kpk white paper budget 2012-13

WHITE PAPER 2012-2013

Government of Khyber Pakhtunkhwa

Finance Department

FOREWORD

Budget is one of the imperative administrative tools that translate

government priorities into actual implementation. In other words,

Budgeting is the process of creating a plan to spend money in a way to

achieve certain predefined objectives. It is composed of estimates

regarding revenue and expenditure for the subsequent year. White Paper is

a document that provides a snapshot about the Government’s plan

towards its upcoming Budget.

2. The budget for the Financial Year 2012-13 is formulated to foster

economic growth and development in the Province. Budget making cannot

be done in isolation. We have to strike a balance between our needs and

resources. Unfortunately, the term of this government coincided with the

worst ever global and domestic recession, most active insurgency in the

history of Pakistan and most devastating floods in more than 100 years.

Despite such daunting challenges, the province remained steadfast and

was able to provide services to its citizens during these challenging times is

a matter of pride and celebration.

3. In the year 2011-12 Output Based Budget (OBB) was rolled out to a

total of 12 departments. The Output Based Budget brings together

financial and non financial information and links budget spending with

departmental outcomes, outputs, targets and indicators. This makes the

budget document more transparent and a good tool for accountability for

results. In the forthcoming budget OBB will be rolled out to all

departments of the Provincial Government.

4. In year 2011-12 the Cabinet approved the concept of Internal Audit

Function. In compliance thereto, an internal audit cell was created in

Finance Department, within an approved charter, in accordance with the

international best practices. Internal Audit of payroll and pension was

conducted on pilot basis in Finance Department that exhibited

encouraging results. The function of Internal Audit will be extended to

departments of Police, Health, Elementary & Secondary Education and

Communication & Works during the year 2012-13.

5. To improve the service delivery outcomes at the district level, during

FY 2011-12 the Provincial Government of Khyber Pakhtunkhwa introduced

the model of Output Based Budgeting in Education and Health sectors in

two districts i.e Buner and D.I Khan. For this specific program conditional

grants were provided for achievement of certain outcomes. The grants to

these districts were provided on the basis of agreed indicators and targets

like increased enrollment and increased number of children immunized.

6. Taking encouragement from the results yielded by the program, the

Provincial Government intends to extend the methodology of conditional

grants to more districts during FY 2012-13. Moreover, Provincial

Government has also allocated an amount of Rs. 1 billion in its regular

budget for the FY 2012-13 on account of conditional grants to districts.

7. In its efforts to alleviate poverty, the Govt. of Khyber Pakhtunkhwa

has included new pro-poor initiatives in its budget besides continuation of

the ongoing special initiatives like Bacha Khan Khapal Rozgar Scheme,

Benazir Health Support Scheme, Hunermand Rozgar Scheme, Stoori Da

Pakhtunkhwa etc. The new special initiative includes Begum Nusrat Bhutto

Oncology Services, Farm Mechanization in Khyber Pakhtunkhwa, Naway

Sahar Laptop scheme, scholarship scheme for the promotion of girls

education in district torghar.

8. The concept of ‘Business Plans’ for the line departments is

introduced which will enable the department to translate their Strategic

Plans into Operational one for a period of three years in a more consistent,

coherent and uniform manner. This will accordingly make the departments

accountable for the results. The Medium Term Budgetary Framework

(MTBF) already provides an important base for such operational/business

plans. It is pertinent to mention here that in pursuance of the decision of

the Provincial Cabinet the Strategic Business Planning is being piloted in

three departments i.e Health, Population Welfare & Higher Education

Department.

9. Achievement and performance of the Government during the

current Financial Year has been quite significant despite continued menace

of militancy. The formulation of budget for the Fiscal Year 2012-13 would

not have been possible without the valuable guidance and active support

of political leadership of the Province. For this I am, grateful to the

honorable Chief Minister and to the Minister of Finance.

10. I am pleased to extend my profound gratitude and appreciation for

the dedication and hard work of the Officers/officials of Finance

Department, and for the assistance provided by the line departments, in

the compilation of the white paper and other budgetary documents.

(SAHIBZADA SAEED AHMAD)

Secretary Finance

Government of Khyber Pakhtunkhwa

8th June, 2012

TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE

GENERAL ABSTRACT 2012-2013

General Abstract of Revenue & Expenditure for the Year 2012-13 i

Budget at a Glance ii

Summary Position of Revenues for the Year 2011-12 & 2012-13 iii

Summary Position of Expenditure for the Year 2011-12 & 2012-13 iv

2011-2012 AN OVERVIEW

1 Current Revenue Expenditure 1

2 Sectoral Expenditure 4

3 Provincial Revenue Receipts 23

4 Capital Receipts and Expenditures 28

GROWTH AND DEVELOPMENT

5 Net Profit from Hydel Power Generation 36

6 Revenues from Oil and Gas 40

7 Revenues Transferred to District Governments 48

8 7th National Finance Commission 50

9 Hydro Electric Power Potential 53

PUBLIC FINANCIAL MANAGEMENT

10 Public Financial Management (PFM) Reforms 56

11 Bank of Khyber 73

12 Funds Management 77

13 Annual Development Programme 2012-13 82

TABLE OF CONTENTS

ANNEXURES DESCRIPTION PAGE

I CDL Liabilities as on 01-07-2012 116

II Detail of Premature Debt Retirement 117

III Foreign Exchange Loan Liabilities as on 01-07-2012 118

IV Disbursement of Loans in R/o of Ongoing Foreign Projects Share as on 01-07-2012 120

V Indicative Budgetary Ceilings (2013-15) Recurrent Budget 121

VI General Revenue Receipts 123

VII Current Revenue Budget 126

VIII Development Budget by Sector for the Year 2011-12 & 2012-13 128

IX Annual Development Programme Since 1971-72 on ward 133

X Growth in Current Revenue Budget & Revenue Receipts Since 1974-75 on ward 134

XI Estimated Resources to be transferred to District Governments for the Year 2012-13 136

XII Grant Wise General Abstract of Current Budget for the Year 2012-13 137

XIII Summaries of Sanctioned Strength of employees for the year 2012-13 139

(Rs. In Million)

The Rupees Comes FromBudget

Estimates2012-2013

The Rupees Goes ToBudget

Estimates2012-2013

Federal Tax Assignment 183,684.937 General Public Service 43,996.882

1% of Divisble Pool for War on Terror

22,071.058 Transfer to District Governments 83,839.264

Straight Transfers 22,157.543 Public Order and Safety Affairs 28,783.827

GST on Services 9,886.394 Economic Affairs 11,376.305

Provincial Own Receipts (Tax & Non Tax)

7,812.221 Environmental Protection 22.479

Profit from Hydel Power Generation 6,000.000 Housing and Community Amenities 193.326

Arears of Net Hydel Profit 25,000.000 Health (Excluding Health Education) 7,236.251

Profit from Hydel Power Generation 2,402.444 Recreation, Culture and Religion 604.753

Population Welfare Programme 477.403 Education Affairs and Services(Including Health Education etc)

10,972.648

Social Protection 4,574.265

Total-A 279,492.000 Total-A 191,600.000

Recoveries of Loans & Advances 250.000 i) Repayment of Loans 7,939.000

ii) Loans and Advances 6,003.000

Total-B 250.000 Total-B (i + ii) 13,942.000

Provincial ADP 72,527.670

District ADP 1,672.330

Foreign Project Assistance 23,258.000 Foreign Project Assistance 23,258.000

Total-C 23,258.000 Total-C 97,458.000

Grand Total (A+B+C) 303,000.000 Total (A+B+C) 303,000.000

Net Deficit(-)/Surplus(+) -

General Capital Expenditure (Account-II) 87,786.372

Less Receipts and Recoveries (87,786.372)

Net Capital Expenditure -

C-Developmental ExpenditureC-Developmental Reciepts

GENERAL ABSTRACT OF REVENUE AND EXPENDITURE 2012-13

A-General Revenue Receipts A-Current Revenue Expenditure

B-Current Capital ExpenditureB-General Capital Receipts

i

(Rs.In Million)

Description Budget

Estimates2011-12

RevisedEstimates2011-12

BudgetEstimates2012-13

General Revenue Receipts 232,788.300 238,975.625 279,492.000

Revenue Expenditure 149,000.000 161,000.000 191,600.000

Net Current Revenue Budget (Deficit ( - )/Surplus (+) 83,788.300 77,975.625 87,892.000

General Capital Receipts 250.000 250.000 250.000

Current Capital Expenditure 15,010.000 14,669.000 13,942.000

Net Current Capital Budget(Deficit ( - )/Surplus (+) -14,760.000 -14,419.000 -13,692.000

Receipts 16,112.700 15,654.631 23,258.000

Expenditure 85,141.000 84,473.628 97,458.000

Net Development Budget (Deficit ( - )/Surplus (+) -69,028.300 -68,818.997 -74,200.000

Total Resources (A+B+C) 249,151.000 254,880.256 303,000.000

Total Expenditure (A+B+C) 249,151.000 260,142.628 303,000.000

Net Deficit ( - )/Surplus (+) 0.000 -5,262.372 0.000

General Capital Expenditure (Account-II) 87,706.833 21,920.229 87,786.372

Less Receipts and Recoveries (87,706.833) (21,920.229) (87,786.372)

Net Capital Expenditure - - -

BUDGET AT A GLANCE

A - GENERAL REVENUE BUDGET

B - CURRENT CAPITAL BUDGET

C - DEVELOPMENT BUDGET

ii

(Rs.In Million)

Description Budget

Estimates2011-12



Federal Tax Assignment 149,988.109 152,735.048 183,684.937

1% Divisible Pool for War on Terror 18,022.142 18,352.207 22,071.058

Straight Transfers 13,806.524 17,493.778 22,157.543

GST on Services 10,030.027 8,922.767 9,886.394

Provincial Own Receipts (Tax & Non-Tax) 7,349.078 7,879.422 7,812.221

Net Hydel Profits 6,000.000 6,000.000 6,000.000

Arears of Net Hydel Profit 25,000.000 25,000.000 25,000.000

Population Welfare Programme 477.403 477.403 477.403

Profit from Hydel Power Generation 2115.017 2,115.000 2,402.444

Total General Revenue Receipts (A) 232,788.300 238,975.625 279,492.000

Recoveries of Loans & Advances 250.000 250.000 250.000

Total General Capital Receipts (B) 250.000 250.000 250.000

Special Fedral Grant PSDP (i+ii) - 3,087.993 -

of which: i Grants - 3,073.118

ii. Loans - 14.875

Other Foreign Grants - 5,052.124

Foreign Project Assistance 16,112.700 7,514.514 23,258.000

Total Development Receipts (C) 16,112.700 15,654.631 23,258.000

Total Receipts (A+B+C) 249,151.000 254,880.256 303,000.000

C-Development Receipts

SUMMARY POSITION OF REVENUES FOR THE YEAR 2011-12 & 2012-13

A-General Revenue Receipts

B-General Capital Receipts

iii

(Rs. in million)

Description Budget

Etimates2011-12


BudgetEtimates2012-13

General Public Service 38,221.347 36,540.014 43,996.882

Transfer to District Governments 61,142.802 66,819.003 83,839.264

Public order and Safety Affairs 23,160.460 26,946.727 28,783.827

Economic Affairs 10,003.845 10,467.242 11,376.305

Environmental Protection 22.471 18.340 22.479

Housing and Community Amenities 157.166 138.734 193.326

Health (Excluding Health Education) 5,431.310 6,035.604 7,236.251

Recreation, Culture& Religion 500.538 522.515 604.753 Education Affairs and Services(Including Health Education etc)

8,994.713 8,779.617 10,972.648

Social Protection 1,365.348 4,732.204 4,574.265

Total Current Revenue Expenditure (A) 149,000.000 161,000.000 191,600.000

(i) Financial & Fiscal Affairs 9,849.000 9,508.000 7,939.000

of which Foreign Debt Management 6,228.889 5,929.625 4,239.008

of which Domestic Debt Management 3,620.111 3,578.375 3,699.992

(ii) Financial & Fiscal Affairs 5,161.000 5,161.000 6,003.000

Total Current Capital Expenditure (B) (i+ii) 15,010.000 14,669.000 13,942.000

Provincial ADP 67,508.000 70,062.259 72,527.670

Districts ADP 1,520.300 1,520.300 1,672.330

Special Federal Progamme PSDP (i+ii) 0.000 5,376.555 0.000

of which: i Grants 5,336.571

ii Loans 39.984

Foreign Project Assistance 16,112.700 7,514.514 23,258.000

Total Development Expenditure (C) 85,141.000 84,473.628 97,458.000

Total Expenditure (A+B+C) 249,151.000 260,142.628 303,000.000

General Capital Expenditure (Account-II) 87,706.833 21,920.229 87,786.372

Less Receipts and Recoveries (87,706.833) (21,920.229) (87,786.372)

Net Capital Expenditure - - -

SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2011-12 & 2012-13

A-Current Revenue Expenditure

B-Current Capital Expenditure

C-Development Expenditure

iv

INTRODUCTION

The Province of Khyber Pakhtunkhwa, spreads over an area of 74,521 sq km, and has a population of over 22 million. Nature has gifted Khyber Pakhtunkhwa with rich cultural and tourism friendly environment. The Province is blessed with resources which can help to increase the province’s share of GDP growth ratio. Khyber Pakhtunkhwa is largely dependent on the transfers from Federal government in the system of fiscal federalism. Share of the Provincial Receipts in lieu of the 7th NFC Award, during the FY 2011-12 from the federal divisible pool has been lesser, than anticipated. Budgetary allocations for fiscal year 2011-12, reflects heightened priority to income generation sector i.e. Hydel generation, oil and gas exploration, tourism, mineral development, agriculture and water. The development of growth sector is complemented with sizeable commitment of resources to Social Services in Education, Health and Population welfare. With the passage of 18th Constitutional Amendment Act 2010 in the Constitution of Islamic Republic of Pakistan and the omission of Concurrent Legislative list, many subjects have been transferred to the Province. This development in itself presents a formidable challenge for the Province as transfer of these functions is likely to intensify the spending pressures on the provincial government. A rising trend in the fiscal allocations has been analyzed. The current budget of the Province has been increased by 29% in 2012-13 from year 2011-12. The salary budget has increased at an alarming rate of 34% because of the intensified recruitment. Allocation of pension has shown an increase by 35%. The operational budget of the Government has increased by 27%, whereas, debt servicing has been reduced by 10%. Percentage increase from the last year’s budget is depicted in the following table:-

(Rs. In Million)

S.No Department Budget 2011-12

Budget 2012-13

% Increase

1 Elementary & Secondary Education 545.20 681.07 24.92%

2 Higher Education 4,739.89 5,390.62 13.73%

3 Health 7,837.25 10,330.37 31.81%

4 Population Welfare 170.69 207.68 21.67%

5 Law and Order 18,810.00 23,355.61 24.17%

6 Environment/ Forest 913.98 1,117.28 22.24%

7 Agriculture 965.84 1,238.67 28.25%

8 Irrigation 2,340.79 2,799.91 19.61%

9 Communication & Works 2,326.87 2,456.48 5.57%

10 Public Health Engineering 134.38 167.03 24.30%

11 Labour 84.96 95.27 12.13%

12 Mines and Minerals 295.55 336.95 14.01%

13 Excise and Taxation 101.79 115.77 13.73% By and large the year 2011-12 has been a year of progress, development, social uplifts and financial reforms. This segment will highlights the Government’s priority spendings in various sectors.

1 Chapter 1: Current Revenue Expenditure

CURRENT REVENUE EXPENDITURE Pakistan is fighting war on terrorism alongside its western allies. The brunt of war on terror in being borne by the Khyber Pakhtunkhwa as it is the front line province. This proxy war has pushed the Khyber Pakhtunkhwa to adopt three pronged strategy i.e offensive, defensive and consolidatory. The allocation of resources in the Khyber Pakhtunkhwa budget for financial year 2012-13 has been made accordingly. The following two areas are core features of Government’s priority allocation:-

(a) Strategy to Develop Human Resource. (b) Maintenance of Infrastructure.

STRATEGY TO DEVELOP HUMAN RESOURCE: The strategy adopted for allocation of resources is to boost human resource development in the province. Human Development can essentially be defined in terms of expansion of people and their range of choices. As such it focuses on the ability to lead a long and healthy life, to acquire knowledge and be able to enjoy decent standard of living. These, in turn, depend upon access to basic services like Education and Health, expansion of income earning opportunities and greater participation in both economic and political process. The human resource development plays pivotal role in the overall improvement of the economy of the province. Budgetary allocations have been made keeping aforementioned position in view. MAINTENANCE OF INFRASTRUCTURE: The Province has huge infrastructure in the shape of roads, bridges, buildings, health facilities, schools, colleges, agriculture farms, irrigation canals and dams. Sizable amount of funds have always been allocated in the budget of every financial year for the maintenance of that infrastructure. The budget is composed of two components; current (operational budget) and development (adding to the infrastructure). It is a common perception that revenue expenditures are non productive. However, if amalgamated judiciously both current and developmental expenditures are complementary to each other. The infrastructure and other assets created out of developmental investment require current expenditure for operational maintenance, the same needs staff and machinery to run and operate. The current budget has the following major heads of expenditure (Grant Wise General Abstract of Current Budget 2012-13, given in the Annexure-XII):-

i. Salary ii. Operational Budget or O&M iii. Pension iv. Subsidies v. Debt servicing vi. Funding of deferred liabilities/Public Account


The salary budget of the province is increasing at an alarming rate. The following table depicts the increase in posts and salary budget during the last 3 years:-

(Rs. in millions)

Item BE 2010-11

% Increase

BE 2011-12

% Increase

BE 2012-13

% Increase

Current Budget 127,958.000 60 149,000.000 16 191600.000 29 Posts 375,935 9 377,132 0.32 385,518 2.22 Salary budget 76,000.000 58 86,000.000 13 115,436.987 34 O&M 22,897.396 82 26,403.192 15 33,518.217 27 Pension 11,000.000 53 16,000.000 45 21,581.796 35 Debt servicing 9,660.604 19 10,596.808 10 9,563.000 -10 Subsidy 2,500.000 25 2,500.000 - 2,500.000 - Committed contributions/ Govt. Investment

5,900.000 195 7,500.000 27 9,000.000 20

The operational budget for maintaining the existing service delivery network (like provision for medicines, classroom consumables, repairs, agriculture inputs, utilities etc) is declining in real terms. The pension liability is also on the rise, which will increase with the frequency of retirement. Debt servicing is another liability which has been somewhat contained by premature retirement of expensive (high mark up) debts. Funding of the deferred liabilities on account of Pension and GP fund is another major expenditure, which is piling up. The investment on account of GPF and Pension fund have reached Rs. 18,498.840 and Rs. 12,440.900 million respectively as on 30th June 2012, which is however far less than the actual liability that has accrued against the provincial government. For the financial year 2012-13, the Current Revenue Expenditure has been estimated to be Rs. 191,600.000 million, against Rs. 161,000.000 million in 2011-12, showing an increase of 19%. Brief analysis of the Current Budget is as follows:-

(Rs. in Millions)

S.No Description Budget

Estimate 2011-12

Revised Estimate 2011-12

Budget Estimate 2012-13

1

Salary: 86,000.000 94,226.072 115,436.987

a) Provincial 35,174.722 37,724.593 44,298.544

b) Districts 50,825.278 56,501.479 71,138.443

2

Non Salary: 24,453.192 29,164.620 31,498.437

a) Provincial 14,135.668 18,847.096 18,797.616

b) Districts* 10,317.524 10,317.524 12,700.821


3 Repair & Maintenance: 1,950.000 2,507.768 2,019.780 Road, Highway & Bridges (Repair) 1,400.000 1,892.160 1,455.000

Buildings & Structure (Repair) 550.000 615.608 564.780

4 Pension 16,000.000 15,953.940 21,581.796

5 Wheat Subsidy 2,500.000 2,000.000 2,500.000

6 Government Investment / committed contribution 7,500.000 7,500.000 9000.000

7 Debt Servicing 10,596.808 9,647.600 9,563.000

Total 149,000.000 161,000.000 191,600.000

(*Includes District Non-Salary & Octroi Zilla Tax)

The Pay Bill of the Provincial Government is increasing at an alarming rate. The strength of human resource has risen from 300,849 to 385,518 posts over 7 years; between the fiscal year 2006-07 and 2012-13, which can be seen at the following table:-

STAFF STRENGTH OF KHYBER PAKHTUNKHWA EMPLOYEES FROM 2006-07 TO 2012-13

Year Provincial District Total

2006-07 81,651 219,198 300,849

2007-08 95,209 226,783 321,992

2008-09 105,384 224,328 329,712

2009-10 118,213 225,926 344,139

2010-11 144,716 231,219 375,935

2011-12 140,006 237,126 377,132

2012-13 140,564 244,954 385,518 It is important to mention here that increase in creation of posts at such a rate leaves little room for the Provincial exchequer to set aside adequate funds for operation, maintenance and developmental sector.

4 Chapter 2: Sectoral Expenditure

SECTORAL EXPENDITURE

The Provincial Government has initiated a reform program i.e Provincial Reforms Program to improve the governance system of the Province. A key component of this program is to improve the Financial Management System for bringing transparency, participation and predictability in the budget making process. The reason behind these initiatives is to make the Current and Developmental Expenditure more realistic, pragmatic, accountable and for better service delivery to the general masses.

ELEMENTARY AND SECONDARY EDUCATION The Parent-Teacher-Council has been empowered by granting financial autonomy to it. The school funds are directly transferred to the bank accounts of the PTCs for utilization of funds according to the requirements of the school. Third Party audit has been introduced for the first time to ensure transparency and accountability.

SANCTIONED STRENGTH OF ELEMENTARY & SECONDARY EDUCATION DEPARTMENT

Year Provincial District Total

2012-13 1,034 182,032 183,066 Against the Revised Estimates of Rs. 564.315 million for 2011-12 of the Elementary & Secondary Education Department (Provincial Budget), an amount of Rs. 681.068 million has been allocated in the Budget Estimates 2012-13, showing an increase of 20.68%. Figures for district level education for the financial year 2012-13 have been projected proportionately on the basis of previous trend (as district budget has not yet been prepared). The projected budget for district level Elementary and Secondary Education sector for the financial year 2012-13 is Rs. 74,643.516 million.

(Rs. in Millions) FINANCIAL YEAR REVISED ESTIMATE % CHANGE

2005-06 15,614.621 18.89 2006-07 17,606.510 12.76 2007-08 19,710.142 11.95 2008-09 22,173.910 12.50 2009-10 25,278.257 14.00 2010-11 36,770.205 45.46 2011-12 44,410.000 20.77

2012-13 (BE) 55,665.000 25.34


Since 2008-09, total number of schools has increased from 26907 to 27456. Similarly enrolment has increased from 3.597 million to 3.871 million students. The table given below elaborates the position:-

School Type

No. of Schools Enrolment 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12

Primary 22398 22608 22760 2654285 2776642 2838847 Middle 2526 2540 2557 207921 219687 230645 High 1697 1759 1836 538874 562568 591292 Higher 286 300 303 196000 201899 210796

Total 26907 27207 27456 3597080 3763796 3871580 (Source: EMIS Report E&SE Department 2011-12)

In 2011-12, the position of establishment of Govt. Primary Schools (M&F) and up gradation of Govt. Primary Schools (M&F) to Middle/ Govt. Middle Schools (M&F)to High and High schools to Higher Secondary status is given below:-

S.No Schools Number of Schools /Colleges

Posts Created

i. Govt. Primary Schools (M&F) 321 952

ii. Up Gradation of Primary schools (M&F) to Middle Status. 161 1288

iii. Establishment of High Schools. 5 75

iv. Up gradation of Govt. Middle Schools (M&F) to High status. 136 952

v. Up gradation of Govt. High Schools to Higher Secondary level. 29 493

vi. Starting of Science Classes in Higher Secondary Schools. 5 30

vii. Establishment of Cluster Hostel. 2 6

viii. Creation of Additional Posts for High School 18

Total 3,814 For the financial year 2012-13, plan for establishment/up-gradation of schools and creation of posts is given below:-

S.No Schools Posts Created

i. Additional Posts for existing high School. 2,147 ii. Additional Posts for existing middle School. 6

iii. Creation of Posts for Dy. District Officer (M&F) Tor Ghar. 12

Total 2,165


HIGHER EDUCATION In the year 2011-12 new colleges have been established across the province, especially for the females. To cater for the operational needs of institutions grants have been provided to cadet colleges and public schools. Detail of Budget earmarked for Higher Education, Archives & Libraries (Provincial) for the financial year 2012-13 is as under:-

(Rs. in Millions)

S.No Function Budget

Estimates 2011-12

Budget Estimates 2012-13

Salary Non Salary Total

1. Secretariat 145.320 87.415 51.747 139.162 2. General Colleges 4540.199 4492.073 700.872 5192.945 3 Archives & Libraries 54.372 49.666 8.842 58.508

Total 4739.891 4629.154 761.461 5390.615 Existing colleges are being upgraded to postgraduate level where required. The following table depicts the position of posts created during 2011-12 and fresh posts proposed for creation in financial year 2012-13.

A- POSTS CREATED DURING THE COURSE OF 2011-12

S.No Development Activity Number of Colleges

Posts Created

i. Establishment of Degree Colleges. 10 423 Total 423

B- FRESH POSTS CREATED FOR 2012-13 i. Additional Posts for Existing Colleges. 42 105

ii. Creation of Posts in Directorate of Higher Education. 1

iii.

Creation of Posts for Establishment of Rehman Baba Complex/Library Peshawar & Hakim Abdus Salam Library Haripur.

2 25

iv Creation of Additional Staff for Director Archives & Library/Public Library Abbottabad & Mardan.

6

Total 137


HEALTH Health Department is the primary agent of high quality, promotive, preventive, curative and rehabilitation health services. The department has sound physical infrastructure already in place comprising of 86 Rural Health Centers, 781 Basic Health Units, 549 other Primary Health Centers with health workforce of approximately 60,000 people (regular & contract), making it the third largest department of the province. A network of 143 hospitals inclusive of 4 autonomous hospitals is spread throughout the province. Allocation in the Budget of 2012-13 for Health Department has been increased from Rs. 7,837.251 million to Rs 10,330.374 million, which shows an increase of 32%. Budget of Health Department also includes regular Grants in Aid to various Autonomous Health Institutions. Detail of these grants provided during the Year 2011-12 and 2012-13 are as follows:-

(Rs. In million)

S.No Institution B.E. 2011-12

B.E. 2012-13

% Increase

1 Lady Reading Hospital, Peshawar. 1152.949 1305.490 13 2 Khyber Teaching Hospital, Peshawar 797.353 843.694 6 3 Khyber Medical College, Peshawar. 313.982 339.315 8 4 Khyber College of Dentistry Peshawar 146.889 171.370 17 5 Hayatabad Medical Complex. 543.096 622.349 15 6 Post Graduate Medical Institute 606.040 924.203 52 7 Ayub Teaching Hospital, Abbottabad. 504.059 676.960 34 8 Ayub Medical College, Abbottabad. 362.082 424.975 17 9 Institute of Kidney Diseases Pesh. 137.596 157.356 14

10 Pakistan Institute of Community Ophthalmology Hayatabad Medical Complex Peshawar. 14.606 17.380 19

11 Khyber Girls Medical College Pesh. 182.523 212.233 16 12 Khyber Institute of Child Health - 19.958 - Total 4761.175 5,715.283 20

Grant-in-Aid have also been proposed for the following purposes in the Budget Estimates 2012-13:-

(Rs. In million) S.No Institution/Purpose 2011-12 2012-13

1 Endowment Fund. 100.000 100.000

2 Provision of Emergency Drugs for poor wounded patients. 100.000 100.000

3 Creation of posts in the projects/schemes due for completion during the year. 200.000 200.000

4 Cardiology Unit, Lady Reading Hospital, Peshawar. 40.000 40.000 5 Cardiovascular Unit, Lady Reading Hospital, Peshawar. 20.000 20.000


6 Fatimid Foundation 2.000 5.000 7 Paraplegic Centre Hayatabad Peshawar. 20.000 40.000 8 Health Regulatory Authority. 20.000 20.000 9 Frontier Foundation Peshawar. 30.000 15.000

10 Khyber Medical University Peshawar. 61.000 61.000 ACHIEVEMENTS DURING THE YEAR 2011-12:

Revision and approval of the functions of Health Department in the light of 18th Amendment to be fed in the Rules of Business of the Government of Khyber Pakhtunkhwa for the better management of the department’s mandate.

Three District HQs Hospitals in Charsadda, Tank and D.I.Khan completed. Three Category-C Hospitals including Takhtbai, Chakdara and Shabqadar completed. Establishment of 5 additional wards comprising of 150 beds at HMC with additional

operation theatre and Intensive Care Unit (ICU) and purchase of medical equipments worth 202 million.

Introduction of skill development programme to award scholarships in the field of nursing and physiotherapy was introduced. Under this programme, Endowment fund was established under Chief Minister’s Initiative amounting to Rs. 500 million to impart trainings to develop skills of competent youth in the field of nursing and physiotherapy. 131 students were awarded scholarship out of total of 158 students.

Gynae/Peads ward at Ayub Teaching Hospital completed. Project with Multi donor Trust Fund for Revitalizing and Strengthening the Health

Services Delivery and Nutrition Services in Crises affected districts of Khyber Pakhtunkhwa under Public Private Partnership.

Under the Memorandum of Understanding signed with Novartis, 487 patients Chronic Myeloid Leukaemia were provided during the year.

Deeping of Output Based Budgeting and piloting of the District Conditional Grant in two districts i.e D.I.Khan and Buner.

Continued functioning of several programmes i.e Family Planning and Primary Health Care, MNCH program, TB control, HIV/ADIS control, Roll Back Malaria and Hepatitis Control.

Finalization of the Secondary Health Care Reference Manual. Negotiations on the Social Health Protection. DHIS, this year has started reporting the performance of the tertiary hospitals. Free of cost treatment of TB patients throughout the province under DOTS strategy. Promotional training imparted to 102 personnel from management cadre, 149

personnel from general cadre and induction training to 39 nurses making it a total workforce of 396 people trained in the year 2011-12.

Provision of Rs. 1148.5 million for the establishment of Fountain house for Psychiatric patients for which 40 kanals land was earmarked last year.


Provision of Rs. 200 million for the construction of Accident and Emergency Unit in the District HQr Hospital, Charsadda.

Purchase of CT Scan machine for Lady Reading Hospital, Peshawar at a cost of Rs. 90 million.

Launch of World Food Programme assisted “Promoting Safe Motherhood and Child Nutrition” Programme with a fund of Rs. 752 million.

Project for Strengthening Routine Immunization in Khyber Pakhtunkhwa with a funding of Rs. 12 million from JICA.

Up-gradation of 5 Basic Health Units to Rural Health Centres. Construction of additional hostels for doctors/nurses in Lady Reading hospital

Peshawar. Purchase of Medical equipments for Gynae Ward in District Headquarter hospital

Chitral at a cost of Rs. 42.758 million. Treatment of 1553 Hepatitis B, and 6214 Hepatitis C patients under Hepatitis Control

Programme.

PRIORITY PLANS/WAY FORWARD The priorities of the Government of Khyber Pakhtunkhwa in the health sector are designed to achieve the MDG targets 4, 5 and 6. They are as follows:

Improve Governance and Strengthen Management. Initiate the Culture of the Informed Decision Making. Improve Regulation and Quality Assurance. Human Resource Development. Disaster Risk Reduction and Management. Improve Accessibility to Health Care.

In the coming year, Health Department aims at the consolidation of the existing health Services in the province. The following are planned for the upcoming financial year.

Problems in the performance of health care delivery system of Khyber Pakhtunkhwa have long been dictating the need of organizational restructuring which has been finalized on paper and approved as a major activity planned in the coming years.

The introduction of output based budgeting system at the district level, as the actual primary and secondary service delivery are devolved in the districts.

The replication of the financial mechanism of conditional grants for improved service delivery in all district of province.

Strengthened internal Public Financial Management systems and introduction of Internal Audit.

Implementation of Minimum Health Service Package. Establishment of Zulfiqar Ali Bhutto Medical College Peshawar at the cost of Rs. 350

million. Completion of 3 Category-C and 9 Category-D Hospitals. Completion of 228 bedded Women & Children hospital in Peshawar.


Completion of Causality Ward in District Hospitals of D.I.Khan and Kohat. Purchase of 7 fully equipped ambulances for all teaching hospitals of the province. Launch of Prevention and Control Programme of Dengue virus with an allocation of

Rs. 265 million. Rollout of District Conditional grant to 4 more districts. Award of scholarships to 158 students in the field of Nursing and Physiotherapy in the

coming year. Strengthening of monitoring and procurement system to reduce fiduciary risk. Introduction of a programme for integration of RMNCH, LHW and Nutrition.

POPULATION WELFARE DEPARTMENT

Population Welfare is a vital programme of national importance. While recognizing the need to reduce unwanted fertility, the programme is providing Family Planning and Reproductive health Services to the common people throughout the Province. The programme is mainly focused on birth and child health care. The department aims to achieve population stabilization by 2020 through decline in fertility and mortality rates. The programme is also active in the area of providing awareness about small family norms. Major achievements of Population Welfare Department include;

Reduction of Population Growth Rate (PGR) from 1.94% to 1.89%. Decline in total fertility Rate (TFR) from 4.65 to 4.56%. Achieved Contraceptive Prevalence Rate (CPR) of 29.15%.

Keeping in view the important role of Population Welfare Department the following targets will be focused:-

Reduction of Population Growth Rate (PGR) from 1.89% to 1.84%. Decline in total fertility Rate (TFR) from 4.56 to 4.47%. Achieved Contraceptive Prevalence Rate (CPR) of 30.22%.

Provincial Government’s budget allocation for 2011-12 and 2012-13 is as follows:-

(Rs. In million)


Revised Estimates 2011-12


170.688 127.964 207.679


LAW AND ORDER Khyber Pakhtunkhwa is the main targeted province in the ongoing wave of terrorism and extremism. The below table highlights the number of attacks and scarifies rendered by law enforcement agencies in wave of terrorist activities. Consequently the expenditure on Police has increased steadily during last four years.

DETAILS OF TERRORIST ACTIVITIES (EXPLOSIONS, MISSILE ATTACKS, FIRING, SUICIDAL ATTACKS AND BLAST AT CDS/BARBAR SHOPS ETC)

YEARS NO OF CASES

REGISTERED

PERSON KILLED PERSON INJURED

Police FC Army CIVIL: TOTAL Police FC Army CIVIL: TOTAL

01.07.2011 To

31.12.2011 168 53 33 6 118 210 104 34 30 269 437

01.01.2012 To

27.05.2012 161 28 1 1 81 111 94 12 4 301 411

TOTAL 329 81 34 7 199 321 198 46 34 570 848

A sum of Rs. 23,355.613 million has been earmarked for Police in the budget for Financial Year 2012-13, out of which Rs. 19,226.011 million is meant for salaries and Rs. 4129.602 million for non-salary/operational expenses for the police force.

ENVIRONMENT/FORESTS/WILDLIFE

Environment Protection and conservation of natural resources is one of the priority areas of focus for sustainable development. Last year the provincial government despite its limited resources provided funds for the establishment of three divisional offices in Mardan, Kohat and Bannu, conducting feasibility studies for hospital wastes management, electronic wastes and introducing environmental friendly technologies in brick kilns to control pollution in the province. It is worth mentioning that the present government also provided funds in the earlier year for the establishment of regional offices in D.I.Khan, Abbottabad and Mingora. Environmental Protection Agency (EPA) is a regulatory body for enforcement of the Pakistan Environmental Protection Act 1997. The Agency plays an important role in the dissemination of information pertaining to environmental concerns to the general public through mass awareness campaign and print and electronic media, monitoring of ambient air quality, water and noise pollution across the province and promotion of environmental education. In order to fulfill its regulatory obligations, the provincial government provided Rs. 74.000 million in 2011-12 for 16 different projects, which are at various stages of completion. Carrying forward the Provincial Govt. agenda of ensuring clean environment for its peoples, an allocation of Rs. 94.745 million has been proposed in ADP 2012-13 for 12 ongoing and 04


new schemes. Under the new schemes a separate building for EPA Headquarter office will be constructed, regulatory capacities of the EPA will be strengthened, and effective monitoring and pollution control regime will be established. Similarly, solar energy initiatives will be started to reduce energy crisis and dependence on electricity which is already in shortage. These initiatives of the provincial government will have a positive impact on the environment and economy of the province. FOREST The total forests area of Pakistan is about 4.8%. Khyber Pakhtunkhwa is rich in forestry resources as compared to the rest of the three provinces. The Forests cover of Khyber Pakhtunkhwa is 17.4% and the Forests of this province account for about 40% of the total forest area of the country. In addition to 17.4% of the forest area, 48% of rangelands of the province also fall under the management of Khyber Pakhtunkhwa Forest Department. The Forests and Rangelands of the province are an important source of livelihood for the local communities besides generating revenue for the state and providing watershed, ecological, recreational and ecotourism related service for the nation. WILDLIFE Khyber Pakhtunkhwa Province supports rich biological diversity spreading throughout the province. The richness of fauna can be judged from the fact that 98 species of mammals, 456 species of birds and 43 species of reptiles are found in the province as compared to 188 species of mammals, 668 species of birds and 177 species of reptiles found in Pakistan. The Wildlife Department is mandated for conservation and management of these species. The Sectoral strategy for achieving of objectives of conservation includes the following:

Enforcement of Wildlife Laws. Establishment and Maintenance of Protected Areas. Propagation of Threatened and Endangered Species of Wildlife. Conservation Awareness Programme. Community Participation in Conservation of flora and fauna. In-situ and Ex-situ Conservation Programs

For financial year 2012-13 a sum of Rs. 1,117.283 million has been earmarked against the Revised Estimates of Rs. 1,051.944 million for the year 2011-12.

AGRICULTURE

THE PRIMARY GOAL OF AGRICULTURE SECTOR IS: To ensure food security, poverty alleviation and to generate employment opportunities through achieving higher growth rate in this vital sector of the economy.


Agriculture sector has a vital role in fostering the economy of Khyber Pakhtunkhwa. About 80% rural population of the province is dependent for their livelihoods upon this sector. Keeping in view, the vitality of the department, the provincial government initiated certain steps for the development of this sector. Advanced technology is being used to precisely level the farms on scientific patterns not only for sustainable use of water but also to increased crop productions. Farm Services Centers established at District and Tehsil level provide improved varieties of seeds, Agriculture machinery, other agricultural inputs and education/training to farmers in modern techniques of agriculture and livestock breeding. The Khyber Pakhtunkhwa has almost an agrarian economy and more than 80% of the rural population depends for their survival on Agriculture, out of which 70% are directly or indirectly engaged in Agriculture. Agriculture can easily attain the status of big industry in the province if proper care and patronage is given to it. The province is short in food commodities, hardly producing 40% of local requirements and meets the balance requirements on import from Punjab etc. Therefore, the primary concern is food on which the rise and fall of the nations depends. Provincial agriculture department, therefore, attaches high priority to this aspect and is availing every conceivable avenue that promotes the growth of agriculture. The following major targets will be achieved in the sector:-

laying out of 1100 acres of fruits orchards 235 Nos of adoptive research plots will be laid out laying out of 1515 Nos of seasonal & off seasonal vegetable demonstration plots laying out of 500 Nos of off season vegetable demonstration plots 1,350 Nos fodder demonstration plots will be laid out 1200 acres wheat & maize plots will be laid out with progressive farmers for certified

seed production 5,000 Metric tone improved wheat seed will be procured & distributed 65 tones of Maize hybrid seed will be produced Propagation of 50,000 Nos of olive plants 10,000 Nos of Fruit plants will be distributed Turmeric will be cultivated on 130 acres 280 acres area will be brought under cotton crop in D.I Khan and Tank Districts 75 Nos of structures will be constructed for making compost fertilizer 7970 Nos of farmers will be trained 250 Nos fish farmers will be trained 107 Nos of field days & workshops will be conducted 850 Nos soil conservation structures will be constructed 8530 meters of Water Courses/Channels will be improved 354 Nos water courses will be rehabilitated 315 Nos water storage tanks will be constructed for irrigation purpose Installation of Drip/Sprinkle Irrigation on 2000 Acres of land Precision land leveling of 3000 Acres will be carried out


25 Nos of Bulldozers will be purchased for land development 8000 hectares of waste land will be developed 60 Tube wells will be installed 110 Nos of Solar Pumps, Submersible Pump & Diesel Centrifugal Pumps will be

installed 595,275 animals will be treated 932,739 Animals will be vaccinated 37,931 Artificial Insemination will be performed 30,000 Nos of day old chicks will be purchased/reared and further distributed among

1200 female farmers 1,151,000 Nos of Poultry Birds will be vaccinated 30 Nos of veterinary dispensaries will be established 3,200 Nos of calves will be adopted 50 male calves of improved breed will be distributed in farmers community 30,000 liters of milk will be collected and processed 50,000 sheep will be sheared from the farmers associations and the farmers

association will be sensitized for wool making. Fish hatchery of 100 Kanal area will be established at District Swabi 75 Nos. Fish Farms will be established.

