Khyber Pakhtun Khwa
 Operationalisation of Darawat Dam Project in Sindh Province
 Achievement of 55 percent physical progress on Nai Gaj Dam (Dadu, Sindh) aimed at
irrigation of 28,800 acres of land and generation of 4.20 MW of electricity
 Initial works on Kurram Tangi Dam (Phase-I) in North Waziristan Agency
 An amount of Rs680 million has been utilized for lining of small and minor canals in
Punjab and Sindh Provinces during FY 2017-18.
 An amount of Rs1200 million has been incurred on rehabilitation and improvement
Annual Plan 2018-19
142 Water

of existing irrigation canals in Punjab, Sindh and Khyber Pakhtun Khwa Provinces
during FY 2017-18.
 Medium/small and delay actions dams are priority projects of water sector as
explained in Vision 2025 and 11th FYP. An amount of Rs7.30 billion has been incurred
for implementation of storage projects in all federating units. Province-wise detail is
as under:
a) Punjab: Rs240 million (Ghabir & Papin dam)
b) Sindh: Rs2,350 million (Darawat & Nai Gaj and Small/recharge dams in
Kohistan & Nagarparkar areas of Sindh)
c) KPK: Rs1,200 million (Kurram Tangi, Kundal/Sanam dam, Baran dam & 20
small dam in districts Nowshera, Kharak, Swabi, Haripur & Kohat.
d) Balochistan: Rs3,184 million (Shadi Kaur, Bathozai, Construction of 100 small
dams (Package-II&III), Basol dam, Mangi dam & many other small dams)
Water availability at farm gate has been increased during FY 2017-18 up to 133.50 MAF
against a target of 134.22 MAF.

Drainage sub-sector remained a priority and a sum of Rs10.80 billion has been utilized for
the implementation of Right Bank Outfall Drain (RBOD-I, II & III) Projects aimed at protection
of land and reclamation of waterlogged and salt effected areas of Sindh and Balochistan
Provinces. These projects will also help restore ecology of largest freshwater lake of the
country i.e. Manchar Lake.

Physical progress of major on-going projects is given as Annex-I.

Outlook 2018-19
During the year 2018-19, following targets will be focused as envisaged in National Water
Policy 2018, Pakistan Vision 2025 and 12th Five Year Plan (2018-23):
 Integrated Water Resources Management approach will be adopted as planning
paradigm to overcome water scarcity issue and to cope with future challenges.
 Priority will be given to the construction of large/medium/small and recharge dams
followed by “Safe disposal of drainage effluent into sea through construction of
RBOD-I, II & III”.
 Conservation measures (lining of irrigation channels and
rehabilitation/modernization of existing irrigation system) will be gradually
transferred to the provinces.
 Reinvigorated efforts will be imparted for early completion of projects having
physical progress more than 80 percent so as to lessen the burden of throw-forward.
 Protection of infrastructure, agricultural lands & abadies from onslaught of floods
under flood control /management programme.
 Building climate resilience, resolution of trans-boundary water disputes, demand
management, rainwater harvesting, resettlement, reuse of waste water, recharging
ground water are major planned initiatives of water sector. Annual Plan 2018-19

Annual Plan 2018-19

Water 143

intends to implement respective measures in consultation and coordination with all

stakeholders including federating units.
Out of total proposed water sector’s budget for the FY 2018-19, amounting to Rs64, 626
million, maximum resources have been earmarked for priority development
programmes/projects as per the order of priority set in National Water Policy 2018.

Strategies
Major strategies for water resources
development have been drawn from Water Sector’s Strategies & Investment Areas
and are coherent with National
Water Policy, Pakistan Vision 2025  Augmentation measures (construction of
th small/ medium dams) to overcome the water
and 12 Five Year Plan. The main
scarcity issue.
strategy will be prioritizing  Conservation measures (lining of irrigation
investments in water sector so as to channels, modernization/ rehabilitation of
achieve additional water storages irrigation system, Introduction of high
and institutional reforms. As the efficiency irrigation system
water sector is highly complex its  Protection of infrastructure from the
management vision' cannot be based onslaught of floods, water logging & salinity
only on short term or medium term
plans; it has to be long-term. However, for convenience in implementation and monitoring,
the Vision 2025 has to be split into short term development plans. The future development
strategy in the water sector has to be based on new development framework

Expected Water Availability at Farm gate

All efforts would be made to increase the overall water availability at farm gate from 133.50
MAF to 134.50 MAF. This would include surface water supplies through canal withdrawals,
canal lining/ remodeling, rehabilitation/ modernization of existing irrigation system,
construction of small/ medium dams, check dams and retention weirs. About 6.17 Mhm
(50.00 MAF) of water would be included in the system from underground fresh water
aquifer mainly by private tube wells. Water losses of the existing irrigation system would be
improved through “water conservation measures”.

Large/Medium/Small Dams

An amount of Rs33,481 million (52 percent of total water sector allocation) has been proposed during
2018-19 for construction Large/ medium dams (including Rs23,680 million for Diamer Bhasha Dam)
and Rs7,825 million for small/ check & delay action dams in all over Pakistan.

Safe Disposal of Drainage Effluent

Waterlogged and salt effected area will be reclaimed through completion of Right Bank Out-fall
Drainage System (RBOD-I, II & III), for this programme about Rs9,100 million are proposed to be
expended during the next fiscal year 2018-19.

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144 Water

Rehabilitation/Modernization of Existing Irrigation System

More than 50 percent water losses are reported under different studies in our existing irrigation
system, to minimize these losses this programme is proposed to be undertaken gradually
through Provincial ADP’s in future. However, an amount of Rs3, 200 million is proposed for the
year 2018-19 for the improvement/ rehabilitation and modernization of irrigation system and
“lining of irrigation channels in saline zones”.

Flood Management

It is proposed to spend an amount of Rs1, 000 million to complete different emergent nature
of small flood schemes all over Pakistan.

Priority On-going and Future Projects

S.# Description On-going Projects Future Interventions

 Gomal Zam Dam  Diamer-Basha Dam
 Kurram Tangi Dam, stage-I  Mohmand/Munda Dam
 Darawat Dam  Kurram Tangi Dam
 Nai Gaj Dam (Stage-II)
 Naulong Dam  Naulong Dam Project
1. Large/Medium Dams
 Ghabir Dam
 Construction of Mangi Dam
 Construction of Basol Dam
 Papin Dam
 Raising of Baran Dam
Small/Delay
2.  All provinces  All provinces
Action/Recharge Dams
 Greater Thal Canal
(Phase-II)
 Rainee Canal (Phase-I)
New Canals/Intra-  Rainee Canal (Phase-II)
3.  Kachhi Canal (Phase-I)
basin water transfer  Kachhi Canal (Phase-II)
 CRBC (Lift-cum-Gravity)
Canal.
 Lining of KB Feeder Upper
 Canal lining in all provinces Canal for water supply to
 Rehabilitation of irrigation Karachi City
Water Conservation/
systems in all provinces  The programmes will be
4. Eradication of
 Remodelling of Warsak Canal continued in future
Contamination
 High Efficiency Irrigation System  Construction of Feeder
in all provinces canal to Manchar Lake to
eradicate contamination
 Normal Emergent Flood
Programme all over Pakistan
 National Flood Protection
5. Flood Management  Other flood Management
Plan-IV.
programmes are also being
implemented in every province.
 Lower Indus Right Bank
Irrigation & Drainage (RBOD-I)
 The programmes will be
6. Drainage  RBOD-II
continued in future
 Balochistan Effluent Disposal
into RBOD (RBOD-III)

Annual Plan 2018-19

Water 145

S.# Description On-going Projects Future Interventions

 Remedial measures to control
water logging due to
Muzaffargarh & TP Link Canals
Rainwater harvesting/  A feasibility study on rain water
Hill Torrents harvesting / hill torrents  Future projects on the
management management is in process. basis of feasibility study
7.
 Survey and study design for will be taken up for
construction of rain water dams implementation.
( along river Indus in Sindh)

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146 Water

Annex-I
Status of Major Water Sector Ongoing Projects

App.
Live Irrigated Area
Project Location cost Status
Storage (Acres)
(Rs M)
Completed &
191,139 Acres Operational. Work on
Gomal Zam Khyber 0.892
20,626 (17.4 MW Command Area
Dam Pakhtunkhwa MAF
Power Gen) Development in
progress.

Physically comp.
Kachhi Canal (Phase-I). Clearance of
Balochistan 80,352 -- 72,000 Acres
(Phase-I) remaining liabilities is
in progress.

Physically completed.
89,192 25,000 Acres Work on Command
Darawat Dam Sindh 9,300
(Ac. Ft). (0.30 MW Area Development in
Power Gen) progress.

28,800 Acres
160,000 50 % Physical works
Nai Gaj Dam Sindh 26,236 (4.2 MW
(Ac.ft) comp.
Power Gen)

Kurram Tangi 84,380 New

17% Works
Dam 0.90 278,000
KPK 21,059 Completed.
(Phase-I, Kaitu MAF existing
Works at initial stage.
Weir) (18.9 MW
Power Gen)
Feasibility & Detailed
47,000 Acres Engineering Design
0.20
Naulong Dam Balochistan 18,027 (4.4 MW completed. Works on
(MAF)
Power Gen.) main dam not yet
started.

Mohmand
Feasibility & Detailed
Dam 114,285
FATA, 0.676 16,737 Acres Engineering Design
Hydropower (dam
Mohmand MAF (800 MW completed. Approval
Project (800 part)
Agency Power Gen.) of ECNEC for the main
MW) cost
dam project is awaited.
RBOD-II will
help to dispose
Right Bank Out
3,520 cusecs of
fall Drain
drainage
 RBOD -I Sindh 17,505 82% completed
effluent into
 RBOD –II Sindh 61,985 63% completed
Sea received
 RBOD -III Balochistan 10,804 74 % completed
from RBOD-I
& III

Annual Plan 2018-19

Chapter 21|FOOD SECURITY AND
AGRICULTURE DEVELOPMENT

Agriculture sector is an important constituent of national economy which has very strong
forward as well as backward linkages with other sectors of economy. It has contributed 18.9
percent to the national GDP and employed 42.3 percent of the country’s total labor force.
The sector has been recovering slowly from the downward trends in the commodity market
due to the measures taken by the government coupled with improved demand in the
international market.

Vision 2025 targets to reduce food insecurity in Pakistan by 50 percent on one side while to
develop value chain of agriculture to enhance exports on the other. Socioeconomic
objectives for 12th Plan highlighted the significance of agricultural development, food
security and rural transformation by emphasizing the importance of better farmer’s terms of
trade, value chain improvement and promoting rural enterprises to realize the Plan’s targets
of 4 percent growth rate from the agriculture sector. Federal cabinet has recently approved
the National Food Security Policy. It was long overdue as country did not have any policy
framework to guide the nation about securing its food. It emphasized on all the four
components of food security such as availability, access, utilization and stability and taken
on board all stakeholders while its formulation. Main focus of the policy is on food diversity
and nutrition, livelihood improvement, post-harvest management and value addition.
Agriculture has been included in CPEC Long-Term Plan. For the time being a sub group on
agriculture under Working Group on industry and investment has been formulated. A big
activity is anticipated in agriculture sector with Chinese cooperation in coming days. All
three national documents i.e. Vision 2025, 12th Five Year Plan and National Food Security
Policy along with Long Term Plan of CPEC and relevant provincial policies will guide the
working in agriculture and food sector of Pakistan.

Performance Review 2017-18

The performance of agricultural sector and food security situation in the country was up to
the mark. During 2017-18, the sector grew by 3.81 percent (P) against a target of 3.47
percent and last year’s revised growth rate of 2.07 percent. The crop sector grew by 3.83
percent. Performances from the sub-sectors of agriculture are given in Table-1.

Table 1: Growth Rate of Agriculture Sector (percent)

2016-17 2017-18 2018-19

Item Achievement Share in
Revised Target Target
(P) GDP
Crops 0.91 2.70 3.83 7.0 3.60
Major crops 2.18 2.00 3.57 4.5 3.00
Other crops -2.66 3.30 3.33 2.0 3.50
Cotton Ginn. & Misc. 5.58 6.50 8.72 0.5 8.90
Livestock 2.99 3.80 3.76 11.1 3.80
Fisheries 1.23 1.70 1.63 0.4 1.80
Forestry -2.37 10.00 7.17 0.4 8.50

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148 Food Security and Agriculture Development

2016-17 2017-18 2018-19

Item Achievement Share in
Revised Target Target
(P) GDP
Agriculture 2.07 3.47 3.81 18.9 3.77
Source: Pakistan Bureau of Statistics

Support package from the government coupled with conducive weather and better market
prices have resulted in high growth rate. Salient features of the agriculture package provided
in the budget of 2017-18 are given in Box-1

(Box-1) Agriculture Package in the Federal Budget 2017-18

 Reduced mark-up rates: Mark-up rates currently charged range between 14 to 15 percent.
From 1st July 2017, ZTBL and National Bank of Pakistan will provide agricultural loans at a
reduced rate of 9.9 percent per annum to small farmers with holdings of 12.5 acres.

 Enhancement in the target of agriculture credit: In order to facilitate the farmers, the volume
of agriculture credit is being enhanced to Rs1,001 billion from the last year’s target of Rs700
billion.

 Maintaining Fertilizer Prices: i. The government to sell the existing stock of imported Urea
fertilizer available with NFML at a concessional rate of Rs1,000 per bag; ii. In order to create
ease in disbursement of subsidy on DAP fertilizer which will be subject to fixed sales tax. As a
result, GST is being reduced from Rs400 to Rs100. This will have a subsidy impact of Rs13.8
billion; iii. Through reduced tax rates and subsidy given the price per bag of Urea shall be
maintained up to Rs 1,400 per bag during the FY 2017-18. This will have a subsidy impact of
Rs11.6 billion; iv. Prices of NP, NPK, SSP and CAN fertilizers will also be maintained at their
current price levels through appropriate tax adjustments.

 Use of Land Revenue Records for Mortgage Financing: The State Bank of Pakistan shall take
steps to align the banking system with the Land Record Management Information System for
mortgaging of a property by the banks/farmers.

 Plants Breeders Rights Registry is being established to register new high-quality seeds.

 Cheap electricity for agri-tube wells: The government will continue provision of subsidized
tariff on agri-tube wells at the rate of Rs5.35 per unit during FY 2017-18 which is estimated to
cost around Rs27 billion.

 Production Index Units will be increased from Rs 4,000 to Rs 5,000.

 Agriculture Tax Relief Measures: i. It has been decided to reduce the customs duty and sales
tax at import stage from 0 percent to 5 percent on new and up to 5 years old combined
harvesters and machinery, respectively. ii. Removal of GST on imported sunflower and canola
hybrid seeds; iii. Sales tax on certain imported machinery/equipment for poultry to be
reduced from 17 percent to 7 percent; iv. Sales tax on imported and local supply of
agricultural diesel engines of 3 to 36 Horse Power for tube-wells currently having rate of 17
percent is proposed to be exempted.
Source: Budget Speech of Finance Minister

Support price for wheat was capped at Rs1,300 per 40 Kg for 2017-18 crop and a
procurement target of 6.10 million tons was fixed with a financing of Rs195.2 billion. Wheat
availability with the public sector before the wheat season was around 5 million tons. Efforts
were made to export the surpluses but with partial success due to low prices in international
market despite providing up to US$ 159 per ton export subsidy. Similarly, the sugar

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Food Security and Agriculture Development 149

surpluses have become a problem due to low international prices restricting exports and
payment capacity of the millers to the sugarcane growers. The situation for pulses and
edible oil, however, was unsatisfactory and low productions caused imports. Food trade
balance has been tilting towards imports (US $ 3.97 billion) as compared to exports (US$ 2.3
billion) in first eight months of the FY 2017-18. Food inflation in 2017-18 was calculated at
1.99 percent during July to March as compared to 3.8 percent during the same period of
2016-17.

The Global Food Security Index (GFSI) ranked 113 countries by taking into account food
affordability, availability, quality and safety. The overall score and ranking based on GFSI for
some global and regional countries is presented in the following Table 2. There was an
increase in score of Pakistan in 2017 when compared with 2016.

Table 2: GFSI (Overall Score and Ranking)

Score/100 Score Change

Country Ranking 2017
2016 2017
China 45 65.5 63.7 -1.8
Sri Lanka 66 54.8 53.0 -1.8
India 74 49.4 48.9 0.5
Pakistan 77 47.0 47.8 0.8
Nepal 81 42.9 44.5 1.6
Bangladesh 89 36.8 39.7 2.9
Source: The Economist, Intelligence Unit 2017

Production of Important Crops

Wheat production is estimated to be 25.49 million tons from an area of 8.73 million hectares
during 2017-18 which is 3.6 percent lower against its target. The national requirement of
wheat is 25.84 million tons, including 1 million tons strategic reserves maintained by
PASSCO. Little shortfall will be provided from the stocks. The decline in wheat production is
attributed to delayed sowing in Punjab and Sindh due to delays in cane crushing, water
shortages and heat wave in the month of March.

