PESHAWAR (APP): Finance Minister Khyber Pakhtunkhwa Humayun Khan has said that international development partners and foreign donors have reposed great confidence and trust in the monetary policies adopted by the coalition government in the province during last four years.To substantiate his view point at a post budget press conference here Saturday, the Finance Minister said, the foreign component of the development program estimated at record Rs.23.25 billion for the next fiscal comprises 84 percent grants and 16 percent loans.In the past the foreign donors used to lend the assistance as 80 percent loans and 20 percent grants. This ‘U’ turn in foreign aid assistance was made possible due to best economic policies, implemented in extremely
fair and transparent fashion by the economic team of the KP Government, he explained.The Finance Minister was assisted by Information Minister KP Mian Iftikhar Hussain, Secretary Finance Sahibzada Saeed and Secretary Planning and Development Saleem Khan during the post budget press conference.The size of ADP swelled by 162 percent during last four years of the present government which is a big achievement, he said adding, record Rs.97 billion plus have been earmarked for development outlay including Rs.23 billion plus foreign aid components.The provincial share in the federal divisible pool has also expanded from Rs.47.5 percent to Rs.57.7 percent, he said and added that this additional fiscal space made available would enable the government to fix development priorities in better fashion. He said, the province was getting payment of net hydel profit arrears as per agreed agreement from the federation.The Finance Minister however announced that the people of the province would soon hear good news about uncapping Rs.6 billion annual net hydel profits being made to the province by the Wapda on its hydel power generation. “We are in talks with the federal government and we expect to reach at any conclusion during the current month in this regard”, he explained. The net hydel profits were capped in 1992.To a question the Information Minister said the KP Government was seriously taking the CRBC project with the federal government, adding we had demanded allocation of Rs.5 billion in the PSDP. This year some progress would certainly be made on the project, he told the media men. However Secretary Planning and Development Saleem Khan further explained that token allocation has been made in the PSDP 2012-13 for the CRBC project.The project would be initiated with the support of World Bank, Asian Development Bank, Federal Government.To a question, the Finance Minister clarified that law and order remained top priority of the KP Government and declared that requirements of the police force were fulfilled in the past and would remain to be fulfilled in the coming year come what may. The budget of the police force has been increased by 150 percent, adding maximum jobs have been created in police department to meet the security problems. The 1500 jobs created in police would continue to be intact in the next fiscal year as well, he added. In reply to a question, Secretary Finance Saeed Khan denied the impression that the government was facing financial problems in executing the hydel projects and said that the delay in implementing the hydel project was caused due to lengthy process of the completion of the feasibility reports etc. The KP Government can manage Rs.330 billion in next ten years for the construction of proposed hydel projects, he explained. Saleem Khan Secretary P&D said that the government has no political motives behind launching Naway Sahar (New Dawn) Laptop Scheme in KP and assured the schemes would be executed in transparent fashion so that no body could point finger on it. Deserving and talented students with 16 years education would be given the laptop. Information Minister Mian Iftikhar Hussain while elaborating said the people in Punjab had certain reservations and concerns over the process adopted for execution of the laptop scheme. Whereas in KP it would be a transparent process and the scheme would be executed in apolitical manner, he added.Explaining Secretary Finance Saeed Khan said, the special initiatives undertaken by the government in KP for the welfare of the people had never been subjected to criticism by any quarters.He said the recovery of the loans disbursed under Bacha Khan Khpal Rozgar Scheme is 99.5 percent, it indicated those loans doled out under the scheme were based on merit. No scheme is good or bad, but it’s the implementation and execution process that mattered. Absolutely transparent process would be adopted for laptop scheme and its audit would be done from the international audit firms, Secretary Finance added.To a question, Finance Minister Humayun Khan said Rs.1 billion initial seed money has been allocated for industrial development with main focus on developing labour intensive and export oriented industrial units.To a question the Secretary Education informed that schools hit by the militancy, floods and earthquake in the province were being constructed with foreign donors assistance, federal government, NGOs and other agencies. Floods destroyed 1694 schools in Province including 160 fully damaged and 1534 partially damaged.Similarly earthquake destroyed 350 schools in Mansehra district of which 250 are being constructed. In all 364 schools have been destroyed by the militants in the provinces with maximum number in Malakand division.In reply to a question, Information Minister Mian Iftikhar Hussain said “we are political people and we have been elected by our electorates for serving them in efficient manner. Therefore, raising objections on utilizing development funds during election year is unjustified”. To a question the Secretary P&D Saleem Khan denied the notion that Peshawar has been ignored in the budget 2012-13 and said it has been given preferential treatment as scores of mega projects were under completion in the provincial capital. Eight different agencies are working on projects of providing clean drinking water and sanitation in Peshawar.A new company with the name “Pak Peshawar’ would become functional from July this year to meet the clean drinking water demand of the Peshawarites. Rs.300 million has been allocated for it in the next year budget. Secretary Finance to a question said that expenditures on law and order increased in a country hit by terrorism and militancy. He said this in the context of increasing Salary and pension bills of the KP Government. However he maintained that we are trying to explore the opportunities for increasing income sources of the province. KP Oil and Gas is being setup which will certainly increased revenue generation of the province.Moreover, he said, potential areas have been identified to the government in economic growth strategy which if properly exploited could turn around the financial condition of the province. To a question Finance Secretary Saeed Khan said total debt of the KP is of today was Rs.130.5 billion including Rs.9.1 billion local (Federal Govt.) and 121 billion foreign. Last year we retired premature debt. He said the government has no plan to bring Finance Bill as we have not made changes in the provincial taxation. Secretary P&D said that Rs.1.2 billion has been earmarked for construction of Lawari tunnel in PSDP 2012-13. It is enough amount, he said adding the KP government would try its best to restart work on the mega project by taking up the matter with the federal government.To a question Secretary Finance informed that expenditures of the CM secretariat has been reduced to Rs.215 million in 2012-13 budget from Rs.236 million. Whereas the expenditures of Governor’s House has been slightly increased from Rs.125 million to Rs.130 million. It also included salary and establishment charges, he added.http://www.thefrontierpost.com/article/165808/