For financial year 2012-13 a sum of Rs. 1,238.666 million has been earmarked against the Revised Estimates of Rs. 922.574 million for the year 2011-12.

IRRIGATION Khyber Pakhtunkhwa is a food deficient province. Since agriculture is the major water harvester, therefore sustainability of this sector directly depends on timely and adequate availability of water. Total cultivable land of the province is 6.55 million acres whereas irrigated area is only 2.27 million acres. Due to lack of industrial development in the province, the importance of agriculture is crucial which mainly depends on a smooth and effective Irrigation system. Its total wheat requirements annually is about 3.2 million tons of which its domestics production is hardly about 1 million tons. It faces a food deficient of nearly 2.2 million tons of wheat per annum which is met from PASSCO and open market purchases from Punjab. WATER 2011-12: Keeping in view the importance of water sector about 5000 million rupees have been spent during the current financial year 2011-12 to achieve the following targets.

The Balambat Irrigation Scheme in district Dir Lower has been completed which will

provide irrigation facilities to about 11360 acres land of district Dir upper and Dir lower.

Construction of 04 Nos. small dams (Loughar Dam Karak, Karak Dam Karak, Khairbara Dam Haripur and Jabba Khatak Dam Nowshera) has been started which is


in advance stage of completion. These small dams upon completion would irrigate a new area of about 5200 acres.

Feasibility studies for 08 Nos. small dams sites while the detail design for 06 Nos. small dams have been completed.

The work on Gomal Zam Dam located at South Waziristan Agency has been accelerated and 90 % work on the main dam has been completed. The dam upon completion would irrigate an area of about 163000 acres besides power generation of 17.4 MW.

Installation of about 80 Nos. Tube Wells and Lift Irrigation Schemes under privatization policy has been started to provide irrigation water to approximately 10000 acres of agricultural land.

Restoration activities on major structures like Munda Head Works, Amandara Head Works and Tangi Lift Irrigation Scheme have been expedited to ensure un-disrupted supplies to command area of about 450000 acres.

Flood protection schemes on vulnerable locations all over the province have been constructed which would save about 10,000 acres of land from erosive action of floods

Canal patrol roads in length of approximately 60 km have been constructed/reconditioned to provide better communication facilities to the dwellers of the area

Dozens of small nature irrigation channels and ponds have been constructed to improve local irrigation network.

WATER 2012-13:

It is planned that the following targets would be achieved in the financial year 2012-13.

Bazai Irrigation scheme located in District Mardan and Malakand Agency would be completed which would provide irrigation facilities to an additional area of 25000 acres.

Khandan Jonali Koch Irrigation Scheme in district Chitral would be completed which would irrigate an area of about 1200 acres.

Hero Shah Minor off taking from upper Swat Canal having CCA of 2140 acres would be completed.

Remodeling of Link Channel of Upper Swat Canal System (Swabi) and extension of Nandrak minor would be completed which will bring 1500 acres new area under command of upper Swat Canal System.

Work on new small dam in district Abbottabad would be started. About 50 Nos. new tube wells would be constructed which will provide irrigation

facility to an area of about 8000 acres. Canal Patrol Roads in a length of about 75 km would be constructed/reconditioned. Protection facilities will be provided to an area of about 15000 acres against the flood

hazards in vulnerable locations. New small irrigation schemes in most feasible sites would be constructed besides

rehabilitation of existing small schemes.


Work on raising of Baran Dam district Bannu would be initiated to meet up the shortages of Marwat Canal System.


TECHNICAL EDUCATION The importance of technical education is constantly growing and knowledge-based industries are now occupying the center stage in its development. Technical education as a major driver of economic development is well established, and this role will increase with changes in technologies. In the past Technical Education has never been a priority area for the governments in this province, but the present government has given special importance to it. As technical education and advancement is the only way to compete with the world and to boost the economy, therefore, the government has allocated an amount of Rs. 2818.341 million (Rs.2818.341 local + Rs.10 foreign fund) for the year 2012-13, to establish new technical institutes, modernize the old one’s and increase the capacity and enrollment of students.

Number of different Technical Institutes/Colleges and enrollment are given as below:

S.No Category NUMBER TEACHING STAFF

Male Female Total Male Female Total 1 College of Technology 11 0 11 591 0 591

2 Polytechnic / Mono Technical Institutions 10 3 13 195 74 269

3 GCMS/Commerce Institutes 23 2 25 20 20 4 Vocational Institutions 27 18 45 5 Technical Teachers Training

Institutions 1 0 1 14 0 14

6 Advance TTC, Peshawar 1 0 1 15 0 15 Total 73 23 96 224 94 318

ENROLLMENT IN DIFFERENT TYPES OF INSTITUTES

S.No Category ENROLMENT Male Female Total

1 College of Technology 11182 0 11182

2 Polytechnic / Mono Technical Institutions 3881 405 4286

3 GCMS/Commerce Institutes 13825 248 14073 4 Vocational Institutions 3258 760 4018 5 Technical Teachers Training Institutions 285 0 285


6 Advance TTC, Peshawar 89 0 89 Total 32520 1413 33933


PUBLIC HEALTH ENGINEERING:

For financial year 2012-2013 a sum of Rs. 167.032 million has been earmarked for Public Health Engineering Department (Provincial) to carry out mainly the following functions:-

Construction and maintenance of Rural Drinking Water Supply and Sanitation Schemes including Sewage Treatment Plants and Solid Waste Management.

Levy and collection of fees, etc. For supply of water for drinking purposes. Levy and collection of fees, etc. for provision of Sanitation services including Sewage

Treatment and Solid Waste Management. Planning and designing of water supply and sanitation projects including Sewage

Treatment and Solid Waste Management financed from Provincial and/or Federal Funds.

Water quality monitoring/mapping including maintenance of water quality database.

(Rs. in million)

Head Budget

Estimates 2011-12



Public Health Engineering 134.378 119.576 167.032

LABOUR

Various Labour Laws and International Conventions has entrusted various rights to the workers working in different industrial and commercial undertakings. Labour Department (Directorate of Labour) is responsible to ensure these rights to the workers through implementation of these laws / conventions. In this regard the Directorate of Labour performs the following duties / functions: FUNCTIONS:

Maintenance of Industrial Peace. Promotion of settlement of industrial disputes, individual and collective grievances of

the workers. Implementation/enforcement of various labour laws through periodic inspections. Adjudication on payment of Wages to the workers. Adjudication on payment of compensation to the workers and their heirs.


Registration of Trade Unions as representative bodies of workers. Enforcement of employment of Children Act, 1991 for regulating working conditions of

working Children and eradication of child labour. Fixation of Minimum rates of Wages for different categories of workers. Enforcement of International system of Weights & Measures. Collection, compilation and dissemination of labour statistics. Providing free legal aid to bonded laborers with the assistance of Federal Government. Coordinating government efforts for eradication of child and bonded labour Gender

related issues. Assisting in formulation of different policies concerning working community. Implementation of government policies concerning working community. Discharging role assigned to in various tripartite bodies and conferences. Realizing a reasonably handsome amount of government revenue in shape of different

fees.

DISTRICT WISE LABOUR AND MANPOWER

S.No District Number of Workers 1 Peshawar 21210 2 Nowshera 6840 3 Charsadda 1152 4 Kohat 6170 5 Karak 90 6 Bannu 1720 7 Lakki Marwat 930 8 D.I.Khan 3750 9 Mardan 7680

10 Swabi 13550 11 Malakand 560 12 Swat 2980 13 Dir 390 14 Buner 1570 15 Chitral 60 16 Haripur 17180 17 Abbottabad 3780 18 Mansehra 1150 19 Batagram 90 20 Hangu 75 21 Shangla 10

TOTAL 90937


ACHIEVEMENTS:

Unprecedented Industrial Peace in the province. Improvement in the working conditions of the workers through implementation of

various labour laws. Fixation of Minimum Wages for different categories of workers. Contributed in provincialisation, simplification, codification and rationalization

of Labour Laws. Contributed in formulation of labour and inspection policies. Verification of POL & CNG stations.

For financial year 2012-13 a sum of Rs. 95.266 million has been allocated against the Revised Estimates of Rs. 83.876 million for the year 2011-12.

MINES AND MINERAL DEVELOPMENT The vision for mineral development must focus intensely on social mobilization and poverty alleviation through strategies relying on public-private sector participation, decentralization and good governance resulting improved growth and development. The strategic goals of the government are to attract both foreign and local private risk capital to Khyber Pakhtunkhwa mineral sector for expansion of employment opportunities; enhancement of skills; sustained development of mineral bearing areas; expanded business opportunities for local industries; increased revenue flow to the provincial and federal Government; technology transfer; regional infrastructure development and an improved database for mineral resources of the province. GRANT OF PROSPECTING LICENSES & MINING LEASES: To activate the mineral activities in the province and to ensure the participation of private sector for boosting up the mineral development activities about 1211 mining concessions for different minerals have been granted in the private sectors. The details of these mining concessions in respect of various mining titles and minerals are as under:

Division Prospecting Licenses Miming leases Total

Peshawar 73 70 143 Mardan 19 120 139 Kohat 48 92 140 D.i.khan 36 36 72 Hazara 171 120 291 Malakand 267 159 426 Total 616 597 1,211

COLLECTION OF ROYALTY ON MINERALS:


Under the Khyber Pakhtunkhwa, Mining Concession Rules-2005 and Labour Welfare Act-1967 a substantial amount of revenue in the shape of Royalty is being collected from minerals. For financial year 2012-13 a sum of Rs. 336.950 million has been allocated against the Revised Estimates of Rs. 274.383 million for the year 2011-12.

EXCISE & TAXATION The Excise and Taxation Department Khyber Pakhtunkhwa plays a vital role in the Provincial exchequer and the Government has been generous enough to provide funds and resources to Excise and Taxation Department by introducing capacity building programs in order to improve the efficiency of the staff on the one hand and to broaden the tax net of the province on the other hand. The Urban Immovable Property Tax is the second most important tax of the Province. The recovery obtained from this head 85% share of the recovery is given to the Local Government. The Local Government provides Civic and Urban facilities to the people in its domain. In order to improve the higher resource deficiency of the Local Government, the Provincial Government has broaden the tax net by introducing certain reforms like A+ category on both sides of G.T Road of Provincial HQs where the economic activity has made tremendous progress. By these measures the tax is collected @ Rs. 12/- sq feet from the commercial properties and double tax on the rented properties as per formula. These steps have greatly improved the recovery. Moreover, Excise and Taxation Department has started to receive its already computerized property tax on modern Geographical Information System (GIS) basis to acquire computerized maps for a transparent tax culture. The GIS is going to be start from Peshawar as Pilot Project which should be further extended to other districts after successful completion in Peshawar. GIS base property tax would enable to extend by including new units and accurate measurement of the existing property units. It is all because of the initiatives of the present government that Excise & taxation Department achieved the last two consecutive years tax targets which is itself a bright chapter in the history of Excise and Taxation Department. For financial year 2012-13 a sum of Rs. 115.769 million has been allocated against the Revised Estimates of Rs. 95.015 million for the year 2011-12.

SUBSIDY ON PROCUREMENT OF WHEAT WHEAT REQUIREMENT OF KHYBER PAKHTUNKHWA: Food Department, Khyber Pakhtunkhwa plays an important role which is summarized as under:-

Food Procurement, rationing and distribution. Storage of Food grain. Control over the price.


PROCUREMENT OF WHEAT ESTIMATED REQUIREMENT FOR THE YEAR 2012-13: Annual estimated requirements of wheat are prepared with consultation of National Food Security and Research (NFS&R) Islamabad in April every year. Breakup of annual wheat requirements of Khyber Pakhtunkhwa is given as below:-

Area

Population according to 1998 Census plus 2.61% increase annually

Requirements @ 124 KG per head

per annum. (M.Tons)

Settled Area 27,193,553 3,372,000 FATA 4,825,328 598,340 Afghan Refugees 1,550,000 192,200

Total 33,568,881 4,162,540 It is evident from the above that wheat requirements of Khyber Pakhtunkhwa are above 4,162,540 m.tons. After adjustment of local production of 1,021,965 m.tons the net requirements comes to 3,140,575 m.tons. This deficiency is met out through open market mechanism of demand and supply to maintain the market prices stable and meet any crisis situation the Food Department issues a specific quota to each district on the basis of population. An overview of the quantity of wheat released during the last 3 year, from Government Godowns is given in the following table:-

Year Opening balance (M.Ton)

Receipt during year

(M.Ton) Total Releases

(M.Ton)

Closing Balance (M.Ton)

2009-10 161,736 523,527 685,263 509,407 175,856

2010-11 175,856 396,430 572,286 481,085 91,201

2011-12 91,201 492,762 583,963 481,218 102,745 STORAGE OF WHEAT: Wheat stores meant for Khyber Pakhtunkhwa are transported through carriage contractors from Punjab as well as Karachi at the rates approved by the Provincial Food Committee. The wheat is stored in food grains godowns, stock are released to flour mills according to requirements and quota. At present, Food Department has a storage capacity of 327,150 m.tons. These godowns are scattered over 27 Provincial Reserved Centers all over the Province.


WHEAT INCIDENTALS: Food Department Khyber Pakhtunkhwa procures wheat from Government of Punjab/PASSCO or imports through Trading Cooperation of Pakistan Karachi. A considerable amount is spent on its transportation and storage. However the wheat is released to flour mills at subsidized rates fixed by Government. The gap is met out from Provincial Government exchequer through subsidy. WHEAT SUBSIDY FOR THE YEAR 2011-12 & 2012-13: The requirement of wheat for financial year 2011-12 was assessed at 2,500,000 m.tons. Due to supply of Atta from Punjab, the quantity was reduce to 600,000 m.tons with an estimated subsidy of Rs. 4,224.600 million. As the subsidy is paid on the basis of actual off take, therefore, Finance Department has restricted the revised estimate at the level Rs.2,000 (million). An amount of Rs. 2500.000 million has been committed for the purpose in the year 2012-13.

23 Chapter 3: Provincial Revenue Receipts

PROVINCIAL REVENUE RECEIPTS

The Provincial Receipts for the financial year 2012-13 are estimated at Rs. 20101.059 million, comprising Tax Receipts of Rs. 1,3862.494 million (69%) Non-Tax receipts of Rs. 6,238.565 million (31%). Tax receipt includes GST on Services of Rs. 9886.394 million being collected by Federal Board of Revenue (FBR) on behalf of the Provincial Government. Tax Receipts comprises of 7.2% direct taxes and 61.8% indirect taxes. The direct and indirect taxes are explained as under:- The taxes which come under direct taxes include taxes on Agriculture, Property, Land Revenue, Trade and Callings etc. The Revised Estimates of receipts from direct taxes during 2011-12 is Rs. 1403.650 million as compared with the Budget Estimates 2012-13 of Rs. 1462.100 million, shows an increase of 4.1%. Indirect taxes comprise of GST on services Provincial Excise, Motor Vehicle Tax, Stamp Duties, Cess of all types, Electricity Duty etc. Revised Estimates for financial year 2011-12 from indirect taxes is estimated of Rs. 11167.807 million as compared with the Budget Estimates 2012-13 of Rs. 12400.394 million registering an increase of 11%. The trend of taxes under Provincial Tax Receipts since 2007-08 to 2012-13 is demonstrated in the following tables. Most of the heads incorporated in the tables show upward trend in growth rate since 2007-08 to 2010-11. The Province has been in shadow of poor law & order situation which has adversely affected its own receipts growth. Finance Department has set realistic targets for the year 2012-13, objectively and in line with the potential of the Department concerned.

(Rs. in million)

TAX

Actual Estimated

2007-08 2008-09 2009-10 2010-11 Budget 2011-12

Revised 2011-12

Budget 2012-13

DIRECT TAXES Tax from Agriculture 19.707 17.344 15.740 17.532 21.000 21.000 22.000

Urban Immovable Property Tax (Net) 56.091 41.595 84.613 77.567 141.700 92.650 98.100

Tax on Transfer of Property (Reg.) 67.476 56.103 45.645 58.013 70.000 70.000 72.000

Land Revenue 603.992 572.652 571.630 770.892 758.000 915.000 920.000

Tax on Profession, Trades & Callings 84.170 92.365 89.044 98.178 150.000 120.000 150.000

Urban CVT Provincial --- --- --- 247.606 160.000 185.000 200.000

Total Direct Taxes 831.436 780.059 806.672 1269.788 1300.700 1403.650 1462.100


(Rs. in million)

TAX Actual Estimated

2007-08 2008-09 2009-10 2010-11 Budget 2011-12

Revised 2011-12

Budget 2012-13

INDIRECT TAXES GST on Services -- -- -- -- 10030.027 8922.767 9886.394

Provincial Excise 31.370 28.345 23.636 23.381 30.000 25.000 30.000

Motor Vehicle Tax 667.494 699.093 833.916 874.844 898.890 900.340 957.000

Stamp Duty 411.504 358.435 357.360 408.610 550.000 550.000 600.000 Entertainment Tax 4.731 3.059 0.679 0.023 1.000 -- --

Others/ Hotel Tax/Real Estate Dealer Electronic Media/TDC/ KDF

221.811 248.381 229.622 262.887 379.000 299.700 377.000

Electricity Duty 33.490 34.294 38.846 584.134 450.405 470.000 550.000

Total Indirect

Taxes 1370.400 1371.607 1,484.059 2153.879 12,339.322 11,167.807 12,400.394

Total Provincial

Taxes 2201.836 2151.666 2,290.731 3423.667 13,640.022 12,571.457 13,862.494

Non-tax Revenue consists of income from Property and Enterprises, Civil Administration, Economic Services, Community Services, Social Services and Miscellaneous Receipts. For the financial year 2012-13, Rs. 6,238.565 million are estimated as per given table:-

(Rs. in million)

Sector Budget 2011-12

Revised 2011-12

Budget 2012-13

Income from Property and Enterprises. Interest 116.356 116.356 116.356 Dividends 20.000 20.000 20.000 Own Hydel Generation 2115.017 2115.000 2402.444 General Administration. 127.600 127.950 132.700 Law and Orders. 496.263 534.535 558.762 Community Services. 430.000 595.000 630.000 Social Services. 295.816 282.333 255.874 Economic Services. 1968.526 2207.006 1759.307 Miscellaneous. 284.522 347.552 363.122

Total Non-Tax Receipts 5854.100 6345.732 6238.565


Further Department-wise, Sector-wise Non-Tax receipt is discussed as under:-

The composition of receipts from Community Services is as under: i. Tolls on roads and bridges.

ii. Sale of tender forms. iii. Registration fee of contractors. iv. Confiscation of earnest money. v. Receipts from P.B.M.C.

vi. Payments for services rendered and recovery of water charges by Public Health Engineering Department.

(Rs. in million)

Sector Actual 2007-08

Actual 2008-09

Actual 2009-10

Actual 2010-11

Budget 2011-12

Revised 2011-12

Budget 2012-13

Building, Communication & PBMC.

185.386 147.794 271.302 381.047 270.000 370.00 400.000

Public Health 96.788 91.535 98.982 128.078 160.000 225.000 230.000 TOTAL 282.174 239.329 370.284 509.125 430.000 595.000 630.000

KP.H.A* 107.497 108.966 112.202 101.845 115.000 110.000 120.000 * Receipt retained by Khyber Pakhtunkhwa Highway Authority in the Road Maintenance Fund.

The composition of receipts from Social Services is as under:-

a) Education. b) Health. c) Manpower Management.

(Rs. in million)


Actual 2008-09

Actual 2009-10

Actual 2010-11

Budget 2011-12

Revised 2011-12

Budget 2012-13

Higher Education, Archives & Libraries Deptt 83.948 86.466

68.419 101.899 66.115 103.120 105.125

Elementary & Secondary Education Deptt 38.065 48.885 45.000 45.000 3.000

Technical Education. 11.286 10.475 18.424 18.451 19.000 20.000 21.000 Museum. -- -- 0.347 1.116 0.350 0.750 0.800 Tourism Deptt -- -- -- -- -- 10.000 11.000 Health Deptt 55.924 54.771 72.248 83.438 164.901 102.988 114.449 Manpower Management 1.716 2.107 2.553 3.893 0.450 0.475 0.500

Total 152.874 153.819 200.056 257.682 295.816 282.333 255.874 The receipt in respect of Primary and Secondary Education and Health Department at District level is retained in the District’s Account No.IV for utilization within the same sectors as per decision of the Provincial Government. Similarly, receipts of big teaching hospitals are retained by these hospitals in line with the financial autonomy given to them


The composition of receipt from Economic Services is as under:- (Rs. in million)


Actual 2008-09

Actual 2009-10

Actual 2010-11

Budget 2011-12

Revised 2011-12

Budget 2012-13

Agriculture 117.120 88.895 101.199 98.056 106.650 100.250 125.250 Fisheries 11.119 10.931 13.388 18.770 14.000 16.000 20.000 Livestock & Dairy Development

31.573 36.380 41.336 57.170 45.200 49.500 51.500

Forests & Wildlife* 547.572 594.630 1035.687 761.990 710.000 811.000 420.000

Irrigation 268.156 220.422 267.372 328.077 405.926 524.926 402.677 Mineral Development. 336.923 298.584 563.146 651.781 633.000 649.280 680.280

Printing + Registration Renewal of Printing Press

27.693 36.796 50.588 52.675 51.200 53.200 56.500

Industries 2.205 2.455 2.923 3.438 2.550 2.850 3.100 Total: 1342.361 1289.093 2075.639 1971.957 1968.526 2207.006 1759.307 *NB Receipt from Forest reduced (BE 2012-13) to divert it to Forest Development Fund in

accordance with Cabinet decision

The General Administration includes Examination Fees, receipts-in-aid of superannuation and receipts under the Weights and Measures and Trade Employees Act. The Civil Administration includes receipts from Home & Tribal Affairs Department, Law and General Administration Departments. Receipts from Police include charges of guards supplied to the Federal and Provincial government departments, fees and forfeitures, arms license fee, motor driving license fee and traffic fine. The general fees, fines and forfeitures, receipts from record rooms and collection of payments for services rendered are part of the Administration of Justice. Receipts from jails comprises of the sale of goods manufactured in the factories located inside the jail. Department wise detail is as under:-

(Rs. in million)


Actual 2008-09

Actual 2009-10

Actual 2010-11

Budget 2011-12

Revised 2011-12

Budget 2012-13

A-General Administration 78.194 99.715 104.193 134.301 127.600 127.950 132.700

B- Law and Order 349.956 506.680 569.347 524.384 496.263 534.535 558.762

Administration of Justice 53.429 64.965 96.476 98.493 100.000 100.600 101.230

Police + Private Security Companies

289.180 434.655 469.436 417.871 389.763 427.435 450.532

Jails 7.347 7.060 3.435 8.020 6.500 6.500 7.000

Total (A+B): 428.150 606.395 673.540 658.685 623.863 662.485 691.462


INCOME FROM PROPERTY AND ENTERPRISES: This includes provision for interest of Rs. 116.356 and dividends of Rs. 20.000 million in the R.E 2011-12, whereas in B.E 2012-13 the provision is Rs. 116.356 million and Rs. 20.000 million respectively. ENERGY AND POWER

i) Receipts from Sale of Electricity of Hydel Power Station Own Generation: The Malakand-III, Pehur, Shishi & Reshun Hydel Power Station Projects have been commissioned. The approximately income from sale of electricity accrued during the current financial year would be Rs. 2 billion approximately. Income upto 2.4 billion is expected during the year 2012-13.

ii) Electricity Duty:

Electricity duty is collected by WAPDA on behalf of the Provincial Government. At times WAPDA did not credit the electricity duty to Provincial Government and adjusted the amount collected against electricity bills, usually of local governments. Energy Monitoring Cell of Finance Department is playing active role to resolve the issue of source deduction by Federal Government/WAPDA.

SHYDO authorities have already been requested by Finance Department to take up fresh Hydel project at the earliest and Finance Department will provide necessary funds. By doing so, Finance Department will get more receipt in future. Details of total provincial receipts (targets & actual realization) during the last eight years are depicted in the following table:-

(Rs. In Million)

S.No Years Budget Estimates

Actual Recovery

1 2004-05 4021.775 4224.614 2 2005-06 4474.166 4340.707 3 2006-07 5200.000 4773.667 4 2007-08 6220.000 5322.875 5 2008-09 7444.202 5430.248 6 2009-10 7537.200 6414.189 7 2010-11 7231.624 8828.664

8 2011-12 19494.122 7125.578

Up to April 2012

28 Chapter 4: Capital Receipts & Expenditures

CAPITAL RECEIPTS AND EXPENDITURES

The provinces are keen to look for new ways and means of growth and development to improve the living standard of its people. Khyber Pakhtunkhwa also wants to excel and perform brilliantly in this modern era of professionalism and self-reliance. Capital receipts is part and parcel of the White Paper and it consists of of recovery of loans and advances from Local Councils, Municipalities, Co-operative Societies, Industrial Estates, Autonomous Bodies, Agriculturists and Government Servants. The budgetary position of capital receipts of the Province for financial year 2011-12 (Budget and Revised) and 2012-13 (Budget) is reflected in the following table:-

(Rupees in million)

S. No

Nomenclature Budget

Estimates 2011-12



i Recoveries of Loans and Advances 250.000 250.000 250.000

TOTAL: 250.000 250.000 250.000 The Current Expenditure on Capital Account includes the following: -

a) Repayment of Federal Loans. b) Repayment of Foreign Loans. c) Loans and Advances to Provincial Government Employees. d) Write-off of Loans and Advances to Provincial Government Employees. e) Loan to Small Medium Enterprises & Cooperative Bank/Traders. f) Pro Poor Welfare Scheme

The position regarding the above components of current expenditure on Capital Accounts for 2011-2012 (Budget and Revised) and 2012-13 (Budget) is shown in the following table:-

(Rupees in million)

S.No Nomenclature Budget

Estimates 2011-12



i Repayment of Federal Loans 4728.889 4728.889 3039.008 ii Repayment of Foreign Loans 3620.111 3578.375 3699.992

iii Repayment of SBP Loan for Recapitalization of Bank of Khyber 1500.000 1200.736 1200.000

iv Loans to Provincial Government Employees. 60.000 90.000 60.000

v Write off of Loans and Advances to Provincial Govt. Employees 1.000 1.000 1.000


vi Loan to ,SMEs /Traders & Cooperative Bank 600.000 570.000 200.000

vii Pro Poor Welfare Schemes 4500.000 4500.000 5742.000 TOTAL 15010.000 14669.000 13942.000

The outstanding debt liability of the Provincial Government on account of Federal Loans (Cash Development Loans) as on 1st July, 2012 is Rs. 9161.813 million. The detail is given at Annexure-I. As far as financing of Development Programme is concerned, our Province relies on different types of borrowings. Loans from Federal Government are one of them. In the past, Federal Government has provided Cash Development Loans (in Pak rupee) to the provincial government for financing its Annual Development Programmes. These loans were repayable on the following terms and conditions:-

a. Five years grace period, during which only interest is payable. b. Repayment in 20 years. c. Markup rate determined by the Federal Govt. on yearly basis. d. Recovery on monthly basis by the Finance Division, at source, from Federal Tax

Assignment. PREMATURE DEBT RETIREMENT: Realizing the heavy debt servicing liability on the provincial budget, the Provincial Government decided as part of its debt management strategy, to retire expensive loan of the Federal Government. The Government of Khyber Pakhtunkhwa started repayment of expensive Federal Government’s loans from the financial year 2002-03. An amount of Rs.19874.718 million has been repaid prematurely to Federal Government upto 2010-11. As a result of this premature retirement of federal loans, the Provincial Government has generated saving of Rs. 4434.520 million per annum. The details of total premature retired loans and saving per annum is at Annex-II. FOREIGN EXCHANGE LOANS: All Foreign Exchange Loans are handled by the Federal Government. These Loans are used for the financing of specified Developmental Projects under an agreement between the respective Governments. The relending terms and conditions of the loans to the provincial Government are the same as agreed by Federal Government with the loan giving agencies. The terms and conditions of loans by different agencies are as under:- Donor Agency Terms & conditions World Bank (IDA)

Service Charges 0.75% Repayment period 25 years Grace period 10 years


Asian Development Bank (ADB) Service Charges 1 % to 1.5% Repayment period 15 – 30 years Grace period 10 years

IFAD Markup rate 1% & 4% Repayment period 30 to 40 years Grace period 10 years

The details of outstanding liability on account of these loans against the Government of Khyber Pakhtunkhwa is Rs. 88431.786 million as on 1st July 2012 are given at Annex-III. Annexure-IV demonstrate the confirmation of outstanding balances of a number of foreign loans is under verification between Provincial and Federal Government as the disbursement in respect of these loans has not yet been stopped and are being made to the project executing agencies. The outstanding balance/amount disbursed upto 30.6.2012 is Rs. 32940.707 million against the allocated share of Khyber Pakhtunkhwa. Total outstanding debt against the Provincial Government as on 1st July, 2012 is Rs. 130534.306 million as detailed below:-

Federal Government Loans Rs. 9161.813 million Foreign Exchange Loans Rs. 121372.493 million

Total: Rs. 130534.306 million LOAN/WRITE OFF LOANS TO PROVINCIAL GOVERNMENT EMPLOYEES: For facilitating the provincial government employees the provisions are made under these heads for construction/purchase of houses, motor cars, motor cycles and bicycles, etc. As far as waiver off of these loans is given in case of death of a government employee during service before the full recovery of principal amount of loan outstanding against the deceased employee. The criteria for waiving off the outstanding principal amount is as under:-

i. In case of Government servants in BPS-I to BPS-15, full outstanding amount is waived off;

ii. In case of Government servants in BPS-16 & above, the outstanding amount is waived off on the basis of following formula:- Outstanding amount Extent of write off 1. Upto Rs. 20,000/- Full outstanding amount 2. Beyond Rs. 20,000/- Rs.20,000/- plus 50% of residual liability

Subject to total relief not exceeding Rs. 1.5 lac (inclusive of Rs. 20,000/-).


LOAN TO COOPERATIVE BANK: Provincial Government has revived the Cooperative Bank and is providing an amount of rupees one billion in installments. 1st installment of Rs.200.000 million was released during financial year 2010-11 and 2nd installment of Rs. 200.000 million has been released during financial year 2011-12. The bank will provide loans on easy terms for necessary equipment of farming, seeds, poultry, dairy & live stock and to rural women for handicrafts. A sum of Rs. 200.000 million (3rd Installment) has been earmarked for the next financial year 2012-13. The debt servicing liability is a very much problematic liability and proves to be a hindrance to the progress of the province as it places two-fold burden on the provincial resources on account of repayment of principal and payment of mark up of loans. The payment/repayment during the year 2011-12 and 2012-13 on account of internal and external debt is given in the table:-

(Rs. in million)

PRO-POOR WELFARE SCHEMES/SPECIAL INITIATIVES: An amount of Rs. 4500.000 million was allocated for Pro Poor Welfare Schemes in the budget 2011-12. Major work has been completed on the different components and the schemes shall be continued during 2012-13 with an allocation of Rs. 5742.000 million. Major components wise status of the initiatives is as follows:-

Nomenclature Budget 2011-12 Revised 2011-12 Budget 2012-13

Mark up charges

Repayment of Principal

Mark up Charges


Mark up charges


A-INTERNAL DEBT

i) C.D.Loans 1133.968 4728.889 1149.328 4728.889 1076.822 3039.008 ii) Un-funded Debt (GP Fund) 4000.000 --- 3300.000 --- 3600.000 ---

iii) Other Floating Debt 800.000 --- 200.000 --- 500.000 ---

Sub-Total (A) 5933.968 4728.889 4649.328 4728.889 5176.822 3039.008

B - Loans From Foreign Agencies 1126.919 3620.111 1462.351 3578.375 1086.088 3699.992

C - Other Debt Servicing 3535.921 -- 3535.921 --- 3300.090 ---

Sub-Total (B&C) 5463.999 3620.111 4998.272 3578.375 4386.178 3699.992

D – Domestic Debt (to SBP) -- 1500.000 --- 1200.736 --- 1200.000

Total (A+B+C+D) 10596.808 9849.000 9647.600 9508.000 9563.000 7939.000


ONGOING INITIATIVES: i. BACHA KHAN KHPAL ROZGAR SCHEME: The scheme is aimed at employment

generating, interest free micro financing of Rs. 25,000 to 100,000 through The Bank Khyber to the people of the province. 30 % of the financing is reserved for women. The funds are allocated to the districts in accordance with PFC formula. The Bank of Khyber has already launched the scheme and a sum of Rs. 1080 million has been disbursed among 11986 applicants. For this purpose Rs. 1.000 billion have already been provided during 2011-12 and an additional sum of Rs. 1.000 billion will be provided during 2012-13.

ii. PAKHTUNKHWA HUNERMAND ROZGAR SCHEME: In order to provide employment opportunities to skilled youth and reduce poverty and promote income generating economic activities in the province, “Khyber Pakhtunkhwa Hunermand Rozgar Scheme” was initiated. Under this scheme loan in the range of 50,000 to 300,000 is being granted to diploma/certificate holders from Vocational or Skill Development Centers at very soft terms of 5% markup only. The loan facility shall be available for business activity in the fields of marble, gem stones, minerals, handicrafts, automobile repairing, plumbing, electrician, furniture, light engineering, garments, embroidery, hair dressing and beauty salons, leather products, information technology and all such subjects leading to economic stabilization. 30% of the funds shall be reserved for females. The programme is being executed through The Bank of Khyber and coordinated by the Directorate of Technical Education and SMEDA. An amount of Rs. 1300 million has been allocated for the purpose. The scheme will be continued during next F.Y 2012-13.

iii. RIWAITI HUNERMAND SCHEME: Khyber Pakhtunkhwa has a rich historic and

cultural heritage. Many arts and crafts have its distinctive features such as architecture, music, tiles work, pottery, inscription, jewelry etc. To keep such folk crafts alive, the artisans are being supported under Riwaiti Hunermand Scheme for which an amount of Rs. 150.000 million was allocated during 2011-12 and a sum of Rs, 300.000 million has been allocated during the next financial year 2012-13.

iv. BENAZIR HEALTH SUPPORT PROGRAMME- TREATMENT OF PATIENTS OF

HEPATITIS-C: In order to provide free treatment to the poor patients suffering from hepatitis-C an endowment fund has been established in Health Department with an amount of Rs. 1000 million during 2010-11 and 2011-12. The scheme shall continue during the next financial year 2012-13.

v. ESTABLISHMENT OF IT PARKS: IT industry can turn around the wheel of economy

and create unlimited employment opportunities if the potential is exploited properly. A scheme was initiated during 2011-12 for the establishment of IT Parks in Khyber Pakhtunkhwa. Under this scheme the potential investors and Multinationals are offered attractive incentives, to establish call centers in the Province. For this purpose a Steering Committee has been constituted under the Chairmanship of Chief Minister. Khyber Pakhtunkhwa IT Board has been established under an Act of the


Provincial Assembly. For this purpose a sum of Rs. 400.000 million has already been provided and a further sum of Rs. 600.000 million has been allocated in the budget 2012-13.

vi. STORI DA PAKHTUNKHWA SCHEME: “Stori Da Pakhtunkhwa Scheme” or stars of

Pakhtunkhwa scheme has been launched to motivate and encourage talented students. The first 10 position holders in Matric and Intermediate Arts and Science, from each Education Board in the province are being granted Rs. 10,000 (Matric) and Rs. 15,000 (Inter) respectively for a period of two years. The objective is to encourage talented students, improve the quality of education and foster the spirit of competition among the students. An amount of Rs. 88.100 million has been disbursed during the CFY 2011-12 and a sum of Rs. 100.000 million has been allocated for this purpose in the budget 2012-13.

vii. ROKHANA PAKHTUNKHWA PUBLIC PRIVATE PARTNERSHIP SCHEME: Quality

education is the top priority of the provincial government. In order to inculcate continuation of education, the government shall pay the fee of all boys and girls in class 9th and 10th in private schools; in two Union Councils of each district, where there is no high school; under public private partnership. A sum of Rs. 500.000 million has been allocated during the CFY 2011-12 and a sum of Rs. 500.000 million has been earmarked during the ensuing financial year 2012-13.

viii. TRAINING IN CENTERS OF EXCELLENCE IN MARKET ORIENTED TECHNOLOGY:

Under this Scheme, diploma and certificate level technical training is being imparted to 1500 male and female students in various market demand based technologies in the technical institutes in the Province and Punjab. For this purpose Rs. 300.000 million has been allocated in the budget 2011-12 and the scheme shall continue for three years.

ix. B.SC AND M.SC NURSING SCHEME: Health is another priority area. In order to

improve the quality of service delivery in the hospitals and improve the efficiency of nursing staff, the government is launching a B.Sc and M.Sc nursing programme. In this regard the facility available under Khyber Medical University and Agha Khan Medical University shall be availed. For this purpose a sum of Rs. 500 million has been allocated in the budget 2011-12. The scheme will be continued with the same allocation during the next financial year 2012-13.

NEW INITIATIVES: x. FARM MECHANIZATION IN KHYBER PAKHTUNKHWA: Farm Mechanization is the

need of the hour. In order to educate farmers to use modern tools with increase in productivity, the Provincial Government intends to provide funds to Farm Services Centers. For this purpose an amount of Rs. 500.000 million has been earmarked in the budget 2012-13.

xi. BEGUM NUSRAT BHUTTO ONCOLOGY SERVICES: The number of cancer patients has drastically been increased during the past few years. Cost of medicines and


treatment of this fatal disease is out of reach poors as well as common people. In order to provide free medicine to the poor patients suffering from cancer the Provincial Government has allocated an amount of Rs. 500.000 million in the budget 2012-13.

xii. SCHOLARSHIP SCHEME FOR PROMOTION OF GIRLS EDUCATION IN DISTRICT TORGHAR: Human Resource Development is an essential tool for Socio Economic development. The female literacy rate in the newly created District Tor Ghar is alarming. In order to motivate parents to admit their daughters and reduce their dropout rate, a scholarship scheme for girls students is proposed, within the parameters such as; a) Rs. 1500 per month shall be granted to 250 girls students from class 1-5, for five years, from the five Tapas of the District, in the ratio of their respective population b) Rs. 2000 per month shall be granted to 250 girls students from class 6-10, for five years, from the five Tapas of the District, in the ratio of their respective population c) 50 students per class shall be selected on merit through ETEA test every year. In order to inculcate merit and spirit of competition and discourage misuse of the facility, the existing students shall undergo ETEA test every year d) 90% attendance shall be essential to qualify for the scholarship e) the scholarship shall be granted for 9 working months every year f) the girl students shall be allowed to study in any primary/middle/high school in the district.

xiii. SCHOLARSHIP SCHEME FOR PROMOTION OF GIRLS EDUCATION IN DISTRICT KOHISTAN: On the analogy of District Tor Ghar, a scholarship of Rs. 2000 per month shall be granted to girls students of class 6-10 in District Kohistan within the parameters such as; (a) Rs. 2000 per month shall be granted to 100 girls students per class from class 6-10, for five years (b) 100 students per class shall be selected on merit through ETEA test every year. In order to inculcate merit and spirit of competition and discourage misuse of the facility, the existing students shall undergo ETEA test every year to qualify of the scholarship (c) 90% attendance shall be essential to qualify for the scholarship (d) the scholarship shall be granted for 9 working months every year (e) the girl students shall be allowed to study in any primary/middle/high school in the district. A sum of Rs. 45.00 million shall be spent on the scheme during five years period. A sum of Rs. 242.000 million shall be spent on the program in both the districts collectively.

xiv. NAWAY SAHAR LAPTOP SCHEME: The Provincial Government has always aimed at

promotion of education in the Province. For this purpose “Naway Sahar Laptop” scheme is introduced to encourage and attract talented students to education. Under this scheme 25000 laptops will be distributed among students who have completed 16 years of education and 100 top students of intermediate class in all Boards. Rs. 1 billion is allocated for the said scheme in the year 2012-13.

xv. LONG TERM FINANCING FACILITY FOR DEVELOPMENT OF INDUSTRIES IN

KHYBER PAKHTUNKHWA: The Provincial Government has decided to allocate seed money to Bank of Khyber which will act as part time DFI. This is to be extended to investors investing in Labour Intensive, Expert Oriented and Imports Substitutive


industries. Tenure of the loan is 8 years, debit equity ratio 60:40, interest is 7% per annum and grace period is 2 years. For this purpose an amount of Rs. 1000.000 million has been allocated in the budget 2012-13.

xvi. MASS TRANSIT SYSTEM FOR PESHAWAR: There was once a Babu Train use to ply

between Nowshera and Peshawar, which has been disband due to unavoidable circumstances. According to research, overhead bridges are not a solution to traffic problems. In order to cope with the growing pressure of traffic in Peshawar, launching of a mass transit system is inevitable in collaboration with Pakistan Railways. For this purpose the existing track can be used and in the first phase the scheme can be launched between the ring road and Peshawar Cantt.

xvii. CONDITIONAL GRANT FOR MISSING FACILITIES IN EDUCATION AND HEALTH

SECTORS: The UK government provided a grant of £0.2 million for missing facilities in education and health sector in the District Buner and D.I.Khan during 2011-12. Keeping in view the success of the program, the UK Government has expressed its willingness to extend the program, besides that the programme has been extended to six districts and the provincial government has allocated Rs. 1 billion for the purpose in the budget estimates 2012-13.