Rice ranks as second amongst the staple food grain crops in Pakistan and is a major source of
foreign exchange earnings in food group. Rice production was 7.44 million tons during 2017-
18 which is 9 per cent more than the target. Generally, about two third of total rice
produced is exported from the country. According to Rice Exporters Association of Pakistan
(REAP), during the period from July, 2017 to Jan, 2018 more than 2.33 million tons of rice
has been exported valuing US$ 1061million.

The provisional estimates of sugarcane production are very encouraging showing growth of
18 percent and 7.4 percent against its target and last year’s achievement. The production is
estimated to be 81.102 million tons during 2017-18. High production can be attributed to
increase in area sown from 1.218 million hectares in 2016-17 to 1.313 million hectares in the
current year. Sugarcane crushing was delayed by most of the sugar mills in South Punjab and
Sindh. Farmers were confronted with hardships in disposal of cane due to low prices offered
by the mills.

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150 Food Security and Agriculture Development

Cotton crop is gradually escaping from the decline in its production during 2015-16. For the
second consecutive year its production has been improving. A production of 11.935 million
bales was recorded against target of 12.60 million bales. It is however 11.8 percent higher as
compared to 2016-17. The area under cotton has increased from 2.489 million hectares to
2.699 million hectares.

The production of Maize during 2017-18 remained at 5.702 million tons from an area of
1.229 million hectares against production target of 5.590 million tons. The increasing
production trend is due to use of high quality hybrid seeds, improved production
technologies and increased profitability.

Other Crops
Kitchen items mainly come from minor crops. Production of pulses, oilseeds and vegetables
affects the Food Price Index and Sensitive Price Index. For the year 2017-18 production of
gram crop was targeted to be around 617 thousand tons, however, its production was 43
percent lower than its target for 2017-18. Similarly, the production of sunflower was 49
percent lower against its target and remained at 101.7 thousand tons. The production
figures of important crops for 2017-18 and their targets are given in Table 3.

Table 3: Crop Production Targets and Achievements

(‘000’ Tons)
percent change over
2016-17 2017-18 2017-18
Crops 2016-17 2017-18
Actual Target Achievement (P)
Actual Target
Wheat 26,674 26,463.6 25,492 -4.43 -3.67
Rice 6,849 6,818 7,442 8.66 9.15
Sugarcane 75,482 68,517.8 81,102 7.44 18.37
Cotton (mil.bales) * 10.670 12.60 11.93 11.81 -5.32
Maize 6,134 5,590.1 5,702 -7.04 2.0
Gram 329.8 617.5 340.3 3.18 -44.9
Onion 1,833.2 1,880.5 1,981.7 8.10 5.38
Sunflower 106.4 140.71 101.7 -4.42 -27.72
Potato 3,852.9 3,807.6 3,853.9 0.03 1.22
Source: Pakistan Bureau of Statistics, Federal Committee on Agriculture (FCA), Planning Commission,
P=Provisional

Agricultural Inputs
Fertilizer: Due to low fertility of Pakistani soils, fertilizer contributes 40-60 percent in crop
yields. During outgoing fiscal year 2017-18 Phosphate (P) and Potash (K) offtake has
increased by 0.2 and 29.3 percent, respectively while Nitrogen offtake decreased by 6.7
percent against 2016-17. The increase in the offtake of phosphate and potash fertilizers was
due to the subsidy on these fertilizers. On overall basis, the fertilizer off take target for 2017-
18 was well achieved (Table 4).

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Food Security and Agriculture Development 151

Table 4: Supply Demand Situation of Fertilizer in 2017-18

(000 tons)
2016-17 2017-18 Percent Change over
Nutrient /
Products 2016-17 2017-18
Actual Targets Achievements
Actual Targets
Nitrogen 3,730 3,199 3,481 -6.7 8.8
Phosphate 1,269 936 1,272 0.2 35.9
Potash 41 26 53 29.3 103.8
Total 5,040 4,161 4,806 -4.6 15.5
Urea 6,372 5,764 5,798 -9.0 0.6
DAP 2,329 1,691 2,343 0.6 38.6
Source: NFDC. For 2017-18 data up to January, 2018 were actual while onward are estimates

Agricultural Credit: For the first eight months of 2017-18, financial institutions have
disbursed Rs570 billion, which is 57 percent of the annual target of Rs1,001 billion and 39
percent higher than the disbursement of Rs409 billion made during corresponding period of
last year. Efforts of the SBP are yielding results. It is a high possibility of achieving the
disbursement targets to play role in better agricultural production.

Improved Seed: Seed is the single most important input that plays a significant role in
achieving high crop productivity. Government as a regulator miserably failed to provide
quality seed to growers despite allowing over 700 seed companies. With the recent
amendment and approval in Seed Act and Plant Breeders Bill, it is expected that the
availability of quality seed to growers will be improved resulting in increase in farmer’s
yields. Supply demand of improved seed during the period under review is given below
Table 5.

Table 5: Improved Seed Requirements and Availability

(Tons)
Items 2016-17 2017-18 Percent Percent change
Actual Targets Achievements (P) change over over targets
actual 2016-17 2017-18
Cotton Seed 44075.81 40000 27441 -37.44 -31.40
Bt. Cotton 39668.23 - 24696.9 -37.44 -
Non Bt. Cotton 4407.85 - 2744.1 -37.44 -
Paddy 56877.07 46564 28864 -49.25 -38.01
Wheat 476293.83 217089 - - -
Maize 24042.35 9574 17317 -27.97 80.88
Pulses 5396.84 9499 3178.15 -41.11 -66.54
Oilseeds 501.10 2116 488 -2.61 -76.94
Vegetables 9056.61 5070 8453.8 -6.66 66.74
Fodder 38430.21 40138 15343 -60.08 -61.77
Potato 6836.85 70545 2415 -64.68 -96.76
Onion 163.29 - 99.89 -38.83 -
Source: FSC&RD

Irrigation Water: A significant size of PSDP has been going on to develop water resources in
the country. Major investment is on increasing storages, improving canals and water

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152 Food Security and Agriculture Development

channels. During the outgoing year water availability remained at 133.5 MAF to support the
both Rabi and Kharif crops.

Plant Protection: Major portion of pesticide is used to control cotton pests. Due to failure of
Bt. technology by spurious seeds in cotton, the use of pesticide on it has been increasing.
Main ingredients for pesticides are imported which are further formulated/ produced in
Pakistan. A quantity of 306,852 tons pesticide including insecticides, herbicides, and
fungicides has been imported from January, 2017 to March, 2018 and made available to use
against the agricultural pest complexes.

Agricultural Mechanization: During the period from July, 2017 to Feb., 2018, around 45,576
tractor units have been sold in the market as compared to 31,502 tractor units in the
corresponding period of previous fiscal year. There is an increase in local production of
agricultural machinery especially of sugarcane machines. Agricultural machinery imports
during 2017-18 went up to US$ 86 million compared to the US$ 76 million during 2016-17
due to high demand created by tax relaxation and higher profitability of farmers.

Livestock
Livestock is very important component of agriculture with regard to GDP contributions,
livelihood, resilience, poverty alleviation and food security. It accounted for 58.6 percent of
the agricultural GDP. During 2017-18, the livestock sector grew at 3.76 percent, its
contribution to GDP growth remained at 0.43 percent and share in national GDP was 11.1
percent. While, its gross value addition amounted to Rs1,386 billion. More than US$ 164.631
million were earned as foreign exchange through the export of livestock and allied products
during July-Dec of 2017-18. Pakistan has imported milk and cream of value of US$ 235
million in 2016-17 despite the fact that the country is one of the largest milk producers in
the world. Due to price capping policy investment in dairy sector is not coming in to meet
local demands of milk. Poultry is an important means of improving nutrition. Poultry meat
and eggs are cheaper sources of protein diet. It contributes about 28 percent of the total
meat production in the country and plays vital role in meeting demands of mutton and beef.
During 2017-18, the Gross Value Added of poultry has remained at Rs175.4 billion and GVA
growth was recorded at 7.69 percent. Performance in production of meat, milk and eggs is
given in Table 6.

Table 6: Physical Performance and Targets of Livestock, Poultry and Fisheries

(000 Tons)
2017-18 Percent Change
2016-17
Items 2016-17 2017-18
Actual Target Achievements (P)
Actual Target
Meat 3,962 4,263 4,263 7.57 0.0
Beef 2,085 2,155 2,155 3.36 0.0
Mutton 701 717 717 2.28 0.0
Poultry 1,276 1,391 1,391 9.01 0.0
Milk 56,080 57,890 57,890 3.23 0.0
Eggs (Million Nos.) 17,083 18,037 18,037 5.58 0.0
Fishing 788 810 806.4 2.34 -0.44
Inland 277 305 304.4 9.89 -0.20
Marine 511 505 502 -1.76 -0.59
Source: M/o NFS&R, Marine Fisheries Department &Pakistan Bureau of Statistics

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Food Security and Agriculture Development 153

Fisheries
Fisheries sector witnessed a growth rate of 1.63 percent in 2017-18. Though contribution of
fishing in overall GDP is low but its importance for the livelihood, and export potential is very
high. Pakistan fishing export is facing difficulties with regard to compliance of safety and
quality standards and has faced several bans. It needs a continuous effort to increase
exports which are about 20 percent of the total catch at present. About 75 countries are
included in the export market of Pakistan. During outgoing year Pakistan harvested over 800
thousand catches and touched the export value of US$ 400 million. Performance for fish
catch is given above in Table 6.

Forestry
Like fishing, GDP contribution from forestry is insignificant. However, the role of forestry
with regard to environment and climate change is highly important. In 2017-18, the forestry
sector has seen an impressive growth of 7.17 percent. Historical neglect of the sector
attracted the attention of the government resulting in launching of several mega
programmes both at federal and provincial levels (Table-6).

Development Outlay: Federal PSDP 2017-18

In the Federal PSDP 2017-18, a sum of Rs37,609.9 million was allocated to 128 schemes
sponsored by different Ministries / Divisions / Agencies for development of Food and
Agriculture Sector (Table-7). The allocation for the Ministry of NFS&R however remained at
only Rs1,614 million. The investment on water sector which directly helps agriculture sector
development was at Rs33,450 million.

Table-7: Food & Agriculture Sector, PSDP Allocations 2017-18

(Rs million)
No. of Schemes Total Cost Allocation
Sr.# Ministry/Division/Agency
Ongoing New Total (Agriculture) 2017-18
1. National Food Security& Research 15 10 25 10,121.274 1,614.266
2. Planning, Development & Reform - 02 02 1,296.300 143.300
3. Higher Education Commission 07 03 10 7,280.659 1,578.458
4. Sci.& Tech. Research Division 03 06 09 705.154 176.350
5. Water & Power Division 42 29 71 706,573.500 33,450.090
6. Interior Division 04 - 04 209.391 80.511
7. Port & Shipping Division 03 1 04 167.163 104.114
8. Finance Division 01 - 01 1,347.560 312.808
9. Pakistan Atomic Energy 00 02 02 1,070.985 150.000
Commission
Total 75 53 128 728,771.990 37,609.900
Source: PSDP 2017-18

Development Outlay: Provincial ADP 2017-18

The allocation of funds for agriculture and allied sub-sectors by the provinces/regions in
their respective Annual Development Plans 2017-18 was at Rs53.7 billion. Province and sub

Annual Plan 2018-19

154 Food Security and Agriculture Development

sector wise allocations are given in Table-8. The allocations for 2018-19 are expected to be
enhanced substantially to support the sector’s developmental needs.

Table-8: Provincial Annual Development Programme 2017-18

(Rs million)
Sectoral Allocations
Province / Region
Agriculture Food Livestock Fisheries Total
Punjab 21,005.000 500.000 9,542.000 850.000 31,897.00
Sindh 6,984.000 100.000 1,102.537 597.364 8,783.90
KPK 3,193.597 732.000 656.537 140.866 4,723.00
Balochistan 4,909.825 - 576.082 499.732 5,985.64
Gilgit-Baltistan 270.470 36.900 136.376 23.808 467.55
FATA 590.530 - 746.410 63.825 1,400.77
AJ&K 195.000 - 189.000 39.311 423.31
Total 37,148.420 1,368.900 12,948.940 2,214.906 53,681.17
Source: Provincial/Regional ADPs 2017-18.

Outlook 2018-19
The 12th Plan has envisaged 4 percent agriculture growth rate to sustain the GDP growth
momentum above 6 percent. Besides improving terms of trade of farmers by 30 percent,
reduce food insecurity from 18 percent to 12 percent and considerably increase rural non-
farm incomes. First time the socio-economic objectives for the 12th Plan have endeavoured
to take rural transformation as an important area for economic development.

Keeping in view the overall performance of the sector during 2017-18, investments and
policy interventions, outlook for 2018-19 seems quite promising and a target of 3.7 percent
has been fixed. This target is achievable as the commodity market is expected to be stable in
the near future. However, risks to this target are low water withdrawals in canals and less
than normal rains. Government is planning to rationalize the area of wheat, rice and
sugarcane to keep the production as per country’s requirement by crop diversification. The
available area under these crops will be used for promotion of pulses and oilseed crops to
reduce edible oil import bill of the country. Concerted efforts will be made to reduce food
insecurity in line with SDGs on zero hunger by policy support and crop diversification. Some
of the significant crops for 2018-19 are presented in Table-9.

Table 9: Production Targets of Crops for 2018-19

(‘000’ Tons)
Crops Production Targets

Major Crops
Wheat 26,500
Rice 7,000
Sugarcane 70,000
Cotton (million bales) 14.40
Maize 6,000
Minor Crops
Gram 500
Moong 150
Potato 4000

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Food Security and Agriculture Development 155

Crops Production Targets

Onion 2000
Chillies 150
Rapeseed/mustard/canola 250
Sunflower 160
Source: Planning Commission of Pakistan

For the input supply, major role rests with the private sector. Government will however
strengthen its role as a regulator in order to supply good quality inputs in timely manner. It
is highly expected that the set-up will be in place for the implementation of amended Seed
Act as well as Plant Breeders Right Bill. Targeted seed supply for current year is given below
in table 10.

Table 10: Improved Seed Targets for 2018-19 (tons)

Items 2018-19 Targets

Cotton Seed 40,000

Paddy 12,744
Wheat 218,640
Maize 9,978
Pulses 9,499
Oilseeds 2,116
Vegetables 5,070
Fodder 40,138
Potato 74,545
Source: FSC&RD

To improve farmer’s terms of trade or income, efforts will be made to reduce the cost of
production. Cheap input will obviously be one of the major target to achieve the goal. With
continuous support to enhance fertilizer use, the targets of 4,258 thousand tons of nutrient
use has been fixed (Table-11).

Table 11: Fertilizer Use Projection/Targets

(000 tons)
Nutrient/Product 2018-19
Nitrogen 3,219
Phosphate 1,011
Potash 28
Total 4,258
Urea 5,657
DAP 1,856
Source: NFDC

Federal cabinet has endorsed the national water policy for the consideration of Council of
Common Interest (CCI). It was a long-awaited step to support the integrated water resource
management in the country. Big investment of Rs100 billion would become available in the
federal budget for water related projects in 2018-19. Since the water availability is highly
depended upon the weather pattern therefore canal water availability would be in stress up

Annual Plan 2018-19

156 Food Security and Agriculture Development

to 30 percent for Kharif sowing due to less snow and rains. Despite such anticipations a
target of 134.5 MAF water availability has been fixed for 2018-19. Tube wells are expected
to compensate the short supply of water for irrigation. Any surge in oil prices may however
affect the net profitability of farmers. Prime Minister’s markup free financing scheme for
30,000 solar tube wells is however ready for launch to offset the high energy cost for
irrigation. Improved energy supply and reduced taxes has played role in improving farm
machinery sales. It is expected that sale of tractors and farm implements will continue to
increase in 2018-19.