SOCIAL WELFARE SCHEMES

i. STIPENDS TO UNEMPLOYED POST GRADUATES: Provincial Government has initiated postgraduate stipend scheme from July 2006. The amount of stipend is Rs. 1000/- per student per month. A sum of Rs. 39.600 million has been distributed during 2011-12. The scheme will continue for the financial year 2012-13 with an allocation of Rs. 39.600 million.

ii. SUBSISTENCE ALLOWANCE TO SENIOR CITIZENS: A monthly stipend scheme at the rate of Rs. 500/- per month for senior citizens aged 70 years and above has been initiated since last three years, to support the senior citizens. The scheme has been started in three districts i.e. Shangla, Batagram and Kohistan, which may be extended to other districts. A sum of Rs. 10.000 million has been allocated in the budget 2011-12 and Rs. 12.000 million has been earmarked in the budget 2012-13.

iii. CHILD PROTECTION COMMISSION: While meeting obligations of the “Convention

on the Rights of Children” the Provincial Government has established “Children Protection Commission”, under Khyber Pakhtunkhwa Child Protection Welfare Act 2009. An amount of Rs. 10.000 million has been allocated in the budget for 2011-12 and Rs. 15. Million have been earmarked in the budget of 2012-13 for this purpose.

iv. GRANT-IN-AID TO DISABLED PERSONS: By realizing the difficulties of the disable

persons, the Provincial Government has launched a program of Grant-in-Aid for disable persons. The grant shall be used for purchase of tri-cycles, wheel chairs etc. A sum of Rs. 20 million has been allocated for the F.Y 2012-13 for this purpose.

INTRODUCTION

The 7th NFC award has thrown opportunities and challenges for the province in respect of its growth. Khyber Pakhtunkhwa gets 16.42 % from federal divisible including 1% of the net divisible pool as grant for war on terror. The resilience of our economy has been tested several times by one crisis after another. The economy has witnessed numerous domestic and external shocks during last few years. The sharp rise in oil and food prices the internal security hazards and repeated natural disasters have buffeted which shocks the macroeconomic strategy of Khyber Pakhtunkhwa. An area of around 143619.69 sq km is under exploration for oil and gas throughout the country out of which 18890.66 sq KM i.e. 13.15% of the total is in Khyber Pakhtunkhwa. The KP’s southern districts of Karak, Kohat and Hangu, which lag behind from other parts of the province in social infrastructure, are rich in natural resources including huge deposits of oil, gas and minerals. In the coming year, 13,360,825 BBL of oil and 143098.25 MMCF of gas is expected to be produced which would generate Rs.22.1 billion of valued revenue. The Provincial government has decided to transfer 5% share of receipts on account of oil/gas to respected districts. This would lead to the socio economic development of these areas and would open the gateway for further development. The PFC award announced in 2008-09 recommended formula for determination of share of the local governments. The allocated amount has been increased 36.36% from 2011-12 to 2012-13. Rs. 85.5 billion (2012-13) as compared to Rs. 62.7 billion allocated for 2011-12. The contribution in revenue and power generation through hydro electric potential in the province can’t be ignored. Currently SHYDO is operating four hydro power stations in the province. The installed capacity of these projects is 105MW with an annual revenue generation of over Rs. 2 billion. Under the ACTION PLAN 2011-2025 SHYDO will construct 8 hydel projects having capacity of 628MW of electricity that would help in socio economic development of the province.

36 Chapter 5: Net Profit from Hydel Power Generation

NET PROFIT FROM HYDEL POWER GENERATION

The right of the Net profits on account of Hydel Power Generation has been enshrined in the 1973 Constitution, under Article 161 (2), which states that:-

“The net profits earned by the Federal Government, or any undertaking established or administered by the Federal Government from the bulk generation of power at a hydro-electric station shall be paid to the Province in which the hydro-electric station is situated”.

Explanation:-

“For the purposes of this clause “net profits” shall be computed by deducting from the revenues accruing from the bulk supply of power from the bus-bars of a hydro-electric station at a rate to be determined by the Council of Common Interests, the operating expenses of the station, which shall include any sums payable as taxes, duties, interest or return on investment, and depreciations and element of obsolescence, and over-heads, and provision for reserves”.

For the first time a sum of Rs. 6 billion Net Hydel Profits was paid during 1991-92. The said amount has been capped since then, despite the fact that power tariff has been increased manifold. The figure of Rs. 6 billion is based on the provisional profits of WAPDA calculated for 1990-91. NFC had recommended increase @ 10% on Rs. 6 billion for future years, but WAPDA did not follow said recommendations. Owing to the difference of opinion about the computation of Net Hydel Profits between the Government of Khyber Pakhtunkhwa and WAPDA, an Arbitration Tribunal was constituted by the Federal Government on 31st October 2005, to resolve the dispute on computation of Net Hydel Profits. The Arbitration Tribunal announced its award on 9th October 2006 and gave an Award of Rs. 110.101 billion to the Government of Khyber Pakhtunkhwa. During the proceeding of the 7th NFC Award, there was partial resolution of a long drawn issue of payment of the net profits on account of the Hydel power generation to Khyber Pakhtunkhwa. The Federal government accepted the onus of the profit payment of Rs. 110 billion as per decision of the Arbitration Tribunal. So far Rs. 60 billion has been paid to the province and balance Rs 50 billion would be paid during the next two years with equal instalments of Rs 25 billion each year.

The Federal Government played key role in the resolution of the issue. The issue was resolved in a meeting held on 27.10.2009. The principal portion of the past liability was agreed to be paid to the Government of Khyber Pakhtunkhwa, up to 2004-05 and for 2005-06 onward a Technical Committee has been constituted for making recommendations on account of


arrears and allied issues. The Technical Committee is also working on the issues of Net Hydel Profit (i) up to 2004-05 and mark-up (ii) Net Hydel Profit from 2005-06 to 2009-10 and (iii) Net Hydel Profit from 2010-11 onwards. The stance of Khyber Pakhtunkhwa is as under:

Khyber Pakhtunkhwa shall not accept reopening of issues already decided/settled. Any settlement must conform to the parameters of Awards. The calculation of NHP shall be in accordance with Kazi Committee Methodology

“KCM”. The Technical Committee will consider the following outstanding mark up on principal amount till the amount is paid and future size of Net Hydel Profits:-

(Rs. In Billion) Principal Award Amount (F.Y 1991-92 to 2004-05) 110.101 Mark-up as per Award of Arbitration Tribunal 10% Left over amount from Principal 0.101 Mark-up (9.10.06 to 30.6.07) 7.993 F.Y 2007-08 (1.7.07 to 30.6.08) 11.010 F.Y 2008-09 (1.7.08 to 30.6.09) 11.010 F.Y 2009-10 (1.7.09 to 16.11.09) 4.159

Sub Total 34.273

Mark-up on Rs. 100. billion 6.170 (From 17.11.09 to 30.06.2010)



Mark-up on Rs. 25. billion 2.500 (From 1.7.2012 to 30.06.2013) Sub Total 21.170 Total (Future Payable) 55.443

Year wise Calculation of NHP with mark-up (Post Award period on Compound indexation @ 10% per-annum) is as follows:-

(Rs. In Billion) I FY 2005-06

a) Provincial Claim b) Amount Received c) Balance Amount d) Mark up @ 10% (1.7.2006 to 30.6.2012)

Total (c+d)

26.302 6.000 20.302 12.180 32.482


ii FY 2006-07 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2007 to 30.6.2012)

Total (c+d)

28.932 6.000 22.932 11.470 34.402

iii FY 2007-08 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2008 to 30.6.2012)

Total (c+d)

31.825 6.000 25.825 10.330 36.155

iv FY 2008-09 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2009 to 30.6.2012)

Total (c+d)

35.008 6.000 29.008 8.690 37.698

v FY 2009-10 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2010 to 30.6.2012)

Total (c+d)

38.508 6.000 32.508

6.490 38.998

vi FY 2010-11 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2012 to 30.6.2012)

Total (c+d)

42.358 6.000 36.358 3.650 40.008

vii FY 2011-12 a) Provincial Claim b) Amount Received c) Balance amount

Total (c) Total (i to vii)=

Grand Total (55.443+260.343)=

46.600 6.000 40.600 40.600 260.343 315.786

It is important to note that the Arbitration Tribunal had agreed with KCM for calculating NHP payable for the year 1991-92 but did not apply KCM for the years onward. Thereafter in order to pursue a middle course, the Tribunal rather adhered to a mechanism of compound indexation of 10% per annum in NHP using figures of Rs. 6,923 million as benchmark. The aforementioned figure of Rs. 6,923 million had been calculated on the basis of KCM formula by WAPDA for the year 1991-92.


The most important issue before the Technical Committee is to determine the size of future Net Hydel Profits payable to Khyber Pakhtunkhwa. Several meetings of the Technical Committee have been held and efforts are being made at different fronts for reaching at a logical conclusion. In 1991-92 the Net Hydel Profits receipt of Rs. 6.000 billion constituted 42.64 % of the total revenue receipt of the Province, while in the year 2011-12 the same capped Net Hydel Profits constituted 2.57% of the total revenue budget of the Province which means that Net Hydel Profits receipts has drastically been reduced from 42.64% to 2.57%. Similarly taking the effect of dollar rate, in 1991-92 the dollar rate viz-a-viz Pak: rupee was 1$= Rs. 24 as compared to 1$=Rs 93 during the year 2011-12 which means that Provincial Government received US $ 249.479 million in the year 1991-92 as compared to $ 67.416 million during 2011-12 resultantly decrease of 74.14%. The Provincial Government of Khyber Pakhtunkhwa stance is that for determination of prevailing size of Net Hydel Profits, the AGN Kazi Committee formula or Indexation formula of Arbitration may be followed. Subject stance has been presented before the Technical Committee and decision is yet to be made. 5% SHARE OF THE NHP FOR THE DISTRICTS WHERE THE DAMS ARE LOCATED: The Provincial Government has decided to transfer 5% share of Net Hydel Profits receivable from WAPDA/Federal Govt. to the respective districts where the dams are located. In this regard Report of the Committee headed by the Chief Secretary, for devising a mechanism for utilization of the 5% share has been approved by the Provincial Cabinet, effective from Financial Year 2008-09. The said 5% share will be over and above the Districts’ and Provincial ADP and will be utilized on Technical Education, Health facilities, Roads, Scholarship for the affectees, water supply schemes, electricity and supply of gas. District Government of the respective Districts where dams are located have been provided Rs. 300 million during each financial year from 2008-09 onward.

40 Chapter 6: Revenues from Oil & Gas

REVENUES FROM OIL AND GAS GENERAL SURVEY OF OIL AND GAS IN KHYBER PAKHTUNKHWA: Production of oil and gas in Khyber Pakhtunkhwa has opened new avenues of economic development in the province. The province has been blessed with vast natural resources like water, forests, minerals, gem stones, oil and gas. Huge deposits of oil & gas have been discovered in southern belt of the Province, including district Kohat and Karak. As of March 2012, an area of around 143619.69 square kilometer is under exploration for oil and gas throughout the country out of which 18890.66 square kilometers i.e. 13.15% of the total is in Khyber Pakhtunkhwa. Eight companies are presently working in the Khyber Pakhtunkhwa and the details of the area held by each company throughout the country as well as in the Khyber Pakhtunkhwa is given in the following table:-

ACTIVE LICENSES IN KHYBER PAKHTUNKHWA

S.No

Name of company working in

Khyber Pakhtunkhwa

Country wise total Area held

by each (Sq. KM)

% share with total area of the country held by each

company

Area in Khyber

Pakhtunkhwa held by each

company (Sq. KM)

% share in Khyber

Pakhtunkhwa vs … total

area in column (2)

1 OGDCL 63164.24 22.97 4712.58 7.46 2 MGCL 14316.21 5.20 1497.94 10.46 3 Tullow 7086.28 2.57 1229.57 17.35 4 MOL 6637.28 2.41 4365.98 65.78 5 PPL 36728.59 13.35 2015.47 5.49 6 OPII 6369.11 2.31 1792.87 28.15 7 China Zhengue Oil 2442 0.88 788.48 32.29 8 Hyear box 6875.98 2.50 2487.77 36.18 Total 143619.69 52.1 18890.66 203.16

The oil and gas sites in Khyber Pakhtunkhwa fall in Potohar Region, wherein almost all the major oil /gas fields including Chanda, Tul and Nashpa oil and gas reserves are situated. It has created an atmosphere of competition for fresh leases of exploration in the area. The presence of Oil and Gas Development Corporation Limited (OGDCL) MOL, Hycarbex and PPL shows promising prospects of oil and gas in the area. ONGOING DRILLING: Exploration activity is continued at three places in District Kohat & Karak as per detail given below:-


WELLS UNDER DRILLING

S.No Well Name Well Type Operator Spude Date Tentative

date of completion

Status

1 Jabbi-01 Exploratory OGDCL 25-May-2011 07-June-2012 Under Drilling

2 Nashpa-03 Appraisal OGDCL 30-Mar-2011 17-June-2012 Under Drilling

3 Makori East-02 Appraisal MOL 05-July-2011 04-May-2012 Under

Drilling Production of oil and gas for the year 2011-12 & 2012-13: Oil and Gas Development Company Limited (OGDCL) has the largest stake in the exploration activities in the Potohar Region. Chanda oil field was the first major discovery in Khyber Pakhtunkhwa in the year 1999. MOL has the second largest stake for oil and gas in Khyber Pakhtunkhwa. It has discovered Manzalai, Makori oil field in the Tal block in the year 2002, and 2005 respectively. The various operationalized oil/gas fields in Tal, Chanda, Nashpa blocks and actual /estimated production from these fields for the Financial Year 2011-12 and 2012-13 are given below :-

ACTUAL & ESTIMATED OIL AND GAS PRODUCTION FOR THE YEAR 20110-12 & 2012-13

Company Field July 2011-March 2012 Actual

Estimated April-June 2012

July 2012 June 2013 (Estimated)

MOL

Oil (BBL) Gas MMCF Oil (BBLs) Gas MMCF Oil (BBL) Gas MMCF

Manzali 1041204.30 60320.28 360360 20748 1646150 87600 Makori 409926 6282.98 954532 2093 529250 7300 Makori

East 313 - 110110 364 2007500 5475

Mami Khel 395569.71 7347.74 124670 2274.26 532900 9125

Maramzai 466105.99 12138.14 152880 3640 576700 14600 Tolang - 200 - 200 - -

OGDCL

Mela 1331800 4862.17 546000 1274 1825000 5475 Chanda 1100141 2124.91 327600 546 1241000 1825 Nashpa 2143279 7746.17 728000 2730 5000500 11680

Sheikhan 971 419.26 - - 1825 18.25 Total 6889310 101441.65 3304152 33869.26 13360825 143098.25

Average per day 25052.04 368.88 36309.36 372.19 36605 392.05 (Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)


OIL AND GAS RESERVES IN KHYBER PAKHTUNKHWA: The various operationalized oil/gas fields discovered so far in the Tal, Chanda and Nashpa blocks have sufficient reserves. The detail of each oil/gas fields is given as under:-

A. OIL RESERVES (MILLION BBLS) AS ON 31ST DECEMBER, 2011

Operator Field Year of Discovery

Original Recoverable

Cumulative Production Balance

MOL

Makori 2005 11 3.3 7.7 Manzali 2002 29 4 25

Mami Khel 2008 11 0.7 10.3

Maramzai 2009 9 0.4 8.6

OGDCL

Chanda 1999 26.172 11.894 14.278 Mela 2006 22.12 8.734 13.386

Nashpa 2009 12.263 3.288 8.975 Shekhan 2010 0.058 0.007 0.051

Sub Total 120.613 32.323 88.29 (Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)

B. GAS RESERVES (BILLION CUBIC FEET) AS ON 31ST DECEMBER, 2011

Company Field Year of Discovery

Original Recoverable

Cumulative Production Balance

MOL

Makori 2005 221 43 178 Manzali 2002 1884 260 1624

Mami Khel 2008 148 12 136 Maramzai 2009 280 11 269

OGDCL

Chanda 1999 50.579 25.157 25.422 Mela 2006 66.215 25.002 41.213

Nashpa 2009 53.423 12.087 41.336 Shekhan 2010 11.68 1.369 10.311

Sub Total 2714.90 389.62 2325.28 In accordance with the Pakistan Petroleum (Exploration and Production) Rules 1986, the Provincial Government gets revenues on account of the following: -

a) Royalty on Oil. b) Royalty on Gas. c) Gas Development Surcharge. d) Excise Duty on Gas


Royalty on oil/gas is payable by the exploration and production companies to the Government @12.50% of the wellhead value. It is payable monthly within 10 days of the calendar month in question as per Rule 36(2) of the Pakistan Petroleum Exploration and Production Rules 1986. The Wellhead value is determined by the Govt. of Pakistan after every six months. As a result of 18th Amendment, the resources of oil/gas is to be shared between the Federal Government and concerned Provincial Government in the ratio of 50 :50. In wake of this development, the Provincial Government has decided to setup an oil and gas company with the name “Khyber Pakhtunkhwa Oil and Gas Company”. The establishment of this company is in the final stages which will be under control of Energy & Power Department. GAS DEVELOPMENT SURCHARGE: Gas Development Surcharge, levied under the Natural Gas (Dev: Surcharge) Ordinance, 1967 is the difference between the prescribed price and the consumer’s price (price is determined by OGRA). In accordance with the said Ordinance, the Federal Government has to fix the sale price for consumers and prescribed price for Gas Companies on the basis of their fixed return. The difference between consumer gas price and the Companies prescribed price as defined in the Natural Gas (Development Surcharge) Ordinance, 1967 is the margin available to the Government as Development Surcharge. The prescribed price of Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company Limited (SSGCL) is based on the following:-

Wellhead price of gas. Excise Duty at Wellhead. Operation and Maintenance Cost. Depreciation. Returns of Gas Company (17.5% SNGPL and 17% SSGCL) on assets.

Royalty and Gas Development Surcharge are inversely proportional to each other. In case, the wellhead value is more, there will be more royalty but less Gas Development Surcharge and vice versa. MODE OF PAYMENT OF ROYALTY UNDER 7TH NFC AWARD:

Payment of net proceeds of royalty on crude oil:- According to the 7th NFC Award, “each of the Provinces shall be paid in each financial year as a share in the net proceeds of the total royalties on crude oil an amount which bears to the total net proceeds the same proportion as the production of crude oil in the Province in that year bears to the total production of crude oil”. MODE OF PAYMENT OF GDSS UNDER THE 7TH NFC AWARD:

Payment of net proceeds of Development Surcharge on Natural Gas to the Provinces:- Similarly, “each of the Provinces shall be paid in each financial year as a share in the net proceeds to be worked out based on average rate per MMBTU of the respective province. The average rate per MMBTU shall be derived by notionally clubbing both the royalty on Natural Gas and development surcharge on gas. Royalty on natural gas shall be distributed in


accordance with clause (1) of Article 161 of the Constitution whereas the development surcharge on natural gas would be distributed by making adjustments based on this average rate”. ACTUAL AND ESTIMATED RECEIPTS FROM 2004-05 TO 2012-13: Status of actual receipts from the Federal Govt: since commercial production of oil and gas has started from the wells located in Khyber Pakhtunkhwa is given as under:-

ACTUAL AND ESTIMATED RECEIPTS

2004-05 to 2012-13 (Rs.in Millions)

S.No Receipts Head

Actual Estimated

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 (RE)

2012-13 (BE)

1 Royalty on crude oil 263.793 492.009 1,090.718 3,027.076 3,111.402 1,942.240 8341.297 9851.607 11747.050

2 Royalty on natural Gas 109.370 351.050 462.418 537.988 733.212 1,261.458 3814.063 3950.204 4241.290

3 Excise duty on Gas 44.280 24.591 123.290 206.236 149.130 286.046 1098.413 1533.172 2468.620

4 Gas Dev: Surcharge 69.828 316.229 632.717 418.236 246.028 1,026.155 3315.039 2158.795 3700.583

Total 487.271 1,183.879 2,309.143 4,189.536 4,239.772 4,515.899 16568.812 17493.778 22157.543

CHART SHOWING REVENUE FROM PRODUCTION OF OIL & GAS

487 1,184 2,309

4,190 4,240

4,516

16,569 17,494

22,158

-

5,000

10,000

15,000

20,000

25,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13


0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1,044,440 1,312,626

2,859,988

4,689,267 4,769,7415,302,711

7,849,343

9,373,608

13,360,825

Actual and estimated well-head wise production figures of oil from financial year 2004-05 to 2012-13 and production trend of oil is indicated in the following tables and chart respectively:-

PRODUCTION OF OIL (BARRELS) DURING FINANCIAL YEARS 2004-05 TO 2012-13

S.No Receipts Heads

Actual Estimated

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 (RE)

2012-13 (BE)

1 Chanda (Shakardara Kohat)

989,305 960,980 1,887,302 2,058,926 1,818,588 1691088 1523822 1427741 1241000

2 Manzali (Karak) 55,135 166,445 156,978 137,231 149,717 1049932 1608099 1401564 1646150

3 Makori (Karak) -- 185,201 517,543 771,595 676,310 297578 597641 544606 529250

4 Mela (Kohat) -- -- 298,165 1,721,515 2,125,126 2044641 1630434 1877800 1825000

5 Neshpa (Karak) -- -- -- -- -- 219472 1955981 2871279 5000500

6 Makori East -- -- -- -- -- -- 12370 110423 2007500 7 Maramzai -- -- -- -- -- -- 83959 618985 576700 8 Mami Khel -- -- -- -- -- -- 431003 520239 532900 9 Shekhan -- -- -- -- -- -- 6034 971 1825

10 Tolang -- -- -- -- -- -- -- -- -- Total 1,044,440 1,312,626 2,859,988 4,689,267 4,769,741 5,302,711 7,849,343 9,373,608 13,360,825

PRODUCTION TREND OF OIL (BBLS) IN KHYBER PAKHTUNKHWA


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

8,435

20,94426,370 29,707 31,359

74,954

126,173

135,108143,098

PRODUCTION OF GAS (MILLION CUBIC FEET) DURING FINANCIAL YEARS 2004-05 TO 2012-13

S.No Receipts Heads

Actual Estimated

2004-05 2005-06 2006-07

2007-08 2008-09 2009-

10 2010-11 2011-12 (RE)

2012-13 (BE)

1 Chanda (Shakardara Kohat)

3495 2990 3551 3032 2682 2754 2612 2670 1825

2 Manzali (Karak) 4940 17221 16181 12552 13392 61513 92991 81068 87600

3 Makori (Karak) 733 6594 10314 9349 3839 8593 8375 7300

4 Mela (Kohat) -- -- 43 3809 5936 6265 4804 6136 5475

5 Neshpa (Karak) -- -- -- -- -- 583 6504 10476 11680

6 Mami Khel -- -- -- -- -- -- 7657 9622 9125

7 Maramzai (Hangu) -- -- -- -- -- -- 2047 15778 14600

8 Makori East -- -- -- -- -- -- 49 364 5475

9 Shekhan -- -- -- -- -- -- 914 419 18

10 Tolang -- -- -- -- -- -- -- 200 0

Total 8,435 20,944 26,370 29,707 31,359 74,954 126,173 135,108 143,098

PRODUCTION TREND OF GAS (MCFT) IN KHYBER PAKHTUNKHWA


PRODUCTION BONUS: Ministry of Petroleum & Natural Resources has decided to grant production bonus to those districts where oil & gas reserves have been discovered. The funds will be spent through Petroleum Social Development Committees (PSDC) comprising MNA(s) (Chairmen), MPA(s), Tehsil/ Taluka Nazim (s), District Nazim (Members), DCO (Secretary) of the District and two representatives of the Exploration & Production (E&P) Company (Member/Vice Chairman). Secretary of the PSDC (DCO) will open and administer a joint bank account with the title "Petroleum Social Development Fund (PSDF)", to be operated by District Coordination Officer and the Executive District Officer (EDO), Finance and Planning for the purpose of funding projects identified by the PSDC through the production bonus payable by the E&P Company. All those E&P companies who are obligated to pay production bonus to the Government for infrastructure development of the area will deposit the production bonus directly in the bank account of the Secretary (DCO) of the PSDF in consultation with the Director General, Petroleum Concessions (DGPC). The proceeds of production bonus against Tal black of MOL is US $ 1.5 million, which had already been paid on 27th October 2011 to the Districts of Karak, Kohat & Hangu. TRANSFER OF 5% SHARE OF RECEIPT TO THE CONCERNED DISTRICTS: The Provincial Government has decided to transfer 5% share of receipts on account of Oil/Gas receivable from Federal Government to the respective districts where well heads of oil / gas are located. In this connection report of the committee headed by the Chief Secretary, Khyber Pakhtunkhwa regarding utilization of 5% share has already been approved by the Provincial Cabinet. However the Provincial Government has now amended the said policy of 5% share of royalty on oil & gas. The salient features of the amendment are as under.

a. Minimum size of a scheme financed out of 5% share of Royalty on Oil & Gas will be Rs.

10,00,000/- (one million). b. 5% share of royalty on oil & gas will be utilized on Electricity, supply of Gas,

Education, Technical Education, Water Supply Schemes, Roads, Health facilities, construction of small Dams, & Purchase of land for higher educational Institutions.

The said 5% share is over and above the size of District and Provincial ADP. Utilization of 5% share in the respective districts would certainly supplement the development activities and improve the socio-economic condition of the area. For the Financial Year 2011-12, a sum of Rs. 828.441 million has been released to the concerned Districts i.e. Kohat, Karak & Hangu as 5% share of royalty on oil, gas etc.

48 Chapter 7: Revenues Transferred To District Governments

REVENUES TRANSFERRED TO DISTRICT GOVERNMENTS

In Khyber Pakhtunkhwa, District Governments were functioning in 25 Districts for devolved functions under the Local Government Ordinance 2001. The Provincial Finance Commission (PFC) was assigned to recommend formula for determination of share of Local Governments based on which a three years PFC Award was announced in 2008-09. The Award provides for annual review by the PFC. At present PFC does not exist due to expiry of its tenure and completion of other legal requirements. Keeping in view the provision of sub-section 7 of Section 120D of the Local Govt. Ordinance, 2001, the Government has decided to continue with the existing recommendations for further period of one year with amendments on the pattern of Provincial Budget as follows:-

(a) 5% increase was awarded in Salary Component over Revised Estimates of the current year. This will cover the normal growth. Besides, Rs. 11,811.890 million has been provided as Block Allocation for Salaries to cover the expenditure on a/c of posts transferred to district as a result of 18th Amendment and expected increase in salary.

(b) 10% increase has been made over the revised estimates of Non-Salary Allocation like

“Others” to cover the essential need of the District Governments.

(c) Electricity Charges has been allocated on the basis of figure provided by the Energy Monitoring Cell, Finance Department.

(d) 10% increase has been worked out on Octroi Share.

(e) The share of Zilla Tax of current financial year 2011-12 has been repeated for the next financial year 2012-13.

(f) Rs. 500 million has been allocated as Grant for weak TMAs and Rs. 500 million has

been allocated for Matching Grant for TMAs. This grant will be available for those TMAs who will generate additional resources.

(g) A separate allocation of Rs. 100 million has been made as Conditional Grant.

(h) Special provision of Rs. 500.000 million each for M&R and Electricity has been made.

(i) 10% increase has been worked out on Development Share of Districts.

(j) A Grant of Rs. 1.000 million each on account of Octroi Share has been made for newly established 03 TMAs one in District Swabi and 02 in District Tor Ghar.

(k) Rs. 500 million has been allocated as Lump sump provision at the disposal of Finance

Department under Octroi to cover the unforeseen requirement of the districts.

49 Chapter 7: Revenues Transferred To District Governments

Funds provided to Local Governments during the last 7 years are tabulated as under:-

(Rs. in Billion)

S.# Description R.Es 2005-06

R.Es 2006-07

R.Es 2007-08

R.Es 2008-09

R.Es 2009-10

R.Es 2010-11

R.Es 2011-12

1 Salary 19.396 23.204 24.000 28.000 33.193 45.000 56.501

2 Non Salary 1.650 2.249 3.408 3.417 4.033 7.805 7.387

3 Development 0.963 0.963 1.204 1.246 1.342 1.500 1.520

4 O&Z Tax Grant 0.996 1.081 1.285 1.435 1.679 1.949 2.931

Total 23.005 27.497 29.897 34.098 40.247 56.254 68.339

The allocation made for Local Governments for the financial year 2012-13 is tabulated as under:-

(Rs. in Million)

S.# ITEM ALLOCATION

1. Salary 71,138.443

2. Non Salary 9,164.714

3. Development 1,672.330

4. O&Z Tax Grant 3,536.107

Total 85,511.594

50 Chapter 8: 7th National Finance Commission

7TH NATIONAL FINANCE COMMISSION The distribution of Revenues between the Federation and the Provinces is governed by Part-VI Chapter-1 of the 1973 Constitution. It provides the basic framework for the revenues distribution between the Federation and the Provinces. Article 160 of the Constitution provides for the setting up of a National Finance Commission (NFC) to periodically make recommendations to the President as to:-

The distribution between the Federation and the Provinces of the net proceeds of the taxes mentioned in clause (3);

The making of grants-in-aid by the Federal Government to the Provincial Governments;

The exercise by the Federal Government and the Provincial Governments of the borrowing powers, conferred by the Constitution; and

Any other matter relating to finance referred to the Commission by the President. The historic announcement of the 7th NFC Award on 18th March 2010 has resolved the long standing issue of distribution of resources between the Federation and Provinces of Pakistan. In the 7th NFC Award the share of Provinces in vertical distribution has been increased from 49% to 56% during 2010-11 and 57.5% during the remaining years of the Award. The traditional population based criteria for horizontal distribution of resources amongst the Provinces has been changed to Multiple-Criteria Formula. According to this criteria 82% distribution was made on population, 10.3% on poverty and backwardness, 5% revenue collection/generation, and 2.7% on inverse population density (IPD). Federal Government had cut down its collection charges from 5 percent to 1 percent, which would largely benefit the provinces. Realizing the role of Pakhtunkhwa in the war on terror 1% of the net divisible pool was assigned to this Province. Under the new formula, Punjab would get 51.74 percent from the divisible pool, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62 percent and Baluchistan 9.09%. In the new award Punjab has given up 1.27 percent, Sindh 0.39 percent and Khyber Pakhtunkhwa 0.26 percent, while Baluchistan has gained. For the first time multiple indicators have been included as the criterion for horizontal distribution amongst the Provinces in the NFC Award 2010 (7th NFC). The multiple indicators and their respective weightage as agreed are as under:-

S.No Indicator % weight

1 Population 82.00

2 Poverty/backwardness 10.30

3 Revenue Collection/ generation 5.00

4 Inverse population density 2.70

Total 100%


The subvention/special grant and grant in lieu of Octroi and Zilla Tax (1/6th of sales tax) have been abolished. The net share of the Provinces (from the divisible pool and grant for war on terror) as compared to the share allocated on the basis of population and 1/6th of Sales Tax and Special Grant is as under:-

COMPARATIVE POSITION OF SHARE OF PROVINCES IN THE DIVISIBLE POOL

Province

% Share on the

basis of previous

award

% Share on the basis of

7th NFC Award

Grant for War

on Terror

Grant for Compensation on account of

OZ&T

Total %

Share

Punjab 53.20 51.74 51.74

Sindh 24.96 24.55 0.66% 25.21*

Khyber Pakhtunkhwa 14.78 14.62 1.80% 16.42**

Baluchistan 7.05 09.09 9.09

Total 100.00 100.00 *Grant-in-Aid to Sindh, equivalent to 0.66% of the net Provincial Divisible Pool as compensation for losses on account of abolition of OZ&T. **The grant for war on terror is 1% of the total divisible pool, which is equivalent to 1.8% of the provincial share in the net proceeds of provincial divisible pool.

% Share in the 7th NFC Award % Share in the Previous Award

53.20%

24.96%

14.78% 7.05%

51.74%

25.21%

16.42%9.09%


Comparative position of the total transfers to Provinces under NFC Award for the financial year 2012-13 is as follows:-

FUNDS TO BE TRANSFERRED TO THE PROVINCES DURING 2012-13

(Rs in million)

Province %share

Budget Estimate 2012-13

1% of total Divisible Pool for War on

Terror grant (1.8% of the provincial pool)

Total

Punjab (51.74%) 650,058.730 - 650,058.730

Sindh (24.55%) 308,444.952 - 308,444.952

Khyber Pakhtunkhwa

(14.62%) 183,684.937 22,071.058 205,755.995

Baluchistan (9.09%) 114,206.298 114,206.298

Total 1,256,394.917 22,071.058 1,278,465.975

The Net proceeds of Development Surcharge on Natural Gas shall be distributed amongst the Provinces under Article 161(1) of the Constitution. For this purpose the royalty on Natural Gas and Development Surcharge would be notionally clubbed into one and average rate per unit (MMBTU) would be worked out. The rate of excise duty on natural gas shall be raised to Rs. 10 per MMBTU for giving effect to this new formula. Besides, net amount of royalty on crude oil shall be paid to the provinces according to production in each province as per current practice. The Provinces have been allowed to collect sales tax on services if they so desire. The Provinces shall improve their tax base by effectively taxing the agriculture and real estate sectors and collection system achieving the 15% tax to GDP ratio by 2014-15. The Federal Government will assist the Provinces through specific grants in times of unforeseen calamities.

53 Chapter 9: Hydro Electric Power Potential

HYDRO ELECTRIC POWER POTENTIAL

By the grace of Allah Almighty, SHYDO is operating four Hydropower Stations in Malakand District, Swabi District and Chitral District. The total installed capacity of these Hydropower Projects is 105 MW, which are:-

S.No Name of Scheme Location Capacity in MW i Malakand-III HPP Malakand 81 ii Pehur HPP Swabi 18 iii Shishi HPP Chitral 1.8 iv Reshun HPP Chitral 4.2

Total Capacity 105

These projects are not only contributing to the reduction in load shedding but also generating annual revenue of Rs. 2 to 3 billion for the Province. Besides the above completed Hydropower Projects, Government of Pakistan has signed a loan agreement with the Asian Development Bank (ADB) for the development of Hydropower Potential in Khyber Pakhtunkhwa Province, the total revised cost of which is Rs.6026.41 million. Under this project, SHYDO will construct two new projects having a total installed capacity of 20 MW. These projects are under various stages of implementation and will be completed during next three (3) years. In addition, Daral Khwar HPP with capacity of 36 MW having estimated cost of Rs. 6958.42 million will be funded through Hydel Development Fund and ADP (90:10 ratio). It has been inaugurated by Chief Minister Khyber Pakhtunkhwa on 30-04-2012 and will be completed in three years. It will generate annual revenue of Rs. 1 billion for the Province. Matiltan HPP (Swat) with capacity of 84 MW will be launched in May 2012.

CONSTRUCTION PROJECTS

S.No Name of Scheme Location Capacity in MW

i Daral Khwar HPP Swat 36.6 ii Ranolia HPP Kohistan 17.0 iii Machai HPP Mardan 2.60

Total Capacity 56.20

Under the same loan, SHYDO has also conducted feasibility studies of following three projects with total installed capacity of these three Hydro Power Projects is 48 MW. Construction works on these projects will start during Financial Year 2012-13 and will be completed during next Five years. The PC-1’s for these sites have been cleared by PDWP and consultants will be appointed during current financial year:-


FEASIBILITY STUDIES

S.No Name of Scheme Location Capacity in MW i Koto HPP Dir Lower 31 ii Karora New HPP Shangla 10 iii Jabori HPP Mansehra 7

Total Capacity 48

SHYDO has also conduted Pre-Feasibility study of 10 raw sites in various districts of Khyber Pakhtunkhwa Province. The Pre-Feasibility study of these 10 sites has been copmleted in Decemeber 2011 and these sites will be offered to private sector for development. The Honorable Chief Minister has issued special directives for the implemntation of ACTION PLAN to address the acute energy crises in the country. Energy and Power Department has prepared and the Provincial Government has got the approval the ACTION PLAN 2011-2025 from the Honorable Chief Minister, Khyber Pakhtunkhwa, under which SHYDO will construct the following Eight (8) Hydel Projects having installed capacity of 628 MW.

CONSTRUCTION PROJECTS

S.No Name of Scheme Location Capacity in MW 1 Matiltan HPP Swat 84 2 Sharmai HPP Dir 115 3 Koto HPP Dir 31 4 Karora HPP Kohistan 10 5 Jabori HPP Mansehra 8 6 Shushai-Zhendoli HPP Chitral 144 7 Shogo Sin HPP Chitral 132 8 Lawi HPP Chitral 69

Total Installed Capacity 628 On the request of Provincial Government, WAPDA has handed over the Feasibility study of 69 MW Lawi HPP Chitral, which has been included in the ADP 2011-12. The PC-I for the construction of Lawi HPP has been submitted to ECNEC for approval and work on Lawi HPP will be started in July 2012. The land acquisition process of the Project is in progress. In addition to construction projects, SHYDO has also started feasibility study of the following 13 Hydel Power Projects with potential of 1322 MW installed capacity. The PC-II’s for feasibility studies of these thirteen projects have been approved by PDWP, the selection of Consultant is in process and Insha Allah feasibility study will be completed during the next two to three years with total cost of Rupees Five Billion. The construction of these projects will be achieved during the period 2011-2025.


FEASIBILITY STUDIES

S.No Name of Scheme Location Capacity in MW 1 Gahrit-Swir Lasht HPP Chitral 334 2 Korag Parait HPP Chitral 223 3 Laspur Marigram HPP Chitral 133 4 Arkari Gol HPP Chitral 24 5 Istaru-Buni HPP Chitral 52 6 Mujigram Shogo HPP Chitral 51 7 Barikot Patrak HPP Dir 34 8 Patrak Shringal HPP Dir 21 9 Shigo Kach HPP Dir 26

10 Ghor Band HPP Shangla 14 11 Nandihar HPP Batagram 10 12 Naram Dam HPP Mansehra 210 13 Balakot HPP Mansehra 190

Total Installed Capacity 1322

Provincial Government has given top priority to Energy and Power sector to explore hydel resources in Khyber Pakhtunkhwa. In this regards substantial amount of Net Hydel Profit has been transferred to Hydel Development Fund. Beside Hydel resources, the Province of Khyber Pakhtunkhwa has been blessed with large reserves of Oil and Gas. After 18th Amendment Provincial Government has equal share with the Federal Government in all the forth coming production regarding Oil and Gas. Keeping in view the Eighteenth Amendment Provincial Cabinet has given the approval of establishment of Oil and Gas Exploration Company. This Company will be registered soon with the Security Exchange Commission of Pakistan and other relevant institutions. After registration this company will be authorized to take part in the bid with other National and International companies such as OGDCL, MOL, PPL in different Blocks. In compliance with the decision of Peshawar High Court under Article 158 of the Constitution of Islamic Republic of Pakistan, all the commercial undertakings like industries, CNG etc in the Province are exempted from load shedding.