Livestock and Fisheries

Livestock sectors’ output is quite consistent. Production estimates are calculated on the
basis of census held in 2006 and therefore are projection based instead of actual. The
growth of the livestock will be 3.8 percent in 2018-19 in line with its performance during
previous year. Fishing catch has been targeted at 817 thousand tons from both marine as
well as inland resources. A growth target of 1.8 percent has been fixed for 2018-19. There is
a huge potential of export of meat and fisheries products if the production line is improved
and SPS compliance is ensured. Physical targets for the livestock and fisheries are in Table 12
given below.
Table 12: Targets of Livestock, Poultry and Fisheries
(000 Tons)
Items Targets
Meat 4,478
Beef 2,227
Mutton 732
Poultry 1,518
Milk 59,759
Eggs (Million Nos.) 19,052
Fish 817
Inland 310
Marine 507
Source: M/o NFS&R

Programmes for 2018-19

Total size of the PSDP for 2018-19 is around Rs750 billion. Major investment is however
going for infrastructure and energy sector. Allocation for the Ministry of National Food
Security and Research is Rs1.9 billion. It is important to note that agriculture related
projects have also been mentioned under other ministries as the sector is a cross-cutting in
nature. Water sector, of which agriculture is a main beneficiary, got allocation of Rs45 billion
for this year. Some of the important initiatives of the federal government for agriculture
development are given below:
 Promoting Research for Productivity Enhancement in Pulses
 Support for Cotton research and development
 Promotion of Olive Cultivation on Commercial Scale in Pakistan
 Establishment of Animal Quarantine Station Gwadar (Phase-II)

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Food Security and Agriculture Development 157

 Strengthening / Up-gradation of Agriculture and Livestock Research System of Arid

Zone Research Institute, Umerkot, Sindh
 Prime Minister’s Solar Mark-up Free Financing Scheme for Solar Tube well
 Cluster Based Agriculture Transformation Plan
 Revival of oil seed sector
 Risk Based Control of Foot & Mouth Disease in Pakistan
 Strengthening of NIBGE Faisalabad and NIA Tando Jam
 National Surveillance Programme for Avian Influenza and New Castle Disease in
Pakistan
 Up-gradation of Seed Certification Services in Balochistan
 Up gradation and Accreditation of Seed Testing Laboratory, FSC&RD, Karachi
 Better Cotton Initiative (BCI)
Since farms are located in provinces therefore it becomes instinctive responsibility of the
provincial governments to take care of agriculture sector and the farmers associated with it.
Last year the investment from provinces was Rs54 billion which will be further enhanced in
2018-19. Punjab government’s innovations both in livestock as well as in agriculture have
been becoming very successful to reach out to the farmers by employing information
technology. Sindh has shown resolve in its recently held Sindh Development Forum to focus
on agriculture sector. The province is near to complete its agriculture policy. Investments by
Balochistan and Khyber Pakhtunkhwa are also on the rise. Donors are also implementing
their several programmes in Pakistan for the development of agriculture sector in Pakistan.

Annual Plan 2018-19

Chapter 22|NUTRITION

Adequate nutrition is necessary for healthy and productive life as it sets foundation for
optimal growth and development, increases immunity and reduces morbidity & mortality.
Malnutrition on the other hand, leads to lower IQ and impairs cognitive ability of the
children affecting their school performance and productivity later in life. A joint study of M/o
PD&R with WFP titled “Consequences of Malnutrition (2017)” found that malnutrition
accounts to an annual loss of around three percent to Pakistan’s GDP. These losses can be
avoided through appropriate nutrition sector interventions. An IFPRI study in 2014 found
that investment in nutrition yields high benefit cost ratio of 16:1. For instance, availability of
the required nutrition during first 1000 days (starting from 1st day of pregnancy) ensures
sustained good health. To achieve sustainable nutrition objectives: SDGs and World Health
Assembly (WHA) targets for combating all forms of malnutrition, a multi-sectoral approach
has been adopted as envisaged in Pakistan Vision 2025 and incorporated in the 12th Five Year
Plan.

Performance Review 2017-18

Food Availability: Food Balance Sheet (prepared by M/o PD&R) revealed that during the
year sufficient food was available to meet the overall national requirements. In caloric
terms, it translates to availability about 2500 calories per person per day compared to the
requirement of 2350 calories per person per day. The detail of availability of essential food
items and calories is given in the Table - 1:

Table -1: Food Availability (Kg) Per Capita per Annum

Meat(Beef, Edible Vegetables

Food Milk Eggs Calories
Cereals Pulses Sugar Mutton & Oil/Ghee & Fruits
Items/Years (Litter) (Dozen) (per day)
Poultry) (Litter)
2013-14 162.3 6.3 32.1 161.3 18.9 6.2 12.6 6.0 2484
2017-18 (P) 155.4 4.5 29.5 166.5 21.4 7.5 14.5 6.5 2500
2018-19 (T) 160.0 5.5 32.0 170.0 22.0 8.0 15.0 7.0 2530
P: provisional, T: Targets

The overall caloric availability from 2013-14 to 2017-18 remained almost the same.
However, most of the calories were derived from cereals, sugar and edible oil while
availability of pulses, vegetables and fruits is significantly lower than the required level.

Cost of Food Basket: The cost of desirable food basket providing 2100 calories and 60 grams
protein is prepared every month (by M/o PD&R based on PBS data on prices). It shows that
food prices varied during July, 2017 to March, 2018 however, the average food expenditure
remained at Rs2,280 per person per month compared to the average expenditure of Rs2,150
per person per month during 2016-17.

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160 Nutrition

Cost of Food Basket (Rs) Percapita/Month

2450
2400
2350
2300
Cost Rs

2250
2200
2150
2100
2050
2000
July August September October November December Januray February March
2016-17 2168 2181 2162 2193 2207 2070 2063 2132 2167
2017-18 2046 2216 2366 2402 2398 2324 2234 2153 2085

Nutrition Interventions/Activities
The following nutrition related activities are under way to improve the nutritional status of
the population particularly women and children;

Pakistan Multi-sectoral Nutrition Strategy (PMNS) and Pakistan Dietary Guidelines for Better
Nutrition (PDGN) were prepared for effective coordination, collaboration and to provide
healthy nutrition information respectively. Research work on the revision of Food
Composition Table (FCT) has been completed from 12 agro-ecological zones having
information about 350 raw and cooked food items with 25 nutrition parameters. Early
Childhood Development (ECD) Task force has been constituted to formulate national policy
framework for early childhood development.

Pakistan Food Fortification Strategy has been revised to layout key actions for overcoming
the micronutrient deficiencies. Implementation of Food Fortification Programme has been
initiated started to cover all ghee /oil mills with Vitamin A &D fortification and wheat flour
fortification in 1100 mills with iron Folic Acid, Zinc and Vitamin B12. The programme has
reached 50 oil mills and 150 flour mills with strict quality control and quality assurance
mechanism in place. Universal Salt Iodization (USI) Programme through Public Private
Partnership is operating successfully in 110 districts with enhanced quality control and
assurance. Fortification Assessment survey was conducted to determine the coverage and
potential contribution of fortified foods to micronutrient intake.

To achieve the nutrition sector objectives, a number of activities were organized for human
resource development under the auspices of SUN These include short courses on multi-
sectoral approaches to nutrition , trainings on research methodology apart from conducting
nutrition related research studies, roundtables with policy makers, CSOs and media persons
for advocacy on nutrition issues.

Provincial Programmes
In Punjab Health Integrated Reforms Programme (Rs13 billion), Stunting Prevention
Nutrition Programme (Rs7 billion) and Water, Sanitation & Hygiene (WASH) Programme (Rs9
billion);

In Sindh Nutrition Support Programme (Rs4.5 billion), Saaf Suthro Sindh Programme (Rs278
million), Nutrition Sensitive Agriculture (Rs582 million) and Accelerated Action Plan for

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Nutrition 161

Reduction of Stunting and Malnutrition (Rs1.0 billion every year); In Khyber Pakhtoonkhwa
Health Integrated Reforms Programme (Rs14.11 billion) and Stunting Prevention
Rehabilitation Integrated Nutrition Gain (Rs796 million);

In Balochistan Nutrition Programme for Mothers & Children (Rs1.5 billion), Establishment of
SUN Unit (Rs50 million) and Multi-sectoral Nutrition Specific and Sensitive Interventions
Programme (Rs1.5 billion).

Outlook 2018-19
Nutrition is a multi-sectoral hence improving nutrition, through various means will catalyze
the process to achieve SDGs. Pakistan Multi-sectoral Nutrition Strategy, based on Provincial
Multi-sectoral Nutrition Strategies will align and converge the efforts for better nutritional
outcomes in Pakistan. SUN Movement Pakistan with its established networks will facilitate
the relevant stakeholders for more focused interventions in nutrition sector. More
coordinated actions are planned for the year in order to fulfil the national and international
commitments for nutrition improvement. In provinces implementation on multi-sectoral
nutrition plans and road-maps will continue at enhanced scale.

The National Centre for Human Nutrition (NCHN) is planned for evidence generation and
innovative research, capacity building and raising awareness to help in setting planning and
decision making for up scaling nutrition. Early Childhood Development (ECD) initiative will
provide opportunity to benefit the young children reaching their full potential.

Programmes for 2018-19

The following projects/activities are visualized at national/ federal level at the costs given
against each:
 Nutrition Awareness and Institutional Strengthening (Rs1,200 million)
 Utilization of Specialized Nutritious Products for Stunting Prevention in Commercial
& Social Safety Sectors through Public Private Partnership (Rs440 million)
 Federal Nutrition Programme for ICT, AJK, FATA and GB (Rs248 million) and
 Establishment of NCHN (Rs500 million).
Activities of National Nutrition Survey 2018 are underway. The new evidence will help in
fine-tuning the nutritional interventions and re-setting the targets.

Public Finance Tracking for Nutrition will be conducted at national and provincial level by
utilizing PSDP and ADPs data to assess nutrition related investments in the country. Progress
tracking system based on: Monitoring, Evaluation, Accountability and Learning (MEAL)
system will be developed during the year which will help improving the policy and actions. A
research study on cost of solutions to eradicate malnutrition in Pakistan will also be
conducted with a view to plan activities and arrange resources achieve the targets.

Annual Plan 2018-19

Chapter 23|ENVIRONMENT AND CLIMATE
CHANGE

Climate change is perceived as one of the major challenges to humanity due to its
devastating effects on human lives, economic growth and prosperity. It has been projected
that by 2050, global temperature will rise by 2-3oC due to concentrations of Greenhouse
Gases (GHG), resulting in decrease of glacial areas ranging from 20 percent to 28 percent by
2050. Rise in temperature, melting of glaciers and increased population accompanied by
unprecedented urbanization will disrupt economic activities in the country. Unchecked
growth in population will increase demand for food and increase air and water pollution
while degrading the available land resources. This will result in an uneven share of resources
among the masses at the global, regional and national levels with respect to access to food
and a secure living environment.

Natural resources are being depleted at an alarming rate causing loss of biodiversity and
deforestation. Change in land use has significantly contributed towards climate change and
destruction of local environment. Untreated waste disposal in open areas and water bodies
is becoming hazardous, causing numerous health and social issues in the country. Industrial
waste water is contaminating the underground water tables making it unsafe for human
consumption. The underground and surface water is being polluted due to the use of
pesticides and fertilizers at large in the agriculture sector. On the other hand, burning of
crop residues results in heavy smog formation which disrupts air and road travel for weeks
in the plain areas.

As a result of climate change, weather patterns will change and make certain areas
unbearable, forcing the resident population to migrate to more suitable places.
Consequently this will have a huge impact on available resources causing devastating effects
on the fragile economy. Thus, if left unchecked, pollution and environmental degradation
will pose a monumental threat to social and economic growth of the country.

Pakistan has been facing the worst effects of climate change in the preceding decade
because of its geographical location. Alarmingly, the Global Climate Change Risk Index 2017
has ranked Pakistan as the 7th most vulnerable country of the world affected by climate
change while on the other hand Pakistan has been ranked at 135th among the GHG emitting
countries in the same index.

National Disaster Management Authority (NDMA) has undertaken several studies and
assessments which show that last five floods (2010-2014) have resulted in huge monetary
losses of over US$ 18 billion, affected 38.12 million people, and damaged around 3.45
million houses and 10.63 million acres of crops. Over 1,200 people lost their lives due to the
unprecedented heat wave in Karachi during 2015. On the other hand, the Global Climate
Change Index 2017 reflects that under its Long-Term Climate Risk Index from 1996-2015
Pakistan has suffered total losses amounting to US$ 3823.17 million and losses per unit GDP
amounting to 0.647 percent.

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164 Environment and Climate Change

Mitigation and Adaptation

Pakistan’s Compliance with the International Framework for Climate Change

The 21st Session of the Conference of the Parties (COP-21) to the UN Framework Convention
on Climate Change (UNFCCC) held in Paris in 2015 where international community including
Pakistan agreed at stabilizing the climate and avoiding the worst impacts of climate change
worldwide focusing on the following four major areas:
 Adoption & Mitigation
 Intended Nationally Determined Contributions (INDCs)
 Technology Development and Transfer
 Capacity Building
rd
The 23 COP UN Climate Conference held in Bonn, Germany in 2017, emphasized on the
above mentioned areas. Sustainable Development Goal 13 defines urgent need to combat
Climate Change and its impact, with a need to mobilize $100 billion by 2020 through Green
Climate Fund. It will cater the needs of developing countries to enhance the capacity for
effective planning for women, youth and marginalized community. Pakistan has won
funding for Glacier Lake Outburst Floods (GLOF-II) amounting to $37 million under this fund.
National level projects prioritized for GCF funding by Ministry of Climate Change (MoCC),
Provincial Governments & AJK are under process and will be initialized.

S# Potential Projects for Green Climate Fund

1. Promotion of Climate Smart Livestock Interventions and on Farm Bio -energy Generation
in Pakistan. (CSLBE)
2. Transformation to Climate Smart Agriculture of Most Vulnerable
3. Agricultural Zones of Pakistan (TCSA)
4. Improving Resilience Of Local (Rice) Farmer Communities To Climate
5. Change Impact By Promotion of Climate Resilient Farming Systems In Pakistan (IRLF-
CRFS)
6. Pakistan Solar and Renewable Energy Project (PSREP)
7. Integrated Floodplains Management along River Indus to Build Resilience of the Riverine
Ecosystem and Vulnerable Communities to Climate Change Impacts
8. Greening Public Buildings
9. Waste to Energy Project for Islamabad
10. Integrated Natural Resource Management in FATA
11. Provision of Clean Energy to Reduce Green House Gas Emissions and
Enhancement of Carbon Sink in pilot valleys of Gilgit Baltistan
12. Enhanced Environmental Quality Monitoring System for Punjab Air ,
Surface and Ground Water Resources
13. Billion Trees Forestation Project in Khyber Pakhtunkhwa (Phase-III)
14. Livelihood Improvement for Coastal Communities of Balochistan
15. Conservation and Restoration of Mangroves Ecosystem to reduce the impacts of Sea
Intrusion
16. Development of Climate Change Resilient Natural Resources Base to support livelihood of
Vulnerable Communities in upland Watersheds

Pakistan has its Intended Nationally Determined Contribution (Pak-INDC), under Article 2 of
the Paris Agreement, to the UNFCC. Pakistan intends to reduce its projected GHG emissions

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Environment and Climate Change 165

up to 20 percent (equivalent to 1603 MT CO2) by 2030 subject to the availability of

international grants to meet the total abatement cost for the above indicated reduction. In
monitory terms this reduction amounts to about US$ 40 billion at current prices. Pakistan’s
adaptation needs for this period range between U$ 7 billion to U$ 14 billion/annum. Sector
wise projection of emissions (MT CO2-equivalent) and future forecasting aligned with Vision
2025 are as under:

Sector 1994 2015 2030

Energy 85.8 185.97 898
Industrial Process 13.29 21.85 130
Agriculture 71.63 174.56 457
Land Use Change and Forestry 6.52 10.39 29
Waste 4.45 12.29 89
Total 181.7 405.07 1,603
Source: Ministry of Climate Change

Performance Review 2017-18

Ecological Zones of Pakistan under Green Pakistan Project

1 Road and Canal side Plantations
2 Rehabilitation and Re-stocking of Historical Plantations
3 Restoration & Improvement of Scrub Forests
4 Increase in Existing Cover of Mangrove Forests
5 Conservation and Enhancement in Juniper and Pine Nuts Forests
Watershed and Soil Conservation in Hilly and River Catchment areas
6 (Reserved as well as Community Forests)
7 Rehabilitation of Guzara and Protected Forests
8 Protection and Augmentation of Dry Temperate Forests
9 Promotion of Participatory Forestry

Climate Change is a relatively new subject and after 18th amendment the sector portfolio
gradually increased. Performance of the sector remained fair enough during 2017-18 as
twelve (12) projects are being executed. The total allocation for the sector stood at 1,423.00
million of which the share of MOCC was Rs815.00 million while Aviation Division (PMD)
share was Rs608 million. The expected expenditure for the FY 2017-18 will be around
Rs843.432 million for the MoCC and Rs310.454 million by Aviation Division (PMD). The
Green Pakistan Programme for Revival of Forestry was launched at an estimated cost of
Rs3.652 billion for a period of 05 years all over country has shown encouraging results. A
total of 100 million new indigenous plants are planned to be planted over the next five years
in ecological zones of Pakistan. The current progress of the project reflects that tree planted,
sown and regenerated in plantations is 24.742 million trees and available planting stock in
the nurseries is 21.117 million. The Revival of Wildlife Resources in Pakistan with an
estimated cost of Rs738.9, and Construction of Boundary Wall of Zoo-cum- Botanical
Garden, Zoological Survey of Pakistan at an estimated Cost of Rs90.1 million is also being
implemented.

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166 Environment and Climate Change

Projects under Prime Minister Green Pakistan Programme shall have positive impact on the
environment in terms of adaptation through tree plantation, awareness through training
and media sessions and stock taking of wild life resources. In addition to above projects,
Sustainable Land Management project is under execution to combat desertification in
Pakistan. SLMP-II with UNDP funding is also being executed to devise strategies to counter
desertification. Establishment Geomantic Centre for Climate Change is being executed that
will improve the capacity of Federal Environmental Protection Agency.

Outlook 2018-19
In the FY 2018-19 Climate change & Environment Sector will have development portfolio of
worth Rs3,217.08 million including foreign component of Rs2,092 million. Besides, Pakistan
has won funding for the project Glacier Lake Outburst Flood (GLOF) amounting to Rs3,
920.188 million through the Green Climate Fund. The project is designed to carry out
physical intervention and studies to mitigate the impact of floods from upper Indus region
due to glacier melting. Moreover another project Generating Global Environment Benefits
from Improved Decision Making Systems and Local Planning in Pakistan has been approved
at an estimated cost of Rs193.555 to establish a data bank on environment and climate
change sector.

Ministry of Climate Change is in process of formulating an investment Plan for INDC which
will attract investment for reduction of GHG emissions in the country. The plan shall be
shared with Conference of Parties meeting in October 2018. In this regard, series of
workshops are scheduled in April 2018 onwards to formulate a concrete plan for seeking
investment in Energy Sector, Industrial Process, Agriculture, Land Use Change and Forestry &
Waste management.

Annual Plan 2018-19

 PILLAR-V
Private Sector and
Entrepreneurship-led Growth
Chapter 24|MANUFACTURING, MINERAL AND
COMMERCE SECTORS

A robust and vibrant manufacturing sector carries paramount importance for economic
growth and development of any country. The role of value-added products in the
manufacturing sector is crucial and depends on technology up-gradation, enhanced
technical skills and better management. Pakistan’s manufacturing base is narrow and
concentrated in a few sectors. Its main industries are textile, cement, fertilizer, steel,
tobacco, edible oil, pharmaceuticals, construction materials, automotive industry, sugar,
food processing, chemicals and light engineering etc. The government has initiated various
projects for boosting-up industrial growth. These projects aim at provision of various
facilities to investors like developed infrastructure, skilled workers, financing & marketing
facilities, and common facility centres. These initiatives are closely aligned with the
objectives and goals of Pakistan Vision 2025 and 12th Five Year Plan.

Performance Review 2017-18

Manufacturing sector has posted healthy growth in the first eight months of the current
fiscal year, mainly due to improved energy supply. Availability of energy, raw material,
skilled manpower, value addition & innovation, and market forces are sine-qua-non for this
sector’s growth. In addition to, consistency and continuity of policies i.e. predictability is also
paramount in fostering private sector investment and growth boost-up. Large Scale
Manufacturing (LSM) sector has shown growth of 6.24 percent for the period of July-
February 2017-18 as compared with the same period of the previous year which was 4.24
percent.

According to National Accounts Committee (NAC), during fiscal year 2017-18, industrial
sector grew at the rate of 5.80 percent against targeted rate of 7.3 percent, manufacturing
sector by 6.24 percent against targeted rate of 6.4 percent, LSM by 6.13 percent against
targeted rate of 6.3 percent, while SME grew at the rate of 8.18 percent against targeted
rate of 8.2 percent. These growth rates are provisional and final figures for full year will be
determined later on. The main growing industries in fiscal year 2017-18 were textile, coke &
petroleum products, pharmaceuticals, non-metallic minerals, automobiles, iron & steel
products, electronics, paper & board, engineering products, and rubber products.

As far as allocations and releases are concerned, Rs2,737.27 million were allocated for
thirteen (13) development projects of Industries & Production Division in PSDP, 2017-18,
against which Rs461.697 million were released up-till March 30, 2018. Similarly, Rs217.500
million were allocated for three (03) development projects of Textile Industry Division in
PSDP, 2017-18. Commerce Division has been allocated Rs1,200.00 million during fiscal year
2017-18, against which Rs285.00 million has been released till March 30, 2018. During the
current financial year, Commerce Division is executing two projects namely, “Expo Centre
Peshawar” (Cost Rs2,500.00 million) having physical progress of 32.2 percent whereas
financial progress is 29 percent. This project has been provided with additional amount of
Rs300.00 million through re-appropriation of funds from project titled “Expo Centre
Islamabad” for quick take off. Similarly Ministry of Planning, Development & Reform re-

Annual Plan 2018-19

170 Manufacturing, Mineral and Commerce Sectors

appropriated Rs65.00 million to another project titled “Purchase of Equipment, Furnishing,

Curriculum Development and Training of Pakistan Institute of Fashion & Design (PIFD),
Lahore” (Cost Rs755.747 million) from the existing PSDP allocation of “Expo Centre,
Islamabad” project in fiscal year, 2017-18. This project’s financial progress is 77.21 percent
whereas its physical progress is 85.85 percent.

Outlook 2018-19
Pakistan’s industrial sector is showing modest growth from last two years. With
improvement in energy supply, law & order situation, increased government expenditure in
infrastructure development like Industrial Estates/Special Economic Zones (SEZs),
investment opportunities in the wake of CPEC project, and last but not least consistency &
continuity of policies, it is expected that Pakistan’s industrial sector would gain further
momentum in 2018-19. Likewise proposed Industrial Parks/SEZs along-with CPEC route
would bring investment therein through shifting of some production units from China, which
would further improve industrial output in coming years.

Table-1: Sector-wise allocation in PSDP 2017-18 and 2018-19

(Rs million)
Sector 2017-18 2018-19

Industries and Production Division 2737.27 1575.75

Textile Industry Division 217.50 220.00
Commerce Division 1200.00 1200.00

Programmes for 2018-19

The Federal Government has initiated various projects for revival and boosting-up of
industrial growth in Pakistan. The basic objective of these projects is the provision of various
facilities to investors like developed infrastructure, skilled workers, marketing facilities and
common facility centres. Some of the important projects are listed below.
 China – Pakistan Economic Corridor Industrial Cooperation Development Project.
 Product Development Center for Composites Based Sports Goods, Sialkot.
 Fruit, Vegetables and Condiments Processing Centre, District Naushehroferoze.
 National Business Development Programme for SMEs – All over Pakistan.
 Hyderabad Engineering Support Centre, Hyderabad.
 Light Engineering Upgradation Centre for SMEs in Balochistan, Hub, Lasbela.
 Water Supply Scheme for Hub Industrial Trading Estate (Phase-II).
 Establishment of Bostan Industrial Estate Phase-I.
 Provision of Infrastructure in Quetta Industrial and Trading Estate (Phase-II).
 Fruit Dehydration Unit, Swat.
 Peshawar Light Engineering Centre, Peshawar.
 1000 Industrial Stitching Units.
Annual Plan 2018-19
Manufacturing, Mineral and Commerce Sectors 171

Vision 2025 has suggested a cluster based development model to transform industrial
sector. Detailed value chain analysis is underway that will help identify important clusters to
be included in long-term industrial transformation plan in Pakistan. It is expected that the
project titled “Cluster Development Based Industrial Transformation Plan –V2025” will
immensely help manufacturing sector through targeted interventions. Similarly CDWP
recently approved the project titled “1000 Industrial Stitching Units”. In phase-I of this
project, one hundred & fifty (150) industrial stitching units would be established throughout
the country. It is expected that this project would further boost up garments sector by
bringing in value addition, improving productivity and cluster development.

Work on “China Pakistan Economic Corridor (CPEC)” is also progressing on fast track and
nine (09) Industrial Parks / Special Economic Zones (SEZs) have been identified by the
provinces which will create new economic opportunities and boost up industrial growth.
CDWP recently approved a project titled “China Pakistan Economic Corridor – Industrial
Cooperation Development Project”. It aims at formulation of long term industrial
cooperation development plan till 2030; to carry out research studies & identification of
investment opportunities for the establishment of Special Economic Zones (SEZs);
facilitation & implementation of industrial cooperation projects; and overall coordination of
all matters concerning industrial cooperation under CPEC with Chinese counterparts. It is
pertinent to mention here that Chinese have recently developed sixty acre land out of
nearly 2300 acres as Free Economic / Export Processing Zone in Gwadar and leasing out
plots to prospective investors / industrialists.

As far as policies are concerned, Textile Policy, 2014-19 is under active implementation to
boost up textile sector, particularly its exports.

The strategy to enhance export competitiveness of commerce sector is to increase the

number of products in the export-base in order to decrease dependence on only two major
sectors i.e. textiles and rice. Approach for the improvement of the sector includes
exploration of lucrative and approachable markets coupled with better competitiveness of
our products. Strategic Trade Policy Framework (STPF), 2015-18 aims at enhancing annual
exports to US$ 35 billion by improving export competiveness which will help in increasing
volume and value of exports. “Expo Centre Peshawar” having cost of Rs2,500.00 million is
the prominent project of Commerce sector which will continue during financial year, 2018-
19, whereas other two projects namely “Expo Centre Islamabad” and “Expo Centre Quetta”
are under process. These projects will help in materializing objectives of Vision 2025 & 12th
Five Year Plan and will enhance regional trade, increase exports, products development, and
diversification of markets as well as increasing trade volume in domestic commerce.

There is also a dire need to focus on promoting e-commerce in fiscal year, 2018-19. In
developed countries, e-commerce & online shopping has already captured huge trading
share from traditional mortar & bricks shopkeepers / sellers. At present e-commerce &
online shopping practices are relatively at small scale in Pakistan. However, keeping in view
the large ratio of youths in our population plus their easy access to internet services, it is
expected that e-commerce will capture traditional markets sooner rather than later. In
order to materialize and harness the true potential of e-commerce, regulatory regime may
be framed for contract enforcement & repudiation issues; shipping issues; intellectual
property rights issues; personal data security issues; and encouragement of online payment
system, etc.

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172 Manufacturing, Mineral and Commerce Sectors

This also needs to focus our attention on improving and further boosting up domestic
commerce in financial year, 2018-19. Despite its huge potential for employment and wealth
generation, it was, unfortunately neglected in the past. In order to reap its benefits, a
holistic strategy might be adopted for domestic commerce. This strategy should include
review of taxation policy of federal, provincial and local governments for retailers &
wholesalers; storage & warehouses issues; financing & micro-financing issues for
wholesalers & traders respectively; and transport policy, etc.

Minerals
Nature has bestowed Pakistan with enormous and diversified world class mineral resources,
coal, copper, gold, building stones, industrial raw materials, gemstones, etc. Both public and
private sectors are working to exploration and development. Directorate General of Mines
& Minerals grants reconnaissance/prospecting/exploration licenses and mining leases for
search and extraction of minerals in accordance with the procedures laid down under the
mining concession rules. The licensee/lessee carries out mineral exploration, development
and production activities at his own expenses and pays rent, royalty and taxes to the
respective Government on the quantity of minerals extracted. According to provisional data,
Mines & Mineral contribution towards GDP growth was 0.09 percent in fiscal year, 2017-18.

Vision 2025 and 12th Five Year Plan envisage fundamental improvements for the mineral
sector. Some salient features of the Vision for mineral sector are: strengthening institutions,
removing infrastructure bottlenecks, promoting public private partnership, encouraging
investment, developing skills and building knowledge economy, easing of doing business,
increasing labour market efficiency, and tapping large domestic and regional markets.

Performance Review 2017-18

Growth in any sector is generally influenced by availability of energy, raw material, skilled
manpower and market forces. During fiscal year, 2017-18, Public Sector Development
Programme (PSDP) allocation for the mineral Sector was Rs424.799 million for two
development projects namely, “Acquisition of Four Drilling Rigs for the Geological Survey of
Pakistan”, and “Exploration and Evaluation of Metallic Minerals, in Uthal and Bela Areas,
District Lasbela, Balochistan”. Detail regarding these ongoing projects is given below:-

Acquisition of Four Drilling Rigs with Accessories for the Geological Survey of
Pakistan

Two new 275 HP, Hydraulic, Truck Mounted Multipurpose Drilling Rigs with drilling
capacities of 1300-2000 meters HQ and 2000-3000 meters NQ, with accessories and spare
parts of rigs and trucks have been purchased from Italy on FOR basis. Rigs with accessories
have been received in GSP Headquarters, Quetta on 10.09.2016. Preparation of technical
specification and tenders for purchase of 2 more drilling rigs with accessories have been
prepared in strict adherence to PPRA rules. Tenders have been published in national print
media. Eleven companies/suppliers have purchased tender documents. Constitution of
Technical and Purchased Committees and evaluation of the Technical bids has been
completed.

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Manufacturing, Mineral and Commerce Sectors 173

Exploration and Evaluation of Metallic Minerals, in Uthal and Bela Areas, District
Lasbela, Balochistan

Geological mapping over 470.0 Sq.km areas on 1:10,000 scales has been completed. Section
measurement completed at 12 sites. Potential sites have been selected for drilling. Collected
100 coal samples and their chemical analyses have been completed. Drilling of 5 exploratory
boreholes with a cumulative depth of 742 meters have been completed in Kharli, Bhadrar,
Hussainabad, Bochal and Bolla Towns in District Chakwal and surrounding areas. Coal seams
encountered in all holes in various depths. Core samples collected and their chemical
analysis has been completed. Geological logging has been completed of the boreholes.
Digitization of stratigraphic section and borehole log data is in progress. Purchase of Atomic
Absorption Spectrophotometer, GSP's, Digital Camera, field equipments, photocopier and
multifunction copier/fax, AC for computer Lab, Drilling bits & accessories has been
completed. Technical report of the project is in progress.

Ministry of Planning Development & Reforms has started new initiative titled “Cluster
Development Based Mineral Transformation Plan-V2025” at cost of Rs62.21 million with
the aim to improve productivity in the mines and mineral sector, enhance exports, increase
value addition and create jobs.

Outlook 2018-19
Geological Survey of Pakistan has designed a number of annual field programmes/projects
likely minerals investigation, geological mapping, geophysical exploration, exploration and
evaluation of coal, geochemical exploration of precious metals, geo-environmental &
ground water studies, exploration of iron ore, geo hazard assessment & geotechnical
projects, geochemical analysis and medical geology projects for fiscal year, 2018-19. An area
of about 12800 sq. km is planned to be geologically mapped in different parts of the
country. Around 200 samples will be taken in this time period while conducting this survey
and geochemical analysis will be carried out. Even though the operational funds provided in
the regular budget are short to meet the project expenses, GSP aims to achieve the
technical targets in the upcoming financial year within the available resources. The efforts
will be concentrated towards mineral exploration and Geological mapping projects including
iron ore, coal, copper and gold in the areas of Punjab and Balochistan province, while Lead-
Zinc-Barite investigations will be carried out in Balochistan, Khyber Pakhtunkhwa (KP) and
Sindh. Moreover, in Gilgit-Baltistan, Islamabad, some regions of Punjab such as Kasur,
Faisalabad and different regions of Azad Jammu & Kashmir (AJK) some of the
environmental, geo-technical studies, urban and hydro-geological studies will be carried out.
A total of four ongoing development projects will be implemented in fiscal year 2018-19
accompanied by the six newly proposed development projects subject to their approval
from the competent forum. In the newly proposed development projects GSP intends not
only to explore the mineral and coal reserves of the country but has also proposed up-
gradation of its laboratories as well as its accommodation facilities in a bid to enhance its
geochemical analytical capabilities, efficiency and work outputs of its workers.

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174 Manufacturing, Mineral and Commerce Sectors

Programmes for 2018-19

 Lithofacies , Depositional Environments and Economic Potential of Neogene Siwalik
Group, Taunsa, Dera Ghazi Khan Districts, Eastern Sulaiman Range (Middle Indus
Basin), Pakistan.
 Geophysical Resistivity Survey for Exploration of Geothermal Energy Resources in
Dadu District Sindh.
 Fluorite Mineralization and its Evaluation in Loralai, Mekhtar and Surrounding Area,
Balochistan, Pakistan.
 Exploratory Studies of Metallic and Non-Metallic along the Chaman Segment of the
Chaman Transform Fault System.
 Role of Electrolytes and Toxic metals in blood and serum of Kidney disorders related
to drinking water in Quetta Balochistan, Pakistan in the Perspective of Medical
Geology.
 Tectono-Stratigraphic Model of Eocene Succession in the Upper Indus Basin,
Pakistan.
 Follow-up Fluid Geochemical Study of Tatta Pani, District Kotli, Azad Jammu and
Kashmir (AJK). Toposheet No. 43G/14.
 Subsuface Mapping for Geothermal Energy Resources at Tatta Pani, District Kotli,
Azad Jammu Kashmir (AJK) using Electrical Resistivity Survey. Toposheet No. 43
G/14 District Kotli.
 Geo-Chemical Exploration for Precious and Base Metels including Gem Stone from
Aliabad to Ishkomen and surrounding Areas District Gligit, Gilgit Baltistan, Pakistan.
 Geological Mapping and Mineral Investigation of Domel Area, Topographic sheet
No. 43-C/2, District Attock, Punjab and District Nowshera, KPK, Pakistan at 1: 50,
000 scale.
 Geological Mapping and Mineral Investigation of Quadrangle 42-H/6, District Ghizer,
Gilgit Baltistan.
 Geological Mapping and Mineral Investigation of Quadrangle 42-L/4, District Gilgit,
Gilgit Baltistan.
 Geological Mapping and Mineral Investigation of Quadrangle 42-H/4, District Ghizer,
Gilgit Baltistan.
 Genesis and Economic Potential of Sulfide Deposits of Bagrot Valley, Tehsil Danyor,
District Gilgit, Gilgit Baltistan.
 Identification of High Riske areas with reference to Geological Hazards (Flash Flood
and Debris Flow), Chitral District, KPK and Ghizer District, Gilgit Baltistan (GB).
 Raw Material Investigation and Evaluation of Limestone Resources for Cement
Industry in toposheet No. 35O/3, District Lasbela, Balochistan.
 Evaluation of Aggregates Resources for Construction Material in Sulaiman Range
District, Dera Ghazi Khan & Taunsa.