INTRODUCTION

Public Financial Management is an essential part of the development process. Sound PFM supports aggregate control, prioritization, accountability and efficiency in the management of public resources and delivery of services, which are critical to the achievement of public policy objectives, including achievement of the Millennium Development Goals (MDGs). Public financial management includes all phases of the budget cycle, such as preparation of the budget estimates, internal control and audit, procurement, monitoring and reporting arrangements, and external audit. The broad objectives of public financial management are to achieve overall fiscal discipline, allocation of resources to strategic priorities, and attainment of operational efficiency for improved public service delivery. Provincial government in order to ensure the essential characteristics of the budgeting system of the province has introduced Medium Term Budgetary Framework and Output Based Budgeting. This new budgeting system was initially piloted in three departments during 2010-11, with its roll out to nine more departments during 2011-12. Similarly, the provincial government of Khyber Pakhtunkhwa extended OBB to district level with the introduction of district conditional grants. In the budget 2012-13 all departments are taken as output based budgeting format. Output based budgeting is a process by which government agencies are funded on the basis of delivery of outputs and outcomes. In theory the traditional budgeting process based around a rationing of inputs is reversed. The priority now is as to what will be the quantum of service delivery by each department rather than what should be its expenditure. Moreover, introduction of annual business plan in three departments as part of their annual budget process has been approved. The purpose is to to enable the line departments to translate their strategic plans in to operational/business plan for a period of three years in a more consistent, coherent and uniform manner and to make them accountable for the results. Similarly, in its effort to stimulate growth in potential growth/priority sectors of the economy through enhanced public investment and complimentary sectoral

policies, the government of Khyber Pakhtunkhwa has strategized this intent through Economic Growth Strategy. Moreover, the Planning and Development Department for the first time has carried an Annual Strategy Review (ASR) of the developmental strategies and the budgetary allocation. One of the most important initiatives of the Finance department, this year is the introduction of the internal Audit Control Systems, of which the internal audit is an integral part. Internal audit will contribute to the effective implementation of the policies, programme and actions with economic and efficient utilization of resources. The Government of Khyber Pakhtunkhwa, in order to make budget participatory, transparent, open and responsive, has initiated pre budget consultative workshops having representations from members of Provincial Assembly, civil society, academia, business community and media. These workshops have previously yielded in a number of pro poor initiatives like Bacha Khan Khpal Rozgar Scheme, Pakhtunkhwa Hunermand Rozgar Scheme and Stoori Da Pakhtunkhwa, Youth Technical Education, Benazir Health Support etc. Bank of Khyber has participated in the processing of these initiatives of the provincial government which has 51% share holding in the bank. The government of Khyber Pakhtunkhwa is the custodian of the Pension and Provident funds. Apart from Hydel Development fund and contributory Provident fund. Affairs of these funds are managed by independent and autonomous Management Boards, which are governed by respective Acts. Investment of funds is guided by the objective to maintain financial viability and need to provide profitable investments.

56 Chapter 10: Public Financial Management (PFM) Reforms

PUBLIC FINANCIAL MANAGEMENT (PFM) REFORMS “IN KHYBER PAKHTUNKHWA”

INTRODUCTION: The Provincial Government of Khyber Pakhtunkhwa in its quest for improved public service delivery to the masses of the province has initiated a series of governance reforms under its Provincial Reforms Programme. One of the main components of its reforms agenda is improved public financial management in the province aiming to achieve aggregate fiscal discipline, allocative and operational efficiencies. In this regard, the Provincial Government of Khyber Pakhtunkhwa unveiled the first ever Integrated Public Financial Management Reforms Strategy during 2011-12. This strategy builds on the objectives of financial management reforms approved by the Cabinet, and the findings of most recent Public Expenditure Financial Accountability (Fiduciary) Assessment (PEFA) and the Fiduciary Risk Assessment (FRA). It attempts to address the weaknesses identified within the FRA vis-a-vis to budgeting and to audit (based on PEFA indicators). The aim behind the mitigation strategy is to provide greater credibility to the PFM reform programme of Khyber Pakhtunkhwa. The PFM Strategy demonstrates the desire to push forward PFM reforms with impact anticipated in specific areas. The Strategy stresses upon to ensure that all PFM reform initiatives are fully integrated and driven by the GoKP, thus embedding the ownership of the document, including those of other stakeholders such as the Federal Government. This Strategy also notes that there should be coordination and complementarities of other reform activities, avoiding overlaping or duplication (e.g. PCNA ), while it is further noted that all sector reform strategies should also be integrated within the main PFM strategy. On 17th April 2010, the objectives of PFM Reform Strategy were presented before the Cabinet. These objectives are as follows;

a. Making budget strategic by linking policies and priorities with budgeting b. Making budget credible and result oriented for better service delivery c. Improving budget execution and reporting d. Capacity Building of the workforce of Khyber Pakhtunkhwa e. Accountability for results

The Integrated Reform Strategy identifies outputs and activities around these five outcomes.

a. Making Budget Strategic By Linking Policies And Priorities With Budgeting: Steps are taken to make the budget strategic by linking policies and priorities with budgeting. Medium Term Budgetary Framework has been introduced and approved by the cabinet. The Finance Department presented the Budget Strategy Paper (BSP) before the cabinet. The Comprehensive Development Strategy was prepared to better


link the budget with strategy while the key service delivery departments, such as Health and Education, have prepared sector strategies and plans. These activities need to be further supported, deepened and replicated across the government.

b. Making Budget Credible And Result Oriented: Output Based Budgeting (OBB) was approved by the cabinet and adopted by the Government of Khyber Pakhtunkhwa. During the present year, OBB has been implemented in twelve departments of Khyber Pakhtunkhwa. The Output Based Budget methodology is similar to that of the Federal Government and links financial information to non-financial information such as goals, outcomes, outputs, targets and indicators.

This format also makes gender-based budgeting easier. In a province like Khyber Pakhtunkhwa, where there is extreme gender disparity with regard to health and education indicators, ‘gender-sensitive’ budgeting can make a difference. The new financial systems require credible and timely data. The Education Department has developed an Education Management Information System (EMIS) which can provide data disaggregated by districts and gender while the Health Department is currently implementing a Health Management Information System (HMIS). The Development Project Management System (DPMS) tracks physical and financial progress within the development budget. However more investment is required to enable these and other information systems to produce credible, relevant and timely reports and, in regard to this, the government also plans to revamp the Bureau of Statistics.

c. Improving Budget Execution And Reporting: Improved budget execution is vital for service delivery. The Project for Improvement of Financial Reporting and Auditing (PIFRA) has implemented an Integrated Financial Management Information System; this system needs to be embedded and used according to the workflow design. The system gives round the clock real-time information of budget execution and the Government of Khyber Pakhtunkhwa plans to prepare easy to read budget execution reports for providing timely information to the decision makers.

The ‘payroll’ and pension constitute ever- increasing expenditures of the provincial government and consume more than 60% of the budget, thereby leaving little fiscal space for development activities. The Finance Department through its internal audit cell will regularly conduct IT audits of personnel costs like salary and pension. The Government of Khyber Pakhtunkhwa will support PIFRA in the implementation of commitment accounting and a system for the recording of arrears.

d. Capacity Building Of The Workforce Of Khyber Pakhtunkhwa: Capacity building is a cross-cutting activity and is vital for the seamless implementation of the reform process. This will require training, preparing of job descriptions, using the latter for performance management and improving the capacity of budgeting and planning within the line departments. A detailed assessment


of training needs will be carried out and specific training will be offered to the staff of the Government of Khyber Pakhtunkhwa.

e. Accountability For Results: Accountability is very important for feedback on reform initiatives and making staff responsible for results. A comprehensive Monitoring and Evaluation Framework has been prepared and approved by the Government of Khyber Pakhtunkhwa. This framework complements the work carried out under the Comprehensive Development Strategy and Output Based Budgeting. Monitoring Guidelines have been prepared and, in future, monitoring will cover results of activities in addition to monitoring of development projects.

Last year the Cabinet approved the establishment of an Internal Audit Function in the Department of Finance, which has been endorsed to be extended to three other departments of the province. This activity will generate cost efficiency, improve internal controls and enhance a culture of accountability. The Department of the Auditor General of Pakistan has introduced a risk-based audit methodology and the Government of Khyber Pakhtunkhwa will support the Auditor General in its efforts to embed risk-based audits and performance audits.

Based on this Integrated PFM Reforms Strategy, during the year 2011-12, a number of key strategic interventions for the deepening of PFM reforms have been undertaken by the Provincial Government of Khyber Pakhtunkhwa. These initiatives include;

1. Full roll out of MTBF/Output Based Budgeting 2. Districts Output Based Budgeting & Conditional Grants 3. Pre-Budget Consultative Workshops 4. Internal Audit 5. Introduction of Business Plans 6. Economic Growth Strategy 7. Annual Strategy Review

1. MEDIUM TERM BUDGETARY FRAMEWORK & OUTPUT BASED BUDGETING:

A good budget process is far more than the preparation of a legal document that appropriates funds for a series of line items. Good budgeting is a broadly defined process that has political, managerial, planning, communication, and financial dimensions. The following definition recognizes the broad scope of the budget process and provides a base for improvement of the budget process. “The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets”. A good budget process is characterized by several essential features. A good budget process:

Incorporates a long-term perspective Establishes linkages to broad organizational goals


Focuses budget decisions on results and outcomes Involves and promotes effective communication with stakeholders Provide incentives to government management and employees

These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi- year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. In order to ensure these essential characteristics in the budgeting system of the province, the provincial government resorted to Medium Term Budgetary Framework and Output Based Budgeting. This new budgeting system was initially piloted in three departments during ‘2010-11’ with its roll out to nine more departments during ‘2011-12’. This year, the provincial cabinet has approved full roll out of output based budgeting. Some of the key business processes undertaken for the formulation of Output Based Budget ‘2012-15’ under MTBF included;

Formulated the three years forward budget estimates ‘2012-15’ on the basis of macroeconomic indicators.

The Medium Term Fiscal Framework ‘2012-15’ to determine the total resource envelop and expenditure pressures thereon.

The Budget Strategy Paper ‘2012-13’ approved by the Cabinet. Issued three years Recurrent Budget Ceilings to 12 departments for ‘2012-15’. The Cabinet approved three years Block Development Budget Ceilings. Developed Training Modules on PFM & OBB and imparted comprehensive trainings

thereon at DDOs level. Effective steering of the budget preparation processes by the senior management of

Administrative Departments through the formation of core teams. Preparation of the budget estimates by Administrative Departments in the light of

their strategic priorities/plans with appropriate information on performance indicators and targets.

Initiation of pre budget negotiations/meetings with the core groups by Finance Department.

Development of the log frames of all line departments of the province.

2. DISTRICTS OUTPUT BASED BUDGETING & CONDITIONAL GRANTS: During the year ‘2011-12’, the Provincial Government of Khyber Pakhtunkhwa extended output based budgeting to districts level with the introduction of districts conditional grants. This instrument of inter government transfers was piloted in the Elementary & Secondary Education and Health Departments of Districts D.I Khan and Buner. These districts were selected from the list of ten least developed districts of the province.


The UK Department for International Development provided a sum of Rs. 260 million and the GoKP appropriated Rs. 76 million as counterpart fund in ‘2011-12’ budget. District and Sector wise break-up of the releases is given below:

(Rs. In Million)

District Elementary & Secondary Education Health

1st Tranche

2nd Tranche Total 1st

Tranche 2nd

Tranche Total

Buner 45.120 39.286 84.406 15.340 13.355 28.695 D.I Khan 47.295 41.179 88.474 31.232 27.193 58.425

Total 92.415 80.465 172.880 46.572 40.548 87.120 The overarching objective(s) of introducing conditional grants is to improve service delivery in Education and Health Sectors at the grass root level and tie operational budget with better results. In order to achieve these objective intensive discussions were carried out with the provincial and districts stakeholders which led to the development of business plans for Education and Health sectors of these two districts. Since, it was the first time that business plans were prepared, therefore it consumed most of the time. However, it also facilitated the execution of quality work. These business plans also contained a set of indicators and targets. These indicators and targets for District D I Khan and Buner and the likelihood of their achievement are as given below:

CONDITIONAL GRANT SUCCESS INDICATORS FOR DISTRICT D I KHAN:

INDICATOR BASE LINE TARGET REMARKS Increased immunization of children under two years

(59)% or 238,363 children below the age of two years immunized

(64)% or258,563 children below the age of two years immunized, this means an increase of 20,200 children

This target is likely to be achieved. Outreach campaign started, medicines procured, ILRs obtained from UNICEF

Increase ante-natal care coverage

(37.8)% of pregnant ladies registered or 152,714 of pregnant ladies registered

(43.8)% of pregnant ladies registered or 176,954 of pregnant ladies registered. An increase of 24,240

Procurement process completed, activities will start with release of second tranche. The second tranche is in the process of release by Finance Department.

Decrease in number of girls primary schools with missing facility

Total of 398 girls schools in D I Khan have missing facilities.

20% reduction in schools with missing facilities. This means 80 schools will be provided with additional facilities benefiting 7,638 girl children.

155 schools selected. This is 39% of schools with missing facilities. This will benefit approximately 14,000 girls enrolled in these schools.


CONDITIONAL GRANT SUCCESS INDICATORS FOR DISTRICT BUNER:

INDICATOR BASE LINE TARGET REMARKS

Increased immunization of children under two years

(74)% or 187,230 children under two years of age immunized

(79)% or 199,880 children under two years of age immunized, an increase of 12,651 children

This target is likely to be achieved. Outreach campaign started, medicines procured, ILRs obtained from UNICEF

Increase ante-natal care coverage

(44)% of pregnant ladies registered or 111,326 pregnant ladies registered

(50)% of pregnant ladies registered or 118,005 pregnant ladies registered, an increase of 6,680

Procurement process completed, activities will start with release of second tranche. The second tranche is in the process of release by Finance Department.

Decrease in number of girls primary schools with missing facility

Total of 156 girls schools in Buner have missing facilities.

20% reduction in schools with missing facilities. This means 31 schools will be provided with additional facilities benefiting 7400 girl children.

86 schools selected. This is 55% of schools with missing facilities. This will benefit approximately 20,640 girls enrolled in these schools.

STANDARD OPERATING PROCEDURES (SOPS) FOR EXECUTION OF CONDITIONAL GRANT:

Approval of the concept of Conditional

Grants from Cabinet. Development of Business Plans through

greater stakeholders’ participation, wherein interventions are identified with detailed costing, key performance indicators and targets are set for effective performance measurement.

Proper monitoring and evaluation both at district and provincial level.

Approval of Business Plans from districts and provincial authorities.

Timely transfer of funds to District A/C-IV by PFC.

Identification of core groups in both sectors for ensuring the most efficient and effective execution of work.

Effective feedback mechanism whereby any issue/problem identified gets resolved in an instant manner.


Continuous independent audit from an international audit firm of high ranking, in this case Deloitte. Selection of the audit firm made through competitive bidding process under the rules.

Third party validation from high rated firm/CSO, in this case Grant Thornton, whose selection was made through competitive bidding process under the rules.

Keeping in view the effectiveness of progress till date, the concept of conditional grants is being extended to other districts as well. In this regard, a sum of Rs. 1 Billion as counterpart fund has been proposed in the budget ‘2012-13’ for this purpose.

3. VOICE OF THE PEOPLE IN BUDGET MAKING: Making the budget preparation process more transparent, open, participative and responsive has remained one of the key reforms agenda of the Provincial Government. In this pursuit, the Provincial Government initiated holding pre budget consultative workshops for greater stakeholders’ participation, so that to make the citizens voices heard in the budget formulation process. To engage the stakeholders of Khyber Pakhtunkhwa and seek their guidance in preparation of a business and people friendly budget for FY ‘2012-13’, the Finance Department in collaboration with the Planning & Development Department and with the technical assistance of Provincial Reforms Programme, organized a number of pre budget consultative workshops both at provincial and districts level, so that;

To orient the key stakeholders on the salient features of the reforms taking place in Government of Khyber Pukhtunkhwa;

To disseminate key CDS policies and priorities and identify CDS/additional priorities for inclusion in Budget Strategy Paper BSP 2012-13;

To seek inputs from key stakeholders representing elected representatives, business community, media, academia, civil society etc for inputs into the budget for the year 2012-13.

PRE-BUDGET CONSULTATIVE WORKSHOPS: 1. "CITIZENS' VOICE FOR DEVELOPMENT" - DISTRICT MARDAN: The first consultative pre-budget seminar on "Citizens' Voice for Development" was held under auspices of the Finance and Planning & Development Departments of Khyber-Pakhtunkhwa in collaboration with the Department for International Development (DFID) UKaid in District Mardan on Tuesday 13th Mar, 2012. The participants representing elected representatives, members of civil society, academia, business community and media highlighted the need for economic development working on the strengths of the districts. The participants said that education, health and water and sanitation are priority sectors for development and stressed the need for provision of additional funds for bringing improvement in existing performance and quality of services. During the seminar women participants highlighted the specific needs of women particularly in the areas of violence to women,


vocational training and the need to raise awareness of their legal rights to afford them better protection. The Secretary-General, Mardan Chamber of Commerce and Industry demanded for development funds in the marble industry to introduce new technology in the quarries mining for marble and granite. He pointed out that 72 percent of marble is lost in the blasting process thereby only 28 percent used productively which is a tremendous loss of valuable asset for the province. There is a need to develop roads and transport infrastructure linking the quarries to the market place, he added. A representative of the women chamber of commerce Mardan recommended that there should be women specific schemes for employment and economic development. She appreciated the Bacha Khan Khpal Rozgar Scheme and recommended that there should be more communication from the government, so that women could benefit from such schemes. There was unanimity by the participants on welcoming this initiative of involving the various stakeholders as part of the future budget preparations. They particularly thanked and appreciated efforts made by the provincial and district authorities to meet and discuss issues to improve the quality of life of the citizens. They thanked the Secretary Finance who chaired the meeting along with Chief Economist, the Commissioner, DCO and the Provincial Finance Controller who attended the meeting. 2. PRE BUDGET JIRGA - DISTRICT PESHAWAR: A pre-budget jirga was organized with the support of Department for International Development UKaid for members of the Provincial Assembly in Peshawar on Thursday, 12th April, 2012 under the auspices of the Department of Finance. The pre-budget jirga was part of a series of such meetings initiated by the Provincial Government to take the elected representatives of the province into confidence regarding the budget-making process. It was presided over by Speaker of the Khyber-Pakhtunkhwa Assembly Kiramatullah Khan Chugharmati. This consultative session was well attended by the Provincial Ministers, members of the Provincial Assembly and the Administrative Secretaries of the province. The Secretary Finance brought attention toward the budget priorities and the fiscal constraints faced by the Government of Khyber Pakhtunkhwa. He referred to the last year Pre-budget consultations that resulted in various interventions such as the pro-poor initiatives that include; Bacha Khan Khpal Rozgar Programme, Benazir Health Initiatives, Storie da Pakhtunkhwa Programme, technical education initiatives etc. The Secretary Planning & Development Department also presented the new development model that focuses on consolidation rather than expansion. Syed Aqil Shah, Minister Sports & Culture came up with a very strong stance on the way the Federal Ministry of tourism is planned to be devolved arguing on it he said that the PTDC is multibillion property and if devolved to the province would be sufficient enough to run the Ministry from its own revenues. It was reiterated that the tourism industry needs to be developed through enhanced public private partnerships. A female parliamentarian Ms Syeda Batool Nasir greatly appreciated this effort of holding pre budget workshops and recommended to focus on rehabilitation of existing infrastructure rather than expansion. Mr. Iqbal Fana, Member of Provincial Assembly stressed revenue generation through hydel power


projects and also suggested the development of the province owned refinery and fertilizers industry. A number of other MPAs belonging to different regions of Khyber Pakhtunkhwa also made their suggestions/inputs for the Budget ‘2012-13’. Minister for Finance, Engr. Muhammad Humayun Khan assured the public representatives that keeping in view the resource position of the province, all their viable suggestions and proposals would be given due weight in the next budget and priority would be given to the education, health and other social welfare sectors. 3. LINKING POLICIES & PRIORITIES WITH BUDGETING - DISTRICT PESHAWAR: This workshop was organized by the Planning and Development Department with the technical assistance of UKAID’s funded Provincial Reforms Programme on Thursday 26th Apr, 2012 in Peshawar. Mr. Rahim Dad Khan, Senior Minister P&D chaired the session. The workshop had representation from the academia, respective fields of specialty and civil society. There is an unprecedented need to link the policy initiatives with the budgetary processes and this Pre-budget consultative Workshop was a step in this direction. The workshop was opened with the presentation of Reforms Coordinator, Reform Management Unit of Finance Department, who briefed the participants on the Priorities of the Government and also elaborated the fiscal challenges faced by the government in present times. It was stressed that such workshops help in bringing higher standards of service delivery. The Secretary, Planning and Development highlighted the salient features of the Economic Growth Strategy recently approved that sets a path towards the economic development of the province. He informed the participants about the potential of the province in the areas of industries, Oil and Gas and Minerals etc and the ardent need of development that is required to tap the potential for the uplift of the province. The participants were later divided into groups according to the priority sectors of the Economic Growth Strategy. The groups were requested to register their comments regarding building strengths of their particular sectors and cope with the threats faced by the respective sector. The groups also identified new initiatives to improve service delivery keeping in view the limited fiscal envelop. The most important activity was the identification of performance indicators to better assess and report the standards of service delivery. The participants of the workshop greatly appreciated this initiative of involving the various stakeholders as part of the future budget preparations. They particularly thanked and appreciated efforts made by the provincial government to meet and discuss issues to improve the quality of life of the citizens. 4. "CITIZENS' VOICE FOR DEVELOPMENT" - DISTRICT ABBOTTABAD: A pre-budget workshop was held in Abbotabad on Friday, 18th May, 2012 titled ‘Citizens’ voice for development’, which was organized by the Khyber Pakhtunkhwa Finance and Planning and development departments in collaboration with the United Kingdom’s Department for International Development (UK Aid). Main focus was the allocation of funds in the next budget on need basis instead of political grounds. Government officials, representatives of nongovernmental organizations, civil society activists and journalists showed up in large


numbers. Noted among speakers were Local MPAs Javed Abbasi and Qalandar Lodhi, provincial finance secretary Sahibzada Saeed Ahmad, Chief Planning Officer Usman Gul and former Additional Chief Secretary Khalid Aziz. They spoke about long and short term fiscal policies for better economic growth in the province and emphasized that the people’s needs should be kept in view before making fiscal policies and allocation of funds in the budget. Participants from Battagram , Kohistan , Haripur and other areas floated the budget proposals, especially about removal of disparity in the fund’s allocation for power , gas and oil sectors. Some of the MPAs praised the Honorable Provincial Chief Minister Ameer Haider Khan Hoti over massive development in the Province and said that he should ensure that the finance department approves the schemes proposed by districts. Civil society activists presented statistics about previous budgetary allocations to districts and said poor districts like Kohistan were often ignored during the budget. Later, participants called for fair distribution of funds to districts, saying it would help reduce the sense of deprivation among the least developed districts. Sahibzada Saeed Ahmad, Secretary Finance highlighted that the delicate security situation is a major barrier to better revenue generation. But the 7th NFC Award helped the Provincial Government to revise its economic growth strategy for improving productivity, socioeconomic development and social sector. He said a fool proof system of check and balance would be developed for use of development funds and sought the civil society’s support to keep a vigilant eye on their spending. “Foreign donors are more than satisfied with our system. The European Union is going to provide us with 40 billion euro development funding in the wake of the successful completion of the education projects,” said by the Finance Secretary. It was deliberated that the revenue base would be increased in the next fiscal year.

LAST YEAR, THESE CONSULTATIVE PRE BUDGET WORKSHOPS HELPED THE PROVINCIAL GOVERNMENT IN INITIATION OF A NUMBER OF INNOVATIVE PRO POOR PROGRAMMES AS BRIEFED BELOW;

(Rs. In Million)

2011-12 2012-13 Youth Technical Education 300.000 0.000 Hunarmand Rozgar Scheme 1300.000 0.000 Nursing Training Programme 500.000 0.000 Benazir Health Support Programme 500.000 0.000 Bacha Khan Khpal Rozgar 1000.000 1000.000 IT Call Centers 200.000 600.000 Stori da Pakthunkhwa Programme 50.000 100.000 Rokhana Pakhtunkhwa Programme 500.000 500.000 Riwaiti Hunarmand Rozgar Scheme 150.000 300.000 Farm Mechanization in KP -- 500.000 Nusrat Bhutto Oncology Service -- 500.000 Scholarship scheme for promotion of gilrs -- 242.000


education in district Tor Ghar/Kohistan Naway Sahar Laptop Scheme -- 1000.000 Long Term financing facilities for development of industries in KP

-- 1000.000

Deepening and Replication of Conditional Grants 70.000 1000.000 Total 4.570 6742.000

4. INTERNAL AUDIT:

Internal Audit being an integral component of the Internal Control System contributes significantly to the effective implementation of the policies, programmes and actions and to the most economic and efficient utilization of resources. The Internal Audit Service audits the management and control systems that exist within the Government and provides continuous independent and objective assurance on their adequacy and effectiveness. On the request of management, it also offers consulting services. Realizing the significance of this functionality, the Provincial Cabinet last year approved the concept of Internal Audit. Consequently, an Internal Audit Charter in the light of International Standards for the Professional Practice of Internal Auditing (ISPPIA) and best practices in public sector internal auditing was successfully prepared and approved. Initially, it was piloted in Finance Department and an Internal Audit Unit was notified for the purpose. This unit carried out internal audit of payroll and pension which resulted in the identification of cost efficiency of Rs 74 million in pension. Similarly, for the first time computer based audit of the payroll of the provincial government was carried out. The methodology adopted by the internal audit wing of Finance Department for undertaking the internal audit of payroll and pension is as briefed below; Payroll Audit:

The Government of Khyber Pakhtunkhwa spends a large portion of its budget on government staff salaries (PKR 86 billion in 2011-12) and wants to introduce efficiency and economy in its personnel expenditure. PRP provided support through an IT Audit of the GoKP Payroll System, covering:

Collection of payroll data from the SAP system; Audit checks on the payroll data; and, Physical verification of a sample of employees.

This was the first time that payroll data for Khyber Pakhtunkhwa was analysed using IT auditing tools. The Staff from the Financial Management Information Unit were trained in Audit Command Language (ACL), which is the preferred software for performing IT audit of databases on SAP platform.


The Audit Report was submitted to the Secretary Finance. From the initial findings it is estimated that the GoKP will identify efficiency gains as promised in the Log frame of PRP. Pension Audit: There are more than 130,000 pensioners who are paid by the Provincial Government from provincial exchequer. Realizing the significance of instilling a continuous review of the payments made under pension head, Finance Department with the support of UK Department for International Development UK Aid hired the services of one Deputy Secretary with a team of two officials from the Treasury Establishment. This team audited the record of a few selected months of some districts and detected million of rupees erroneously booked against the Government of Khyber Pakhtunkhwa actually pertaining to the pension liabilities of other governments. All these discrepancies were reported to the concerned District Accounts Offices, which after rechecking of their record confirmed the wrong payments and recovered the amounts from the concerned governments. Till-date, more than 74 million stands recovered and more than 4 million are in the process of recovery in A.G’s Office Peshawar. It is expected that by the end of the current financial year the total recovery would reach Rs. 100 millions. For enhanced value addition to the public money, it has been endorsed by the provincial cabinet to extend this functionality to four other departments of the province during the FY ‘2012-13’.

5. INTRODUCTION OF BUSINESS PLANS: The Government of Khyber Pakhtunkhwa in its quest for improved public financial management in the province initiated a series of reforms. One of such initiatives was the introduction of output based budgeting. This new budgeting system has been successfully introduced in twelve line departments of the province and is being rolled out to rest of the departments this year. The very essence of output based budgeting is to link the strategic priorities of the government with its spending plans. In this context, it revolves around the outcomes/outputs framework and answers the questions of: what does government wants to achieve (outcomes); how does it want to reach those achievements (outputs); and how does it know if it is succeeding (indicators)? Line Departments are now required to specify and cost their outputs against planned outcomes and identify performance indicators and targets. Importantly, appropriations are now made at the outputs level. Outcomes, and the departmental outputs, therefore form the basis of a department's operating budget and external reporting framework. The framework focuses on the outputs the public sector is producing and their contribution to the outcomes, and is aimed at assisting the tracking of results and progress towards targets. The output component of the framework also facilitates tracking and benchmarking of process, and hence is an important aid to improved efficiency.


In order to enable the line departments to translate their Strategic Plans into Operational/Business Plans for a period of three years in a more consistent, coherent and uniform manner and accordingly to make them accountable for the results, the introduction of annual business plans in three departments as part of their annual budget process has been approved. The Medium Term Budgetary Framework (MTBF) already provides an important base for such operational/business plans. Presently, the budget estimates submitted by line departments are not prepared scientifically by giving due consideration to their priorities/needs for the coming financial year i.e. human resource requirements, procurements etc. This eventually leads to approaching Finance Department for additional funds mid of the year, and having no other way out their demands are fulfilled through summary releases, supplementary grants and re-appropriations. Such a state of affair puts at stake the overall credibility of the budgeting system of the province. A business plan makes it much easier to translate a strategic plan into a budget. When the translation is smoother and more precise, it will simplify the process of identifying and removing spending from the budget that is not aligned with the strategic plan. Also, elected representatives will have more confidence that the budget is aligned with their priorities, and will be more supportive of the integrity of the spending plan throughout the year. Besides, it will help the provincial government achieve aggregate fiscal discipline, allocative efficiency and operational efficiency by reducing in year adjustments i.e. re-appropriations, supplementary/excess grants and surrenders and will help in further reducing the budget outturn variations.

6. ECONOMIC GROWTH STRATEGY: The Provincial Government of Khyber Pakhtunkhwa in its efforts to stimulate growth in potential ‘growth/priority sectors’ of the economy through enhanced public investments and complementary sectoral policies has strategized this intent through Economic Growth


Strategy. The Economic Growth Strategy envisions that acceleration of growth will be realized by concentrating on natural resource endowments of the province whether in Hydel Power, Mining and Minerals or Oil & Gas. At the same time, GoKP will develop the supporting sectors i.e. Utilities (energy and water), telecommunication, Infrastructure and Irrigation to remove the impediments hindering growth in ‘priority sectors’. The strategy marks a paradigm shift in Public investments and advocates improvement in Service Delivery instead of archaic Brick and Mortar development policy. In line with the broad parameters, ADP will reflect the strategic priorities of:

Consolidation rather than Expansion which characterizes improvement in existing facilities.

Reduction in throw forward by allocating more resources to ongoing project i.e. 70% of ADP.

Rapid increase in development allocations to the sectors where there is higher return on investment i.e. Hydro electricity, Oil and Gas and the sectors which rely on indigenous natural resources/raw materials i.e. Minerals

Improvement in management of Public Finances through Output based Budgeting extended to Development budget.

ECONOMIC GROWTH FRAMEWORK Productive Sectors Socio- Economic Social Sectors

1. Energy & Power (all sub sectors) 1. Agriculture 1. Education

2. Water 2. Food 2. Health 3. Minerals 3. Roads 3. DWSS

4. Industries (all sub sectors) 4. Environment

(all sub sectors) 4. Sports

5. Labor 5. Building 5. Aqua 6. ST&IT 6. R&D 6. Information

7. Transport 7. Urban Development 7. Social Protection Initiatives

8. Housing 9. Tourism

Areas Open for investment from:

Areas open for investment from:

Areas open for investment from:

1. ADP (Inc. 70%) 2. PSDP (50%) 3. Donors (grants/may even opt for commercial loans

1. ADP (inc. 30 %) 2. PSDP (30%) 3. Donors (grants)

1. ADP (capped) 2. PSDP (20%) 3. Donors (grants)


7. ANNUAL STRATEGY REVIEW: The Annual Strategy Review (ASR) is the review of the developmental strategies and the budgetary allocation process, which has been carried out by the Planning and Development Department for the first time in the history of Khyber Pakhtunkhwa. The provincial government developed strategies to lift its GDP highlighting sectors of the highest potential. The different strategies developed are as follows;

Comprehensive Development Strategy (CDS) Post Crisis Need Assessment (PCNA) Economic Growth Strategy (EGS)

The main purpose of the ASR is to make sure that development allocations are in line with the above strategies and check the reasons for any deviation from the path defined. The detailed analysis of the ADP 2010-11 and 2011-12 was carried out comparing sectoral allocations of ADP to the short term allocations to different sectors in CDS. An amount of 126.678 billion out of the total ADP for 2010-12 was allocated against the CDS allocations of 201.114 billion showing a compliance of more than 67%. This analysis was carried out for the thirteen key sectors namely Health, Education, Social Protection, Governance, Security, Roads, WATSAN, Housing, Higher Education, Irrigation, Energy & Power, Agriculture and Urban Development. A graphical representation of comparison in terms of Actual allocation and as percentage of the total desired allocation to each sector as per the CDS & EGS is given below:-

The Annual Strategy Review provides an important part of the evidence guiding the Budget Strategy Paper and showing the extent to which recent trends in expenditure match the intentions contained in the Comprehensive Development Strategy and the Economic Growth Strategy. ASR is going to be carried out by the Planning and Development Department annually for better alignment with the sectoral strategies.

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2010-11 Total Budget

2011-12 Total Budget

Total Budget - EGS 2012-13

CDS short term Annual Allocation


8. MEDIUM TERM FISCAL FRAMEWORK (MTFF) The MTFF is composed of fiscal projections of income and expenditure of Provincial Government over the medium term. The MTFF enhances predictability of resource commitment to different sectors, promoting greater confidence, continuity and sustainability in economic and social polices by the Government. It is worth mention, here that on the basis of projections of MTFF in the Budget Strategy Paper-I, the indicative budgetary ceilings were prepared and communicated to 12 departments during the financial year 2011-12 for the preparation of Output Base Budget over the medium term. The MTFF will minimize the need for re-appropriations and requests for supplementary grants during a financial year. Figures of Budget Estimates of receipts and expenditure 2012-13 have been taken as, base year, for the projections of Receipts & Expenditure for FY 2013-14 and 2014-15. The fiscal projections of receipts and expenditure over the medium term period is given as under: -

MTFF of the Government of Khyber Paktunkhwa for financial year 2012-13 to 2014-15

(Rs. in million)

Rs. In million (unless otherwise stated)



Projections

2013-14 2014-15

REVENUE Total Revenue Receipts 238,499 279,015 318,433 341,708

Federal Tax Assignment 152,736 183,685 213,075 249,297 1% for War on Terror 18,352 22,071 25,602 29,955 GST on services 8,923 9,886 10,875 11,962 Provincial Own Revenues 9,994 10,215 11,292 12,586 Straight Transfers 17,494 22,158 26,590 31,908 Net Hydel Profit 31,000 31,000 31,000 6,000

Transfers to District Governments 68,338 85,512 101,177 119,647

Wages 56,501 71,138 85,366 102,439 Non-Salary 7,387 9,165 10,082 11,090 Octroi and Zila Tax 2,930 3,537 3,891 4,280 Annual Development Program

(Distts.) 1,520 1,672 1,839 1,839

Net Revenue after Transfers 170,161 193,503 217,256 222,061 EXPENDITURE Current Expenditure 84,535 98,197 114,487 134,158

Wages 37,723 44,299 53,159 63,791 Pension 15,954 21,582 25,898 31,078 Non-Wage O&M and Contingency 21,358 20,816 23,730 27,290


Subsidy 2,000 2,500 2,700 3,000 Committed Contribution 7,500 9,000 9,000 9,000

Development Expenditure 82,954 95,786 103,574 91,343

Annual Development Program (Provl.) 70,062 72,528 77,990 63,201

Special Programme (PSDP) 5,377 - - - Foreign Project Assistance 7,515 23,258 25,584 28,142

PRIMARY BALANCE 2,672 (480) (806) (3,441) GRANTS AND INTEREST PAYMENTS Federal & Foreign grants 15,023 20,040 21,996 24,148

Federal Dev. Grants 3,073 - - - Foreign Dev. Grants 11,473 19,563 21,519 23,671 Others 477 477 477 477

Interest Payments 9,647 9,563 10,519 11,571 OVERALL BALANCE 8,048 9,997 10,671 9,136 BUDGET FINANCING Net Domestic Debt (1,201) (1,200) (1,200) - Net Federal Debt (4,729) (3,039) (3,343) (3,677) Net Foreign debt (2,470) (5) (376) (857) Net Capital (4,911) (5,753) (5,753) (4,602) Cash Balance 5,263 - - - Total Financing (8,048) (9,997) (10,671) (9,136)

On the basis of projections of MTFF for FY 2013-14 and 2014-15, the indicative budgetary ceilings have been prepared and added at Annexure-V for providing guidance to the departments for preparation of Output Base Budget over the medium term.

73 Chapter 11: Bank of Khyber

BANK OF KHYBER “Custodian of Rich Values”

Established in 1991 through Act XVI of the Provincial Assembly of Khyber Pakhtunkhwa main purpose was to cater to the growing banking requirements of Khyber Pakhtunkhwa (formally N.W.F.P). Commenced commercial operations in November 1991, and was designated as a scheduled bank by the State Bank of Pakistan in 1994. The bank is listed on the Karachi Stock Exchange (KSE). Established in 1991, the bank has completed 20 years in banking Industry. What makes them celebrates this unique moment is not only owing to the journey of 20 years they have travelled as a bank but it is much more than that. Just like the name of bank is synonymous with the name of Khyber Pakhtunkhwa; it represents and reflects the aspirations of the peoples of our province. What fascinates the most is the virtual beginning of a new journey of the bank from a bank confined just to one province to a bank that is now growing to each province of Pakistan and beyond. The fact that today the bank is expanding at a breath taking pace adds another feather to the cap. The bank was able to establish less than 30 branches in the first 18 years, however in brief span of last two years the management of the bank has almost doubled this tally. This renewed vigor comes from their past experience that is helping them charter a new course for the bank in the days to come. They ask their patrons as well as customers to hold their breath to be part of our journey of rising to newer heights and newer destinations. At present i.e. on 31.03.2012, the bank operates a network of 62 branches and 4 sub branches in cities across the country with main concentration in Khyber Pakhtunkhwa. Offers full commercial banking services to its corporate and retail clients. As a mainstream bank now, they have the unique distinction of offering the best of Islamic as well as Conventional banking at entire network of branches. The bank has established network of 325 correspondent international banks in 74 countries. The Board of Directors of BOK comprises of eminent professionals from the Government of Khyber Pakhtunkhwa and also from the private sector. The management of the bank comprises of professional personnel from the leading and well renowned local as well as foreign institutions. Capable enough to meet the challenges and goal set for this year and years to come. MAJOR PRODUCTS OF BANK OF KHYBER ARE:

Commercial Lending Islamic Finance Consumer Finance Car Finance Housing Loans Salary Loan Schemes Micro Finance business development programmes Agricultural Finance


THE BANK OF KHYBER IN LIGHT OF PRECEDING YEAR PERFORMANCE AND EXPECTED PERFORMANCE IN THE YEAR 2012: The Bank of Khyber is mainly operating in Khyber Pakhtunkhawa, substantially owned by the Government of Khyber Pakhtunkhawa. Achievements During 2011:

The Bank has showed remarkable growth in total assets, deposits, advances and profit over last year figures.

The total assets increased by 36% i.e. from Rs 50 billion to Rs. 68 billion, advances increased by 22% i.e. from Rs 18 billion to 22 billion and deposits by 25% i.e. from Rs.36 billion to Rs.45 billion.

The bank booked a profit of Rs 872 million after tax for the year 2011 showing an increase of 55 % over last year.

Total imports, exports and home remittance during the year 2011 has increased by 57% i.e. from Rs. 8.17 billion to Rs.12.83 billion, 49% i.e. from Rs. 7.01 billion to Rs.10.43 billion, 27% i.e. from Rs. 10.51 billion to Rs. 13.31 billion, respectively, over the year ended 31.12.2011.

The banks’ minimum capital requirements for the year ending December 31, 2011 has been met by issuing right shares amounting to Rs 3.224 billion. Major portion of the right issue has been subscribed by government of Khyber Pakhtunkhwa.

Credit rating of the bank has been improved to A-(Single A minus) and A2 (A two) from BBB+ (Tripled B plus) and A3 (A three) for long term and short term, respectively and now the bank is enjoying the status of A rated bank.

Branch network has increased by 24% i.e. from 50 branches to 62 branches. EXPECTED PERFORMANCE DURING 2012: Minimum Capital Requirements: As per statutory requirement of the State Bank of Pakistan, the Bank is going to increase its paid up capital to Rs.9.00 billion by issuing right/bonus shares during the year 2012. . Advances, Deposits and Profits: The bank is expected to increase its total assets to Rs.70 billion, deposits by 11%, i.e. from Rs.45 billion to Rs.50 billion, advances by 50% i.e. from Rs. 22 billion to Rs.33 billion and profit before tax to 1.312 billion. Import, Export and Home Remittances: Total imports, exports and home remittance for the year 2012 has been set to Rs, 14.47 billion (2011: Rs, 12.83 billion), Rs 13.48 billion (2011; Rs 10.43 billion) and Rs 15.50 billion (2011; Rs13.31 billion), respectively.