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Manufacturing, Mineral and Commerce Sectors 175

Ongoing PSDP Development Projects for Financial Year 2018-19

 Appraisal of Newly Discovered Coal Resources of Badin Coal Field and its adjoining
areas of Southern Sindh (2013-2019). Approved by CDWP on 19-11-2009.
(Total Cost: Rs170.633 million)
 Exploration of Tertiary Coal in Central Salt Range, Punjab (2013-2019). Approved by
DDWP on 27-01-2010. (Total Cost: Rs43.350 million)
 Exploration and Evaluation of Metallic Minerals in Uthal and Bela Area, District
Lasbela Balochistan. Approved by DDWP on 11-09-2015.
(Total Cost: Rs56.70 million)
 Exploration and Evaluation of Coal in Nosham and Bahlol Areas, Balochistan
(2017- 2019). Approved by DDWP on 15-08-2017. (Total Cost: Rs42.318 million)

New (PSDP) Proposed Projects for Financial Year 2018-19

 Exploration of Coal in Dara Adam Khel (FR Kohat), FR Peshawar, & Hazara areas,
Khyber Pakhtunkhwa (2018-2021) (Total Cost: Rs49.191 million).
 Up-gradation of Accommodation Facilities for Field Officers at GSP, Quetta
(2018-2020) (Total Cost: Rs92.504 million).
 Geological Mapping of 50 Top sheets out of 354 Unmapped Top sheets of Outcrop
Area of Balochistan Province (2018-2021) (Total Cost: Rs58.788 million).
 Integrated Geophysical Investigations for mineral prospecting, groundwater
potential and Bed rock modelling along CPEC route (2018-2021)
(Total Cost: Rs569.736 million).
 Up-gradation & Strengthening of Human Resource Development Centre of
Geosciences Advance Research Laboratories. (2018-2021)
(Total Cost: Rs171.072 million).
 Up-gradation and strengthening of Research Laboratories at Geological Survey of
Pakistan, Regional office Peshawar (2018-19) (Total Cost: Rs54.50 million).

Annual Plan 2018-19

 PILLAR-VI
Developing a Competitive
Knowledge Economy through
Value-Addition
Chapter 25|HIGHER EDUCATION

The role of higher education as a major driver of economic development is well established.
This role will increase as further changes in technology, globalization, and demographics
impact the country. To remain competitive in light of these changes, Pakistan will need to
improve productivity and adopt an innovative spirit. Higher education has the capacity,
knowledge, and research necessary to help achieve these goals.

The Government of Pakistan has formulated and approved a long term Vision Plan 2025 for
a developed and prosperous Pakistan that covers up the key sectors of the country. Pillar-I of
Vision 2025 emphasizes Developing Human and Social Capital. One major weakness
identified in vision 2025 is neglect of human resource development and it seeks
improvement in this area. Pakistan has to make significant leap forward in areas like
education, health and social development to catch up with its peers. It aims at substantial
expansion in levels of education as well as improvements in the quality of education. A
larger share of the GDP, at least 4 percent to education would have to be allotted. Key goals
under this pillar are; Increase Higher Education coverage from 7 percent to 12 percent, and
increase number of PhD’s from 7,000 to 15,000.

The 12th Five Year Plan emphasizes on providing 100 percent access of tertiary education at
district level without compromising on quality and creating knowledge with local and
international collaboration that can be translated into products and commercialization. The
plan also focuses on encouraging universities to generate own resources in order to meet
their recurring expenditures. Another area of focus will be reforming governance structure
at universities by training university authorities in leadership skills. Accordingly, the Annual
plan 2018-19 is intended to meet these objectives identified in 12th Five Year plan.

Higher Education Commission (HEC) being the custodian of higher education in country has
plans in the next decade not only to sustain what has been achieved but initiate further
reforms that are in line with GoP Vision 2025. HEC plans to implement a process of
developing human capital and to take higher education opportunities at the district level
throughout the country and a significant increase of scholarships for faculty. HEC has
managed to prepare 28 percent of faculty with PhD which needs to be enhanced to 40
percent by next decade. HEC vision 2025 calls for improving quality of higher education by
improving accreditation and monitoring of curriculum at all levels.

Performance Review 2017-18

Access to Higher Education

The major emphasis remained on increasing access to higher education at the doorsteps of
masses. HEC is accordingly taking necessary steps to meet the goal of district level access in
phased manner. In first phase, 22 university campuses are being established in all provinces.
In addition to that projects for establishing various new universities / university campuses
have been approved. Some of these include: Bahawalpur Institute of Science & Technology,
Federal University at Hyderabad, University of Baltistan, Women Sub Campus of Swat
University in Mingora, up gradation of Bannu University of Science & Technology, Lakki

Annual Plan 2018-19

180 Higher education

Marwat Campus to a Full Fledge University, Women University campuses at Pishin and
Khuzdar, Establishment of University Campus for Women at Bannu, Establishment of
Women Campus of Kohat University of Science & Technology at Kohat and University of
Sargodha campuses at Mianwali & Bhakkar. This data also reveals that government is well
aware of female education and taking all necessary steps to provide access in a way to
improve gender balance in the country.

Higher Education Commission has taken up the target as envisaged in Vision 2025 to
enhance the enrolment in higher education institutions 12 percent of the youth aged
between 17-23 years. For this purpose the higher education institutions / universities have
now coverage across the country. Region wise number of universities/ institutions & their
Sub Campuses at present compared to previous year are as under:-

Table-1: Universities and University Campuses in 2016-17 and 2017-18

Region/ 2016-17 2017-18

SN
Province Universities Campuses Universities Campuses
1 Azad Jammu & Kashmir 7 0 7 4
2 Balochistan 8 0 8 3
3 FATA 1 0 1 0
4 Gilgit-Baltistan 2 0 2 2
5 Islamabad 32 8 32 8
6 Khyber Pakhtoonkhwa 30 8 33 12
7 Punjab 53 62 53 66
8 Sindh 52 14 52 19
Total 185 92 188 110

The current enrolment in these universities/institutions has reached to 1.471 million.

Visibility of Pakistani Universities on Globe

One of the key indicators for assessing quality of higher education is visibility of Higher
Education institutions (HEIs) of a country at regional and global level. HEC has a mechanism
to rank public and private universities at national level. Similarly, various rankings of HEIs are
available at global level. Quacquarelli Symonds (QS) Ranking is one of the reputable global
ranking. Due to collective and concerted effort of universities, government, HEC and all
other stakeholders, the output in Higher Education Institutions (HEIs) of the country have
shown tremendous improvements and Pakistan has been acknowledged as rising star by the
international higher education community in a number of disciplines. Today many Pakistani
universities are seen on the globe. The addition of Pakistani universities in QS Asian ranking
over the year is given below:

Table-2: Quacquarelli Symonds (QS) Asian Ranking

QS ASIAN Ranking 2017 2016 2015 2014 2013

National University Sciences of 91 112 119 129 120
Technology (NUST)
Lahore University of Management 103 111 161 181 191
Sciences (LUMS)
Quaid-i-Azam University, Islamabad 133 149 116 123 119

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Higher education 181

QS ASIAN Ranking 2017 2016 2015 2014 2013

Pakistan Institute of Engineering and 128 149 115 106 -
Applied Sciences
Agha Khan University, Karachi 234 183 117 116 151
University of Karachi 193 201-210 251+ 201+ 201+
University of the Punjab, Lahore 232 221-230 201+ 201+ 201+
COMSATS Institute of Information 190 231-240 201+ 201+ -
Technology
University of Engineering and Technology, 200 241-250 251+ 251+ 201+
Lahore
Agriculture University, Faisalabad 291-300 301-350 251+ 251+ -
Institute of Space Technology, Islamabad 271-280 - - - -
NED Uni of Engineering and Technology, 301-350 - - - -
Karachi
University of Lahore, Lahore 301-350 - - - -
University of Veterinary and Animal 301-350 - - - -
Sciences , Lahore
Government College University, Lahore 351-400 - - - -
Mehran University of Engineering and 351-400 - - - -
Technology, Jamshoro

Human Resources Development

Availability of trained / highly qualified faculty is one of the main prerequisites for quality of
education imparted and graduates produced in a university. The government has provided
ample resources over the years to HEC and universities for training of faculty. The trained
scholars not only contribute in the faculty but also in R&D organizations, industry / private
sector as well as in policy making institutions. HEC is responsible for formulating policies,
terms and conditions for planning, implementation of quality processes, and monitoring of
development and recurring projects for scholarships. In addition, the various schemes which
provide opportunities to scholars for improvement of higher education and promotion of
research culture align with the objective of the Vision 2025.

Overseas Scholarships

A total number of 636 scholars proceeded abroad for their PhD studies during 2017-18; In
addition, 400 scholars have been awarded 6 month PhD research fellowship abroad under
International Research Support Initiative Programme (IRSIP) during the same period.

Indigenous Scholarships

A total number of 2031 indigenous scholarships were awarded for Under Gradate, Post-
Graduate and PhD studies under various schemes during 2017-18.

Need Based Scholarships

A total number of 3216 needs based scholarships were awarded during 2015-18 under
different need based programmes. It includes HEC-Need Based Scholarships, USAID, &
OGDCL Need Based Scholarship Programme.

PM Fee Reimbursement Programme For Students From Less Developed Areas

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182 Higher education

The scope of the Programme has been expanded to 114 districts of Pakistan and under this
programme fee reimbursement made to 36405 students of these districts during current FY:
2017-18.

Scholarships for Afghan Students

Under this scheme, the Government of Pakistan offers scholarships to 3000 Afghan students
in various field including Medicine, Engineering, Agriculture, Management and computer
sciences;
 To establish a goodwill gesture for among the people of Afghanistan.
 To promote Human Resource Development for reconstruction of Afghanistan.
 To develop people to people contact between two neighbouring countries.
 To create excellent leaderships qualities among Afghan youth.
Academic Research & its Impact

The research activities have been enhanced in the public sector institutions resulting in more
than 6 folds increase in research articles published in impact factor journals. Streamlined
research, generated by strategic academic processes that build strong societies and
economies has now entered a takeoff phase of commercialization. Business and Technology
Incubators are being established in universities across Pakistan to promote university-
industry collaboration. Universities have initiated different research projects related to
agriculture, business, industrial needs, which are shared with the related stakeholders and
other sections of the society.

In order to sustain the trend and to expand the horizon of research activities in HEIs while
reaping the benefits of research in real term of community impact and research
commercialization, HEC focused on research activities those have direct impact on
community wellbeing and economy of the country. These are;
 About 30 percent of the approved development funds have been allocated for
provision of latest teaching and research lab equipment to expand and enhance the
R&D infrastructure of the universities.
 A project for establishment of Seerat Chairs in six (6) Public Sector Universities has
been approved at a cost of Rs192.0 million, for conducting research on Seerat-e-Pak.
The Higher Education Commission has initiated a new project “Establishment of Technology
Development Fund for HEC Scholars Returning after completion of PhD to introduce new
Technologies in Pakistan (HEC)” for academia-industry collaborative project. In FY 2017-18, a
total of 276 proposals received are more than two times as compared to the previous fiscal
year. After initial scrutiny 232 have been awarded.

Financial progress

An amount of Rs35.663 billion for 181 development projects (112 ongoing & 69 unapproved
projects) was allocated to Higher Education Commission in the PSDP 2017-18. HEC has
reported total estimated release and revised estimates for 2017-18 as Rs27.052 billion. In
addition, Higher Education Commission has been given the responsibility of designing,
implementation and execution of the project titled “Prime Minister’s Laptop Scheme-HEC

Annual Plan 2018-19

Higher education 183

(Phase-II)”. The case for release of an amount of Rs5.287 billion for PM’s Laptop Scheme is
under process at M/o Finance. Similarly, the case for release of supplementary grant of
Rs0.600 billion for the project titled “Award of 3000 Scholarships to students from
Afghanistan under the Prime Minister’s Directive” is also under process at M/o Finance.

Outlook 2018-19
Access and Quality of Higher Education

Government has planned to provide 100 percent access at district level by 2020. Efforts will
continue to enhance access at district level during next year. During 2017-18, HEC
implemented projects for establishing universities / university campuses in 22 districts. In
2018-19, another 22 districts will be provided with the same facilities. Special focus will be
laid to improve gender balance in access of tertiary education. HEC will be tasked to
undertake public sector universities for their quality of education as well as employability of
their graduates.

Human Resources Development

Human Resource Development will remain one of the key areas of development of higher
education sector. However focus will remain on increasing indigenous scholarships or split
programmes and send scholars for foreign scholarships / trainings in only those areas which
are priority of government and which are directly related to the economic development.
During 2017-18, HEC carried out a survey in universities to identify areas and specializations
where the scholarships need to be focused and where the gap of knowledge is existing. This
was followed by a national level workshop where all the stakeholders sat together and
further refine these areas of Human Resource Development. HEC will start Phase-III of
Overseas Scholarship Scheme, implement Pak USA Knowledge Corridor Scholarships Scheme
and continue working on Indigenous Scholarship Schemes. These initiatives in total will
provide opportunities for 1000 PhD scholarships. In addition to that, Post-Doctoral
Fellowships for 200 fellows in 2018-19 will also be awarded.

Visibility of Pakistani Universities on Globe

Pakistani universities due to focus on quality and concerted efforts on collaborations as well
as international linkages have started showing on global higher education rankings. The
universities will be encouraged to enhance their efforts and work harder to excel in these
areas and more universities are expected to make it to top rankings at global and regional
level. In 2017-18 about 15 universities were included top 500 rankings at Asian level. This
number should be more than 20 by next year. At least five (5) universities should be among
top 500 universities at global level.

Academic Research and its Impact

The faculty and researchers at universities will remain active for knowledge creation to
increase publications in Impact Factor Journals and their Citations. Focus will also remain on
commercialization of R&D through registration of more Patents, awarding Licenses and
establishing Spin-offs and enhancing University-Industrial Collaborations. Universities will be
encouraged to establish international collaborations and undertake social service.
Universities will be incentivized by developing a funding mechanism based on their

Annual Plan 2018-19

184 Higher education

performance in commercialization of research, generation of funds as well as collaboration

with industry. Following research related targets should be met by HEC and universities:
 Increase in the number of publications from existing 14,000+ (approx.) to 16,000 by
next year as well as their impact (citations per publication).
 10-15 percent annual increase in the commercialization outputs and outcomes (such
as spin-offs, patents, licenses, and industry collaboration revenues).

Programmes for 2018-19

The focus in 2018-19 will remain on consolidation instead of expansion. As per this policy,
completion of ongoing initiatives will remain main area of focus instead of starting new
initiatives. In this context, the programme part has been divided in two part i.e. ongoing
initiatives which will continue along with new initiatives. .

Ongoing programmes to be implemented

Under District Level University project HEC will complete establishing 22 Campuses in Phase-
I of the project.

Work on newly approved projects for establishing universities will either complete or will
continue. Some important of these projects include: Centre for Mathematical Sciences
PIEAS, 4 Year BS Programme at UET Taxila, Development of Fatima Jinnah Women University
Rawalpindi, Development of Infrastructure at Lasbela University, Development of University
of Dir, Lahore College for Women University Jhang Campus, Strengthening of Mehran
University of Engineering & Technology Jamshoro, University of Bagh AJ&K, Establishment of
FATA University and University of Agriculture Faisalabad Depalpur Campus to name a few.

Important Human Resource Development projects / programmes which will continue in next
year include:
 “Faculty Development Programme for Pakistani universities (Split Ph.D.)” for 2000
faculty members, 400 scholarships will be awarded in 2018-19.
 “Prime Minister’s Initiative regarding Chinese’s language training for 50 students in
Chinese universities from Gwadar” Baluchistan for period of one year.
 “Prime Minister’s Initiative for 50 students for undergraduate studies from Gwadar”
Baluchistan in Punjab Public Sector Universities.
 Prime Minister Fee Reimbursement Programme has been extended for another five
year, and tuition fee will be paid through this programme for 200,000 students for
their MS/MPhil and PhD studies.
 Technology Development Programme is one of the main projects for awarding
research/ technology development funds to fresh PhDs. This project will continue in
next year

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Higher education 185

New project / programmes to be implemented

Work on newly approved projects for establishing universities will either complete or will
continue. Some important of these projects include: Bahawalpur Institute of Science &
Technology, Federal University at Hyderabad, University of Baltistan, Women Sub Campus
of Swat University in Mingora, Up gradation of Bannu University of Science & Technology
Laki Marwat Campus to a Full Fledge University, Women university campuses at Pishin and
Khuzdar, Establishment of University Campus for Women at Bannu, Establishment of
Women Campus of Kohat University of Science & Technology at Kohat, University of
Sargodha campuses at Mianwali & Bhakkar and GCU Faisalabad campus at Chiniot to name a
few.