Non-Performing Loans: Since majority of NPLs have already been provided for, so it is expected that year 2012 will show better results. Further it is expected that reversals/cash recovery will be having a positive impact on profit in 2012. Branch Network: Issuance of licenses by State Bank of Pakistan for additional 16 branches for the year 2012 makes the total net work to 78 branches i.e. a rise of 25%.

1. BACHA KHAN ROZGAR SCHEME: With organizational and technical assistance from The Bank of Khyber, the Government of Khyber Pakhtunkhwa has launched Bacha Khan Rozgar Scheme for income and employment generation opportunities in the province which is badly affected by war on terror and devastating floods. The main objective of the scheme is promoting entrepreneurship and generating economic activities particularly in the terror and flood affected communities affected families, small traders, low income entrepreneurs, and unemployed skilled men and women. This scheme is free of markup with 3 years maturity, 30% quota for women and 2% quota for disable persons. It shall facilitate and promote entrepreneurship in the province to ultimately help in poverty reduction. The government has so far earmarked Rs. 2 Billion for the scheme. BOK has approved a total of 14,500 applications amounting to Rs. 1,300 Million. The Bank of Khyber has been providing managerial and organizational support to ensure transparent use of the funds. 2. PAKHTUNKHWA HUNERMAND ROZGAR SCHEME: The Government has also launched Pakhtunkhwa Hunermand Rozgar Scheme to provide income and employment opportunities to skilled men and women. The scheme has been perceived as a poverty alleviations strategy for the indigenous skilled people by promoting their income and generating activities potential. The Government has allocated Rs. 1,300 Million for the scheme to be executed through The Bank of Khyber. The scheme is based on soft terms and shall cater to the financial needs of poor and low income entrepreneurs, specially qualified / skilled men and women trained in various arts, crafts and other vocational skills. The Bank of Khyber has so far approved a total of 98 applications amounting to nearly Rs. 18 Million and has disbursed 17 loans amounting to Rs. 3.4 Million. 3. SME DEVELOPMENT: Contributing significantly to income and employment generation, the Government of Khyber Pakhtunkhwa considers the promotion of Small and Medium Enterprises as one of the economic development strategies for the province. Through organizational and technical facilitation of the Bank of Khyber, the government has taken a number of initiatives for the assistance and rehabilitation of the business community in the province. To promote entrepreneurship through subsidized financing to SMEs in the province, the government has earmarked an initial funding of Rs. 200 Million for the purpose of subsidized financing to


SMEs which will help overcome massive unemployment and retarded growth for industries and manufacturing sector in the war on terror and flood affected province. The funds shall be utilized for the propose of purchasing raw material, machinery / equipment and balancing, modernization & replacement. 4. RIWAITI HUNERMAND ROZGAR SCHEME: Being famous for a variety of fabulous art and craft by skilled artisans in region, this indigenous traditions has been dying due to lack of focus and patronage. The Government Khyber Pakhtunkhwa realized that indigenous skills and workmanship has been neglected since long and initiated efforts for its revival. With initial allocation of Rs. 150 Million, the government started Riwaiti Hunermand Rozgar Scheme for the revival of traditional skills in the province. Soft term loans shall be provided through the Bank of Khyber to help traditional art and craft workers and skilled person for expanding and upgrading their business. The scheme we hope shall also helpful in income and employment generation besides the revival of traditional skills.

CONCLUSION: In conclusion, we can say that management of the Bank of Khyber during last two years, is performing well and showed historic growth in all sectors i.e. deposits, advances, profit, imports, exports and home remittances etc and it is expected to achieve better results during the year 2012, provided the economy continue to grow with the same pace and Government policies continue to encourage foreign and local investments in the country.

77 Chapter 12: Funds Management

FUNDS MANAGEMENT INTRODUCTION: The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. The provision of 'investment management services' includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of billions of Rupees. Investment management also known as portfolio management is not a simple activity as it involves many complex steps like specification of investment objectives & constraints, choice of the asset mix, formulation of portfolio strategy, selection of securities, portfolio execution, portfolio revision, and performance evaluation. The Government regulates its funds and investment in a cautious manner and aims to benefit the subscribers of the funds, during and after, their services. The Government of Khyber Pakhtunkhwa is custodian to the contributions made by the subscribers in shape of Provident Fund and Pension Fund. Each year the Government pays a hefty amount as interest on the Provident Fund balance and at the same time it receives a considerable burden in the shape of expenditure on pension liabilities. The annual mark up paid to account holders is also a heavy toll on the Provincial exchequer. If both these revenue expenditures are put together, it exceeds the Provincial own receipts. Foreseeing this adverse and unfavourable scenario, the Provincial Government has taken certain initiatives like establishment of the General Provident Investment Fund and Pension Fund. The establishment of such funds was also essential to augment and supplement the resources of Khyber Pakhtunkhwa. ESTABLISHMENT OF FUNDS: The Khyber Pakhtunkhwa Govt. established the following Funds:

1. General Provident Investment Fund 2. Pension Fund 3. Hydel Development Fund 4. Contributory Provident (CP) Fund

KHYBER PAKHTUNKHWA GENERAL PROVIDENT FUND: General Provident Investment Fund was established in the year 1991-92 with initial allocation of Rs. 200 million as equity. The prime purpose for establishment of the GP fund was to invest its reserves in safe and well protected instruments for maximum profits and benefits. To oversee the affairs of the fund, a Fund Management Board, under the Chairmanship of the Chief Secretary, Khyber Pakhtunkhwa has been established. The


composition of the board is diversified with members from Finance, Administration, banking sectors and representative of the subscribers. This gives a more representative and robust outlook to the management of the fund affairs. The Fund is governed by an Act with specified rules of business for running the affairs of the Fund. An Investment Committee, headed by the Finance Secretary, was constituted to carry out the day to day functions of the Fund. It has a total size of Rs 18,498.840 million (Government contribution Rs. 6,750.000 million + Profit Rs. 11,748.840 million) upto 30th June, 2012.

(Rs. in million)

Year Opening Balance

Released During The Year

Profit During The Year

Cumulative Total (end of the year)

Till 30.06.06 2,750.00 4,340.90 7,090.90 2006-07 7,090.90 300 784.874 8,175.78 2007-08 8,175.78 300 783.859 9,259.64 2008-09 9,259.64 300 971.527 10,531.16 2009-10 10,531.16 300 1,395.78 12,226.94 2010-11 12,226.94 800 1,564.41 14,591.35 2011-12 14,591.35 2000 1,907.49 18,498.84 Grand Total 6,750.000 11,748.840

KHYBER PAKHTUNKHWA PENSION FUND: The Pension Fund was established in 1997-98 with initial allocation of Rs. 150 million as seed money. The Fund was created to meet the ever increasing pension liabilities of the retired Government employees. This fund too has a Management Board headed by the Chief Secretary, Khyber Pakhtunkhwa. It has a total size of Rs 12,440.900 million (Government contribution Rs. 6,850.000 million + Profit Rs. 5,590.900 million) upto 30th June, 2012.

(Rs. in million)





Till 30.6.06 2,650.00 1,418.60 4,068.60 2006-07 4,068.60 400 456.911 4,925.51 2007-08 4,925.51 400 389.037 5,714.55 2008-09 5,714.55 400 564.046 6,678.60 2009-10 6,678.60 400 727.95 7,806.55 2010-11 7,806.55 600 989.73 9,396.28 2011-12 9,396.28 2000 1044.621 12,440.90 Grand Total 6,850.00 5,590.90

KHYBER PAKHTUNKHWA HYDEL DEVELOPMENT FUND: The Hydel Development Fund was created in 1992 with an initial allocation of Rs 50 million. The Fund was given legal cover through enactment namely Khyber Pakhtunkhwa, Hydel


Development Fund Ordinance 2001. The objective of this Fund is to develop Hydel potential of Khyber Pakhtunkhwa. The Provincial Govt. has up-to 30th June, 2012 contributed Rs. 15,809.710 million as equity in the Fund; whereas, un-appropriated profit upto 30th June, 2012 is Rs. 7,721.150 million. This Fund is managed by a Management Board under the Chairmanship of Chief Minister, Khyber Pakhtunkhwa, with Minister for Finance, Minister for Irrigation & Power, Chief Secretary, Additional Chief Secretary, Secretary Finance, Secretary Energy & Power as its members. For carrying out day-to-day business an Investment Committee was constituted under the Chairmanship of Chief Secretary, Khyber Pakhtunkhwa, with Secretary Energy & Power, Secretary Finance, Managing Director SHYDO, and Director Finance & Admin SHYDO as members. The Fund has contributed Rs. 2,551.490 million in development of Malakand III HPP, Rs. 425.500 million in Pehur HPP, Rs. 696.800 million for construction of Daral Khwar HPP and Rs. 324 million for feasibilities studies of raw sites in Khyber Pakhtunkhwa for construction of Hydro Projects.

(Rs. In million)





Till 30.6.06 1,810.00 1,971.87 3,781.87 2006-07 3,781.87 0 121.56 3,903.43 2007-08 3,903.43 200 133.23 4,236.66 2008-09 4,236.764 500 218.640 4,955.404 2009-10 4,955.404 10,599.71 1,030.925 16,586.036 2010-11 16,586.036 1,500 1,822.021 19,908.404 2011-12 19,908.404 2,000 2,329.066 24,237.123 Grand Total 16,609.71 7,627.312

KHYBER PAKHTUNKHWA CONTRIBUTORY PROVIDENT FUND (CPF): The Contributory Provident Fund (CPF) was established in 2006 with starting allocation of Rs. 50 million. The Fund was given legal cover through enactment namely Khyber Pakhtunkhwa CP Fund Rules, 2006. For the Management of this Fund there is a Management Board under the Chairmanship of Chief Secretary, Khyber Pakhtunkhwa, with Secretary Finance, Secretary Administration, Accountant General, Khyber Pakhtunkhwa, Chief Manager, State Bank of Pakistan and representative of the subscribers to the Fund as members. It has a total size of Rs 2,859.589 million (Government contribution Rs. 2,410.010 million + Profit Rs. 449.579 million) upto 30th June, 2012.

(Rs. In million)





2008-09 0 50 7.493 57.493 2009-10 57.493 659.321 64.504 781.318


2010-11 781.318 717.457 38.712 1537.487 2011-12 1537.49 983.234 338.87 2859.589 Grand Total 2,410.01 449.579

FUND CELL: The Finance Department works as secretariat for these funds and a Fund Cell has been created to manage the affairs of the Funds. The Cell is responsible for overall affairs, maintenance of accounts, conduction of audit of accounts and convene meetings of the Investment Committees / Boards. AUDITORS OF THE GPI & PENSION FUNDS: As per Law of the Funds, Director General (Commercial) Audit, Lahore is responsible to carryout audit of the accounts of the Fund. Besides, financial audits are conducted through Kabani & Co., Islamabad and Rafaqat Babar & Co. Peshawar Chartered Accountants on yearly basis. PERFORMANCE REVIEW: There has been a steady growth in funds due to better management. Funds are being managed professionally, diligently and with extreme caution. Diversified portfolios have been developed to align the investment system and draw maximum advantage by mitigating risks factor with best-recognized financial practices. PLACEMENT IN BANKS: The management placed over Rs. 11.473 billion of the Funds in Commercial Banks. Chief Manager, State Bank of Pakistan and Managing Director, The Bank of Khyber guide the Investment Committee. While placing funds with banks mainly two variables come under consideration i.e. Credit Ratings and Interest Rate. INVESTMENTS The management has invested funds in various investment portfolios, so as to secure maximum returns. These investments avenues are: a) Treasury Securities / Bonds: Treasury Securities are issued by the Government and the same are backed by the full faith and credit of the Government. They are considered to be free from credit risk. The treasury issues two distinct types of securities i.e. T-Bills and PIBs. T-Bills are sold at a discount to par value and interest is received when the par value is paid at maturity (like zero-coupon bonds). The management has invested Rs. 34.103 billion in T-Bills, and around Rs 1.6 billion in PIBs.


b) Term Finance Certificates: These certificates can have fixed or floating-rate coupons and can have special features, such as calls, caps and floors. These are amortizing securities which make periodic principal and interest payments. The management has invested over Rs. 139 million in TFCs. c) Mutual Funds: The management has invested over Rs. 230 million in various Mutual Funds. d) Trading: The management has maintained a trading account for active trading in stocks and for financing against shares (CFS). The management allowed trading in blue-chip stocks only. The Government of Khyber Pakhtunkhwa is looking for ways and means to modernize these funds and bring them in line with innovative concepts of investments, while keeping safety of the Funds its top most priority. Regular third party audits are carried out to ensure this objective.

82 Chapter 13: Annual Development Programme 2012-13

ANNUAL DEVELOPMENT PROGRAMME 2012-13

1. Brief Economic/Development Outlook of the Province. 2. Review of Annual Development Programme 2011-12. 3. Salient Features of Annual Development Programme 2012-13. 4. Recommendations for the Cabinet.

LIVING STANDARDS IN THE PROVINCE: The Federal government has recently published the results of Pakistan Standard Living Measurement Survey. The survey, conducted in 2010-11 is designed to provide Social & Economic indicators in the alternate years at provincial and district levels. An important objective of the PSLM Survey is to determine the distributional impact of development programs; whether or not the poor have benefited from the program or the increased government expenditure on the social sectors has been captured by the well off. The survey assembled data pertaining to Education, Health, Household Assets/Amenities, Immunization, Pre and Post Natal care of females and Household satisfaction by facilities and services in the overall context of Millennium Development Goals. The outcome of the survey relevant to province is as under: The Adult literacy Rate in the province for above 15 years age group is 46% with male literacy ratio being 65% and female 28%. The literacy rate at the national level is 55% wherein male dominate with 67% and female 42%. The districts of Haripur, Abbottabad and Chitral emerged on the top of the list in this age group with ratio of 66%, 65% & 55% while Kohistan, Buner and D.I.Khan districts fall into the lowest quintile with ratio of 23%, 26% & 31% respectively. The literacy Rate for above 10 years age group is 50% with male having 68% and female 33%. The overall ratio in this group at the country level is 58%; with 69% for male and 46% for female. In this category the districts of Haripur, Abbottabad and Chitral ranks top with ratio of 70%, 69% & 62% whereas; Kohistan, Buner and D.I.Khan districts again plummet in the lowest rung with ratio of 26%, 32% & 34 % respectively. The Net Enrollment Ratio in the province at the primary level is 58% as compared to 61% at the country level. The ratio for male & female enrollment is 64% & 51% and 65% & 57% at the provincial and national levels respectively. Haripur, Abbottabad & Swabi districts lead the rankings with 80%, 73% & 71% while Kohistan, D.I.Khan &Shangla districts are at the bottom with ratio of 24%, 36% & 37% respectively. In the Health sector, the Ratio of Immunization for the children below two years age is 98 %, whereas, at the national level this proportion is 97%. In Haripur, Mansehra, Chitral, D.I Khan, Lower Dir, Charsadda, Kohat, Hangu & Bannu districts all the population within the same age group have at least immunized once whereas in the Battagram, Lakki Marwat and Kohistan this ratio is 91%,94% & 95% respectively.


In the Pre-natal Consultations 46% pregnant women consult public sector health facilities, 35% private hospitals/clinics while 19% are treated at home by personal doctors, LHW’s, LHV’s and traditional birth attendants while country wide share is 30%, 51% and 19% correspondingly. The ratio of pre-natal consultations is higher in the districts of Haripur, Mardan & Peshawar with 76%, 69%, & 68% whereas Kohistan, Karak & Battagram are at the lower side with19%, 29% & 32%. Similarly, in the Post-Natal Consultations 38% women seek advice from public sector health facilities, 41% private hospitals/clinics while 21% are treated at home by personal Doctors, LHW’s, LHV’s and Traditional Birth Attendants. At the national level this ratio is 22%, 54% and 24%. The women in the districts of Lower Dir with 47%, D.I.Khan 36% & Upper Dir 35% stand prominent amongst other districts in this category whereas; in the districts of Buner 6%, Kohistan 7% & Shangla 9% are at the lower side. In the Drinking Water & Sanitation sector, 45% population of the province use tap water, 13% hand pumps, 11% motor pumps, 10% dug wells & 20% from other sources. At the national level, these percentages are, 32%, 28%, 27%, 4% & 9% respectively. The inhabitants of the districts of Battagram with 81%, Bannu 78% & Abbottabad 72% use tap water as drinking source while 92%, 82% & 62 % population of the Kohistan, Upper Dir & Chitral districts derive their source from lakes & rivers. Moreover, 18% population in the province does not have proper toilet facilities, 62% use flush systems and 20% use non-flush toilets. At the national level, this proportion is 19%, 66% & 15%. The districts of Chitral with 86%, Peshawar 81% & Haripur 80% have highest proportion of flush toilets but in the districts of Kohistan, Karak & Buner 66%, 41% & 30% households do not have toilet facilities at all. In the Housing Sector, 87 % population of the province own their houses, 7% live in rented accommodations & 2 % on subsidized rented accommodations. At the country level this ratio is 86%, 7% and 1% respectively. The highest ownership of houses in the province is in Chitral with 99%, Tank 97% & Karak 96%. The lowest number of house ownership is in the districts of Peshawar with 72%, Buner 75% & Hangu 79%. 19% households in the province occupy 1 room for living, 73% in 2-4 rooms & 8 % in 5 or more rooms. National averages in this context are 25%, 69% & 6%.30% of the households in Nowshera, 27% in Kohistan & 26% live in 1 room whereas; 20% in Chitral, 14% in Karak & 13% in Lakki Marwat occupy 5 or more rooms for their living. The housing units using electricity for lighting is 93%, gas/oil 5% and 1% from other sources. This share is 91%, 7% & 1% at the country level. 100% households in Battagram, Haripur & Bannu districts use electricity whilst 57%, 76% & 79% units have this facility in Kohistan, Karak & Mansehra districts. Similarly, 0.04% households use electricity for cooking, 22% gas/oil and 76% charcoal in the province while at the national level, the corresponding ratio is 0.03%, 35%, 47% and 17%. The top three districts where housing units use oil/gas for cooking are Peshawar 70%, Nowshera 42% & Haripur 36% but less than 1% households have this facility in Battagram, Kohistan & Tank districts. One of the significant aspects of this survey is that the households were asked to compare their economic being with the last year.15% households described it much worse,25% worse,39% same, 20 better & 2% much better. The matching national level ratio is 10%, 33%,


40%, 15% and 2%. 35% households in Swat, 32% in Kohistan & 31% in Battagram described their condition as worse while 5%, 4% & 3% units in Swabi, Mardan and Kohat & Bannu portrayed their perception as much better. The households were asked to give their opinion about their satisfaction of the services/facilities provided by the government.35% households in the province expressed satisfaction on the provision of Health Services,22% on Population Welfare 65% on Schools, 13% on Veterinary,9%on Agriculture & 14% on Police. The corresponding proportion at the country level is 31%, 12%, 61%, 15%, 15% and 10%. The district level figures in the province depict a realistic picture on the provision of services. The 55% households in district of Nowshera, 59% in Battagram & 58% in Haripur were happy over health services; on the contrary 17% residents of Upper Dir 7% Kohistan & 23% of Lakki Marwat were dissatisfied. In the Family Planning sector, 40% households in Peshawar & Charsadda & 36% in Haripur districts expressed their satisfaction over the Services but, 1% in Kohistan, 3% in Karak & 4% in Bannu were discontented. 89% households in Upper Dir, 83% in Lower Dir & 76% in Malakand districts were satisfied with school education whereas; in Kohistan 21% Tank 44% & Swat 48% units uttered dissatisfaction. In the Agriculture sector 30% housing units in Buner, 23% in Bannu & 18% in Charsadda showed contentment on the quality of services but in Swat, Dir Upper & Dir Lower districts there was total dissatisfaction amongst the households. On the facilitation by Police Department the 33% housing units in Mardan, 25% in Peshawar & 24% in Malakand expressed satisfaction while 3% in Swat & Dir Lower and 2 % in Kohistan showed displeasure. SALIENT FEATURES OF ADP 2010-11: GoKPK report on Millennium Development Goals: In September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at United Nations Headquarters in New York to adopt the United Nations Millennium Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a series of time-bound targets ranging from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, by 2015. The Millennium Development Goals are also considered as the international agenda for Sustainable Development. The MDG’s comprise of 8 Goals, 18 global targets and 48 indicators, however, the Government of Pakistan has translated MDG’s into 16 national targets and 37 indicators keeping in view its specific conditions, priorities, data availability and institutional capacity. The Planning & Development Department has conducted a study so as to track its progress towards achievement of Millennium Development Goals. The findings of the report relevant to the selected goals are as under: MDG 1: Eradication of extreme Hunger and Poverty: The province is far from eradicating poverty by 2015, and is unlikely to be able to effect a reduction in poverty incidence to 20%, as articulated in the Comprehensive Development Strategy.


MDG 2: Achieving Universal Primary Education: The key indicator for attainment of the goal is the Net Enrolment Ratio Khyber Pakhtunkhwa has in fact experienced stagnation in NER growth rates in the last decade and is unlikely to meet the ambitious target to 80 percent by 2015. The province is doing better in terms of Gross Enrolment Rate, reflecting that many children do find their way into schools in the longer term, even if they do not constitute the standard age cohort. A major issue in education in Khyber Pakhtunkhwa is the significant gender and regional disparity in literacy and enrolment levels, rural females faring extremely poorly in educational attainment at all levels. MDG 3: Promoting Gender Equality and Women Empowerment: Gender disparity is endemic in Khyber Pakhtunkhwa, and is evident in the health and education sectors, in employment and political representation. There are very serious problems of gender discrimination in the province, and little evidence that these are likely to improve in the short-term. MDG 4: Reducing Child Mortality: The province seems to have done reasonably well in enhancing immunization coverage, and is working steadily towards providing primary health care facilities at the community level through its LHW program, its performance on the Infant Mortality Rate indicator and on under-5 mortality rate is not strong enough to be able to meet the MDG target. MDG 5: Improving Maternal Health: Indications are that the total fertility rate has declined, and ante-natal health care coverage increased over the last decade or so. The maternal mortality rate for Khyber Pakhtunkhwa was 275 deaths per 100,000 live births for that year. This remains an exceptionally high rate. MDG 6: Combating HIV/ AIDS, Malaria and other Diseases: No definite statement was made due to absence of credible data. MDG 7: Ensuring Environmental Sustainability: The province fares poorly with regard to water and sanitation indicators, but does very well on the indicators related to wildlife management and preservation. In terms of forest area, the province is naturally endowed and needs to continue working to preserve its forest over. Gender Analysis of Provincial Development Budget 2010-11: Gender-based budget initiatives are envisaged to analyze the budget and its impact on women, men and family. They are a tool to get a fair distribution of wealth for the poor and excluded, particularly women. Gender-based budget analysis is proving a useful tool to get increased budget allocations for education, health and social services. Keeping in view its significance, the Planning & Development Department with the assistance of United Nation Development Program’s initiated a study to analyze pro-poor and pro-women factors in the budget 2010-11; primarily from the point of view of MDGs. It involved the analysis of planning, reporting and execution of schemes as well as of allocations to various schemes and initiatives for pro-women and pro-poor sectors.


The study recommended that in order to make budgetary process pro-poor and pro-women it would require changes at the level of policy, operations, administration and management. Firstly, the government needs to take serious notice of rising pension and debt servicing in current revenue expenditure. The government also needs to strike a balance between the pernicious problem of poor law and order situation and the pro-women sectors. The Budget Call Circular, the Planning Commission forms and White Paper need a sizeable modification in gender-sensitive terms. A gender-sensitive addition should be made in the PC-I form and as such adopted by the provincial government. However, the rest of these documents need revision. Specific instructions, terms of reference and glossary should be included in Budget Call Circular. The white paper should be more elaborate in shedding light not only on impact of previous years’ spending but also gender-disaggregate data in the light of MDGs progress in the province. There is also a need for an intensive training and sensitisation. These should include full-scale modules and handbooks on the preparation of Objective Based Budgeting in gender-sensitive terms. Moreover, the concerned officials should also be trained and sensitised to strike a balance in the preparation of budget estimates for both females and males and between different classes of females and males. Lastly, there is also a need to allocate resources evenly between the districts and between the rural and urban areas of Khyber Pakhtunkhwa. Indices of Multiple Deprivations and Human Development: The Human Development Index is a popular and widely used composite index of human development. HDI measures the average achievements in a country, geographical area or region in three basic dimensions: health, education and income. HDI is scaled to vary from a minimum of zero to a maximum of 1; 1 representing the maximum level of development. The Planning and Development Department in association with United Nation Development Program’s evolved Indices of Multiple Deprivations and Human Development for planning and resource allocation purposes. This study made an attempt to develop two composite welfare indices using Khyber Pakhtunkhwa Multiple Indicator Cluster Surveys for the year 2008 and 2001 and covered education, health, housing (including water and sanitation), and economic dimensions. Each sector was made up of a number of indicators, which cover aspects of this deprivation as comprehensively as possible. The study revealed that there is low level of human development in the province. The estimated provincial magnitude of 0.544 is slightly above the UNDP classification of “low level of development”. Similarly education (0.476) and income (0.526) components also reflect low level of human development. Huge intra-province variations are observed in the estimated HDI values, from district Abbottabad with the HDI value of 0.625 to district Kohistan with the value of 0.388. The index of multiple deprivations indicates that 44.6 percent of province population is deprived or multi-dimensionally poor in terms of selected indicators and dimensions. Highest deprivation is estimated for education sectors where about 52 percent population of KPK is deprived with respect to illiteracy and out-of-school children. The estimated population which is poor in terms of health and housing facilities is estimated at 48 and 43 percent respectively. The relatively lowest (29.3 percent) deprivation is observed in the area of economic deprivation. In terms of divisional IMDs, Peshawar, Mardan, Hazara, Kohat,


Malakand, Bannu and D.I.Khan divisions are ranked from low to high deprivation magnitudes. The findings are useful for profiling and benchmarking district positions and growth in terms of economic, social and human development. Khyber Pakhtunkhwa M& E Report 2010-11: Monitoring and Evaluation is an integral part of development project cycle management and occupies a strategic role in informing policy making processes. The aim is to improve relevance, efficiency and effectiveness of project implementation. The Directorate of M&E in the Planning & Development Department has been entrusted with the responsibility to monitor the developmental projects in the province. It has recently published a report which provides an overview of the progress achieved under the Comprehensive Development Strategy, Objective Based Budgeting, Annual Development Program and sector strategies. For the report 64 indicators were measured pertaining to Education (16), Health (28) and Social Welfare (20) departments. It was revealed that these departments met 37 targets (58%); the highest achievement being recorded by Education Department 69% followed by the Social Welfare 65% and Health 46%. Out of 16 OBB indicators, the E&SE, Department exceeded or met 11 targets. The targets for primary enrolment (actual 5 % as against targeted 2 %), enrolment in secondary level education (4.7 % achieved against a target of 2 %)as well as; the target for New/upgraded/renovated higher secondary schools (16% against 6%) were exceeded by a significant margin, while 8 other key OBB targets were met or exceeded including schools provided with free text books in primary, boys dropout at the primary and secondary levels, girls' students dropout at primary and secondary, higher secondary students provided with free text books, and the students- teacher ratio in primary and secondary education. Against a total of 28 OBB indicators, the Health Department met 13 targets, overachieving with respect to the daily OPD attendance in primary health care facilities, number of indoor patients in case of tertiary health care facilities, reduction in T.B through the expansion of DOTS strategy, the roll back Malaria Programme, control of Hepatitis B &C and the immunization coverage of children. However, 12 OBB targets were not met, against which the Department needs to work hard during the next implementation period. These include: the daily OPD attendance under the secondary and tertiary health care services, number of indoor patients for secondary health care services, the health safety net for the poor, a reduction in morbidity/mortality, protecting vulnerable segments from HIV/AIDS, staff development, drug control, and institutional monitoring and registration system. Data for three OBB indicators was not available -this needs to be incorporated in the regular information management and reporting system of the Health Department. The Social welfare & Women Department was able to meet or exceed targets in 13 out of the total 20 indicators used in the OBB, including the number of men and women with disability registered, special education schools established, men and women unemployed post graduates registered, social welfare organizations receiving support, beggars receiving shelter and skills training, persons benefitted from the Social Welfare Centres, approval of Child Protection Bill, Welfare Homes and Industrial Training Centres established, number of Women Crisis Centres


functional etc . However, four OBB targets were not met, against which the Department needs to work hard during the next implementation period. These include: boys enrolled at especial education schools, senior citizens registered for financial support, women receiving training at ITCs, and women benefitting from the Working Women's Hostels. Progress data for two OBB indicators was not available which needs to be incorporated in the regular information and recording system of the SW&WD Department. The report concluded with specific sector wise recommendations in order to improve their performances and also carry out detailed assessment of genuine requirements of these departments. Approval of Development Projects in 2011-12: Every year certain number of new projects form part of Annual Development Plan alongwith on-going projects in various sectors. These projects are approved by project approving fora working at various levels. These include the District Development Committee, Departmental Development Working Party, Provincial Departmental Development Working Party, Central Departmental Development Working Party and Executive Committee of National Economic Council. In the current financial year, the PDWP held 15 meetings and approved 448 Projects pertaining to different sectors. The size of the Annual Development Program has steadily grown since, the dissolution of One Unit in Pakistan, and emergence of the Khyber Pakhtunkhwa province as a separate unit in 1970-71.

Year Size of A.D.P

Revised Size of A.D.P

Special Development Programme

1970-71 150.570 124.872 .. 1971-72 124.000 87.404 .. 1972-73 212.543 217.887 .. 1973-74 300.000 285.133 .. 1974-75 400.000 500.000 .. 1975-76 576.700 601.366 .. 1976-77 546.800 640.928 .. 1977-78 617.000 687.642 .. 1978-79 669.000 720.581 .. 1979-80 767.000 702.850 .. 1980-81 818.000 838.350 .. 1981-82 980.850 1002.323 .. 1982-83 1228.000 1174.275 .. 1983-84 1176.500 1191.500 .. 1984-85 1244.700 1245.424 .. 1985-86 1697.000 1912.787 .. 1986-87 2131.250 2131.250 .. 1987-88 2472.250 2471.050 .. 1988-89 2164.235 2164.235 289.228 1989-90 2197.625 2198.649 410.000


1990-91 2506.171 2851.434 529.862 1991-92 4813.715 4881.569 .. 1992-93 6575.385 5002.873 .. 1993-94 4959.000 4764.638 .. 1994-95 6963.974 7349.212 .. 1995-96 7665.634 8081.917 .. 1996-97 8711.517 5659.089 .. 1997-98 4884.740 5498.215 .. 1998-99 6072.386 7771.653 ..

1999-2000 5745.220 8057.541 .. 2000-2001 9212.509 7272.140 .. 2001-2002 7986.220 8710.147 2002-2003 13673.261 11289.186 .. 2003-2004 14696.006 12882.982 2004-2005 16195.025 15365.249 2005-2006 21000.000 24397.398 2006-2007 26630.432 26542.103 2007-2008 39462.131 31919.642 2008-2009 41544.935 39000.603 2009-2010 51156.956 46330.547 2010-2011 69283.682 61103.166 2011-2012 85141.000 84473.628* 2012-2013 97458.000

* Include PSDP of Rs. 5376.555 million REVIEW OF ADP 2011-12: The original size of the ADP 2011-12 was Rs.85141.000 millions, which included foreign aid component of Rs.16112.700 millions. The provincial government’s contribution in the ADP was Rs.69028.300 millions. The provincial program comprised of 1035 projects included 632 ongoing and 403 new projects out of which, 296 projects were completed.

Sources of Funding of ADP 2011-12:

(Rs. in million) S. No. Source of funding Allocation %age

1. Provincial Budget 69028.300 81 2. Total Foreign Assistance 16112.700 19 i. Grants 12794.480 79 ii. Loans 3318.220 21 Total (1+2) 85141.000 100.0


FOREIGN ASSISTANCE: For the year 2011-12, the size of foreign assistance was Rs. 16112.700 million for 39 projects. The counterpart funds were envisaged as Rs.1043.000 million. Of the total foreign assistance, the grant portion comprised Rs. 12794.480 million whereas loan component was Rs. 3318.220 million. The foreign assistance pertained to roads, drinking water supply & sanitation, education, health and regional development sectors. The revised estimates of foreign assisted projects were Rs. 7514.514 million, thus utilization ratio was 47 % against the allocated amount. The sector wise allocation of foreign assistance is tabulated as under:

(Rs. In million)

S.No Sectors Projects Foreign Assistance % age

1 Agriculture 1 0.001 0.0 2 DWSS 1 1250.000 7.8 3 E&SE 6 3064.646 19.0 4 Energy & Power 1 868.220 5.4 5 Forestry 1 31.507 0.2 6 Health 5 1358.110 8.4 7 Home 3 1250.000 7.8 8 Industries 2 375.000 2.3 9 Regional Dev. 6 1783.940 11.1

10 Research & Dev. 4 406.175 2.5 11 Roads 5 3800.000 23.6 12 Social Welfare 2 0.101 0.0 13 Urban Development 1 1500.000 9.3 14 Water 1 425.000 2.6

Total: 39 16112.700 100.00 SECTOR-WISE ALLOCATIONS: The original sectoral allocations of local resources in ADP 2011-12 and revised allocation after re-appropriation are given as under:

(Rs. In million)

S# Sector Budget

Estimates Allocation

%age Revised Estimates/

Utilization Allocation

%age %age

Utilization (against B.E)

1 E&SE 7115.000 8.4 7988.996 10.1 112.3

2 Higher Education 3027.000 3.6 4077.850 5.1 134.7

3 Health 6467.000 7.6 6752.798 8.5 104.4 4 DWSS 2392.000 2.8 3661.428 4.6 153.1 5 Social Welfare 440.000 0.5 409.516 0.5 93.1 6 Auqaf, Hajj 78.000 0.1 67.950 0.1 87.1


7 Roads 8770.000 10.3 12720.141 16.1 145.0 8 Building 800.000 0.9 570.895 0.7 71.4 9 Housing 1740.000 2.0 825.614 1.0 47.4

10 Urban Development 1541.000 1.8 1724.186 2.2 111.9

11 Water 3006.000 3.5 5088.198 6.4 169.3 12 Agriculture 1355.000 1.6 1197.272 1.5 88.4 13 Forestry 792.000 0.9 470.732 0.6 59.4 14 Environment 74.000 0.1 48.544 0.1 65.6 15 Sports, Tourism 1225.000 1.4 1391.698 1.8 113.6 16 Energy & Power 1320.000 1.6 793.776 1.0 60.1 17 Industries 2382.000 2.8 2383.760 3.0 100.1

18 Regional Development 5063.000 5.9 3952.116 5.0 78.1

19 R&D 313.000 0.4 225.024 0.3 71.9

20 Population Welfare 165.000 0.2 119.492 0.2 72.4

21 District's ADP 1520.300 1.8 1520.300 1.9 100.0 22 Tameer-i-KPK 2480.000 2.9 2739.480 3.5 110.5 23 ST&IT 356.000 0.4 256.809 0.3 72.1 24 Transport 65.000 0.1 41.478 0.1 63.8 25 Food 540.000 0.6 429.605 0.5 79.6 26 Labour 96.000 0.1 14.060 0.0 14.6 27 Mines & Mineral 661.000 0.8 226.874 0.3 34.3 28 Information 112.000 0.1 83.646 0.1 74.7 29 Law & Justice 273.000 0.3 189.353 0.2 69.4 30 PSDP Devolved 4500.000 5.3 0.000 0.0 0.0 31 Finance 7164.000 8.4 8302.781 10.5 115.9 32 Home 3196.000 3.8 3308.187 4.2 103.5

Sub-Total 69028.300 81.1 71582.559 90.4 103.7 Foreign Assistance 16112.700 18.9 7514.514 9.6 47.4

Grand Total 85141.000 100.0 79097.073 100.0 93.0 SECTORAL HIGHLIGHTS: Education: Education is an essential tool for human resource development, and a necessary ingredient for sustainable socio-economic growth. Investment in education contributes to accumulation of human capital, which is essential for higher income and sustained economic growth. In this sector, various initiatives were taken by the department i.e. upgrading primary, middle and secondary schools, provision of basic facilities, furniture & equipments, individual & institutional capacity building, revamping of science and education facilities and to advance gender equality in the province, particularly girls at the primary level and benefit packages


were provided for teachers in remote and difficult areas. Similarly, in the Higher Education sector, emphasis was laid on the provision of essential facilities in the Degree Colleges throughout the province such as, construction of additional class rooms & blocks, examination halls, hostels & residential facilities, provision of basic facilities and establishment of language & digital laboratories, transport & day care centre facilities for Girls Colleges, capacity building of faculty members and acquisition of land for establishing universities. An amount of Rs.12066.846 million was allocated for 96 projects, out of which 34 projects were completed and the following targets were achieved:

i. 130 Primary schools were established. ii. 10 High schools were up-graded to Higher Secondary level.

iii. 70 Middle schools were up-graded to High level. iv. 30 Secondary schools were reconstructed. v. 350 schools were provided basic facilities.

vi. 700 additional class rooms were constructed in Primary, Middle & Secondary schools.

vii. 30 Mosque schools were converted to regular Primary schools. viii. 4.500 million Students were provided free text books.

ix. 0.361 million Girl students were provided stipends. x. 5 male Government Colleges were established.

xi. 7 female Government Colleges were established. xii. Bachelor’s of Science program was started in 53 government colleges.

Health: The provincial health strategy is a blend of curative, preventive and promotive programs. The preventive and promotive programs were undertaken to address the various health problems and reduce burden of diseases such as malaria, tuberculoses, HIV/AIDS, peri-natal health care, nutrition, immunizations and thalassemia. Focus was laid to construct and rehabilitate the physical infrastructure as well as provide requisite equipment to the health facilities such as District Headquarters Hospitals, Rural Health Centers & Basic Health Units, and completion of residential blocks/hostels for doctors & nurses and multi-purpose additional wards in tertiary hospitals. Besides, special preventive care projects were implemented to provide medicines & vaccines to cancer & Hepatitis-B&C patients. An amount of Rs.6752.798 million was allocated for 122 projects out of which 37 projects were completed. The following achievements were made in this sector:

i. 3 District Headquarters hospitals in Charsadda, D.I.Khan & Tank were completed. ii. 3 Category-C hospitals in Chakdarra, Takht Bhai & Shabqaddar were completed. iii. 5 BHU’s were upgraded to RHC’s. iv. 7767 vaccines were procured for the treatment of Hepatitis-B&C patients. v. 487 cancer patients were provided free treatment.


Drinking Water Supply and Sanitation: The quality of drinking-water is a powerful environmental determinant of health. Assurance of clean drinking water safety is a foundation for the prevention and control of waterborne diseases. Similarly, inadequate sanitation is a major cause of disease and improving sanitation is known to have a significant beneficial impact on health; both in households and across communities. The department implemented various projects to provide access to safe drinking water in un-served or underserved areas. It rehabilitated the existing non-functional water supply schemes as well as old village based water supply schemes to ensure sustainability, and improved maintenance and reliability of existing supplies. For sanitary measures, the department substituted dilapidated pipelines and administered all the water supply schemes being managed by communities throughout the province. An amount of Rs.3661.428 million was allocated for 16 projects, out of which 7 were completed and the following achievements were made:

i. 197 water supply schemes under the umbrella project were completed. ii. 717 water supply schemes in flood hit areas were restored /rehabilitated. iii. 1 major sanitation projects was completed in Nowshera District. iv. 3 regional Laboratories were established for water quality monitoring.