Important Human Resource Development projects / programmes which will continue in next
year include:
 “Overseas Scholarship Scheme for MS/M.Phil leading to Ph.D. Phase –III” for 2000
scholarships. 400 scholarships will be awarded in 2018-19.
 “Science Talent Farming Scheme” for 1200 undergraduate’s students. 250
scholarship will be awarded in 2018-19
 “Post-Doctoral Fellowship Programme Phase-III” for 1200 fellowships. 250
Fellowship will be awarded in 2018-19.
 “Prime Minister’s Initiative scholarships for Balochistan Lawyers for LLM” for 100
Lawyers.
Important new projects related to Technology Development, Industry Academia Linkage,
Entrepreneurship or commercialization include: Innovation Center and Software Park at
University of Engineering & Technology Sub Campus Lahore, Up gradation of Technology
Development Centre at University of Agriculture Peshawar, Livestock Sector Development at
University of Veterinary & Agriculture Sciences Lahore, Biotechnology Centre at BZU Multan,
Up-gradation of Synthetic Fibber Development and Application Centre (SFDAC) and Plastic
Technology Centre (PTC) as a Sub Campus of National Textile University (NTU) and Up
gradation of Government College of Technology (GCT) Khairpur into the Benazir Bhutto
University of Technology and Skill Development, Khairpur Mir's.

Government has focused to enter digital age by establishing National Centres of digital
resources at universities. In 2018-19, Following Centres and digital related centres will be
established which will produce technical manpower in these areas:
 National Centre in Artificial Intelligence
 National Centre in Cyber Security
 National Centre in Robotics and Automation
 National Centre in Big Data and Cloud Computing
 Enterprise Resource Planning System and IT Training for 100,000 Youth (25000 to be
trained in Phase-I starting next financial year)

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186 Higher education

Financial Outlay
Higher Education Commission has been allocated Rs46.230 billion under PSDP 2018-19 for
173 projects. This includes Rs39.868 billion for 132 ongoing/approved schemes and Rs6.362
billion for 41 new/unapproved projects. In addition to that funds outside PSDP will be
allocated for PM Fee Reimbursement Programme and PM Laptop Scheme.

Annual Plan 2018-19

Chapter 26|SCIENCE AND TECHNOLOGY

Science & Technology has been used at global level for economic development by
developing capacity to design, engineer, produce and deliver products and services based on
knowledge and innovation, expand investment in technologies and S&T infrastructure and
ensuring appropriate governance framework. Pillar-VI of Vision 2025 speaks on developing
competitive knowledge economy. It is no secret that Science & Technology Sector is key
ingredient of knowledge economy. The custodian of S&T sector in Pakistan is Ministry of
Science & Technology (MoST) and R&D organizations within Ministry as well as few of the
strategic organizations outside ministry. The last S&T Policy was approved in 2012; hence a
policy document in the light of scientific and technological advancements is long due.
Ministry of Science & Technology is currently working to finalize S&T Policy and it is hoped
that it will emphasize emerging technologies and improved industry / R&D relationship.

The 12th Five Year Plan identifies poor state of S&T Infrastructure with more focus on
assembling and import instead of transfer of technology, lack of applied and solution-based
R&D for local problems, weak information support system for technological forecasting,
inadequacy of research and its relationship to the technological development / innovation /
enterprise, non-involvement of the private sector in the R&D and weak linkages among
universities, research institutions, industry and government as main issues / problems
hindering development of S&T Sector.

The 12th Five Year plan strategically focuses on transitioning of Science and Technology out
of the Public S&T Lab System through opening up of the public S&T system to private sector
participation and the creation of a locally relevant triple helix model. Under 12th Five Year
Plan mega S&T initiatives will be targeted like focusing on electric cars, new agricultural
varieties, indigenous artificial satellites, biotechnological / nano-technological interventions
and robotics. The annual plan 2018-19 being the first year of 12th Five Year Plan will focus on
paradigm shift in S&T sector to divert focus on product related research by R&D
organizations in collaboration of industry.

Performance Review 2017-18

Physical

The outlook for 2017-18 focused on undertaking research in futuristic technologies like
nano-technology, biotechnology, fuel cells and advanced material. Other important
objectives included: improving R&D-Industry collaboration, infrastructure development, and
renewable technologies, create awareness and training in certifications, standards and
accreditation as well as research in water resources. Ministry of Science & Technology in
collaboration of Ministry of Planning, Development & Reform would undertake an initiative
on Productivity, Quality & Innovation for defining framework and creating knowledge.
Keeping in view the objectives of outlook for 2017-18, following highlights of its
implementation can be summarized as achievements:
 Small & Medium Enterprises (SMEs) in the country face challenges in enhancing
exports mainly due to lack of knowledge and interest to acquire international

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188 Science and Technology

certifications and meeting standards. Realizing this difficulty, MoST provided partial
reimbursement of expenditure on acquiring certifications to SMEs as incentive. The
objective of this step was promotion of exports. Under the programme 259 SMEs
applied for certification grants. The main feature of this certification incentive
programme is its nature of sharing the certifications cost and support SMEs for
general as well as sector specific certifications. So far 75 of the applications have
been approved by the Incentive Award Committee (IAC) whereas the rest are under
consideration. Next Incentive Award Committee (IAC) meeting for this purpose is to
be held shortly.
 Another important aspect of CIP is the capacity building of SMEs personnel as well
as MoST & its organizations. Training Programmes were designed in consultation
with the Chambers of Commerce & Industries; sector specific Trade Associations,
SMEs and other stakeholders. The Training Programme element of the initiative has
been outsourced to a private company through open bidding. Under the contract,
the company is conducting 2-Day (non-examination based) training courses against
19 certification standards and 5-Day (examination based) lead auditor courses
against 08 certifications / accreditation standards. This training programme will be
completed within next 06 months period and in total will train 2000 personnel of
SMEs.
 There are numerous examples at global level to establishing Science Schools and
providing scholarships to young talented students at school level and fund them
until tertiary level education to produce future scientists. In line with this concept,
Pakistan Science Foundation designed an initiative for Science Talent Farming
Scheme (STFS) which was aimed at progressively exposing talented students to
advanced topics in science with application of inquiry based approach to learning. A
group of 25 students visited scientific organizations and universities of London and
participated in London International Youth Science Forum from 28th July to 10th
August 2017. Summer Camp was organized in 1st week of July 2017. Visits to S&T
organization including PINSTECH, NARC, NCP, NINVAST, NUST, PMNH, PASTIC, PSF
and PAS were conducted. Inquiry Based learning sessions and motivational lectures
were arranged. 550 students participated in the activities. Under the scheme,
Pakistan Science Foundation has paid monetary benefits to 600 students.
 MoST through its PSDP 2017-18 portfolios helped its R&D organizations to provide
modern equipment for uplifting of research labs and other facilities. This support
enabled R&D organizations to upgrade requisite infrastructure and enhance the
internal research capability.
 Pakistan Council for Research in Water Resources in past has undertaken
commendable research in water resources. In 2017-18, National Capacity Building
Institute (NCBI) for Water Quality Management at PCRWR is set for completion by
June 2018. The completion of institute will pave the way to train the qualified
manpower in water sector and in-service water supply professionals (managers,
engineers, scientists, field staff in Water Quality Management) and fresh students to
develop skills in planning and optimum utilization of available water supply
infrastructure.
 One of the main objectives of outlook in 2017-18 was focusing on technologies and
area relevant to the potential of country. In this regards, MoST continued efforts to
complete a project for establishing Gems & Mineral Cutting and Polishing Centre at

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Science and Technology 189

PCSIR Skardu, Gilgit Baltistan. This is an important initiative for facilitation of

gemstone miners to curb the precious and semi-precious stones wastage at mining
level. At the same location, PCSIR upgraded its labs and R&D facilities for Fruit
Processing, analytical laboratory and existing fruit processing/preservation centre
for value addition & minimization of post-harvest losses of fruits and vegetables.
 Vision 2025 and 11th Five Year plan emphasize to promote Triple Helix System that
involves collaboration among Industry, Academia and R&D organizations. In line
with this objective, PCSIR collaborated with industry for lab scale development to
Pilot scale level in areas of Pharmaceutical & Chemicals, Food, Herbal, Minerals and
Cosmetics etc. PCSIR has developed processes and is leased out to different
industries; patents registered and provided consultancy services to various industry
clients.
 No product in developed world can be sold without complying with Standards,
Accreditation and Quality Control protocols. The responsibility of maintaining
standards and quality control mainly lies with three organizations including: Pakistan
Standards and Quality Control Authority (PSQCA), Pakistan National Accreditation
Council (PNAC) and National Physical and Standards Laboratory (NPSL). These
organizations contributed towards export enhancement, trade increasing and
improving health and safety of consumers through mandatory and voluntary
standards. PSQCA formulated and promulgated standards. PNAC assisted in
expansion of trade through accreditation of laboratories and certification bodies,
whereas NPSL is responsible for traceability of metrology standards.
 In Health Sector, researchers at NUST were engaged for Establishment of Medical
Devices Development Centre (MDDC) at NUST, Islamabad. The main objective of this
centre is the indigenous production of stent manufacturing. It is envisaged that
initial production will start very soon and will result in considerable reduction in
price of stents.
 Pakistan Atomic Energy Commission (PAEC) continued working on up gradation of
PINSTECH. National Electronics Complex of Pakistan (NECOP) is being established by
NESCOM in collaboration of China to develop indigenous capability for electronic
sector. During 2017-18 NESCOM was assigned task to develop first of its kind facility
for 3D Printing and related areas. It is envisaged that NESCOM in collaboration with
private sector of country will pave way for adaptation and R&D of this futuristic
technology.
 National Centre for Physics (NCP) in 2017-18 kept working to upgrade its Physics labs
as per standard of CERN. Another important initiative of NCP was to upgrade the
Silicon Strip Tracker and Muon System at NCP. These initiatives are envisaged to
take Pakistan to next level in this area.
 One of the important projects being implemented is Establishment of New Geodetic
Datum project. The project being executed by Survey of Pakistan envisages
redefining Geodetic Datum, Vertical Datum and Gravimetric Datum of Pakistan.
China is providing technical assistance in this regard.
Financial

During the fiscal year 2017-18, an amount of Rs2,538.727 million was allocated against 33
development projects. Out of this, Rs659.219 million have been released and utilized till

Annual Plan 2018-19

190 Science and Technology

March 2018 (three quarters). Eight (08) number of projects are going to be completed
during the year under 2016-17. The estimated release and revised estimates for 2017-18
reported by MoST stands at Rs1,058.526 million.

Outlook 2018-19
The policy focus of the S&T sector during 2018-19 are based on objectives defined in 12th
Five Year Plan. The focus would remain on creation of new Vision of Nationally Relevant
Science Technology & Innovation (STI) capability, Evolve Locally Relevant Triple Helix System
and undertaking mega STI initiatives like indigenous capability in designing / manufacturing
electric cars, indigenous artificial satellites and new varieties of crops. In the next year,
alongside capacity building and HRD in S&T sector, special focus will be given on
Nanotechnology, Biotechnology, Food Processing, Renewable Energy, Robotics, Quality
Assurance and Standards, Halal Standards, Water Conservation, Marine sciences and Health
sector.

Ministry of Science & Technology needs to redefine S&T objectives and sector development.
Last S&T policy came in 2012. MoST needs to revisit the same and come up with specific 5
and 15 year Vision Statements of Nationally Relevant Science Technology & Innovation (STI)
capability. Focus of S&T sector needs to be on area relevant to national needs and futuristic
technologies like R&D in Agriculture, Industrial Development, Natural Resources, Energy &
Climate, Defense, Nanotechnology, Biotechnology, Renewable Energies and Digital
Technologies.

During Next year, MoST will focus on establishment at least one S&T Parks and 3-4
Incubation centers at its R&D / S&T organizations and involve industry to make it successful
intervention. MoST will interact with other strategic R&D organizations like PAEC, NESCOM,
SUPARCO, HMC, PAF Kamra and DESTO to come up with joint proposals that can translate
defence and S&T capability into some solid products and transform the overall scene of
product / technology development.

Some other focus areas will be capacity building of staff in public sector R&D organizations
through PhD scholarships and training, rationalization of salaries and pay package of R&D
staff in public sector organizations (to be addressed through recurring budgets), funding of
developing project on priority that are based on strict KPIs with outcome of product
development and its commercialization as well as innovative Public private investment
models for transitioning technology out of public-sector Labs.

Programmes for 2018-19

Brief detail of projects/ activities to be undertaken in the proposed PSDP of the upcoming
fiscal year 2018-19 is given below:
 Development of island of excellence in emerging technologies such as
Nanotechnology, Biotechnology, Renewable Energy etc. Projects with specific
objectives in this regard will be designed and approved.
 Overcoming energy crisis in the country and minimizing the energy divide between
the developed and less developed rural parts of the country through high-tech, low
cost and sustainable energy solutions with renewable resources.

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Science and Technology 191

 Science Talent Farming Scheme (STFS) would be in full swing in 2018-19. The scheme
envisages grooming of the selected youth and their support all the way to highest
degree by progressively exposing them to advanced topics in science with
application of inquiry based approach to learning.
 Achieving Vision 2025 through PQI initiative, MoST in collaboration with M/o PD&R
is implementing Certification Incentive Programme for Small & Medium Enterprises
(SMEs). Under the scheme, more Awareness Seminars in Association with local
Chambers of Commerce & Industry will be arranged throughout the country, as and
when required in order to maximize the receiving number of applications by SMES
for grant of Incentive Award. Incentive Award Committee (IAC) meetings will be
regularly held as and when required to decide the award of the Incentive Grants to
the applicant SMEs.
 Under Halal Accreditation, efforts will be made to create awareness in Pakistani
manufacturers, exporters and traders regarding Halal Standards to build
international credibility.
 At Gwadar, Precision Mechanics and Instrument Technology Institute will be
completed to build quality manpower in precision mechanics and instrumentation
technology through introducing new training programmes at the said institute.
 Improved land and water conservation practices will be continued to enhance waste
land productivity in areas like Thar Desert and control of waterlogging in low lying
areas of Sindh.
 Facility for production of indigenous stent manufacturing system will be completed
at Medical Devices Development Center (MDDC) at NUST, Islamabad.
 Competitive Research Programme will be launched by PSF to enhance the
Knowledge Base within the country. The project will provide grants to individual
researchers, consortium of researchers and for projects with international
collaboration. The project is unique in the sense that it has predefined research
areas and KPIs for productive research.
 National Institute of Oceanography (NIO) will undertake a project to monitor sea
level rise, sea level intrusion and land subsidence in Indus Delta Creek System with
special reference to Sindh Coastal belt.
 Pakistan Scientific & Technological Information Centre (PASTIC) will upgrade its
National Science Reference Library for Effective Resource Sharing among S&T
Libraries in Pakistan.
 Pakistan Council for Science & Technology will conduct important surveys and
compile reports on need assessment of S&T Human Resource as well as Industrial
Innovation Survey. These reports / surveys will help to have first-hand data on
requirement of S&T HR and Industrial Innovation and as such help future policy
making.
 PCSIR will upgrade its labs of Medicinal Botanic Centre as National Centre for Herbal
Medicine, PCSIR Labs. Complex, Peshawar. Similarly up gradation of R&D Quality
Facilities in Polymer and Plastics will be done at PCSIR Labs. Complex, Lahore.
 PSQCA will make provision of mobile testing labs facility at Lahore/ Quetta/
Peshawar and Islamabad.

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192 Science and Technology

 Pakistan Council for Renewable Energy Technologies (PCRET) will undertake two
new initiatives including: Cloud Based Semiconductor Chip Design Facilitation Centre
and Establishment of Pak-Korea Testing Facility for Solar & Allied Equipment.
 CIIT will undertake various projects to enhance its nation-wide campuses capability
and strengthen the on campus R&D infrastructure. Important initiatives of CIIT will
be: Establishment of Advanced Technology Training Centre at Knowledge Park,
Muridke, and Strengthening of Nanomaterials Based Electronic, Photonic and
Magnetic Device Fabrication Facilities at CIIT, Islamabad.
 Ministry of Planning in collaboration with National Productivity Organization (NPO),
PCSIR, HEC, PNAC and Technology Upgradation & Skill Development Company
(TUSDEQ) will launch and implement Pakistan Productivity, Quality & Innovation
(PPQI) Initiative. The project is unique initiative to create awareness about PQI,
arranging training programme for stakeholders and drafting policies for PQI.

Financial Outlay
During the fiscal year 2018-19, an amount of Rs2.4 billion has been allocated against 28
development projects of Ministry of Science & Technology. This would include Rs1.592
billion for 19 ongoing/approved schemes and Rs807.942 million for 09 new/unapproved
projects. However, the overall size of S&T Sector will include allocation for some more
projects that will be implemented outside MoST.