Social Welfare & Women Development: The main strategy of Social Welfare & Women Development Department was the well being and uplift of the community in general and vulnerable groups in particular. It motivated voluntary efforts on the basis of self help and mobilization of both human and material resources to supplement government's efforts and accelerated development process in a two-fold approach i.e. public sector development and welfare activities. The department initiated various projects for male, female and child beggars, orphans, destitute women and disabled children in the province. Senior citizens and unemployed graduates were provided stipends and monthly allowances. Various vocational training centres were established to facilitate the women. Similarly, with the assistance of UNICEF, help lines for the welfare & protection of children were established in 8 districts and initial work on 2 drug addicts rehabilitation & detoxification centres in Malakand & Swabi was commenced. The Lissail-e-Wal Mahroom project also undertook various activities pertaining to health, education and social welfare will be carried out for the vulnerable groups in the province. An amount of Rs. 409.516 million was allocated for 38 projects of which 15 were completed and the achievements made are as under:

i. 48 dastkari centers were established. ii. 80 disabled children were given special education.

iii. 52 orphans were provided with shelter and skills. iv. 1685 poor women were provided with vocational training & shelter. v. 120 male beggars were provided skills.

vi. 3040 disabled people were provided rehabilitation aids. vii. Children protection helpline was established in 8 districts.


viii. Under the Lissail-e-Wal Mahroom project free treatment was provided to 204 Cancer patients, 2285 Cataract and 83900 patients through 329 medical camps.

ix. 2020 widows & orphans were trained in different skills. x. 4900 orphans were given stipends to pursue education at Primary& Secondary levels.

Auqaf, Hajj and Minority Affairs: The Constitution of Pakistan guarantees the rights of the minorities. Considering this aspect, the provincial government initiated certain interventions, which were aimed to address basic requirements of minorities in the province. These included provision of basic services for welfare of the minorities, promotion of Islamic activities, rehabilitation of worship places of minorities, provision of computer equipments to the schools and improvement of Deeni Madaris. This sector was allocated Rs.67.950 million for 11 projects, out of which 9 projects were completed. Roads: Construction of roads is an essential part of the developmental program of a country. The road network can, in a way, be compared to the arteries of a human body. The provision of roads facilitates access and movement between terminal points i.e. amongst cities and towns and other trading and industrial centres of the province. Under the development program efforts were made to construct, rehabilitate, widen and extend the roads network to the remote and less developed areas in the province. Besides, construction of bridges on important provincial highways and feasibility studies were also conducted to design and expand the existing infrastructure in the province. This sector was allocated Rs.12720.141 million for 134 projects out of which 50 were completed. The achievements made are as under:

i. 419 km’s roads were constructed & dualized. ii. 14 bridges were completed.

Building: This department has been mandated to carry out maintenance & construction works of the government buildings throughout the province. This includes official buildings, Tehsil buildings and construction of Judicial Complex in the Province. An amount of Rs.570.895 million was allocated for 36 projects, out of which 9 projects were completed. Urban Development: Urban areas are important from the economic point of view, because they serve as hub of trade, commerce and government administration. The department persisted upon execution of ongoing portfolios and the infrastructural requirements of Peshawar. It expedited construction work on the southern bypass project and intensified construction work of Arbab Sikandar Khan Khalil flyover so as to reduce the traffic congestion in the city. An amount of


Rs. 1724.186 million was earmarked for 10 projects in this sector, of which 1 projects were completed. Water: Irrigation serves as a lifeline for the agriculture, a main source of livelihoods in rural areas therefore; a sustainable irrigation system is an essential requirement of the Province. Keeping in view the value of this sector, the Provincial Government, initiated various projects in order to tap water resources and improvement of the agriculture produce of the province. In this perspective, construction & rehabilitation works on Gomal Zam dam, Munda & Amandarra headwork’s and Tangi Lift Irrigation scheme was accelerated. Besides, department also actively pursued restoration of flood damaged structures in the province. An allocation of Rs.5088.198 million was made for the implementation of 104 schemes, out of which 20 were completed and the following targets were achieved:

i. Balambat irrigation scheme was completed; it will irrigate 11363 acres of land. ii. 6 small dams will be completed & 12310 acres of land will be brought under

cultivation. iii. 80 tube wells & lift irrigation schemes were installed which will irrigate 10000 acres of

land. iv. 60 km’s canal patrol roads were constructed /reconditioned. v. Feasibility studies of 8 small dams were completed.

vi. Detail designing of 6 small dams was completed. Agriculture: The Khyber Pakhtunkhwa Province has an agrarian economy and more than 80% of the rural population depends for their survival on Agriculture, out of which 70% are directly or indirectly engaged in agriculture. The primary goal of this sector is to ensure food security, alleviate poverty and generate employment opportunities inducing higher growth rate in this vital economic sector. The provincial government initiated certain steps for the promotion of this sector, prominent being implementation of advanced technology for accurate levelling of farms for sustainable use of water & increased crop production, establishment of Farm centres both at District & Tehsil levels, provision of improved varieties of seeds, agricultural machinery, capacity building of farmers and livestock breeding, projects for backyard gardening and poverty alleviation through improved rural poultry production. An allocation of Rs.1197.272 million was made for 71 projects out of which 36 were completed; as a result achievements made are as under:

i. 1941 acres land was planted with fruit orchards. ii. 1423 demonstration plots of crops, vegetables & fruit were laid. iii. 668 acres of land was levelled through laser technology. iv. 101 dug wells were installed. v. 412 watercourses were improved. vi. 263 soil conservation structures were developed.


vii. 25 water storage tanks were constructed. viii. 8141 farmers were trained. ix. 101 livestock associations were formed.

Forestry: The forests in the province are its potential source of wealth. It has forest cover of 17% and it accounts for about 40% of the total forest area of the country. In addition to this the department also manages 48% range lands of the province which are important sources of livelihood for the local communities besides generating revenue for the state and providing watershed, ecological, recreational and eco-tourism related services for the nation. The important projects implemented in this sector pertained to afforestation, conservation, promotion & demarcation of forests, improvement & development of range & waste lands and maintenance of game reserves. These activities were implemented in different areas of the province. This sector was allocated Rs.470.732 million for 61 projects out of which 18 projects were completed and the achievements made are as under:

i. Nurseries were raised on 21 acres. ii. Afforestation was made on 6240 acres.

iii. Sowing was carried out on 855 acres. iv. Linear plantation was carried out on 1083 Km’s. v. 485 acres area was brought under rangeland management.

vi. 375 farmers were trained in Apiculture, propagation of medicinal plants & mushroom cultivation.

Environment: Environment protection and conservation of natural resources is vital for sustainable development. The department was provided adequate resources for monitoring ambient air, water, solid waste collection & disposal practices across the provinces, promotion of environmental education, mass awareness through campaigns & media and urban environmental improvements for creating safe & healthy environment for the local populace. In ADP 2011-12, an allocation of Rs.48.544 million was made for this sector for implementing of 16 projects out of which 5 were completed. Tourism, Sports, Culture and Museums: The province possesses not only beautiful landscapes but, also unique cultural heritage. It has a complete cultural profile from stone-age to the Islamic period. This was a significant year for the Tourism Department wherein, it initiated various activities such as, development of Tourism resorts, promotion of local fairs, festivals & cultural activities for image building, conduct of sports competitions especially traditional games and establishment of play grounds in the rural areas. For this purpose an amount of Rs.1391.698 million was allocated for 38 projects, out of which 11 projects were completed.


Energy & Power: The province has vast potential of generating hydro-power and in this respect various projects were identified. The provincial government in order to earn more revenues took certain initiatives which encouraged private sector for investing in this promising sector. Under the provincial government’s Hydel Development Action Plan, 2100 MW electricity will be generated in the province up-till 2025. Besides, implementing the on-going portfolio and conducting feasibility & pre-feasibility studies, the department also took initiatives to explore opportunities for power generation through alternate energy source. Efforts were also made to fully capitalize on the available sources in Kohat-Potohar sub-basins. An allocation of Rs.793.776 million was made for the implementation of 20 schemes, and 3 projects were completed. The following achievements were made:

i. Construction work on 36 MW Daral Khawar was started. ii. Pre-feasibility studies of 10 raw sites were completed. iii. Feasibility studies of 13 Hydel Power Projects were initiated.

Industries: Industrial sector has the potential to foster real economic growth in the province. With a proper strategic framework, this sector can play an important role in addressing poverty by harnessing indigenous resources, creating employment opportunities and generating revenues for the provincial government. The department initiated a project on economic revitalization so as to rehabilitate and support small & Medium Enterprises whereas Sarhad Development Authority implemented interventions for acquisition of land for establishing new industrial estates and modernization & rehabilitation of existing industrial estates. The SIDB also initiated various projects for establishing new small industrial estates in various districts. The Technical Education & Manpower department carried out projects for establishing polytechnic institutes, commerce colleges, Technical& Vocational Institutes and Government Colleges for Management Sciences for boys & girls. Besides, it also procured books, furniture & equipment for newly created institutions. This sector was allocated Rs.2383.760 million for 74 projects out of which 11 projects were completed and the achievements made are as under:

i. Rs.1231.387 million investments were attracted. ii. 1325 female students were provided skill training. iii. 21613 skilled & unskilled persons were provided employment opportunities. iv. 436 bio-gas plants were installed in Peshawar, Charsadda, Nowshera, Mansehra,

Abbottabad & Haripur districts. v. 2 Commerce colleges were established in Bannu & Peshawar districts. vi. Polytechnic institute was established in Chitral District. vii. Commercial training institute was established in Hangu District. viii. Polytechnic institutes in Swat & Bannu districts were upgraded to College of

Technology level. ix. 1000 students were enrolled free technical education.


Regional Development: The area developments projects are based on the concept of integrated development through the community driven approach. They play a significant role in enhancing the agricultural productivity, natural resource management and rural development. In the multi-sectoral development sub sector, major projects namely, Kala Dhaka and Kohistan Area Development Projects contributed through developmental works to, natural resource management, rural roads, provision of potable water & sanitation, pavement of streets etc. Similarly, under the Refugee Affected & Hosting Area project, interventions were implemented to improve livelihoods, rehabilitation of environment and enhancing social cohesion in the affected areas. In the Local Development sub-sector, major ongoing projects namely, Clean Drinking Water for All, Renewal of Urban centres in major cities, and new projects such as, foreign assisted Municipal Services Delivery Project and Strengthening of TMA’s through Assets Creation collectively executed developmental works on strengthening of systems, resource mobilization, provision of potable water and sanitation etc. In the poverty alleviation sub sector, the Bacha Khan Poverty Alleviation Programme was implemented in 4 districts of the province for strengthening of livelihoods and improvement in living standards of the people. In the Law & Order sub sector, impetus was laid upon construction and rehabilitation of police stations, police posts and police lines throughout the province. An amount of 3952.116 million was allocated for 41 projects, out of which 14 were completed and following achievements were made:

i. 866 Community based infrastructure schemes were completed. ii. 15200 persons were trained in different trades iii. 4775 persons were imparted Vocational trainings. iv. 12163 persons were provided Micro credits/grants/loans. v. 164400 persons were provided micro health insurance coverage.

Research and Development: An amount of Rs. 225.024 million was allocated for projects. District Development Fund: The Provincial Government allocated an amount of Rs.1520.300 million for the District Development, under the Provincial Finance Commission Award. In this respect, the District Governments were provided Rs.912.496 million, Tehsil Municipal Administration’s share was Rs.382.504 million Rs.150.200 million were provided for Chief Minister’s directives, and Rs.75.100 million for Finance Minister’s directives. Tameer-e-Khyber Pakhtunkhwa Program: The Government launched the program with an objective to initiate development projects, thereby creating employment opportunities in the length and breadth of the Province. In order to ensure public participation, Members of Provincial Assembly recommend projects for


uplift in their respective constituencies. An amount of Rs.2739.480 million was allocated for this program. Science and Information Technology: The importance of science and information technology cannot be negated in this computer age. In this context, the ST&IT department implemented several programs to explore new avenues in respective fields and promotion of e-governance. These included Promotion & Development of Science & Technology, Financial Assistance for R&D, Trainings and Establishing Model Science Laboratories in all the districts. An allocation of Rs.256.809 million for 22 schemes. Transport: The Provincial government attached high priority for the freight sector so as to, provide safe reliable, affordable and environment friendly transport system for greater mobility of people and goods. The department undertook key reforms in transport development and regulatory frameworks such as, strengthening of transport regulatory authorities, setting up a transport complex in Peshawar, and initiated requisite work on setting up automotive procedures for vehicle fitness certifications. The purpose of these reforms is to facilitate the stakeholders engaged in this business. This sector was allocated Rs.41.478 million for 7 schemes.. Housing: Adequate housing is a pre-requisite to human welfare. Housing is recognized as a productive economic activity because it contributes through a high multiplier effect with a host of beneficial forward and backward streams in the economy. The department being mandated to provide adequate housing facilities for the general public as well as, the government servants initiated; various efforts under its development portfolio. These include launching of housing schemes in Jerma located in District Kohat, Havelian in Abbottabad District and Mulazai in Peshawar District. The detail designing & planning of high rise flats in Hayatabad was accomplished and construction of balance works of flats for government servants on Charsadda road was started. This sector was allocated Rs.825.614 million for 13 schemes and 2 schemes were completed. Food: Food safety and quality are interrelated because food borne diseases cause human sufferings and have economic costs. It is therefore important that requisite infrastructure be provided in the vicinity of the fruit markets so as to preserve the local produce to meet the sanitary and phytosanitary protection requirements. In view of this, the department embarked upon construction of food grain godowns in various districts of the province. An amount of Rs.429.605 million was allocated for 8 schemes in this sector and 3 schemes were completed.


Labour: The Labour Department was a new addition in the provincial administrative setup. As employment is central to reducing poverty, it has an important role in maintaining the supervisory and regulatory standards for employees of both the formal and informal sector. The department’s portfolio included projects for institutional strengthening and establishment of child and bonded labour unit. An allocation of Rs.14.060 was made for 4 schemes in this sector. Mines & Minerals: The province has vast potential of minerals, metallic and non-metallic, as well as dimensional stones. The government in the past introduced regulatory mechanisms for exploring the maximum benefits and productivity in this sector. The department under its development program undertook feasibilities & geological exploration of minerals in potential areas of province. This sector was allocated Rs.226.874 million for 14 schemes, out of which 1 were completed. Information: One of the pre-requisites of the information age is to manipulate information and transfer it freely and to have instant access to knowledge that would have been difficult to find previously. Keeping in view these factors, the Information Department processed multiple interventions pertaining to development of this important sector such as establishment of F.M radio stations and conducting feasibility studies for establishment of a TV station with the objectives to promote local culture and languages. An allocation of Rs.83.646 million was made for 1 schemes. Finance: In this sector, schemes pertaining to Finance, Excise & Taxation and Board of Revenue Departments were integrated. The proposed projects relate to special & royalty based packages, establishment of Tax facilitation centres, computerization of land records in 7 districts, construction of 100 Patwar khanas and Tehsil revenue complexes in 4 districts. An amount of Rs.8302.781 million was allocated for 15 schemes; out of which 1 was completed. Law & Justice: In this sector, schemes pertaining to construction of judicial complexes, bar council building, judicial lodges were incorporated. An allocation of Rs.189.353 million was made for 10 schemes; out of which 2 were completed. Home: In this new sector, projects pertaining to Police, Prisons, and Prosecution Departments and Rescue 1122 were included. In the Police Department’s related schemes, main emphasis was


on completion of ongoing programs. Massive allocations were envisaged under the second phase of Police Support Development Program, with the aim to strengthen Police department, construction of Police infrastructure in the province i.e. Police stations/posts/lines and procure requisite equipment in order to improve security and safeguard against terrorism. The portfolio of Prisons Department incorporated projects for the construction, renovation & conducting feasibilities of Prisons as well as Bakshi Khanas, establishment of high security zones in jails etc. The establishment of a Directorate of Human Rights was also approved. An amount of Rs.3308.187 million was made for 29 schemes, out of which 5 were completed and the following achievements were made:

29 police stations/posts/lines were completed. Population Welfare: Population Welfare is a vital program of national importance. The program is providing Family Planning & Reproductive Health Services in the province to reduce high fertility rate in the province. It emphasized upon birth spacing and mother & child health care through its interventions. The department’s strategy was to build & strengthen its infrastructure, enhance capacity of its staff and related stakeholders, improve service delivery and create awareness amongst the masses in the province. An amount of Rs.119.492 million was allocated to this sector and the following targets were achieved:

110 Family Welfare Centres were established in province. Main Features of Annual Development Program, 2012-13: The outlay of ADP, 2012-13 is Rs.74200.000 million, which is an increase of 7% over the local share of last year’s development program. The ADP comprises of 940 projects, with -667 ongoing & 273 new. Formulated on the basis of priorities of the development departments solicited under the Comprehensive Development Strategy & Economic Growth Strategy, the ADP envisages substantial allocations for all the development sectors. The details of source of funding are tabulated below:

S. No. Source of funding Allocation %age A Provincial Budget 74200.000 76% B Total Foreign Assistance 23258.000 24 % i. Grants 19562.646 84 %

ii. Loans 3695.354 16 % Total (A+B ) 97458.000

Formulation of ADP 2012-13: The ADP-2012-13 has been formulated after an intensive consultative process. The process included a series of sessions with all the development departments, Finance Department,


Senior Minister for Planning and Development Department and the Chief Minister, in order to seek their guidance. Priorities of Funding: In view of the allocated resources, the following order of priority has generally been observed:

i. Maximum funding for ongoing portfolio. ii. Emphasis on productive & Socio- economic sectors.

iii. Arrangement of counterpart funds for foreign aided projects. iv. Projects dealing with emergencies. v. Projects intended to improve service delivery.

Sector-wise allocation: The size of ADP, 2012-13 is Rs.97458.000 million which includes foreign assistance of Rs.23258.000 million. There are 940 projects in the ADP, of which 667 are ongoing and 273 are new. The sector-wise allocation for ongoing and new schemes is as under:

(Rs. in million)

Sector Schemes Schemes Total (On Going) (New)

No Allocation No Allocation No Allocation Elementary & Secondary Education 44 5965.930 13 1150.070 57 7116.000

Higher Education 21 4438.000 12 626.000 33 5064.000 Health 73 6378.000 16 1197.100 89 7575.100 Drinking Water Supply & Sanitation 13 1873.483 4 1321.000 17 3194.483

Social Welfare 23 439.537 4 53.268 27 492.805 Auqaf, Hajj, Religious & Minority Affairs 2 19.000 9 81.000 11 100.000

Roads 85 7560.190 9 2176.151 94 9736.341 Building 25 621.953 16 414.447 41 1036.400 Housing 9 1853.990 1 0.010 10 1854.000 Urban Development 7 1816.850 7 1589.150 14 3406.000 Water 68 1760.616 23 1097.673 91 2858.289 Agriculture 36 1028.346 13 424.154 49 1452.500 Forestry 46 383.586 20 186.412 66 569.998 Environment 11 38.151 4 18.849 15 57.000 Sports, Culture, Tourism, Archaeology 27 425.471 12 259.529 39 685.000

Energy and Power 15 1137.396 15 1137.396 Industries 46 1618.936 35 896.602 81 2515.538


Regional Development 22 3401.223 13 1303.051 35 4704.274 Research and Development 10 258.234 5 455.001 15 713.235 Population Welfare 1 130.000 3 53.000 4 183.000 Districts ADP 1 1672.330 1 1672.330 Tameer-i-Khyber Pakhtunkhwa Programme 1 2480.000 1 2480.000

ST&IT 19 314.792 10 279.000 29 593.792 Transport 7 121.200 3 78.550 10 199.750 Food 5 387.501 3 50.002 8 437.503 Labour 1 14.290 2 58.000 3 72.290 Mines & Mineral 7 457.147 2 60.000 9 517.147 Information 5 153.776 5 56.802 10 210.578 Law & Justice 11 354.999 5 110.001 16 465.000 Finance 10 758.878 7 7400.894 17 8159.772 Home 18 2651.650 13 1073.350 31 3725.000 Relief & Rehab. 2 1215.479 2 1215.479

Sub-Total 667 46363.125 273 27836.875 940 74200.000 Foreign Assistance 23258.000

Grand Total 97458.000 Foreign Assistance: For the year 2012-13, the size of foreign assistance is Rs.23258.000 million for 52 projects. The counterpart funds have been envisaged as Rs.7484.164 million. Of the total foreign assistance, the grant portion comprises Rs.19562.646 million whereas, loan component is Rs.3695.354 million. The sector wise allocation of foreign assistance is tabulated as under:

(Rs. In millions)

S.No Sectors Projects Foreign Assistance %age

1 Agriculture 1 17.800 0.1 2 DWSS 1 1142.159 4.9

3 Elementary & Secondary Education 11 9972.889 42.9

4 Energy & Power 1 695.354 3.0 5 Forestry 1 150.000 0.6 6 Health 9 2358.177 10.1 7 Home 3 1040.183 4.5 8 Industries 3 296.500 1.3 9 Regional Dev. 5 1200.000 5.2

10 Research & Dev. 5 895.660 3.9 11 Roads 5 4933.328 21.2 12 Social Welfare 3 149.200 0.6


13 Water 2 187.000 0.8 14 Law 2 219.750 0.9 Total: 52 23258.000 100

THE INDIVIDUAL CONTRIBUTIONS OF PROVINCIAL GOVERNMENT’S DEVELOPMENT

PARTNERS ARE AS UNDER:

S.No Donor Grant Loan Total

1 DFID 7465.879 0.00 7465.879 2 JICA 1255.744 3000.000 4255.744 3 E U 3256.000 0.00 3256.000 4 NAS 2492.183 0.00 2492.183 5 MDTF 1209.498 0.00 1209.498 6 KfW 1025.533 0.00 1025.533 7 WFP 749.700 0.00 749.700 8 ADB 0.00 695.354 695.354 9 USAID 634.500 0.00 634.500

10 UNDP 528.000 0.00 528.000 11 NORAD 251.000 0.00 251.000 12 Italian Debt Swap 233.500 0.00 233.500 13 GIZ 150.000 0.00 150.000 14 CVF Japan 146.200 0.00 146.200 15 UNICEF 95.000 0.00 95.000 16 World Bank 69.850 0.00 69.850

Total 19562.646 3695.354 23258.000

SECTOR-WISE INVESTMENT PROGRAM: A brief description of the Provincial, Special and Districts Programmes is as follows: Education: Education is the harmonious development of all faculties of human beings viz-a-viz intellectual, physical, social, moral, aesthetic, spiritual and economical. It is considered the backbone in progress of any country. Due to these elements, this sector has become the top priority of the Provincial Government. During the year, the Elementary & Secondary Education Department will focus upon promoting education at all tiers, maintaining gender balance, constructing & upgrading the infrastructure, provision of basic facilities, procurement of equipment & furniture and capacity building of teachers. It will continue its programs for providing free text books up to higher secondary levels, stipends to the girl students and incentives for female teachers in remote and difficult areas. The significant


projects in this sector are establishment of Model schools in Haripur, Hangu, Charsadda, Mardan & Battagram districts, establishment of a Cadet College and major supportive reforms programs with the assistance of DFID and European Union.The Higher Education sector will primarily focus upon its ongoing program and its new portfolio includes plans for provision of additional facilities in Government Colleges, strengthening of existing public libraries, capacity building & establishment of pre-service academy for teachers, connecting its Colleges with Pakistan Education & Research Network and procurement of science equipment, machinery, sports gear, furniture & books for Government Colleges. An amount of Rs.12180.000 million is allocated for funding of 90 projects, out of which 65 are ongoing and 25 are new projects, the following targets will be achieved during the year:

i. 100 new Primary schools will be established on need basis. ii. 50 new Primary schools will be established in rented buildings in urban areas. iii. 50 Primary schools will be upgraded to Middle level in deficient Union Councils. iv. 50 new Middle schools will be established in rented buildings in urban areas. v. 50 Middle schools will be upgraded to High level in deficient Union Councils. vi. 25 High schools will be upgraded to Higher Secondary level in deficient Union

Councils. vii. 245 I.T. Labs. will be established in High & Higher Secondary Schools. viii. 50 Science Labs. will be established in High & Higher Secondary Schools. ix. 500 additional classrooms will be constructed. x. 500 Primary schools will be provided with basic facilities. xi. 5 Model schools will be established in Haripur, Hangu, Charsadda, Mardan &

Battagram districts, xii. 6 male & 8 female Government Colleges will be completed. xiii. Bachelors of Science program will be initiated in 39 male & 16 female Government

Colleges. xiv. Transport facilities will be provided in 10 Government Colleges. xv. 154 Government Colleges will be provided with furniture, library books & sports

equipment. xvi. 12 male & 8 female Government Colleges will be connected with Pakistan Education

& Research Network. Health: Health is the co-efficient of development, and improvement in the health status of the people is generally preceded by the overall development of the area. Development to a great extent is contingent on the social and economic security of the people. Being a high priority sector, the government has committed to provide modern and vibrant health care system to its people. The new development portfolio is designed in consonance with the global indicators of the Millennium Development Goals and aims to provide better health delivery system to all segments of the population. The preventive programs for EPI, T.B., AIDS, Rollback malaria, Hepatitis, Thalassemia and Blood transfusion services will persist to reduce the risks of communicable diseases. Emphasis will be made upon completion of the ongoing and initiating new physical infrastructure projects, provisions of medicines and equipment to the completed & deficient health outlets, procurement of Ambulances,


establishment of Accident & Emergency departments and a new Medical College. The Department with the assistance of German government (KFW) will implement a massive program on Social Health Protection in the Chitral, Malakand, Kohat & Mardan districts to provide health insurance cover to the marginalized segments of society in these areas. Moreover, the department will also take initiatives for strengthening of Immunization services with the assistance of Japan International Cooperation Agency and Promoting Safe Motherhood program with the cooperation of World Food Program. An amount of Rs. 7575.100 million is allocated for 89 projects out of which 73 are ongoing and 16 are new projects. The following targets will be achieved in this sector:

i. 3 Category-C hospitals will be completed. ii. 9 Category-D hospitals will be completed.

iii. Machinery & Equipment will be purchased for 4 Category-C & 4 Category-D hospitals. iv. 228 bed Women & Children hospital will be completed in Peshawar. v. 7 ambulances will be procured for teaching hospitals.

vi. 14000 vaccines will be provided for free treatment of Hepatitis-B&C patients. vii. 800 poor cancer patients will be provided with free treatment.

viii. Project for prevention & control of Dengue virus will be launched. ix. Zulfiqar Ali Bhutto Medical College will be established.

Social Welfare and Women Development: In Social Welfare and Women Development sector, focus is laid upon providing social cushion to the deprived and marginalized segments of society especially, women. In the proposed development plan, the department will mainly continue its ongoing projects which include schemes for well being and safeguarding of destitute women, orphans, children, beggars, drug addicts and special persons. The prominent proposals in the new portfolio are establishment of artificial limbs workshop at Mardan and vocational centers in the province, capacity building of public sector officials for promotion of Social Participation of persons with disability in Haripur. Under the Lissail-e-Wal Mahroom project various activities pertaining to health, education and social welfare will be carried out for the vulnerable groups in the province. An amount of Rs. 492.805 million has been earmarked for 27 Projects of which 23 are ongoing and 4 are new. The following targets have been envisaged for the year:

i. 10 Vocational centers will be established in the province. ii. 90 disabled children will be given special education.

iii. 2500 destitute women will be trained in different skills. iv. 60 destitute women will be provided with shelter & skills. v. 50 orphans will be provided with shelter & skills.

Tourism, Sports, Culture and Museums: Like other sectors, the performance of Tourism sector to a larger extent, is linked with the Law & Order situation, better infrastructure and performance of other sectors. Considering, these factors, the government is committed promoting this sector vigorously. The development mandate of this sector signifies the efforts of the government to provide


respite to the people of the province who have suffered enormously due to the menace of terrorism. In this milieu, multi-dimensional projects will be initiated entailing activities such as cultural & tourism promotion through festivals, heritage & conservation of archaeological sites, protection of cultural sites, rehabilitation & improvement of existing sports facilities in the rural & urban areas, development of tourist facilities through public-private partnerships and other similar activities. An amount of Rs. 685.000 million has been allocated for 39 projects, out of which 27 are ongoing and 12 are new. Auqaf, Hajj & Minority Affairs: This sector has been provided with an allocation of Rs. 100.000 million for 11 projects, out of which 2 are ongoing and 9 new. The sector’s new portfolio will majorly focus upon the welfare of minorities and proposals have been framed for improvement of their residential colonies, educational institutions & worship places. Besides, programs for skill enhancement program, scholarships for needy students and mass awareness campaigns for the rights of minorities have also been incorporated. In addition to this, the department will also implement projects pertaining to promotion of religious activities and improvement of Deeni Madaris in the province. Roads: The government’s vision for economic growth and poverty reduction requires ambitious targets, needing handsome investment in quality and affordable infrastructure to sustain high rates of private sector led growth, enhance economic competitiveness and optimize province’s locational advantage.The total length of roads in the province is about 25,000 kms. It comprises of 2,173 km’s national roads, 1,450kms of provincial roads, 18,711km’s of district roads and 2,624 kms other roads. About 44% of the roads maintained by the province are in deplorable condition and 78% of the roads maintained by the districts are even worse. Keeping in view the fact that roads account for over 91% of passenger transport and 96% of freight transport in the province it becomes imperative to envisage substantial allocations for the construction and maintenance of its roads. It is widely understood that no other sector of the economy can be developed without the provision of viable road network. Keeping the aforementioned premise in context, the department has incorporated projects in the new program through which the roads network in the province will be further extended and new bridges will be constructed. The department with the assistance of JICA will execute a mega project wherein it will construct 519 km’s of roads and 32 bridges in the province by 2015. The sector has been allocated Rs.9736.341 million for 85 on going and 9 new projects. The following targets have been envisaged for the year:

i. 524 km roads would be constructed/ dualized. ii. 26 R.C.C bridges would be constructed.

Drinking Water Supply and Sanitation: Clean and fresh water is essence of life, and its provision is the constitutional right of the citizens of the province. Though supply of water is finite but demand is rising rapidly with


increase in population and per capita consumption. Similarly, sanitation is the main feature with respect to health & hygiene promotion services and is regarded as the basis of development. In the new development year, the Public Health Engineering department will further expand the existing coverage of clean drinking water and sanitation facilities in the province wherein new water supply schemes will be implemented, old village based water supply schemes will be rehabilitated and dilapidated pipe lines will be replaced. Besides three mega gravity water supply schemes will be accomplished in Abbottabad & Chitral districts. Similarly feasibility of greater water supply scheme for Peshawar will be completed. The sector has been allocated Rs.3194.483 million for 13 ongoing and 4 new projects. The following targets have been envisaged:

i. 140 water supply schemes will be completed. ii. 384 old village based water supply schemes will be rehabilitated.

iii. 3 mega water supply projects will be completed. iv. Construction work on 150 new water supply & 486 schemes of replacing old pipes will

be initiated. Building: In this sector various projects will be initiated for the construction of governance buildings, circuit & rest houses, residential accommodation for public servants etc. in the province. The sector has been allocated Rs.1036.400 million for 25 ongoing and 16 new projects. Housing: The department has been mandated to provide adequate housing facilities for the general public as well as the government servants. It is also responsible for acquisition and development of sites through public finances and with the assistance of private sector. Under the proposed program, the department besides pursuing the ongoing interventions will launch new housing scheme in Nowshera district on self finance basis and also will initiate project for construction of residences & bachelors hostel in all the district headquarters of the province. Overall, funds of Rs. 1854.000 million have been earmarked for 10 projects, out of which 9 are ongoing and 1 are new. Urban Development: Urban areas are important to the national economy as these are considered the focal points for trade, commerce and governance. In the new development plan, the department will mainly concentrate upon execution of ongoing portfolios and advance the infrastructural requirements of Peshawar. An amount of Rs.3406.000 million has been earmarked for 14 projects, which 7 are ongoing and 7 new projects. Water: The province’s economy is mainly agrarian and it predominantly depends on an effective irrigation system. This year out of the total water sector’s budget maximum resources have


been allocated for timely completion of on-going projects including Bazai Irrigation scheme in Malakand& Mardan districts, Khandan Jonali Koch irrigation scheme in Chitral district, Hero Shah minor and remodelling of link channel in upper Swat canal. These projects upon completion will irrigate 26840 acres of land. Besides, the department will also execute diverse projects pertaining to construction of small & medium dams, improvement of irrigation channels, construction of new flood protection works and installation of tube wells and raising of Baran dam in district Bannu. An allocation of Rs.2858.289 million has been made for the implementation of 91 schemes, out of which, 68 are ongoing and 23 are new. The following targets will be achieved in this sector.

i. Bazai, irrigation scheme will be completed & 25000 acres of land will be brought under cultivation.

ii. Khandan Jonali Koch irrigation scheme will be completed & 1200 acres of land will be irrigated.

iii. Hero Shah minor in upper Swat canal will be completed & 2140 acres of land will be irrigated.

iv. Remodelling of link channel in upper Swat canal will be completed & 1500 acres of land will be brought under cultivation.

v. 1 small dam will be started in Abbottabad district. vi. 50 tube wells will be installed & 8000 acres of land will be brought under cultivation. vii. 75 km’s canal patrol roads will be constructed /reconditioned.

Energy & Power: Ensuring energy security and efficiency will be amongst the government’s top priorities in order to tackle the current energy crisis and enable sufficient supply of energy for domestic as well as, commercial use. The province is blessed with a hydel potential of around 50,000 megawatts but, unfortunately majority of this potential remains untapped. The provincial government recently approved an action plan whereunder 2100 megawatts will be generated. In this plan, 7 projects have been included as a short term measure, and upon completion these will generate 509 MW. In the new financial year department besides pursuing its ongoing portfolio will commence construction work on 31.17 MW Koto, 9.3 MW Karora, 6.5 MW Jabori, and 69 MW Lawi projects. Moreover, it will also plan to fully capitalize the oil and gas reserves for investment and formation of a provincial oil and gas company. In ADP 2012-13, an amount of Rs.1137.396 million has been allocated for 15 ongoing schemes. The following targets have been set forth:

Detailed designing and construction work on 5 projects will be started which upon completion will generate 200 MW electricity including Matiltan (84 MW), Lawi (69 MW), Koto (31.17 MW), Karora (9.3 MW) and Jabori (6.5 MW).

Agriculture: Agriculture sector being the linchpin of the province’s economy continues to be the single largest sector and a dominant driving force for economic growth and development. The importance of Agriculture to the economy is seen in three dimensions; first it provides food to


consumers for food security & fibre for domestic industry; second it is a source of foreign exchange earnings and third it provides input & output markets for industrial goods. In the new development year, the provincial government will largely be drawing impetus on its ongoing programs where under, certain measures will be adopted for promotion of agriculture, by providing requisite technical information & inputs to the farmers increasing the agricultural productivity and exploiting the provincial comparative advantage in production, export of high value added crops and horticultural products. Besides, it will also ensure to improve water courses and irrigation channels to enhance the productivity and efficacy in this sector. The new portfolio of projects in agriculture sector will focus upon improve livelihoods of rural women through livestock interventions, sustainable development initiatives for Fisheries, Aquaculture & integrated approach for food security, poultry production, processing & marketing through public-private partnerships, conservation of native livestock breeds, on farm Water management activities and establishment of campuses of Agriculture University. The department has also proposed a project on installation of high efficiency Irrigation system in the province. An allocation of Rs.1452.500 million has been made for 49 projects, out of which 36 are ongoing and 13 new. The following major targets have been envisaged in this sector:

i. Fruit orchards will be laid on 1100 acres. ii. 4565 demonstration plots of crops, vegetables & fruit will be laid. iii. 3000 acres of land will be developed through laser technology. iv. 25 Bulldozers will be purchased. v. 60 tube wells will be installed. vi. Sprinkler & drip irrigation system will be installed on 2000 acres. vii. 354 watercourses will be improved. viii. 315 water storage tanks will be constructed. ix. 110 solar pumps will be installed. x. 7970 farmers will be trained. xi. 30 veterinary dispensaries will be established. xii. 75 fish farms will be established.

Forestry: Khyber Pakhtunkhwa has rich forest resources and it is imperative for the Provincial Government to protect its natural wealth. For the management of province’s rich flora & fauna the department has given preference to those areas which were neglected in past hence, majority of new projects have been proposed for afforestation of indigenous as well as fruit bearing species in Malakand & Hazara districts, promotion of urban forestry, integrated watershed management for uplands, sustainable management of bio-diversity in Swat & Chitral districts with the assistance of GIZ, carbon stock assessments of forests, promotion of apiculture in flood affected areas. Besides it will also undertake programs for conservation & propagation of Wildlife in Mardan, Chitral, Swat & Dir districts, enhancement, protection & management of game reserves & management of aquatic resources etc. The sector has been allocated Rs.569.998 million for 66 projects of which 46 are ongoing and 20 are new. The achievements to be made are as under:


i. Nurseries will be established over 163 acres. ii. Afforestation will be made over 19055 acres.

iii. Direct sowing will be carried out over 4900 acres. iv. Linear plantation will be carried out over of 2550 Km’s. v. 3400 acres area will be brought under rangeland management.

vi. 855 farmers will be trained in Apiculture, propagation of medicinal plants & mushroom cultivation.

Environment: The province has always been conspicuous in the environmental arena of the country. It led the other provinces in preparation of environmental legislation as well as, planning and implementation of Sarhad Provincial Conservation Strategy in 1995. The Environmental Protection Agency is basically an advisory body, and its role is to regulate the Pakistan Environment Protection Act 1997 and ascertain its implementation throughout the province. The department plays an important role in dissemination of environmental concerns to the general public through mass awareness campaigns, print and electronic media. In their new plans, considerable allocations have been earmarked for promotion of green buildings through solar energy, environmental trainings of departments both at provincial & district levels and operationalization of EPA laboratory. In ADP 2012-13 an allocation of Rs.57.000 million has been proposed for this sector for implementing of 15 projects out of which 11 are ongoing and 4 are new. Industries: The provincial economy has significant potential for enhancing industrial productivity and exports and the government realizes the need to improve the general business environment for efficient economic activity. There are immense opportunities and market access for various goods to be exported to new markets especially in the Central Asian region. The main focus of the sector is to produce skilled manpower which is essential for the industrialization of the province. While preparing future plans emphases have been laid to bring remote areas of the province in the ambit of new interventions to eliminate poverty and expedite the process of development. Under the new program of the Industries sector impetus will be laid on to establish new and improve services in the existing industrial estates. The functioning of new industrial estates in Karak & Mardan districts will create about 20,000 employment opportunities for skilled & unskilled persons. The SIDB will establish Carpet Nagar in Peshawar. It will also install bio-gas plants in Peshawar, Charsadda, Nowshera, Mansehra, Abbottabad & Haripur districts of the province. The Technical Education & Manpower department will mainly concentrate on establishing Polytechnic institutes, Commerce colleges, Technical& Vocational Institutes, Government Colleges for Management Sciences through its ongoing and new portfolio. An allocation of Rs.2515.538 million has been made for 81 projects, out of which 46 are ongoing and 35 are new. The following targets have been set forth:

i. Carpet Nagar will be established in Peshawar. ii. 436 bio-gas plants will be installed in 6 districts of the province.


Transport: The mandate of the department is to strongly focus on formulation & delivering the Government's transport strategy. The role of the department is to set strategy and policy context, and to establish and manage relationships with the organizations that are responsible for delivery. Besides, the implementation of ongoing interventions the department has included new projects for purchase of land for establishing a general truck stand at Peshawar and setting up of a pilot project for establishing vehicles fitness testing station at Peshawar. It will also undertake a comprehensive study for viable solutions of traffic problems in Peshawar. This sector has been allocated Rs199.750 million, for 7 ongoing and 3 new schemes. Regional Development: The area development projects play a significant role in enhancing the agricultural productivity, natural resource management and rural development. Their goal is to contribute to poverty reduction in the target areas through increased incomes and access to productive assets. These multi-sectoral projects are aimed at reducing poverty by investing in social services, rural infrastructure, support services and also strengthening of institutions for better resource management. The mega projects in this sector such as, Kala Dhaka & Kohistan Area Development Projects, Bacha Khan Poverty Alleviation Program and Refugees Affected & Hosting Area Project will execute multiple interventions pertaining to rural roads, provision of potable water, natural resource management, micro-finance services, micro health insurance, skills development etc. within their respective ambits. In the Local Development sub-sector, major share has been earmarked for the ongoing projects and new portfolio include projects for construction of District Secretariats in Swat & Kohistan, Southern Area development project, Local Development Initiatives in Dir Lower & Upper, replacement of chair lifts in Ayubia, feasibility & designing of bus terminals in Mardan on public-private partnerships. An amount of Rs.4704.274 million has been allocated for 35 projects out of which 22 are ongoing and 13 are new. The following targets will be achieved in this sector:

i. 22 km’s black topped roads will be completed. ii. 23 km’s shingle roads will be completed. iii. 463 Community based infrastructure schemes will be completed. iv. 2087 demonstration plots will be completed. v. 7600 persons will be trained in different fields.

Research and Development: An amount of Rs. 713.235 million has been allocated for 15 projects out of which 10 are ongoing, and 5 are new.


Science and Information Technology: The scientific & informative technologies have played a critical role in the progress of nations. In order to respond to major challenges like globalization and emergence of knowledge based economies, the department had undertaken number of initiatives in making the shift to knowledge economy. The department under their new program will specifically focus upon promotion & development of bio-technology, increasing financial assistance for R&D, research studies and design facilitation, e-governance in the public sector departments, establishment of Information Technology parks, establishment of Earth Resource centre etc. An allocation of Rs.593.792 million has been made for 29projects out of which, 19 are ongoing and 10 are new. Mines & Minerals: Khyber Pakhtunkhwa, being a mountainous region, has tremendous potential in marble, granite and other decorative stones etc, relating to construction industry. Other resources are Nepheline Syenite, phosphates, gemstones, and metallic minerals including gold and base metals and variety of other industrial minerals. The government in the past introduced regulatory mechanisms for exploring the maximum benefits and productivity in this sector. The department besides focusing upon the ongoing portfolio will undertake projects for establishment of model Marble quarries in Buner district and will upgrade the mineral exploration data for optimum utilization of these resources and also to attract and facilitate the investors. This sector has been allocated Rs.517.147 million for 7 ongoing and 2 new schemes. Labour: The department plays a significant role in reducing unemployment, poverty and inequality through implementation of wide-ranging programs. It has an important role in maintaining the supervisory and regulatory standards for employees of both the formal and informal sectors. The department’s development portfolio focuses upon establishment of child and bonded labour unit and construction of building for its Directorate. An allocation of Rs.72.290 million has been made for 3 schemes in this sector. Food: In wake of global climatic happenings, rising population and nutrition intake values it is of paramount important for the government to initiate efforts not only to increase production of staple crops but, also ensure food safety and quality by providing requisite infrastructure in the vicinity of the cropping areas. In view of this, the department besides pursuing its ongoing portfolios will construct food grain godowns in Kohistan & Shangla districts of the province. An amount of Rs.437.503 million has been made for 5 ongoing and 3 new schemes in this sector.


Information: Living the information age, it is vital for every individual in the society to have access to every kind of information. In this perspective, the information department has proposed interventions wherein, F.M radio stations and a T.V station will be established in province in order to promote local culture and languages. An allocation of Rs.210.578 million has been made for 10 Schemes and following targets have been set forth:

i. 3 new F.M channels will be started on trial basis. ii. Local T.V channel will be launched.

Finance: This sector incorporates schemes pertaining to Finance, Excise & Taxation and Board of Revenue Departments. The proposed projects relate to special & royalty based packages, establishment of Tax facilitation centres, computerization of land records, construction of Patwar khanas and Tehsil revenue complexes in different districts of the province. An amount of Rs.8159.772 million has been made for 17 schemes. Law & Justice: In this sector, schemes pertaining to acquisition of lands & construction of judicial complexes, detail designing and master planning for provincial Judicial Academy have been incorporated. An amount of Rs.465.000 million has been made for 16 schemes. Home: In this new sector, projects pertaining to Police, Prisons, and Prosecution Departments and Rescue 1122 have been integrated. In the Police Department’s related schemes, main emphasis will be on completion of ongoing programs. Massive allocations have been envisaged under the third phase of Police Support Development Program, with the aim to strengthen Police department for constructing Police infrastructure in the province i.e. Police stations/posts/lines and procure requisite equipment to fight in order to, improve security and safeguard against terrorism. A mega project on strengthening rule of law will also be implemented with the assistance of UNDP. The portfolio of Prisons Department incorporates projects for the construction & rehabilitation of Prisons, Solar energization & provision of water filtration plants & enhancing security measures in jails etc. An amount of Rs.3725.000 million has been made for 31 schemes.

i. 31 police stations/posts/lines would be completed. Tameer-e-Khyber Pakhtunkhwa Program: The objectives of the program are to initiate development projects thereby, creating employment opportunities in the Province. In order to ensure public participation, Members


of Provincial Assembly recommend projects in their respective constituencies. An amount of Rs. 2480.000 million has been allocated for this program. District Development Fund: The provincial government has allocated an amount of Rs.1672.330 million to the districts for development under the Provincial Finance Commission Award. In this respect, the District Government’s will be provided Rs.1001.743 million, Tehsil Municipal Administration’s Rs.422.757 million. Besides, Rs.165.220 million has been envisaged for Chief Minister’s whereas, Rs.82.610 million for Finance Minister’s, respectively. Under the PFC formula Abbottabad district will be allocated Rs.62.724 millions, Bannu Rs.54.326 million, Battagram Rs.35.281 million, Buner Rs.44.384 million, Charsadda Rs.72.526 million, Chitral Rs.32.903 million, D.I.Khan Rs.65.385 million, Dir Lower Rs.57.547 million, Dir Upper Rs.53.345 million, Hangu Rs.32.761 million, Haripur Rs.51.243 million, Karak Rs.40.045 million, Kohat Rs.45.644 million, Kohistan Rs.59.225 million, Lakki Marwat Rs.45.786 million, Malakand Rs.38.084 million, Mansehra Rs.79.106 million, Mardan Rs.95.767 million, Nowshera Rs.63.284 million, Peshawar Rs.134.412 million, Shangla Rs.47.185 million, Swabi Rs.72.526 million, Swat Rs.87.227 million, Tank Rs.31.784 million and Tor Ghar Rs.22.000 million. Population Welfare: Poverty and population are closely linked. The relationship between various dimensions of population & poverty are complex and operate in both directions. High levels of population growth, high densities of population, youthful age structure and increasing urbanisation, which characterized province’s population all exacerbate rising levels of poverty. In this sector, the department besides implementing ongoing program will construct Reproductive Health Centres in Mardan & Buner districts to provide qualitative service delivery in these areas. An amount of Rs.183.000 million has been earmarked for 1 ongoing & 3 new projects in this sector. Relief & Rehabilitation: The provincial government’s endeavours in creating Relief, Rehabilitation & Settlement department infact indicates the paradigm shift in its approach from the traditional post disaster response and rehabilitation measures to development of a plausible roadmap to address pre-disaster measures such as mitigation, preparedness and response. The department had played a proactive role in the relief and rehabilitation operations during and post flood in 2010. The department’s future initiatives have been incorporated in the new sector wherein it is intended to undertake multitude activities in the province. These include establishment of ware houses, preparation of Monsoon contingency plan, district & community based Disaster Management Strategies, Capacity building of related stakeholders throughout the province etc. An amount of Rs.1215.479 million has been earmarked for 2 new projects in this sector.

ANNEXURES

Annex-I

Discription Rate of mark up Outstanding Balances

1993-94 15.94% 950.328

1994-95 15.59% 453.274

1997-98 8.50% 1733.353

1999-2000 11.21% 277.5573414.512

1992-93 15.24% 74.239

1993-94 15.94% 703.998

1994-95 15.59% 270.531

1999-2000 11.21% 1125.3292174.097

Discription Rate of mark up Outstanding Balances

1998-99 17.71% 2.646

1999-2000 11.21% 1019.600

2000-01 11.70% 782.661

2001-02 10.72% 445.548

2002-03 7.42% 220.548

2003-04 7.20% 12.513

2005-06 9.79% 328.902

2007-08 10.14% 660.786

2008-09 13.80% 100.0003573.2049161.813

CDL LIABILITIES AS ON 01-07-2012

GRAND TOTAL (A+B+C)

(Rs. in million)

(C) Cash Development Loans For SCARP Tube well Projects handed over by WAPDA to the Government of Khyber Pakhtunkhwa.

SUB-TOTAL (C)

(a) Cash Development Loans

SUB-TOTAL (A)(b) SAP Tied Loans.

SUB-TOTAL (B)

116

Annex-II

(Rs. In Million)

FinancialYear S.No Name of Loans Rateof

Markup

AmountRetired

Premature

Saving PerAnnum

i SAP Tied 1995-96 15.94% 195.917 ii SAP Tied 1998-99 17.71% 1,375.200 iii Scarp 1996-97 16.31% 540.944 iv Scarp 1997-98 18.03% 809.000 v Scarp 1998-99 17.71% 1,148.305 vi CDL 1996-97 16.31% 420.299 vii CDL 1998-99 71.71% 1,197.126

5,686.791 1,074.817 i CDL 1989-90 15.93% 1,866.387 ii SAP Tied 1995-96 15.94% 125.447

1,991.834 384.084 i CDL 1986-87 14.66% 1,160.866 ii CDL 1987-88 15.28% 649.213 iii Scarp 1989-90 15.93% 249.335 iv Scarp 1987-88 15.28% 230.964 v Scarp 1986-87 15% 167.094

2,457.472 449.246 i CDL 1981-82 13% 13.707 ii CDL 1982-83 13% 148.105 iii CDL 1983-84 13% 237.824 iv CDL 1984-85 15% 466.135 v CDL 1985-86 15% 661.222 vi CDL 1988-89 14.84% 637.413 vii Scarp 1981-82 13% 3.154 viii Scarp 1982-83 13% 35.718 ix Scarp 1983-84 15% 129.564 x Scarp 1984-85 15% 92.863 xi Scarp 1985-86 15% 180.402 xii Scarp 1986-87 14.66% 12.174 xiii Scarp 1988-89 14.84% 130.504

2,748.785 872.101 i CDL 1990-91 15.93% 1,922.752 ii Scarp 1990-91 15.93% 359.661 iii Scarp 1991-92 14.51% 249.115 iv Scarp 1992-93 15.24% 421.081

2,952.609 626.720 i CDL 1991-92 14.51% 1,319.117 ii CDL 1992-93 15.24% 1,378.172 iii Scarp 1993-94 15.94% 367.338 iv Scarp 1994-95 15.59% 381.541 v Scarp 1995-96 16% 591.059

4,037.227 1,027.552 19,874.718 4,434.520 Grand Total (A+B+C+D+E+F)

DETAIL OF PREMATURE DEBT RETIREMENT

Total (A)

Total (B)

Total (C)

Total (D)

Total (E)

Total (F)

2002-03

2003-04

2004-05

2006-07

2007-08

2010-11

117

Annex-III

1 IDA-54-Pak (Highway Project) 0.75% 80 half yearly 15-10-1974 *0.0072 IDA-678-Pak (3rd Education Project) 0.75% 80 half yearly 15-2-1987 *0.2943 IDA-683-Pak (Flood Damages Restoration Project) 0.75% 80 half yearly 15-5-1987 *1.1174 IDA-755-Pak (Hazara Forestry Project) 0.75% 80 half yearly 1-4-1998 *0.182

5 IDA-877-Pak (Salinity Control & Reclamation Project Mardan)

0.75% 80 half yearly 1-4-1989 *10.982

6 IDA-892-Pak (4th Primary Education Project) 0.75% 80 half yearly 1-9-1989 *0.616

7 IDA-1113-Pak (Bannu Leather Goods Services Control Project)

0.75% 80 half yearly 1-8-1991 *0.496

8 IDA-1163-Pak (On-Farm Water Management Project) 0.75% 80 half yearly 1-12-1991 *1.167

9 IDA-1239-Pak (Irrigation System Rehab: Project) 0.75% 80 half yearly 1-10-1992 *1.62310 IDA-1487-Pak Command Water Mangt Project 0.75% 80 half yearly 15-6-1994 *2.170

11 IDA-1499-Pak (Small Industries Dev. Board Project) 0.75% 80 half yearly 15-1-1995 *0.101

12 IDA-1602-Pak (2nd Primary Education Project) 0.75% 80 half yearly 1-11-1995 *8.62613 IDA-1603-Pak (On-Farm Water Mangt. Project) 0.75% 80 half yearly 1-11-1995 *2.063

14 IDA-1888-Pak (2nd Irrigation System and Rehabilitation Project)

0.75% 50 half yearly 1-8-1998 *2.653

15 IDA-2003-Pak (1988 Flood Damages Restoration Project)

0.75% 50 half yearly 15-9-1999 *1.787

16 IDA-2154-Pak (2ndAgriculture Research Project) 0.75% 50 half yearly 1-11-2000 *2.68217 IDA-2240-Pak (Family Health Project) 0.75% 50 half yearly 1-11-2001 *9.95618 IDA-2593-Pak (Social Action Program Project) 0.75% 50 half yearly 1-8-2004 *4.08019 IDA-2999-Pak (National Drainage Programme) 0.75% 50 half yearly 15-11-2007 *1.507

20 IDA-3050-Pak (Social Action Programme Project-II) 0.75% 50 half yearly 15-9-2008 *6.463

21 IDA-3687-Pak NWFP Structural Adjustment Credit (SAC I)

0.75% 50 half yearly 15-12-2012 **5711.164

22 IDA-3906-Pak (Second NWFP Community Infrastructure Project)

0.75% 50 half yearly 15-9-2014 *38.486

23 IDA-3932-Pak NWPF Structural Adjustment Credit(SAC II)

0.75% 50half yearly 15-9-2014 *90.000

24 IDA-3932-I Pak NWFP Structural Adjustment Credit (SAC II)

0.75% 50 half yearly 15-9-2014 *50.000

25 IDA-4177-Pak (Developmental Policy Credit-I) 0.75% 50 half yearly 15-9-2006 *93.03926 IDA-4316-Pak (Developmental Policy Credit-II) 0.75% 50 half yearly 29-9-2007 *129.35927 ADB-433-Pak (Aquaculture Dev: Project) 0.75% 60 half yearly 1-5-1990 *0.11128 ADB-495-Pak (On Farm Water Mangt. Project) 1% 60 half yearly 15-5-1991 *1.091

29 ADB-723-Pak (Chashma Command Area Development Project)

1% 60 half yearly 15-12-1994 *18.635

30 ADB-758-Pak (Farm to Market Roads Project) 1% 50 half yearly 1-4-1996 *1.325

31 ADB-759 Pak (Science Education for Secondary School Project)

1% 60 half yearly 15-5-1996 *0.926

32 ADB-838-Pak (Chitral Area Dev. Project) 1% 60 half yearly 15-12-1997 *12.93933 ADB-850-Pak (3rd Health Project) 1% 50 half yearly 1-3-1998 *5.640

34 ADB-851-Pak (Fruit and Vegetable Marketing Project) 1% 50 half yearly 15-4-1998 *0.621

FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2012

S.No

(Figures in million)

Balance as on 1.7.2012Name of Loans Rate of

InterestNo. of

Installments

FirstInstallment

Due from

118

Annex-III

FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2012

S.No


Balance as on 1.7.2012Name of Loans Rate of

InterestNo. of

Installments

FirstInstallment

Due from

35 ADB-874-Pak (Chashma Right Bank Irrigation Project Stage-II)

1% 50 half yearly 15-4-1998 *4.113

36 ADB-916-Pak (2nd Aquaculture Dev: Project) 1% 50 half yearly 15-1-1999 *1.74837 ADB-917-Pak (2nd Farm to Market Road Project) 1% 50 half yearly 1-2-1999 *10.149

38 ADB-957-Pak (1988-Flood Damages Restoration Project)

1% 50 half yearly 1-10-1999 *2.009

39 ADB-973-Pak (Livestock Development Project. 1% 50 half yearly 15-2-2000 *1.486

40 ADB-976-Pak (Swabi Salinity Control and Reclamation Project)

1% 50 half yearly 15-12-1999 *14.428

41 ADB-977-Pak (Primary Education Girls Project) 1% 50 half yearly 15-6-2000 *3.51342 ADB-1004-Pak (2nd Urban Dev: Project ) 1% 50 half yearly 15-6-2000 *41.250

43 ADB-1146-Pak (Chashma Right Bank Irr: Project Stage-III)

1% 50 half yearly 15-3-2002 *51.588

44 ADB-1179-Pak (Barani Area Dev. Project) 1% 50 half yearly 15-3-2003 *17.75845 ADB-1185-Pak (Provincial Highway Project) 1% 50 half yearly 15-3-2003 *7.42346 ADB-1200-Pak (Health Care Dev. Project) 1% 50 half yearly 15-3-2003 *2.343

47 ADB-1209-Pak (Flood Damages Restor-ation Sectors Project)

1% 50 half yearly 15-3-2003 *11.543

48 ADB-1210-Pak (Teacher Training Project) 1% 50 half yearly 15-2-2003 *4.57149 ADB-1278-Pak (Middle School Project) 1% 50 half yearly 15-01-2004 *12.28550 ADB-1294-Pak (Pehur High Level Canal Project) 1% 50 half yearly 15-05-2004 *100.48551 ADB-1301-Pak Social Action Program Project-I 1% 50 half yearly 15-9-2004 *10.94752 ADB-1493-Pak Social Action Program Project-II 1% 50 half yearly 15-03-2007 *21.63653 ADB-1373-Pak (Technical Edu: Project) 1% 50 half yearly 15-11-2005 *3.31754 ADB-1401-Pak (Rural Access Road Project) 1% 50 half yearly 1-2-2006 *21.89055 ADB-1403-Pak (Forestry Sector Project) 1% 50 half yearly 15-5-2006 *35.678

56 ADB-1454-Pak (Primary Education Girls Project-II) 1% 50 half yearly 1-1-2007 *3.126

57 IFAD-18-Pak (4th Agriculture Dev. Project) 1% 80 half yearly 1-9-1989 *0.40358 IFAD-83-Pak (On-Farm Water Mangt. Project) 1% 80 half yearly 1-6-1992 *0.272

59 West German No.8267528 (Hospital Equipment in Khyber Pakhtunkhwa)

0.75% 80 half yearly 30-6-1994 ***2.903

60 West German No. 8267585 (Drinking Water Supply in Refugees Camps in Khyber Pakhtunkhwa). 0.75% 80 half yearly 30-6-1994 ***4.136


Name of Currency Foreign Currency

Conversion rate for

2012-13Pak Currency

U.S. Dollar 884.705 1US$=Rs.93 82277.565Pak-Rupees 5711.164DM (German Marks) 7.039 1DM=Rs.62.9432 443.057

88431.786*US Dollar ** Pak-Rupees *** DM (German mark)

Total

Annex-IV

S.No Name of Loans Rate of Interest

No. of Installments

First Installments

due from

Allocated Share

Outstanding Balance/ Amount

disbursed upto 30-6-2012

1 IDA-2245-Pak (On-Farm Water Management Project)

0.75% 50 half yearly 15-9-2001 *4.590 *3.211

2IDA-2383-Pak (Environmental Protection and Resource Conservation Project)

0.75% 50 half yearly 15-11-2002 SDR 2.196*3.107 *2.330

3 IDA-2468-Pak (1992 Flood Damages Restoration Project)

0.75% 50 half yearly 15-3-2003 *2.500 *1.908

4 IDA-2687-Pak (Primary Education Project)

0.75% 50 half yearly 15-8-2005 *88.890 *73.333

5 IDA-2829-Pak (NWFP Community Infrastructure Project) 0.75% 50 half yearly 1/7/2006 *16.662

SDR 10.617 *14.162

6 IDA 3516-Pak NWFP Emergency Rehabilitation Project

0.75% 50 half yearly 15-6-2011 SDR 16.600 *20.029

7 IDA-3516-1 Pak (Investment Programme Projec-I)

1% 50 half yearly 15-12-2015 --- *10.256

8ADB – 1534 Pak Secondary Education Project

1% 50 half yearly 1/2/2008 SDR 6.175*8.197

*7.274

9ADB – 1671 Pak Women Health Project

1.50% 50 half yearly 15-10-2005 *7.117 *5.486

10ADB-1672 –Pak- Malakand Rural Dev:Project

1% 50 half yearly 1.9.2008 SDR 30.852*41.808

*37.628

11ADB-1787 –Pak- Barani Area Development Project Phase-II

1.50% 50 half yearly 15-05-2009 SDR 40.065*52.000

*44.417

12ADB-1854–Pak NWFP Urban Dev. Project

1.50% 50 half yearly 15-10-2008 SDR 3.038 *4.178

13 ADB-1878-Pak Agriculture Sector Programme

Libor + 0.60% 48 half yearly 1/3/2005 *15.588 *8.028

14ADB-1877 –Pak- Agriculture Sector Programme(ASPL-II)

1.50% 32 half yearly 1/3/2010 *9.477 *7.996

15ADB-1900 –Pak- Reproductive Health Project

1.5% 48 half yearly 15-05-2010 SDR 3.812 *0.300

16ADB-2103 –Pak- WFP Road Dev. Project

Libor + 0.60% 40 half yearly 1/2/2010 **17750.229 **8353.805

17 ADB-2104-Pak Road Dev: Sector 1.50% 48 half yearly 1/2/2013 SDR 3.404 *2.315

18ADB-2135 –Pak Restructuring and Vocational Training System Project 1.50% 48 half yearly 15-05-2013 SDR 7.339 *1.938

19 ADP-2286-Pak Renewable Energy Development Sector

Libor + 0.60% 40 half yearly 15-12-2011 **12508.650 **254.303

20 ADP-2287-Pak Renewable Energy Development Sector

1.50% 48 half yearly 15-12-2014 SDR 6.793 *0.409

21 IBRD-3327-Pak (On-Farm Water Mangt. Project Phase-III)

0.75% 50 half yearly 15-9-2001 *2.300 *1.610

22 IFAD-319-Pak (Mansehra Village Support Project)

4% 30 half yearly 1/5/1998 SDR10.350*14.557

*0.485

Name of Currency Foreign Currency

Pak Currency

U.S. Dollar 247.294 22998.342Japanese Yen 8608.108 9942.365

32940.707* US Dollar ** Japanese Yen

Conversion rate for 2012-13

Total


DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE


1 US $=Rs. 931 ¥ =Rs. 1.1550

AS ON 01-07-2012

120

Annex-VI

DescriptionBudget

Estimates2011-12



I-PROVINCAL TAX RECEIPTS 13,640.022 12,571.457 13,862.494

GST on Services 10,030.027 8,922.767 9,886.394

Agriculture Income Tax 21.000 21.000 22.000

Urban Immoveable Property Tax (net) 141.700 92.650 98.100

Registration (Transfer of Property) 70.000 70.000 72.000

Land Revenue 758.000 915.000 920.000

Tax on Professions 150.000 120.000 150.000

Provincial Excise 30.000 25.000 30.000

Stamp Duties 550.000 550.000 600.000

Receipts under Motor Vehicles Acts 898.890 900.340 957.000

Entertainment Tax 1.000 0 0.000

Cess on Tobacco and Goods KDF 342.000 268.700 337.000

Electricity Duty 450.405 470.000 550.000

Others 25.000 19.000 25.000

Hotel Tax 12.000 12.000 15.000

Urban Capital Value Tax 160.000 185.000 200.000

II- NON-TAX RECEIPTS

Civil Administration Receipts 5,854.100 6,345.732 6,238.565

Income from Property & Enterprise 136.356 136.356 136.356

Interest 116.356 116.356 116.356

Dividends 16.569 16.569 16.569

Return on Assets Transferred to WAPDA 3.431 3.431 3.431

RECEIPTS FROM GENERAL ADMINISTRATION 127.600 127.950 132.700

Fees from Public Service Commission 18.000 18.000 18.000

Receipt in aid of Superannuation 50.000 50.000 50.000

Weights and Measures 15.600 15.950 16.700

Local Fund Audit 44.000 44.000 48.000

GENERAL REVENUE RECEIPTS (Rupees in Million)

123

Annex-VI

DescriptionBudget

Estimates2011-12




Receipts from Law and Order 606.263 652.535 688.762

Administration of Justice 100.000 100.600 101.230

Jails and Convict Settlement 6.500 6.500 7.000

Police,Arm Licence and others fees 499.763 545.435 580.532

Receipts from Social Services 295.816 282.333 255.874

Higher Education Archives & Libraries 66.115 103.120 105.125

Elementary & Secondary Education 45.000 45.000 3.000

Technical Education 19.000 20.000 21.000

Health 164.901 102.988 114.449

Manpower Management 0.450 0.475 0.500

Museums and Tourist Deptt. 0.350 10.750 11.800

Receipts from Community Services 430.000 595.000 630.000

Buildings and Communications 230.000 370.000 400.000

PBMC 40.000 0.000 0.000

Public Health Engineering 160.000 225.000 230.000

Receipts from Economic Services 1,993.806 2,207.006 1,759.307

Agriculture 106.650 100.250 125.250

Fisheries 14.000 16.000 20.000

Wildlife 10.000 11.000 12.000

Animal Husbandry 45.200 49.500 51.500

Forestry 700.000 800.000 408.000

Irrigation 405.926 524.926 402.677

Industries 2.550 2.850 3.100

Stationery and Printing 50.000 52.000 55.000

Industrial Safety Explosives 658.280 649.280 680.280

Registration's Renewel Fee of Ptg Presses 1.200 1.200 1.500

Annex-VI

DescriptionBudget

Estimates2011-12




Miscellaneous Receipts 149.242 229.552 233.122

Profit from Hydel Power Generation 2,115.017 2,115.000 2,402.444

Provincial Receipts (I + II) 19,494.122 18,917.189 20,101.059

III-FEDERAL TAX ASSIGNMENT 149,988.109 152,735.048 183,684.937

Taxes on Income 58,608.918 59,538.700 72,914.518

Custom Duties 16,181.810 17,137.558 19,650.517

Sales Tax 62,844.497 65,719.569 82,011.867

Central Excise 12,352.884 10,339.221 9,108.035

IV-Straight Transfers 13,806.524 17,493.778 22,157.543

Royalty on Crude Oil 5,424.417 9,851.607 11,747.050

Royalty on Natural Gas 3,828.736 3,950.204 4,241.290

Gas Dev: Surcharge 3,046.131 2,158.795 3,700.583

Excise Duty on Natural Gas 1,507.240 1,533.172 2,468.620

V-Net Hydel Profit 6,000.000 6,000.000 6,000.000

VI-Arrears of Net Hydel Profit 25,000.000 25,000.000 25,000.000

VII-1% Divisible Pool for War on Terror 18,022.142 18,352.207 22,071.058

VIII-Population Welfare Programme 477.403 477.403 477.403

Total Revenue Receipts ( I to VIII) 232,788.300 238,975.625 279,492.000

Annex-VII

General Public Service 99,364.149 103,359.017 127,836.146 Executive and Legislative Organs, Financial and Fiscal Affairs, External Affairs (Voted) 17,433.334 17,366.833 23,348.095

(Charged) 11,532.728 10,293.537 10,562.996

Transfers (Inter Governmental) 69,213.265 74,514.979 92,619.490

To District Govt (Non Salary) 7,386.723 7,386.723 9,164.714

To District Govt (Salary) 50,825.278 56,501.479 71,138.443

TMA’s Zila Tax, other and Investments 10,430.801 10,430.801 12,036.107

General Services 1,167.539 1,165.898 1,286.699

General Public Services not elsewhere defined 17.283 17.770 18.866

Public Order and Safety Affairs 23,160.460 26,946.727 28,783.827

Law Courts (Voted) 1,752.225 1,723.775 2,094.911

Classification

(Rupees in Million)CURRENT REVENUE BUDGET




Law Courts (Voted) 1,752.225 1,723.775 2,094.911

(Charged) 487.474 685.135 661.499

Police 19,005.936 22,474.598 23,576.926

Civil Defined Related Services 9.426 9.767 10.835

Prison Administration and Operation 818.942 955.718 913.010

Administration of Public Order 1,086.457 1,097.734 1,526.646

Economic Affairs 10,003.845 10,467.242 11,376.305

General Economic, Commercial and Labour Affairs 223.508 212.560 237.728

Agriculture, Food, Irrigation, Forestry and Fishing 7,049.734 6,990.906 8,160.972

Fuel and Energy 122.193 120.413 172.069

Mining and Manufacturing 208.127 197.176 263.657

Construction and Transport (Voted) 2,387.042 2,915.326 2,527.630

(Charged) 4.015 22.151 4.015

Other Industries 9.226 8.710 10.234

126

Annex-VII

Classification

(Rupees in Million)CURRENT REVENUE BUDGET




Environment Protection 22.471 18.340 22.479

Housing and Community Amenities 157.166 138.734 193.326

Housing Development 18.788 18.788 22.294

Community Development 4.000 0.370 4.000

Water Supply 134.378 119.576 167.032

Health 5,431.310 6,035.604 7,236.251

Medical Product, Appliances & Equipment 3.548 4.086 4.252

Hospital Services 4,955.744 5,545.739 6,671.540

Public Health Services 20.349 17.875 18.323

Health Administration 451.669 467.904 542.136

Recreation, Culture and Religion 500.538 522.515 604.753

Recreation and Sporting Services 74.189 80.903 71.212

Cultural services 102.246 111.680 136.725

Broad Casting and Publishing 128.876 138.809 162.829

Religious Affairs 179.301 175.480 218.723 Administration of Information, Recreation and Culture

15.926 15.643 15.264

Education Affairs and Services 8,994.713 8,779.617 10,972.648 Pre-primary and Primary Education Affairs and Services

164.000 165.202 197.160

Secondary education affairs and services 89.902 95.471 124.353

Tertiary Education Affairs and Services 8,088.035 7,471.434 9,668.838

Subsidiary Services to Education 110.751 108.640 119.386

Administration 542.025 938.870 862.911

Social Protection 1,365.348 4,732.204 4,574.265

Administration 1,137.617 4,552.274 4,273.132

Other 227.731 179.930 301.133

Total Current Revenue Expenditure 149,000.000 161,000.000 191,600.000

127

Annex-VIII

Budget Estimates

Revised Estimates

Annual Dev: Program

Foreign Project

AssistanceTotal

ANNUAL DEVELOPMENT PROGRAMME

Agriculture 1355.001 1203.472 1452.500 17.800 1470.300

Building and Housing 800.000 2436.375 1036.400 1036.400

Drinking Water & Sanitatioin 3642.000 3661.428 3194.483 1142.159 4336.642

Education 13206.646 13037.492 12180.000 9972.889 22152.889

Environment 74.000 48.544 57.000 57.000

Forestry 823.507 491.482 569.998 150.000 719.998

Health 7825.110 6812.856 7575.100 2358.177 9933.277

Industries 2757.000 2585.685 2515.538 296.500 2812.038

Auqaf, Hajj & Minority Affairs 78.000 67.950 100.000 100.000

Energy and Power 2188.220 1386.956 1137.396 695.354 1832.750

Regional Development 6846.940 4614.643 4704.274 1200.000 5904.274

Research and Development 719.175 307.579 713.235 895.660 1608.895

Road & Communication 12570.000 14174.061 9736.341 4933.328 14669.669

Social Welfare 440.101 409.516 492.805 149.200 642.005

Sports, Tourism, Archaeology & Youth Affairs 1225.000 1391.698 685.000 685.000

Urban Development 3041.000 2424.186 3406.000 3406.000

Water 3431.000 5361.098 2858.289 187.000 3045.289

ST & IT 356.000 256.809 593.792 593.792

Tameer-e-Khyber Pakhtunkhwa Programme 2480.000 2739.480 2480.000 2480.000

Transport 65.000 41.478 199.750 199.750

Housing 1740.000 825.614 1854.000 1854.000

Food 540.000 429.605 437.503 437.503

Labour 96.000 14.060 72.290 72.290

Mines and Mineral 661.000 226.874 517.147 517.147

Information 112.000 83.646 210.578 210.578

2011-12 Budget Estimates 2012-13

DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2011-12 & 2012-13

DEVELOPMENT PROGRAMME

(Rs. in million)

128

Annex-VIII

Budget Estimates

Revised Estimates

Annual Dev: Program

Foreign Project

AssistanceTotal

2011-12 Budget Estimates 2012-13

DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2011-12 & 2012-13

DEVELOPMENT PROGRAMME

(Rs. in million)

Board of Revenue 3196.000 0.000

Home 1250.000 3932.560 3725.000 1040.183 4765.183

Finance 7164.000 8302.781 8159.772 8159.772

PSDP Devolved 4500.000 0.000

Law & Justice 273.000 189.353 465.000 219.750 684.750

Population Welfare Programme 165.000 119.492 183.000 183.000

Relief & Rehabilitation 1215.479 1215.479

Total ADP (I) 83620.700 77576.773 72527.670 23258.000 95785.670

DISTRICT ADP (II) 1520.300 1520.300 1672.330 1672.330

Total (I+II) 85141.000 79097.073 74200.000 23258.000 97458.000

SPECIAL PROGRAMME (PSDP)

Prime Minister Directives (PWP-II) 57.229

Access to Justice Programme (AJP) 32.984

DERA - II Programme 7.000

Education 317.542

Agriculture 143.066

Drinking Water & Sanitatioin 21.530

Swat Development Package 35.615

Health 2085.839

Water 1686.585

Regional Development 823.550

Population Welfare Programme 52.726

Urban Development 111.389

Sports, Tourism, Archaeology & Youth Affairs 1.500

Total PSDP (III) 0.000 5376.555 0.000 0.000 0.000

Total Development Programme (I+II+III) 85141.000 84473.628 74200.000 23258.000 97458.000

Annex-VIII

PARTICULARSBudget

Estimates2011-12



A-EXTERNAL RESOURCESI-FOREIGN LOANSADB LOANSDevelopment of Renewable Energy in Khyber Pakhtunkhwa 868.220 593.180 695.354JAPANESE / JICA LOANEmergency Rural Road Rehabilitation Project 2450.000 500.000 3000.000

Sub Total (I) Loans 3318.220 1093.180 3695.354II-FOREIGN GRANTSUNDPStrengthening of Rule of Law in Malakand 0.000 0.000 268.000Refugee affected & hosting Area Programme. 625.990 249.327 250.000Strengthening of Poverty Reduction Strategy Monitoring Project 33.300 16.180 10.000SDCINRM (Joint Forestry Management) 31.507 20.750 0.000Regional Hundukush Programme (2012-14) 100.000 0.000 0.000Livelihoods Programme 270.000 197.000 0.000NASKohistan Area Development Project 98.840 110.000 150.000Kala Dhaka Area Development Project 189.110 106.200 120.000Construction of three Police Stations & one Police Line in Swat 500.000 418.873 203.841Upgradation / Rehabilitation of Road from Chakdara to Madian - Kanjo to Dhamana Village 750.000 106.920 500.000

Construction & Remodeling of Southern Bypass detouring Hayatabad. 1500.000 700.000 800.000

Construction of Joint Police Training Centre at Nowshera 400.000 205.500 568.342

Directorate of Human Rights and its District based Resources Centre - with integrated facilities for Public Prosceuters, Govt Pleaders, and Probation Officers, Govt.of Khyber Pakhtunkhwa

0.000 0.000 150.000

WFPPromoting Safe Motherhood Project 0.000 749.700

Livelihoods through backward Dev. For Food Security in Khyber Pakhtunkhwa 0.001 0.000 0.000

JICA / JAPAN ASSISTED.

Gravity Flow Water Supply Scheme, Abbottabad. 1250.000 1865.480 1142.159

Development Partners Coordination Cell P&D 22.875 0.000 0.000

Establishment of Working Women Hostel at Hayatabad Peshawar 0.100 0.000 96.200Establishmnt of Model Fish Farm in Private Sector in Peshawar, Nowshera and Mardan

0.000 6.200 17.800

Reconstruction/Rehabilitation of health facilities 0.000 0.000 70.844

DEVELOPMENT BUDGET(Rs. in million)

130

Annex-VIII

PARTICULARSBudget

Estimates2011-12




Project for Strengthening Routine Immuinization in Khyber Pakhtunkhwa 0.000 0.000 12.000

Capicity Building of Technical Teachers and TVC in Malakand 0.000 0.000 10.000

Establishment of Drug Addicts 0.000 0.000 50.000

Capicity Building of Government Officers for Social Participation of Persons 0.000 0.000 3.000

NORAD

Khyber Pakhtunkhwa Basic Education Improvement Project. 1.000 0.000 1.000

Assistance to Basic Education Improvement Project for Repair/ Rehabilitation of Flood Affected Schools in Khyber Pakhtunkhwa

450.000 200.000 250.000

UK/DFID

Water and Sanitation Programme.

DFID Assisted Steel Bridge in Affected Area of Malakand 300.000 300.000 500.000

Reconstruction / Rehabilitation of building in Govt. Schools in Khyber Pakhtunkhwa

500.000 230.000 291.082

Strenghthening of Planning Cell E&SE Department 0.000 0.000 36.312

Provision of Stipends to Secondary Schools Girls 0.000 0.000 1000.000

Support to Khyber Pakhtunkhwa education Sector (2nd Traunch) 0.000 0.000 4026.512

Support to Khyber Pakhtunkhwa Education Sector (1st Traunch) 0.000 0.000 1111.973

National Governance Programm in Khyber Pakhtunkhwa 0.000 0.000 500.000

MDTF

Southern Area Development Project 0.000 0.000 180.000

Strengthening of Health Services in Khyber Pakhtunkhwa 500.000 500.000

Economic Revatalization in Khyber Pakhtunkhwa 350.000 198.425 240.000

Governance Support Programme - Establihsment of PCNA Support Unit in Khyber Pakhtunkhwa

150.000 66.375 156.170

Upgradation / Rehabilitation of Road from Chakdara to Madian - Sharif Abad to Kanjo Swat

300.000 547.000 133.328

USAID

Directorate of Human Rights and its District based Resources Centre - with integrated facilities for Public Prosceuters, Govt Pleaders, and Probation Officers, Govt.of Khyber Pakhtunkhwa

350.000 0.000 0.000

Establishment of Urban Policy Unit 200.000 0.000 134.490

Municipal Service Delivery Project 500.000 0.000 500.000

Reconstruction/Rehabilitation of 1173 Government Schools 0.000 0.000 0.010

Annex-VIII

PARTICULARSBudget

Estimates2011-12




Italian Debt Swap

Development of Model Bio-Gas for Domestic Purpose (Peshawar, Charsadda, Nowshera, Abbottabad and Haripur

25.000 3.500 46.500

Reconstruction of Flood Structures along Kiali (Swat)River in Charsadda

96.000

Reconstruction of Flood Protection works alongwith Hajizai-River Kabul in District Charsadda & Peshawar

425.000 272.900 91.000

World Bank

Integration of Health Services 0.000 0.000 0.100

Local Justice Support Programme 0.000 0.000 69.750

UNICEF

Provision for Multiple Indicators Cluster Survey in Khyber Pakhtunkhwa

0.000 0.000 95.000

GTZ

Establishment of Blood Transfusion Centers in Khyber Pakhtunkhwa 111.110 0.000 0.000

Strengthining of Tuberculosis Control Programme 125.000 0.000 0.000Sustainable Management of Bio-Diversity in Malakand (Swat & Chitral) 0.000 0.000 150.000

KFW

Equipment for Basic Health in Khyber Pakhtunkhwa 400.000 60.058 523.533

Establishment of Drugs Addicts Detoxification & Rehabilitation Center at Swabi

0.001 0.000 0.000

Strengthening of TB Control Programme 0.000 0.000 280.000Social Health Protection Initiative for Khyber Pakhtunkhwa 222.000 0.000 222.000EUROPEAN UNIONProvision of Supplementary Reading Materials (SRMs) in Govt. Schools in Khyber Pakhtunkhwa

200.646 200.646 0.000

Construction of 400 Additional Classrooms in Existing Government Schools in Khyber Pakhtunkhwa

460.000 240.000 220.000

Education Sector Reforms Programme 1453.000 100.000 516.000Education Sector Reforms (3rd and 4th tranches) 0.000 0.000 2520.000

Sub-Total (II) Grant 12794.480 6421.334 19562.646A-Total External Resources (I + II) 16112.700 7514.514 23258.000

B-Provincial Contribution 69028.300 68818.997 74200.000

Annex-IX

Year Size of A.D.P Revised Size of A.D.P1971-72 124.000 87.4041972-73 212.543 217.8871973-74 300.000 285.1331974-75 400.000 500.0001975-76 576.700 601.3661976-77 546.800 640.9281977-78 617.000 687.6421978-79 669.000 720.5811979-80 767.000 702.8501980-81 818.000 838.3501981-82 980.850 1,002.3231982-83 1,228.000 1,174.2751983-84 1,176.500 1,191.5001984-85 1,244.700 1,245.4241985-86 1,697.000 1,912.7871986-87 2,131.250 2,131.2501987-88 2,472.250 2,471.0501988-89 2,164.235 2,164.2351989-90 2,197.625 2,198.6491990-91 2,506.171 2,851.434

ANNUAL DEVELOPMENT PROGRAMMESINCE 1971-72 ON WARD

1990-91 2,506.171 2,851.4341991-92 4,813.715 4,881.5691992-93 6,575.385 5,002.8731993-94 4,959.000 4,764.6381994-95 6,963.974 7,349.2121995-96 7,665.634 8,081.9171996-97 8,711.517 5,659.0891997-98 4,884.740 5,498.2151998-99 6,072.386 7,771.6531999-00 5,745.220 8,057.5412000-01 9,212.509 7,272.1402001-02 7,986.220 8,710.1472002-03 13,673.261 11,289.1862003-04 14,696.006 12,882.9822004-05 16,195.025 15,365.2492005-06 21,000.000 24,397.3982006-07 26,630.432 26,542.1032007-08 39,462.372 32,913.9492008-09 41,544.935 39,000.6032009-10 51,156.956 46,330.5462010-11 69,283.682 64,977.5262011-12 85,141.000 84473.628*2012-13 97458.000

(*Includes PSDP of Rs. 5376.555 million)

133

Annex-X

(Rupees in million)

Year Provincial Tax Receipts

Provincial Others

Receipts

Total Provincial Own Receipts

Net Capital Receipts

Federal Tax Assignment

Net Profits

Grants from Federal Govt.