Annual Plan 2018-19

Chapter 27|INFORMATION AND
COMMUNICATION TECHNOLOGY
The foundation of knowledge economy rests on digital technology. As a result of this
evolving scenario, governance, trade & commerce, manufacturing, social interactions, and
even well-being and daily chores are becoming more digital as well as smarter. This
tremendous change is occurring due to technologies such as augmented reality, holograms,
machine learning, mobility-based communication and Internet of Things (IoT). In these
tumultuous times, the definition of national development and national wealth has started to
transform. Countries are rapidly adopting the digital revolution to remain significant player
in the global economy of future.

During the last five years, ICT sector has shown promising growth in the country. Adoption of
ICTs has accelerated, with private sector playing a major role in it. However, a lot of mileage
has yet to be traversed to move into the leading pack of countries. For a high growth
economy, we have to use ICTs for inclusiveness on various dimensions, e.g. social, economic
and technological inclusiveness. Governments have an obligation towards its citizens, by
becoming more responsive to improve citizens’ quality of life. Thus, government will have to
rely more on ICTs to deliver on the expectations of their citizens.

The key to future high growth in Pakistan is linked to regional development. In this context,
CPEC is a flagship initiative that could link us not only to the yet-to-be-explored areas of
Central Asia and Eastern Europe but also to act as a bridge between Middle East/ Africa and
China. However, to become an important player, a tremendous coordinated effort has to be
made to transform CPEC from just a trade corridor and a physical infrastructure initiative
into a much desired knowledge corridor for this region. This can only be made possible by
putting ICTs as the front-running industry in Pakistan.

Performance Review 2017-18er

Pakistan’s ICT sector continues to grow (ranked 115 in 2017-18 as compared to 122 in 2016-
17). However, the international arena is moving very fast thus posing a challenge for
catching up. This is evident from the World Economic Forum’s Global Information
Technology Report (GITR 2017-18) that Pakistan lags behind the most of the dimensions of
the survey even in the regional context. Pakistan is lowest ranked amongst South Asian
countries.

It is evident from the GITR 2017-18,out of 137 countries, the strength of Pakistan in
innovation ranked 60, business sophistication ranked 81 and availability of latest
technologies ranked 70. However, the main barriers in growth are market inefficiencies,
specially the number of procedures to start a business ranked 125, trade tariffs ranked 135
and secondary & tertiary education enrollment ranked 118 & 115 respectively.

In telecommunication sector, cellular density increased from 70.85 percent to 72.14 percent.
The 3G/4G broadband services further increased subscribers from 42.08 million to 49.46
million.

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194 Information & Communication Technology

Key ICT Indicators

Description Jun, 2017 March, 2018

Overall Tele-density 72.35 percent 73.44 percent
Mobile Cellular Tele-density 70.85 percent 72.14 percent
Total Broadband Subscribers 44.59 million 51.76 million
Mobile Broadband Subscribers 42.08 million 49.46 million
Source: Pakistan Telecommunication Authority

In the information technology sector, National Incubation Centers (NICs) have already been
established at Islamabad, Lahore and Peshawar. Currently, 40 startups are housed in these
facilities. NICs at Karachi and Quetta have been awarded and will start operating soon.
Under the aegis and funding by Ignite, 33 projects worth Rs580 million with the potential to
create marketable products and services have been approved for funding. Besides, extensive
consultation with stakeholders on Digital Pakistan Policy has been completed and the draft is
in the process of approval by competent authorities. This Policy would lay foundations of
constructing a holistic digital ecosystem. Consultation on formulating Cyber Governance
Policy has also been started. In the PSDP 2017-18, Rs3,500 million was allocated for ICT
sector. Some of the major projects that were executed in the ICT sector during 2017-18 are:
 Launching of Technology Parks Development Project. Technical Assistance of Korea
has been sought and loan agreement was signed too. Feasibility of the project was
completed during the year and boundary wall and other allied work such as design,
consultancy etc. is in progress.
 Pakistan Remote Sensing Satellite (PRSS) is being developed/ manufactured in
collaboration with international satellite manufacturer/ supplier. The project will
enable Pakistan to gain self-reliance in satellite technology.
 Enhancing IT Exports through Industry Support Programmes: IT Industry Support
Programme is a multi-million rupee initiative in participation with IT industry. During
the year, 12 companies were provided consultancy for CMMI and ISO 27,001/
20,000 certifications.
 Access of e-office suite software has been provided to more than fifteen (15)
Ministries/Divisions and sixteen (16) attached departments, whereby more than
6,000 staff has been trained on this system. The e-office suite is now housed in
NTC’s National Data Center.
 Construction of Cross-Border Optical Fiber Cable for Alternative International
Connectivity: Under this project, so far, 520 km (out of 820km) of optical fiber cable
has been laid by March, 2018. The project is expected to be completed in December
2018.
 Establishment of SCO Technical Training Institute (STTI) at Gilgit is in progress and is
expected to be completed by December 2018.
 Expansion and Up-gradation of 3G/ 4G services along the KKH in support of CPEC is
in progress.
 Replacement of GSM network in the region of Azad Jammu & Kashmir by Special
Communication Organization (SCO) is going on and will increase the quality of
communication in the region.

Annual Plan 2018-19

Information & Communication Technology 195

Outlook 2018-19
There is a tremendous opportunity for Pakistan as its ICT sector is now at take-off stage. IT &
ITES-Business Process Outsourcing (BPO) exports are estimated to have already crossed $3
billion this year. With the right impetus, ICT sector can become the driver of change and
growth in the next few years. Therefore, continuous focus is essentially required on software
development, software and IT workforce export, in-country employment opportunities, e-
governance for an effective service delivery, m-governance and smart monitoring,
technology incubators and support for entrepreneurs. This continuous focus would thus set
a high growth conditions in the years to come.

Launching of strategic
Strategic Initiatives
initiatives along with tax Following strategic initiatives are expected to transform
holiday and capital Pakistan’s ICT landscape in next few years:
repatriation incentives for
private sector is expected to  Network of National Incubation Centers to spur
make Pakistan an innovation and entrepreneurship in collaboration with
outsourcing destination in private sector;
the region by 2020, and
 National Space Programme (NSP-2047) aims to make
increase IT & ITES exports to Pakistan self-reliant in various aspects of satellite
exceed US$ 5 billion. technology for both civilian and strategic domains.
Furthermore, as CPEC
programme progresses, it is  DigiSkills Training Programme to train one million people
expected that next decade for freelancing and specialized ICT skills;
will bring in more
 Technology Innovation Fund to enhance research and
opportunities of innovation, th
product development focusing on 4 Industrial Wave
growth and transforming technologies;
the country into a regional
hub of trade and commerce.  Licensing of Third Party Service Provider (TPSP) to
Expanding ICT accessibility enhance financial inclusion;
to remote and under-
developed parts of the  Broadband to expand connectivity and high speed
broadband and optical fibre coverage to un-served
country will also help in towns/ routes throughout the country.
achieving social
inclusiveness, opening new vistas and source of employment in the country.

Improvement in national ICT infrastructure with linkages at multiple points with the regional
and international systems will make the country an important transit route for international
trade and services, accelerating entrepreneurship. Automation of government processes,
fin-tech, agri-tech, edu-tech, health informatics and social innovation are some of the areas
which hold a potential of high growth and transforming quality of life for the citizens.

Programmes for 2018-19

The PSDP earmarked for ICT sector for 2018-19 is Rs6,535 million. The allocation is aimed to
improve capacity of our IT industry by further providing infrastructure and facilities for
startups and small IT businesses, increasing the quality of skills and capacity of the
organizations to consistently deliver high quality services and products, raising its standard

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196 Information & Communication Technology

to compete in the international arena, and accelerating the pace of e-government to

facilitate citizens to avail public services.

Major thrust in ICT sector for 2018-19 will include:

 Development of Technology Parks to facilitate rapidly growing entrepreneurial
ecosystem in the country.
 Through Ministry of IT’s project titled “Enhancing IT Exports through Industry
Support Programmes” 70 more companies will be provided CMMI consultancy to
attain certification of CMMI level-2, CMMI level-3, CMMI level-5 and ISO 27,001/
20,000 international standards.
 Participation in 15 major international exhibitions to generate export business.
 Under the “Prime Minister’s ICT Internship Programme”, placement of 3,000 ICT
graduates in public and private sector organizations.
 Training of 3,500 professional and 500 executives from IT & ITeS BPO industry in
latest technologies in demand and business development/ international marketing
respectively.
 Pakistan Space Center (PSC) aims to establish an indigenous facility for development
of satellites in accordance with the international space standards. The space center
will have the capability to carry out manufacturing, testing, system level assembly,
integration, launch and operations of various types of satellites.
 Pakistan Multi-Mission Satellite (PakSat-MM1) will cater to the demand of Direct-To-
Home (DTH), High-Throughput Services (HTS)/ Broadband Internet and Strategic
SatCom. PC-II has already been approved and during the next year, PC-I will be
submitted for approval and subsequent execution of the project.
 Feasibility Study of Pakistan’s 2nd Optical Remote Sensing Satellite (PRSS-O2) will be
completed. PRSS-O2 aims to launch a sub-meter resolution remote sensing satellite.
 Feasibility and System Definition Study (FSDS) of Pakistan Navigation Satellite
System (PakNav) will be carried out. PakNav will enable Pakistan to have
independent satellite navigation for both civilian and strategic purposes.
 Under the aegis of CPEC, Cross-Border OFC system between China and Pakistan for
international connectivity of voice and data traffic. This will enable alternative route
for international internet connectivity.
 Technical Training institute will be established in Gilgit-Baltistan.
 Expanding internet and broadband services in AJ&K and Gilgit-Baltistan.
 Establishment of Quality Assurance Lab for software products in PSEB.

Annual Plan 2018-19

 PILLAR-VII
Modernising Transportation
Infrastructure and Greater
Regional Connectivity
Chapter 28|TRANSPORT AND LOGISTICS

Transport is a key driver of socioeconomic development. Transport allows people to access

jobs, markets, social interaction, education, and other services, enabling people to rise out
of poverty and overcome social exclusion. Transport adds value to goods brought to
markets, links rural areas to cities and global supply chains, driving economic development.
The Government of Pakistan, cognizant of this fact, has invested large amounts of human
and financial resources into the development of the transport sector. Such investments are
also being supported through the China Pakistan Economic Corridors (CPEC) programme, the
Central Asia Regional Economic Cooperation (CAREC) programme and other foreign-assisted
initiatives. Pakistan has the potential to develop transit economy on account is its strategic
location.

Pillar VII of Vision 2025 titled “Modernizing Transportation Infrastructure & Greater Regional
Connectivity” seeks to establish an efficient and integrated transportation system that will
facilitate the development of a competitive economy. The Vision 2025 set the target of
raising the existing national road network to a sizeable length, increasing rail speed to
reduce turn around, doubling of tracks on main line sections, increasing line capacity with a
modern signalling system, establishing North-South and East-West corridors and developing
linkages through road and rail to the Central Asian states, China, and other neighbouring
countries and development of a separate freight corridor on the railway tracks. The Vision
emphasises participation of the private sector as a growth-driver. To pursue targets set in
the Vision 2025, major investments and interventions will be made in the all sub sectors of
transport.

Performance Review 2017-18

The progress made in CPEC focusing on transport infrastructure and Urban Mass Transit
System is given below:

China-Pakistan Economic Corridor (CPEC)

CPEC is a component of China’s “Belt and Road” Initiative. The backbone of the economic
corridor is transport infrastructure and connectivity and the basis is the Transport Plan of
CPEC (2014-30). The objective of the CPEC transport plan is to connect Kashgar with ports of
Gwadar and Karachi through major connection points i.e. Kashgar, Gilgit, Islamabad, Lahore,
Multan, Sukkur, Karachi, Peshawar, Quetta, Dera Ismail Khan, Hyderabad, Karachi and
Gwadar.

A number of prioritized and early harvest projects have been identified that are part of the
transport plan. These transport sector projects once completed will facilitate the freight
traffic movement from the Special Economic Zones (SEZs) in Pakistan & Western China along
the economic corridor. The transport sector projects including the road sector projects on
CPEC routes are being financed through Govt. of Pakistan’s own resources, Chinese soft
loans, and PPP basis and also through other International Financing institutions. The Long
Term Plan of CPEC has also been approved by both sides on 21st November, 2017 in which
the transport related portion is based on the approved transport plan of CPEC.
Annual Plan 2018-19
200 Transport and Logistics

Urban Mass Transit System

The urban transport demand has increased manifold over the years resulting in severe traffic
congestion in urban centres. Mass transit systems facilitate movement of people within
urban areas using group travel technologies such as buses and trains. Mass transit projects
have been approved for inclusion in CPEC for all the provincial capitals which include
Peshawar Circular Railway, Quetta Circular Railway, Karachi Circular Railway (KCR) and
Lahore Orange line Metro Train project. Bus Rapid Transit (BRT) projects have also been
implemented while some are under construction in Sindh, Punjab and Khyber Pakhtunkhwa
provinces on the basis of identified mass transit corridors.

The project of the Lahore Orange Line Metro Train costing Rs165, 226 million has been
significantly completed. The project of the Green Line BRT in Karachi at the cost of Rs24,600
million, fully funded by the federal government, is under implementation and is scheduled
for completion by December, 2018. The project of Peshawar Sustainable Bus Rapid Transit
Corridor (25.8 km) at a cost of Rs49,346 million through ADB loan financing (85 percent) is
under construction.

Metro bus station at Peshawar Morr to New Islamabad International Airport (25.6 km) at a
cost of Rs16, 427 million is under construction on fast track basis with expected completion
till December, 2018

Financial mechanism of Karachi Circular Railway (43.2 km) at a cost of Rs276, 381 million is
under process.

National Transport Policy

With the expected substantial investment in infrastructure under CPEC in the coming years
and to meet the transport sector targets set in Vision 2025, it is extremely important that a
National Transport Policy is formulated which not only addresses the transport sector issues
but is all-inclusive where all stakeholders are taken on board. The Government of the United
Kingdom is providing $15.4 million Technical Assistance for “Pakistan: Enabling Economic
Corridors through Sustainable Transport Sector Development” project and one of the
outcomes under this project is development of National Transport Policy and Master. Asian
Development Bank (ADB) is administering the project. National Transport Policy is a
manifestation of the Government of Pakistan’s clear vision aimed at achieving world class
standards for Pakistan’s transport sector. The National Transport Policy contains the overall
Vision, Principles for the Governance of the Transport Sector, Policy Objectives and
contributions for each of the sector. It guides the development of the Transport sector and
sets the strategic direction and priorities for the future long-term development of the
transport sector. A Technical Working Group comprising stakeholders from all provinces was
formulated by the Ministry of Planning, Development & Reform to provide inputs in the
National Transport Policy document. After approval of the National Transport Policy from
the competent fora, master plan will be developed for the transport sector which will be a
plan of action that applies the instruments, proposes measures and initiatives for the
delivery of the National Transport Policy.

The PSDP for 2017-18 provided an outlay of Rs414.225 billion for the federal programme
under T&L sector. Against this, expenditure of Rs188.889 billion is expected to be incurred

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Transport and Logistics 201

by the end of the financial year (2017-18), giving an overall expenditure of 46 percent
(Annex-l). The salient features of implementation during 2017-18 are given below.

Pakistan Railways

Against an allocation of Rs42.446 billion, an expenditure of Rs17.872 billion is expected to be

incurred during 2017-18, giving utilization of 42.6 per cent.

The focus was on the improvement of existing infrastructure, signalling system, and
procurement and manufacture of rolling stock like locomotives including high horse power
coaches, and bogie wagons including high capacity hopper wagons for transportation of coal.

The projects, which have reached an advanced stage of completion, include: Acquisition of
land for Railway Container Yard, Station and Railway line from Sea Port up to Coastal Highway
at Gwadar (Revised);Comprehensive Feasibility Study for Up-gradation/Rehabilitation of
Mainline 1(ML-I) and New Dry Port at Havelian (Balder) Distt. Haripur under China-Pak
Economic Corridor (CPEC);Doubling of Track from Khanewal to Raiwind
(Revised);Procurement/ Manufacture of 585 Hopper Wagons and 20 Bogie Brake Vans for
Coal Transportation; Procurement/ Manufacture of 780 High Capacity Bogie (Hopper)
Wagons and 20 Bogie Brake Vans for Coal Transportation (Phase-I); Rehabilitation of 27 Nos.
(HGMU- 30 Class) Diesel Electric Locomotives (Revised); Rehabilitation of Railway Assets
damaged at Sindh during Riots of 27-28 December, 2007 and Special Repair of 800 Coaches
and 2000 Wagons.

The major ongoing projects include Doubling / Improvement of existing track from Port
Qasim to Bin Qasim Station (CPEC); Rehabilitation of 300 Traction Motors; mechanization of
track maintenance (pilot project); special repair of 100 DE locos; Procurement/ Manufacture
of 75 Nos. New D.E. Locos (Revised); Reconstruction of Assets Damaged during the 2010
Floods; Rehabilitation & extension of CSF at Khanewal and Sukkur; Rehabilitation of Rolling
Stock and Track; Replacement of Old and Obsolete Signal Gear from Lodhran Khanewal –
Shahdara Bagh Mainline Section of Pakistan Railways (Revised).

The projects approved & launched during 2017-18 include: Preliminary design for up-
gradation/ rehabilitation of Main Line (ML-1) & construction of New Dry Port/ cargo
handling facility at Havelian; Procurement/ Manufacture of 820 High Capacity Bogie Freight
Wagons and 230 Passenger Coaches.

Ministry of Maritime Affairs (Ports and Shipping)

Against an allocation of Rs6.735 billion, an expenditure of Rs0.716 billion is expected to be

incurred by the end of the Fiscal Year 2017-18, showing utilisation of about 10.6 percent.
During the year, major ongoing projects include Construction of East bay Expressway;
Development and Construction of Port Allied Structures in Mullah Bund Area; Feasibility
Study for Construction of Break Waters (which is expected to be completed by June 2018);
and Provision of Coal conveying system from Pakistan International Bulk Terminal (PIBT) to
Railway Network at Port Qasim. Regarding the project for construction of East bay
Expressway Gwadar (CPEC), the construction work started, after signing of contract
agreement with the Chinese side.

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202 Transport and Logistics

Ministry of Communications

Under Ministry of Communications, against the allocation of Rs339.910 billion, which include
Rs326.250 billion for NHA and Rs13.66 billion for projects of other organizations under the
Ministry; expenditure as per following detail incurred:

Against the allocation of Rs0.564 billion, Rs0.111 billion is expected to be incurred during
2017-18 on National Highway & Motorway Police (NH&MP). An allocation of Rs0.096 billion
has been made against which Rs0.030 billion were incurred for National Transport Research
Centre (NTRC) for their research programme. Against the allocation of Rs13.0 billion, Rs5.20
billion is expected to be incurred on the project of Green Line Bus Transit Project, Karachi.

National Highway Authority (NHA)

During the year, funds were utilised to gear up the slow moving ongoing projects, especially
for Gwadar links and regional connectivity, and funds were provided for those projects,
which were near to completion. An allocation of Rs151.801 billion is expected to be incurred
during 2017-18. Salient projects and their status are given in the following parts:

Among the ongoing projects, works continued on the construction of Faisalabad-Khanewal

Expressway (184Km) M-4 (ADB) (Faisalabad, TT Singh, Jhang & Khanewal); bridge over the
River Indus linking N-5 with N-55 at NishtarGhat; Peshawar Northern Bypass(34km);
Khuzdar-Shahdadkot-Ratodero (Khori-QubaSaeedKhan143km) (M-8); Burhan-Havelian-
Manshera Expressway; National Highway Development Sector Project (NHDSP)–revised for
improvement and construction of 687 km of roads under the ADB financing; Kalat-Quetta-
Chaman N-25(247km); Kolpur Bypass N-65; Lowari Tunnel and access roads; Bewata-Khajuri-
WaigumRud N-70 (132 km);construction of the Amri-Qazi Ahmed Bridge over the River Indus
at Qazi Ahmed Amri; construction of Bridge across River Chenab linking Shorkot &
GarhMahraja; construction of 06-Lane Highway From Kala Shah Kaku to Lahore Ring Road
(18.3 km) including Bridge over River Ravi (Lahore Eastern Bypass); Dualization &
Improvement of Indus Highway (N-55) Sarai – Gambilla to Kohat (128 km) from 2-Lane to 4-
Lane; construction of Lahore – Sialkot Motorway (91 km) on BOT Basis for 25-years
concession period including 2-years construction Period (costing Rs45.38 billion including
BOT financing of Rs43.85 billion) and construction of 4-lane Lahore – Sialkot Motorway
(LSM) link via NarangMandi to Narowal (73.5 km).

The major projects approved & launched during the CFY include: Construction of Chitral –
Garam Chashma Road Project (67 km; Construction of Chitral-Ayun-Bumborate Road Project
(48 km); Construction of Kallorkot - D.I.Khan Bridge over river Indus; Dualization of (Gandhi
Chowk to Sarai Narang) + (Domail to Rangeenabad) Old Bannu Road N-55;
Rehab/Improvement of Quetta - Dhadhar section of N-65 (120 km); Up-gradation/
Dualization of Motorway Link from Kohat via Jhand CPEC; Construction of Lahore-Sialkot
Motorway Link (4 Lane) via NarangMandi to Narowal (including Land Acquisition);
andDualization of Sialkot - Pasrur Road (26 KM).

Progress on NHA Projects under CPEC

Projects launched under the CPEC in the NHA portfolio for which the work remained
underway on the projects of Hazara Motorway project (Burhan to Havelian Section; 59 km)
which is being financed by the Federal Government through ADB loan to the extent of 92.5

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per cent of total cost. The next section from Havelian to Mansehra (39 km) of Havelian to
Thakot (118 km) having 4-lane and remaining portion up to Thakot as 2-lane is under
construction under CPEC as early harvest projects. Similarly the project Construction of
Hakla on M-I to Yarik D.I.Khan Motorway (CPEC) is under implementation with PSDP
financing.

Pakistan Maritime Security Agency (PMSA)

Against the allocation of Rs0.242 billion, an expenditure of Rs0.097billion is expected to be

incurred on the continuation of procurement/ construction of six Marine Patrol Vessels
(MPV’s). During the year, 5th MPV has been constructed in the KS & EW.

Aviation Division

Against an allocation of Rs2.263billion, an expenditure of Rs0.442 billion is expected to be

incurred on Civil Aviation Authority (CAA) on their projects of land acquisition for the
establishment of basic aerodrome facilities at Mansehra and New Gwadar International
Airport (NGIA). Work on construction of NGIA will start soon through $230 million grant
under CPEC, as development of Gwadar port is directly linked with the up-gradation of
airport facilities.

Against an allocation of Rs0.868 billion, Rs0.442 billion is expected to be incurred on the

projects of Airport Security Force (ASF).

Defence Production Division

Against an allocation of Rs4.468 billion, an expenditure of Rs1.787 billion is expected to be

incurred on the project of Karachi Shipyard and Engineering Works (KS&EW) viz. ‘Installation
of new Ship Lift and Transfer System with lifting capacity up to7,781tonnes’ and
Infrastructure Up-gradation Project of Karachi Shipyard & Engineering Works (KS&EW) -
Phase-II.

Finance Division (Provincial Road Infrastructure Projects)

Against the total allocation of Rs4.820 billion, an expenditure of Rs3.165 billion is expected
to be incurred for completion of ongoing works of various provincial road projects co-
financed by the Federal Government; these are sponsored by the Finance Division.

Housing and Works Division (Provincial Road Infrastructure Projects)

Against an allocation of Rs9.384 billion, Rs5.89 billion is expected to be incurred for

completion of the ongoing works of various provincial & Federal road projects; the provincial
road projects co-financed by the Federal Government, these are sponsored by the Housing
and Works Division. During the CFY the remaining work continued on fast track on the
project for dualization & improvement of Mandra – Chakwal Road (64 km) and dualization &
improvement of Sohawa – Chakwal road (66.4 km), also remaining work continued on
construction of Musa Khel-Taunsa road (35 km) to be linked with Zhob.

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204 Transport and Logistics

Kashmir Affairs and Gilgit Baltistan Division (Provincial Road Infrastructure

Projects)

Against an allocation of Rs2.044 billion, Rs0.868 billion is expected to be incurred on

continuation of works of construction of Rathua Haryam Bridge; Athmuqam Keran Bypass
Road and Nuasehri Laswa Bypass road; Up-gradation of Road from RCC Bridge Konodas to
Naltar Airforce Base Via Nomal sponsored by this Division.

FATA

Against an allocation of Rs1.911 billion, Rs0.911 billion is expected to be incurred on

continuation of works on projects construction of Nahqi Tunnel Mohmand Agency; Zyara
to Dabori Road, Aurakzai Agency; and Widening & Improvement of Ghalanai, Mohmand
Gatt Road sponsored by SAFRON Division.

Outlook 2018-19
An allocation of Rs389.226 billion has been made for the development programme of t h e
sector (Annex-1).The salient features of the proposed programme are outlined as under:

Pakistan Railways

An allocation of Rs39.400 billion has been made for 2018-19.Works will continue on the
projects for Doubling/ Improvement of existing track from Port Qasim to Bin Qasim Station
(CPEC), rehabilitation of 300 Traction Motors, mechanization of track maintenance (pilot
project), special repair of 100 DE locos, Procurement / Manufacture of 75 Nos. New D.E.
Locos (Revised), Reconstruction of Assets Damaged during the Floods 2010, Rehabilitation &
extension of CSF at Khanewal and Sukkur, Rehabilitation of Rolling Stock and Track,
Replacement of Old and Obsolete Signal Gear from Lodhran Khanewal –Shahdara Bagh
Mainline Section of Pakistan Railways (Revised), renovation and up-gradation of major
railway stations.

The new initiatives will include: procurement of new rolling stock, improvement of signalling
system, feasibility study for provision of new rail links from Gwadar to the rest of the
Railway network to facilitate functioning of the Gwadar Deep Sea Water Port. Further
including: i) initiation of work for up-gradation of main line (ML-1) from Karachi to Peshawar
and development of dry port at Havelian under the CPEC.

Ministry of Maritime Affairs (Ports & Shipping)

An allocation of Rs7.2 billion has been made for Ports and Shipping (P&S) for on-going
projects of construction of East bay Expressway (under CPEC financing), development &
construction of port allied structures in Mulah Band area Gwadar, provision of coal
conveying system from Pakistan International Bulk Terminal (PIBT) to railway network at
Port Qasim. Under new CPEC projects which include capital dredging of berthing areas &
channel for additional terminal and feasibility study for construction of break waters.

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Transport and Logistics 205

Ministry of Communications

Under Ministry of Communications, Rs323.998 billion has been made, which include Rs310.0
billion for NHA and Rs13.998 billion for projects of other organizations under the Ministry
which includes allocation for Green Line Bus Transit project Karachi, ongoing projects of
National Highway & Motorway Police (NH&MP), National Transport Research Centre (NTRC)
and Karachi Package (Infrastructure).

National Highway Authority (NHA)

An allocation of Rs310.0 billion has been made for the NHA. Among the ongoing projects,
work will continue on the projects for construction of Faisalabad-Khanewal Expressway
Phase-II (184-km),Peshawar Northern Bypass (34km), National Highway Development Sector
Project (NHDSP)–revised for improvement and construction of 687 km of roads under the
ADB financing, Dualization of Kalat-Quetta-ChamanN-25 (247km),KolpurBypassN-65,Lowari
Tunnel and access roads, Bewata-Khajuri-WaigumRud N-70 (132 km), construction of 06-
Lane Highway From Kala Shah Kaku to Lahore Ring Road (18.3 km) including Bridge over
River Ravi (Lahore Eastern Bypass), Dualization& Improvement of Indus Highway (N-55) Sarai
– Gambilla to Kohat (128 km) from 2-Lane to 4-Lane, construction of Lahore – Sialkot
Motorway (91 km) on BOT Basis and construction of 4-lane Lahore – Sialkot Motorway (LSM)
link via Narang Mandi to Narowal (73.5 km), Rehabilitation of D.I. Khan Mughal Kot 50 Km
Section N-50, construction of Sialkot-Lahore Motorway (91 Km), Construction of Highway
from Athmuqam to Taobutl including Two Tunnels in Neelum Valley, dualization of (Gandhi
Chowk to Sarai Narang) + (Domali to Rangeenabad) Old Bannu Road N-55, Dualization of
Indus Highway Remaining Portion (164 Km) (Kohat Sarai Gambila), improvement and
widening of Jaglot – Skardu Road (S-1, 167 Km).

Projects under the CPEC include:

 Construction of Lahore-AbdulHakim-Khanewal Section (276km) of PKM,
 Construction of Multan-Sukkur Section(392km),
 Construction of Havelian-Thakot Section (118km) including acquisition of land, and
 Construction of Hakla - D.I. Khan Motorway (4-lane, 285 km) as part of the western
route of CPEC, Dualization& Implementation of existing N-50 from Yarik – Sagu –
Zhob including Zhob Bypass (210 km), rehabilitation of NHA Highway KKH (N-35)
between Thakot – Raikot (remaining length of 136.4 Km) and construction of 2-lane
highway from Basima to Khuzdar (106 km).
Pakistan Maritime Security Agency (PMSA)

The allocation of Rs0.076 billion has been allocated for continuation of work procurement/
construction of six Marine Patrol Vessels (MPV’s).

Aviation Division

An allocation of Rs1.803 billion has been made for Civil Aviation Authority (CAA) for initiation
of work on the project of expansion of Bannu Report. Allocation has also been made for
Airport Security Force (ASF) projects specially accommodation for its security force at the
airports.

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206 Transport and Logistics

Defence Production Division

An allocation of Rs2.70 billion has been made for Karachi Shipyard and Engineering Works
(KS&EW) for continuation of ongoing works for the project of installation of ship-lift and
transfer system to provide docking and repair facilities for big ships of up to 7,781 tonnages
at the KS&EW. Expected date of completion is December, 2018. The above allocation also
includes allocation for its new project viz. Infrastructure up-gradation project of KS&EW.

Finance Division (Provincial Road Infrastructure Projects)

A total allocation of Rs4.797 billion has been made for continuation of ongoing works
besides initiation of new provincial road projects in all the four provinces by this division.

Housing and Works Division (Provincial Road Infrastructure Projects)

An allocation of Rs3.530 billion has been made for continuation of the ongoing works
besides initiation of new provincial and federal road projects in all the four provinces by this
Division.

Kashmir Affairs and Gilgit Baltistan Division (Provincial Road Infrastructure

Projects)

An allocation of Rs2.15 billion has been made for AJ&K ongoing road infrastructure projects
viz. construction of RathuaHaryam Bridge, Athmuqam-Keran Bypass road and Nuaseri-Laswa
Bypass road. An allocation of Rs0.3 billion has been made for GB new project viz. up-
gradation of road from RCC Bridge Kanadas to Naltar Airforce base via Nomal.

FATA

An allocation of Rs2.9 billion has been made for ongoing road projects in FATA for ongoing
projects which include construction of Nahqi Tunnel Mohmand Agency; Zyara to Dabori
Road, Aurakzai Agency; and Widening & Improvement of Ghalanai, Mohmand Gatt Road
sponsored by SAFRON Division.

Postal Services Division

An allocation of Rs0.370 billion has been made for new projects of Postal Services Division.

Karachi Package (Infrastructure)

During August 2017 the Honourable Prime Minister visited Karachi and announced Rs25
billion development packages for Karachi.

Planning Commission accordingly approved the projects of Reconstruction of Mangho Pir

Road from Jam Chakro to Banaras Chowk (8.10 Km), Construction of Flyover at Sakhi Hassan,
Five Star and KDA Roundabout along Sher Shah Suri Road, Re-Construction of Nishtar Road
from Tin Hatti to Napier Road, Karachi (6.4 km) and Reconstruction of Manghopir Road from
Banaras Chowk to Nishter Road, Karachi (6.9 km) and Rs5.0 billion have been allocated in the
FY 2018-19 for execution of these projects.

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Transport and Logistics 207

Annex-I
Transport and Communications
(Rs million)
PSDP Estimated Expenditure
Proposed
Allocation Expenditure in %age of
No. Executing Agency PSDP
For during PSDP
2018-19
2017-18 2017-18 Allocation
1 2 3 4 5 6
1 Ministry of Communications 339,910 157,142 46 323,998
National Highway Authority (NHA) 326,250 151,801 39 310,000
1(a)
Green Line Bus Transit Project,
13,000 5,200 40 8,793
1(b) Karachi

National HW & Motorway Police 564 110 20 89

1(c)
(NH&MP)

1(d) National Transport Research Centre 96 30 32 116

(NTRC)
Prime Minister Package for Karachi
1(e) 5000
(infrastructure )
2 Pakistan Railways 42,446 17,872 43 39,400
3 Ministry of Maritime Affairs 6,735 716 11 7,200
4 Aviation Division 2,263 442 20 1,803
5 Defense Division
Construction of 6 Marine Patrol
Vessels for Pakistan Maritime 242 97 40 76
Security Agency (PMSA)
6 Defense Production Division 4,468 1,787 40 2,700
7 Finance Division (Provincial Roads) 4,820 3,165 66 4,797
Housing & Works Division
8 9,384 5,891 63 3,530
(Provincial Roads)
9 AJK & GB Division
AJK (Const. Of RathuaHaryam Bridge,
9(a) Athmuqam–Keran Bypass Road and 1,744 619 35 2,156
Nauseri–Laswa Bypass Road, AJ&K)
GB (Up-dradation of road from RCC
9(b) bridge Kanadas to Naltar Airforce 300 248 83 300
base via Nomal)
10 FATA (road projects) 1,911 911 48 2,936
11 Postal Service - - - 370
Total T&C 414,225 188,892* 46 389,266
Total PSDP 930,000
T&C Share 41.9

* As per expenditures updated till 30-03-2018 on PC Website.

Annual Plan 2018-19