Total Provincial Receipts

Current Revenue

Expenditure

Deficit/Surplus Revenue Account

Non-Obligatory

Grant

Receivable as per Arbitration

Award

74-75 B.E 55.0 85.6 140.6 (-) 6.0 194.5 --- 22.0 351.1 432.6 (-) 81.5 --- 81.5R.E 51.4 102.4 153.8 (-)19.2 211.3 --- 88.8 434.7 551.8 (-) 117.1 96.9 20.2

75-76 B.E 51.6 104.9 156.5 7.1 305.3 --- 110.7 579.6 699.5 (-) 119.9 --- 119.9R.E 72.2 113.1 185.3 7.9 329.3 --- 151.3 673.8 705.4 (-) 31.6 31.6 ---

76-77 B.E 74.5 120.1 194.6 6.9 367.7 --- 104.8 674.0 862.2 (-) 188.2 138.2 50.0R.E 83.7 93.1 176.8 2.2 373.6 --- 123.3 675.9 955.9 (-) 280.0 223.6 56.4

GROWTH IN CURRENT REVENUE BUDGET & REVENUE RECEIPTS SINCE 1974-75 ON WARD

77-78 B.E 88.7 127.2 215.9 (-) 6.8 401.1 --- 104.8 715.0 1149.1 (-) 434.1 398.7 35.4R.E 93.4 119.4 212.8 14.8 426.9 --- 107.6 762.1 1137.0 (-) 374.9 352.6 22.3

78-79 B.E 96.8 135.5 232.3 12.7 461.8 --- 104.8 811.6 1314.3 (-) 502.7 456.8 45.9R.E 96.6 201.3 297.9 (-)10.8 512.3 --- 108.5 907.9 1391.2 (-) 483.3 468.4 14.9

79-80 B.E 101.3 162.8 264.1 11.2 562.8 --- 104.8 942.9 1557.1 (-) 614.2 566.9 47.3R.E 123.0 209.9 332.9 14.8 736.9 --- 104.8 1189.4 1674.8 (- ) 485.4 475.0 10.4

80-81 B.E 127.4 250.0 377.4 12.3 881.3 --- 104.8 1375.8 1877.6 (-) 501.8 445.8 56.0R.E 143.2 260.7 403.9 13.2 1060.4 --- 107.3 1584.8 2031.8 (-) 447.0 447.0 ---

81-82 B.E 154.4 276.6 431.0 12.3 1203.1 --- 104.7 1751.1 2292.9 (-)541.8 531.6 10.2R.E 174.7 282.6 457.3 37.0 1132.6 --- 106.4 1733.3 2538.9 (-) 805.6 805.6 ---

82-83 B.E 188.7 296.2 484.9 16.6 1223.6 --- 104.8 1829.9 2714.7 (-) 884.8 874.8 10.0R.E 212.0 308.0 520.0 24.8 1223.6 --- 105.4 1873.8 2989.7 (-) 1115.9 1115.9 ---

83-84 B.E 212.0 340.2 552.2 16.0 1364.3 --- 104.8 2037.3 3454.3 (-) 1417.0 1396.0 21.0R.E 238.3 374.6 612.9 50.7 1374.6 --- 116.6 2154.8 3705.2 (-) 1550.4 1550.4 ---

84-85 B.E 257.5 375.4 632.9 66.8 1537.4 --- 104.8 2341.9 4334.7 (-)1992.8 1992.8 ---R.E 264.3 395.9 660.2 70.1 1457.0 --- 119.3 2306.6 4512.1 (-) 2205.5 2205.5 ---

85-86 B.E 288.9 412.3 701.2 75.0 1622.0 --- 104.7 2502.9 5201.0 (-) 2698.1 2698.1 ---R.E 284.1 414.1 698.2 51.8 1622.0 --- 130.7 2502.7 5453.7 (-) 2951.0 2951.0 ---

86-87 B.E 307.2 430.2 737.4 52.8 1622.0 --- 104.8 2517.0 6466.3 (-) 3949.3 3949.3 ---86-87 B.E 307.2 430.2 737.4 52.8 1622.0 --- 104.8 2517.0 6466.3 (-) 3949.3 3949.3 ---R.E 303.6 434.5 738.1 34.6 1615.6 --- 130.3 2518.6 6811.8 (-) 4293.2 4293.2 ---

87-88 B.E 309.3 466.1 775.4 34.6 1831.3 --- 104.7 2746.0 7382.9 (-) 4636.9 4636.9 ---R.E 338.6 619.5 958.1 72.5 1988.6 --- 111.4 3130.6 7997.1 (-) 4866.5 4866.5 ---

88-89 B.E 369.2 531.1 900.3 74.6 2204.5 --- 104.8 3284.2 8685.1 (-) 5400.9 5400.9 ---R.E 374.7 556.3 931.0 174.8 3030.5 --- 136.9 4273.2 8607.4 (-) 4334.2 4022.6 311.6

89-90 B.E 369.3 581.8 951.1 159.6 3330.2 --- 104.8 4545.7 9291.2 (-) 4745.5 3735.8 1009.7R.E 405.6 714.5 1120.1 197.4 3934.0 --- 134.8 5386.3 9385.6 (-) 3999.3 3574.7 424.6

90-91 B.E 391.6 691.6 1083.2 202.4 4356.0 --- 104.8 5746.4 10558.7 (-) 4812.3 3475.6 1336.7R.E 430.5 759.8 1190.3 72.8 4301.6 --- 132.0 5696.7 10281.7 (-) 4585.0 4029.7 555.3

91-92 B.E 440.3 799.7 1240.0 25.4 6582.4 5987.5 204.8 14040.1 12732.3 (+) 1307.8 --- ---R.E 435.7 864.3 1300.0 20.7 6444.1 5999.9 402.5 14154.8 12737.3 (+) 1417.5 --- 926.4

92-93 B.E 527.2 972.8 1500.0 19.6 7304.0 6800.0 204.8 15828.4 14370.8 (+) 1457.6 --- ---R.E 688.8 958.8 1647.6 19.7 7366.0 5680.0 205.2 16038.5 14579.0 (+) 1459.5 --- 1938.9

93-94 B.E 639.0 1031.0 1670.0 9.3 8277.2 7500.0 204.8 17661.3 16511.3 (+) 1150.0 --- ---R.E 634.2 1040.8 1675.0 9.3 9392.1 5482.0 209.5 17785.9 16635.9 (+) 1150.0 --- 2898.8

134

Annex-X

Year Provincial Tax Receipts

Provincial Others

Receipts

Total Provincial Own Receipts

Net Capital Receipts

Federal Tax Assignment

Net Profits

Grants from Federal Govt.

Total Provincial Receipts

Current Revenue

Expenditure

Deficit/Surplus Revenue Account

Non-Obligatory

Grant

Receivable as per Arbitration

Award

94-95 B.E 686.4 1128.0 1814.4 11.7 11139.0 7800.0 4.8 20769.9 19189.9 (+) 1580.0 --- ---R.E 724.3 1272.7 1997.0 17.6 11454.7 6500.0 10.0 21279.3 19404.5 (+) 1874.8 --- 2718.9

95-96 B.E 875.8 1236.0 2111.8 12.8 13873.1 7970.0 4.7 23972.4 21972.4 (+) 2000.0 --- ---R.E 810.2 1487.3 2297.5 13.9 14345.1 6000.0 4.8 24631.3 23564.0 (+) 1067.3 --- 4140.8

96-97 B.E 803.3 1596.3 2399.6 15.2 16226.7 8500.0 4.8 27146.3 26862.0 (+) 284.3 --- ---R.E 1006.7 1754.1 2760.8 629.1 16134.5 6000.0 4.8 28029.1 25800.0 (+) 2229.1 --- 5154.9

97-98 B.E 1407.9 1867.1 3275.0 (-) 775.0 15064.0 9423.0 3310.0 30297.0 30058.5 (+) 238.5 --- ---R.E 1167.7 1714.1 2881.8 (-)381.8 14086.4 6000.0 3327.6 29337.0 29451.0 (-) 114.0 --- 6270.4

98-99 B.E 1472.8 2124.9 3597.7 (-) 752.3 16018.6 10466.0 3674.0 33004.0 33004.0 --- --- ---98-99 B.E 1472.8 2124.9 3597.7 (-) 752.3 16018.6 10466.0 3674.0 33004.0 33004.0 --- --- ---R.E 1389.3 2262.8 3652.1 (-)646.6 14579.5 6000.0 3675.3 31726.3 32004.0 (-) 277.7 --- 7497.4

99-2000 B.E 1705.4 2336.5 4041.9 (-)830.2 16867.7 11624.0 4078.0 35781.4 35493.0 (+) 288.4 --- ---R.E 1592.7 2336.0 3928.7 (-)827.9 16613.6 6000.0 4057.3 35395.7 35263.5 (+) 132.2 --- 8847.2

2000-01 B.E 1740.9 2509.1 4250.0 (-) 955.0 21227.5 12899.0 4310.7 41732.2 39132.2 (+) 2600.0R.E 1381.8 2207.7 3589.5 (-) 648.2 19217.8 6000.0 3827.6 31986.7 33673.3 (-) 1038.4 --- 10331.9

2001-02 B.E 1862.3 2096.1 3958.4 (-) 776.2 21552.2 14328.0 4258.6 44067.3 45040.4 (-) 973.13R.E. 2020.1 1943.4 3963.5 (-)953.5 19411.8 6000.0 3898.0 32323.2 34623.0 (-) 559.845 1195.1

2002-03 B.E 1987.9 2089.9 4077.9 (-)1262.9 22728.3 15904.0 3898.0 46767.1 48564.0 (-) 1796.9 159.0 R.E 2140.4 2103.4 4243.8 1047.9 22872.2 6000.0 3898.0 37039.3 36171.6 867.7 221.0 13761.6

2003-04 B.E 2148.5 2009.8 4158.3 1788.5 25750.4 17653.0 3898.0 51459.7 47114.7 4345.1 R.E 2019.1 1999.8 4018.9 3125.2 25660.3 6000.0 3898.0 39577.2 38400.0 1177.2 --- 15737.7

2004-05 B.E 2278.7 2149.4 4428.1 3132.0 29344.1 8000.0 4500.0 46272.2 42650.0 3622.2 R.E 2339.8 2210.7 4550.5 --- 30215.0 6000.0 45000.0 45265.5 42650.0 2615.5 17911.5

2005-06 B.E 2528.5 2365.5 4894.0 3132.0 35458.2 8000.0 10000.0 58352.2 51062.0 7290.2 --- R.E 2633.9 2555.2 5189.1 --- 36805.1 6000.0 5000.0 65462.8 60693.0 (-) 8799.6 12473.2 20302.6

2006-07 B.E 3053.6 2741.4 5795.0 --- 44034.5 8000.0 9712.5 67542.0 54500.0 (+) 13042.0 R.E 3049.5 2682.3 5731.8 --- 44645.1 6000.0 9765.3 66142.2 55173.6 (+) 10968.5 22932.9

2007-08 B.E 3809.1 3172.7 6981.8 --- 55690.1 6000.0 11907.8 80579.7 61000.0 (+) 19579.7 R.E 3904.6 3075.2 6979.8 --- 55954.2 6000.0 11349.1 80283.1 61450.0 (+) 18833.1 0.450 25826.2

398.5

---

R.E 3904.6 3075.2 6979.8 --- 55954.2 6000.0 11349.1 80283.1 61450.0 (+) 18833.1 0.450 25826.22008-09 B.E 4737.3 3473.4 8210.7 71445.8 6000.0 14432.2 100088.7 67300.0 (+) 32788.7

R.E 3749.2 3425.5 7174.7 69965.7 6000.0 13183.3 96323.7 75600.0 (+) 20723.7 1682.0 29008.82009-10 B.E 5991.9 3655.7 9647.6 83218.5 6000.0 14822.5 113688.6 80000.0 (+) 33688.6

R.E 3497.0 4711.8 8208.8 93998.7 16000.0 15207.4 133414.9 109000.0 (+) 24414.9 11506.6 32509.02010-11 B.E 15559.5 3155.2 19556.7 --- 173033.6 31000.0 198590.3 127958.0 (+) 70632.3

R.E 4135.6 5583.2 9718.8 182294.2 155939.5 31000.0 4047.0 200705.3 139500.0 (+) 61205.32011-12 B.E 4529.2 6014.4 10543.6 --- 191245.0 31000.0 --- 232788.3 149000.0 (+) 83788.3 --- ---

R.E 12571.5 6345.7 18917.2 --- 189058.4 31000.0 2264.3 241239.9 161000.0 (+) 80239.9 --- ---2012-13 B.E 13862.5 6238.5 20101.0 --- 228391.0 31000.0 --- 279492.0 191600.0 (+) 87892.0 --- ---

---

---

---

---

Annex-XI

Salary

Salary Others. Death Comp: Grant.

M&R (Road)

Electricity Petty Repair (Edu:)

CRC (Edu:)

Total N/Salary (Col:4:9)

District Share

TMA's Share

Total (Col: 11+12)

TMA's Share

Provision for New TMAs

C.Bs Share. Total Octroi (Col:14:16)

Zilla Tax Total OZT (Col 17+18)

(Rs. in million)ESTIMATED RESOURCES TO BE TRANSFERRED TO DISTRICT GOVERNMENTS FOR THE YEAR 2012-13

Grand Total (Col:3+10+

13+19)

Non-Salary Development Grant in lieu of Octroi & Zilla TaxS# Name of

DistrictGrant. (Road) (Edu:) (Edu:) (Col:4:9) Share Share (Col: 11+12) Share New TMAs (Col:14:16) (Col 17+18)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 Abbottabad 3505.504 139.752 13.287 20.576 86.000 34.776 12.209 306.600 43.906 18.818 62.724 34.442 - 10.565 45.007 12.211 57.218 3932.0462 Bannu. 2404.350 66.609 9.196 20.576 120.000 24.781 8.716 249.878 38.027 16.299 54.326 35.791 - 4.526 40.317 37.223 77.540 2786.0943 Battagram. 1139.908 79.606 3.875 12.346 3.500 11.495 4.279 115.101 24.697 10.584 35.281 4.466 - - 4.466 1.420 5.886 1296.1764 Buner 1603.445 80.265 5.316 12.346 27.500 15.694 5.660 146.781 31.068 13.316 44.384 6.667 - - 6.667 20.113 26.780 1821.3905 Charsadda. 3068.827 119.479 11.160 20.576 39.700 29.578 10.871 231.364 50.768 21.758 72.526 33.773 - - 33.773 42.334 76.107 3448.8246 Chitral. 1845.134 107.919 6.206 12.346 3.300 14.859 4.780 149.410 23.032 9.871 32.903 12.824 - - 12.824 39.689 52.513 2079.9607 D.I.Khan. 3436.869 175.831 12.110 20.576 120.000 32.694 11.209 372.420 45.769 19.616 65.385 62.308 - 0.889 63.197 26.406 89.603 3964.2778 Dir(Lower) 3098.666 126.627 11.311 20.576 35.000 28.036 10.072 231.622 40.281 17.266 57.547 12.267 - - 12.267 33.838 46.105 3433.9409 Dir(Upper). 1494.372 128.094 6.147 12.346 16.500 16.026 5.677 184.790 37.342 16.003 53.345 8.251 - - 8.251 14.644 22.895 1755.402

13+19)

9 Dir(Upper). 1494.372 128.094 6.147 12.346 16.500 16.026 5.677 184.790 37.342 16.003 53.345 8.251 - - 8.251 14.644 22.895 1755.40210 Haripur. 2674.371 118.515 9.624 20.576 110.000 28.090 9.878 296.683 35.872 15.371 51.243 46.951 - - 46.951 120.039 166.990 3189.28711 Hangu 723.543 53.272 2.894 12.346 18.700 9.408 3.274 99.894 22.932 9.829 32.761 28.886 - - 28.886 20.962 49.848 906.04612 Karak. 2194.238 82.597 8.053 12.346 98.000 21.078 7.514 229.588 28.031 12.014 40.045 10.478 - - 10.478 13.003 23.481 2487.35213 Kohat. 2125.758 94.914 8.219 20.576 65.000 21.792 7.846 218.347 31.951 13.693 45.644 57.446 - 12.555 70.001 28.442 98.443 2488.19214 Kohistan. 1137.044 146.578 3.907 12.346 0.600 12.427 4.586 180.444 41.457 17.768 59.225 6.697 - - 6.697 8.609 15.306 1392.01915 Lakki Marwat 2108.423 98.403 7.574 12.346 140.000 20.691 7.219 286.233 32.050 13.736 45.786 15.535 - - 15.535 14.375 29.910 2470.35216 Malakand 1994.032 107.506 6.790 20.576 38.300 17.079 5.885 196.136 26.659 11.425 38.084 9.585 - - 9.585 26.606 36.191 2264.44317 Mansehra. 3876.964 144.808 15.068 20.576 31.000 38.605 13.274 263.331 55.373 23.733 79.106 29.529 - - 29.529 13.235 42.764 4262.16518 Mardan. 4258.083 128.887 16.047 20.576 86.350 44.304 16.103 312.267 67.038 28.729 95.767 96.044 - 6.734 102.778 48.016 150.794 4816.91118 Mardan. 4258.083 128.887 16.047 20.576 86.350 44.304 16.103 312.267 67.038 28.729 95.767 96.044 - 6.734 102.778 48.016 150.794 4816.91119 Nowshera 2531.359 88.673 9.720 20.576 67.500 26.287 9.288 222.044 44.298 18.986 63.284 62.393 - 20.642 83.035 110.702 193.737 3010.42420 Peshawar 5003.014 218.066 18.810 20.576 60.100 45.363 16.020 378.935 94.088 40.324 134.412 318.689 - 47.604 366.293 152.668 518.961 6035.32221 Shangla. 1178.497 123.398 4.280 12.346 4.000 12.161 4.475 160.660 33.030 14.155 47.185 4.466 - - 4.466 1.623 6.089 1392.43122 Swabi 3096.345 93.359 11.282 20.576 57.600 32.531 11.880 227.228 50.768 21.758 72.526 30.717 1.000 - 31.717 66.747 98.464 3494.56323 Swat. 3754.825 153.900 14.176 20.576 32.600 36.566 12.717 270.535 61.058 26.169 87.227 71.799 - - 71.799 46.863 118.662 4231.24924 Tank. 885.839 56.852 3.352 12.346 40.000 9.087 3.042 124.679 22.248 9.536 31.784 21.867 - - 21.867 7.953 29.820 1072.12225 Tor Ghar 187.143 49.910 2.894 12.346 7.000 9.408 3.274 84.832 20.000 2.000 22.000 0.000 2.000 - 2.000 0.000 2.000 295.975

59326.553 2783.820 221.298 423.870 1308.250 592.816 209.748 5539.802 1001.743 422.757 1424.500 1021.871 3.000 103.515 1128.386 907.721 2036.107 68326.962

- - - - - - - - 165.220 - 165.220 - - - - - - 165.220

Total (A):-Lump Sum Provisions at the Disposal of Finance Department

CM's Directives - - - - - - - - 165.220 - 165.220 - - - - - - 165.220 - - - - - - - - 82.610 - 82.610 - - - - - - 82.610 11,811.890 - - - - - - - - - - - - - - - - 11,811.890

- 100.000 - - - - - 100.000 - - - - - - - - - 100.000

- 548.761 - - - - - 548.761 - - - - - - - - - 548.761

- 1,000.000 - - - - - 1,000.000 - - - - - - - - - 1,000.000 - 0.001 - - - - - 0.001 - - - - - - - - - 0.001 DFID Grant in

CM's DirectivesFM's DirectivesBlock allocation for SalariesBlock allocaton for Shuhada Package.Grant on need basis

Conditional Grant - 0.001 - - - - - 0.001 - - - - - - - - - 0.001

- 200.000 - - - - - 200.000 - - - - - - - - - 200.000

- 133.000 - - - - - 133.000 - - - - - - - - - 133.000

- 200.000 - - - - - 200.000 - - - - - - - - - 200.000

DFID Grant in support of Out Put Based Budgeting

Grant for Emergency

Grant for special repair/ furniture/JuteTats

Matching Grant (Districts)

- 425.000 - - - - - 425.000 - - - - - - - - - 425.000

- 18.150 - - - - - 18.150 - - - - - - - - - 18.150

- 500.000 - - - - - 500.000 - - - - - - - - - 500.000 - 500.000 - - - - - 500.000 - - - - - - - - - 500.000

- - - - - - - - - - - 500.000 - - 500.000 - 500.000 500.000 Grant for Weak

Emergency Medicine (DHQHs)Grant for Medicine BHUs.Advertisement charges M&R Grant for Electricity

- - - - - - - - - - - 500.000 - - 500.000 - 500.000 500.000

- - - - - - - - - - 500.000 - - 500.000 - 500.000 500.000 - - - - - - - - - - - 500.000 - - 500.000 - 500.000 500.000

11,811.890 3,624.912 - - - - - 3,624.912 247.830 - 247.830 1,500.000 - - 1,500.000 - 1,500.000 17,184.632 71,138.443 6,408.732 221.298 423.870 1,308.250 592.816 209.748 9,164.714 1,249.573 422.757 1,672.330 2,521.871 3.000 103.515 2,628.386 907.721 3,536.107 85,511.594

Grant for Weak TMAs Matching GrantL.S. provision at the disposal of F.D.

Total (B):-Grand Total

136

Annex-XII

Posts Salary Non Salary Total

1 PROVINCIAL ASSEMBLY 325,045,000 395,091,000 530 285,170,000 148,085,000 433,255,000

2 GENERAL ADMINISTRATION 1,463,976,000 1,568,320,000 2,321 787,329,000 796,178,000 1,583,507,000

GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2012-13

D.No Department Budget

Estimates2011-12



2 GENERAL ADMINISTRATION 1,463,976,000 1,568,320,000 2,321 787,329,000 796,178,000 1,583,507,000

3 FINANCE, TREASURIES AND LOCAL FUND AUDIT 1,328,530,000 657,953,000 1,074 425,710,000 218,823,000 644,533,000

4 PLANNING & DEVELOPMENT AND BUREAU OF STATISTICS 171,272,000 156,595,000 320 159,375,000 52,893,000 212,268,000

5 INFORMATION TECHNOLOGY 39,167,000 38,621,000 96 33,928,000 15,170,000 49,098,000

6 REVENUE & ESTATE 709,914,000 551,774,000 1,252 315,297,000 518,932,000 834,229,000

7 EXCISE & TAXATION 101,793,000 99,015,000 209 63,618,000 52,151,000 115,769,000

8 HOME AND CIVIL DEFENCE 960,112,000 1,054,686,000 1,124 400,787,000 1,006,792,000 1,407,579,000

JAILS & CONVICTS 9 JAILS & CONVICTS SETTLEMENT 818,942,000 955,718,000 2,587 618,594,000 294,416,000 913,010,000

10 POLICE 18,810,003,000 22,245,432,000 70,402 19,226,011,000 4,129,602,000 23,355,613,000

11 ADMIISTRATION OF JUSTICE 2,416,871,000 2,513,000,000 6,065 2,388,875,000 553,050,000 2,941,925,000

12 HIGHER EDUCATION, ARCHIVES & LIBRARIES 4,739,891,000 4,234,269,000 9,939 4,629,154,000 761,461,000 5,390,615,000

13 HEALTH 7,837,251,000 8,633,839,000 17,964 7,066,965,000 3,263,409,000 10,330,374,000

14 COMMUNICATION & WORKS 376,871,000 376,871,000 1,235 344,713,000 91,990,000 436,703,000

15ROADS HIGHWAYS & BRIDGES (REPAIR) AND BUILDINGS & 1,950,000,000 2,507,768,000 - - 2,019,780,000 2,019,780,000 15 (REPAIR) AND BUILDINGS & 1,950,000,000 2,507,768,000 - - 2,019,780,000 2,019,780,000

16 PUBLIC HEALTH ENGINEERING 134,378,000 119,576,000 359 123,105,000 43,927,000 167,032,000

17 LOCAL GOVERNMENT 61,749,000 62,103,000 91 37,366,000 20,963,000 58,329,000

18 AGRICULTURE 965,842,000 922,574,000 3,026 994,805,000 243,861,000 1,238,666,000

19 ANIMAL HUSBANDRY 316,996,000 328,569,000 937 280,277,000 157,740,000 438,017,000

20 CO-OPERATION 19,178,000 18,539,000 50 17,227,000 5,581,000 22,808,000

21 ENVIRONMENT & FORESTRY 913,979,000 1,051,944,000 3,855 982,066,000 135,217,000 1,117,283,000

22 FORESTRY (WILDLIFE) 210,942,000 231,308,000 902 199,217,000 54,238,000 253,455,000 22 FORESTRY (WILDLIFE) 210,942,000 231,308,000 902 199,217,000 54,238,000 253,455,000

23 FISHERIES 55,460,000 52,002,000 203 56,049,000 9,778,000 65,827,000

24 IRRIGATION 2,340,793,000 2,654,567,000 7,124 1,636,887,000 1,163,026,000 2,799,913,000

25 INDUSTRIES 60,299,000 65,661,000 171 65,585,000 15,163,000 80,748,000

26 MINERAL DEVELOPMENT AND INSPECTORATE OF MINES 295,552,000 274,383,000 564 180,378,000 156,572,000 336,950,000

27 STATIONERY AND PRINTING 68,463,000 75,507,000 186 50,130,000 28,660,000 78,790,000

28 POPULATION WELFARE 170,688,000 127,964,000 238 103,694,000 103,985,000 207,679,000

29 TECHNICAL EDUCATION AND MANPOWER 1,235,354,000 1,310,013,000 4,513 1,621,098,000 111,594,000 1,732,692,000

30 LABOUR 84,958,000 83,876,000 154 61,748,000 33,518,000 95,266,000

31 INFORMATION & PUBLIC RELATIONS 144,802,000 154,452,000 376 129,216,000 136,680,000 265,896,000

32 SOCIAL WELFARE & SPECIAL EDUCATION 125,613,000 123,005,000 193 67,878,000 121,591,000 189,469,000

33 ZAKAT & USHER 91,606,000 100,734,000 296 94,148,000 22,846,000 116,994,000

34 PENSION 16,000,000,000 15,953,940,000 - - 21,581,796,000 21,581,796,000

35 SUBSIDIES 2,500,000,000 2,000,000,000 - - 2,500,000,000 2,500,000,000

36 GOVERNMENT INVESTMENT & COMMITTED CONTRIBUTION 7,500,000,000 7,500,000,000 - - 9,000,000,000 9,000,000,000

137

Posts

GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2012-13

D.No Department Budget

Estimates2011-12


37 AUQAF, RELIGIOUS, MINORITY & HAJJ AFFAIRS 87,695,000 74,746,000 44 17,030,000

38 SPORTS, CULTURE, TOURISM & 238,741,000 255,942,000 478 108,738,000 38 MUSEUMS 238,741,000 255,942,000 478 108,738,000

39 DISTRICT NON SALARY 7,386,723,000 7,386,723,000 - -

40 GRANT IN LIEU OF OCTROI AND ZILA TAX 2,930,801,000 2,930,801,000 - -

41 HOUSING DEPARTMENT 18,788,000 18,788,000 39 15,759,000

42 DISTRICT SALARY 50,825,278,000 56,501,479,000 244,954 71,138,443,000

43 INTER PROVINCIAL COORDINATION 20,365,000 20,555,000 56 18,201,000

44 ENERGY AND POWER 41,193,000 42,635,000 131 58,410,000

45 TRANSPORT 64,186,000 52,838,000 245 62,893,000

46 ELEMENTARY & SECONDARY EDUCATION 545,203,000 564,315,000 1,034 461,808,000

47 RELIEF REHABILITATION AND SETTLEMENT 897,929,000 4,303,909,000 181 109,305,000

-- DEBT SERVICING ( INTEREST PAYMENT ) 7,060,977,000 6,111,769,000 - -

--DEBT SER. ( APPRO. FOR REDUCTION OR AVOIDANCE OF 3,535,831,000 3,535,831,000 - -

149,000,000,000 161,000,000,000 385,518 115,436,987,000

C A P I T A L E X P E N D I T U R E

TOTAL (REVENUE BUDGET)

48 LOANS AND ADVANCES 5,161,000,000 5,161,000,000 - -

-- DEBT SERVICING (LOAN FROM FEDERAL GOVT.DISCHARGED) 9,849,000,000 9,508,000,000 - -

15,010,000,000 14,669,000,000 -

164,010,000,000 175,669,000,000 385,518 115,436,987,000

49 STATE TRADING IN FOOD GRAINS AND SUGAR 78,206,833,000 12,420,229,000 1,112 274,401,000

-- DEBT SERVICING (FLOATING 9,500,000,000 9,500,000,000 - -

C A P I T A L E X P E N D I T U R E

C A P I T A L E X P E N D I T U R E - FOOD (ACCOUNT-II)

TOTAL (Capital Buget)

GRAND TOTAL (Revenue + Capital)

-- DEBT SERVICING (FLOATING DEBT ) 9,500,000,000 9,500,000,000 - -

Annex-XIII

DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (Provincial + District)S.No. DEPARTMENT BPS-01 BPS-02 BPS-03 BPS-04 BPS-05 BPS-06 BPS-07 BPS-08 BPS-09 BPS-10 BPS-11 BPS-12 BPS-13 BPS-14 BPS-15 BPS-16 BPS-17 BPS-18 BPS-19 BPS-20 BPS-21 BPS-22 Special Fixed TOTAL

1 PROVINCIAL ASSEMBLY 130 12 11 23 19 5 66 1 27 - 36 14 3 31 24 52 38 27 7 1 1 - 2 - 530

2 GENERAL ADMINISTRATION

862 93 18 361 211 50 357 6 83 16 107 205 - 326 99 176 175 58 12 49 1 1 33 - 3,299

3 FINANCE DEPARTMENT 256 4 - 35 - 10 163 - 8 40 - 138 - 181 12 41 113 37 29 1 1 - - - 1,069 4 TREASURIES 109 24 - 16 1 - 13 - 1 - - 2 - 182 1 68 42 20 8 - - - - - 487

DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (Provincial + District)

4 TREASURIES 109 24 - 16 1 - 13 - 1 - - 2 - 182 1 68 42 20 8 - - - - - 487 5 LOCAL FUND AUDIT 17 4 - 1 - - 7 - 1 - - 5 - 115 1 39 22 7 1 - - - - - 220

6 PLANNING & DEVELOPMENT

124 6 - 38 - 6 73 - 2 - 39 35 - 69 6 6 80 33 12 6 1 - - - 536

7 BUREAU OF STATISTICS 15 1 - 2 8 5 4 1 1 - 3 4 - 4 1 11 10 1 1 - - - - - 72

8 INFORMATION TECHNOLOGY

23 2 - 5 - 1 10 - 2 - - 14 - 10 2 5 14 4 3 1 - - - - 96

9 REVENUE & ESTATE 1,269 192 - 168 1,788 - 460 - 514 2 206 130 - 436 17 153 131 29 9 9 1 - - 8 5,522 10 EXCISE AND TAXATION 107 1 2 60 397 - 183 - 32 - - 81 - 195 4 36 38 14 2 2 - - - - 1,154 10 EXCISE AND TAXATION 107 1 2 60 397 - 183 - 32 - - 81 - 195 4 36 38 14 2 2 - - - - 1,154 11 HOME DEPARTMENT 209 5 - 17 250 15 85 10 12 - 10 101 2 35 8 142 92 51 46 3 - - 1 - 1,094 12 CIVIL DEFENCE 58 - - 4 21 - 15 16 37 - 3 1 - 5 1 11 2 1 1 - - - - - 176

13 JAILS & CONVICTS SETTLEMENT

221 1 15 16 1,665 28 243 4 140 - - 41 - 57 1 78 54 17 5 1 - - - - 2,587

14 POLICE 1,285 93 - 6 51,442 3 8,725 - 3,019 - 3 121 - 2,432 32 578 235 75 29 18 5 1 - 2,300 70,402

15 ADMINISTRATION OF JUSTICE

1,556 119 553 291 4 6 1,279 1 379 1 11 593 - 325 161 64 84 389 48 113 42 1 34 11 6,065 JUSTICE

16 HIGHER EDUCATION, ARCHIVES & LIBRARIES

2,814 18 12 115 3 9 1,045 5 276 1 5 40 - 185 7 65 3,195 1,467 635 41 - - - 1 9,939

17 HEALTH 9,156 7,064 190 732 336 208 793 96 10,318 5 190 1,674 - 634 39 4,441 4,338 2,553 789 331 - - - 14 43,901

18 COMMUNICATION AND WORKS

4,182 916 6 616 315 567 301 2 257 52 355 63 43 89 19 73 151 50 19 5 - - - - 8,081

19 PUBLIC HEALTH ENGINEERING

6,776 99 - 1,833 44 1 267 - 161 1 186 65 6 51 16 70 73 34 12 3 - - - - 9,698

20 LOCAL GOVERNMENT 1,062 2 - 31 - 50 940 - 27 - 1 37 - 41 3 29 35 4 2 1 - - - - 2,265 20 LOCAL GOVERNMENT 1,062 2 - 31 - 50 940 - 27 - 1 37 - 41 3 29 35 4 2 1 - - - - 2,265 21 AGRICULTURE 2,194 26 34 273 423 791 441 5 351 15 159 87 4 133 18 57 455 197 91 7 - - - - 5,761 22 ANIMAL HUSBANDRY 1,572 4 18 90 18 760 146 1 296 11 135 26 3 92 5 11 277 66 29 4 - - - - 3,564 23 CO-OPERATION 74 2 - 4 102 - 51 - 2 - 54 5 - 22 1 26 4 3 1 - - - - - 351

24 ENVIRONMENT AND FORESTRY

698 224 3 130 1,629 36 595 20 128 33 40 67 - 81 18 156 170 80 19 6 - - - - 4,133

25 FORESTRY (WILDLIFE) 125 - 3 25 81 3 457 1 38 - 97 16 1 18 2 27 21 16 2 1 - - - - 934 26 FISHERIES 77 - - 31 166 - 108 - 30 3 24 6 - 13 1 12 20 4 1 - - - - - 496 26 FISHERIES 77 - - 31 166 - 108 - 30 3 24 6 - 13 1 12 20 4 1 - - - - - 496 27 IRRIGATION 2,356 1,270 96 936 1,170 76 357 6 170 96 183 47 17 139 11 45 103 33 9 4 - - - - 7,124 28 INDUSTRIES 78 5 - 7 - 2 51 - 21 - 9 20 - 34 5 16 26 8 4 2 - - - - 288

29 MINERAL DEVELOPMENT AND INSPECTORATE OF MINES

200 9 - 27 10 1 57 - 29 1 32 29 - 46 5 32 52 25 7 2 - - - - 564

30 STATIONERY AND PRINTING

15 62 35 2 11 16 22 - 9 1 - 5 - 4 - 2 1 1 - - - - - - 186

31 POPULATION WELFARE 1,059 - 1 121 855 - 122 282 16 - 236 63 - 25 14 65 119 40 15 2 - - - - 3,035 31 POPULATION WELFARE 1,059 - 1 121 855 - 122 282 16 - 236 63 - 25 14 65 119 40 15 2 - - - - 3,035

32 TECHNICAL EDUCATION AND MANPOWER

1,446 4 - 29 62 370 172 9 95 107 82 57 - 632 5 176 717 339 190 21 - - - - 4,513

33 LABOUR 85 2 3 31 3 1 29 - 70 - 9 15 - 24 9 28 18 8 5 1 - - - - 341

34 INFORMATION, CULTURE & PUBLIC RELATIONS

85 15 2 27 5 4 31 1 16 - 30 37 2 30 5 27 49 6 3 1 - - - - 376

35 SOCIAL WELFARE, SPECIAL EDUCATION & SPECIAL 707 3 - 83 45 111 119 112 168 1 125 64 - 58 21 48 231 32 3 1 - - - - 1,932 35 EDUCATION & SPECIAL EDUCATION

707 3 - 83 45 111 119 112 168 1 125 64 - 58 21 48 231 32 3 1 - - - - 1,932

36 ZAKAT & USHER DEPARTMENT

93 1 - 28 1 - 33 - 36 - 1 29 - 34 4 3 30 2 1 - - - - - 296

37 AUQAF, RELIGIOUS, MINORITY & HAJJ

12 2 - 1 - 1 7 - - - - 5 - 5 2 2 4 1 1 1 - - - - 44

38 SPORTS, TOURISM & MUSEUMS

329 56 11 15 14 1 65 2 8 1 20 22 - 42 6 41 24 8 3 1 - - - - 669

39 HOUSING DEPARTMENT 9 1 - 3 - - 6 - - - - 6 - 3 2 2 4 1 1 1 - - - - 39 39 HOUSING DEPARTMENT 9 1 - 3 - - 6 - - - - 6 - 3 2 2 4 1 1 1 - - - - 39

40 INTER PROVINCIAL COORDINATION

14 2 - 3 - 2 10 - 1 - - 5 - 5 3 2 5 2 1 1 - - - - 56

41 ENERGY AND POWER 27 1 - 10 - - 13 1 5 - 5 20 - 17 2 3 15 2 5 3 - - - 2 131

42 TRANSPORT DEPARTMENT 61 1 - 11 18 - 56 1 10 - 21 12 - 23 - 14 13 2 1 1 - - - - 245

43 ELEMENTARY AND SECONDARY EDUCATION

41,365 30 - 181 237 8 88,018 26 32,077 90 13 82 - 288 9 13,938 5,739 711 236 18 - - - - 183,066 SECONDARY EDUCATION

44 RELIEF REHABILITATION AND SETTLEMENT

51 2 - 22 - - 7 - - 1 1 27 - 20 5 4 25 11 3 2 - - - - 181

82,963 10,378 1,013 6,460 61,354 3,147 106,002 609 48,873 478 2,431 4,116 81 7,191 607 20,875 17,044 6,469 2,301 665 52 3 70 2,336 385,518

45 STATE TRADING IN FOOD GRAINS AND SUGAR

621 4 - 36 2 43 159 - 60 - 51 11 - 60 2 38 18 5 1 1 - - - - 1,112

83,584 10,382 1,013 6,496 61,356 3,190 106,161 609 48,933 478 2,482 4,127 81 7,251 609 20,913 17,062 6,474 2,302 666 52 3 70 2,336 386,630 GRAND TOTAL

TOTAL (REVENUE) CAPITAL

139

Annex-XIII

DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (District)

S.No. DEPARTMENT BPS - 1 BPS - 2 BPS - 3 BPS - 4 BPS - 5 BPS - 6 BPS - 7 BPS - 8 BPS - 9 BPS - 10 BPS - 11 BPS - 12 BPS - 13 BPS - 14 BPS - 15 BPS - 16 BPS - 17 BPS - 18 BPS - 19 BPS - 20 TOTAL

1 GENERAL ADMINISTRATION 245 6 12 79 52 14 109 - 21 - 65 100 - 149 2 25 49 25 - 25 978

2 FINANCE DEPARTMENT 171 - - 25 - - 122 - - 40 - 80 - 121 - 25 69 25 24 - 702

DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (District)

3 PLANNING & DEVELOPMENT 64 - - 24 - - 48 - - - 39 1 - 48 - - 48 16 - - 288

4 REVENUE & ESTATE 834 187 - 100 1,763 - 348 - 316 2 139 62 - 294 - 98 102 25 - - 4,270

5 EXCISE & TAXATION 79 - 2 39 336 - 161 - 27 - - 65 - 176 - 27 31 2 - - 945

6 CIVIL DEFENCE 49 - - - 21 - 11 16 34 - 2 - - 3 - 9 1 - - - 146

7 ELEMENTARY & SECONDARY EDUCATION 41,047 25 - 147 234 2 87,953 1 31,990 85 1 38 - 227 - 13,894 5,579 587 222 - 182,032

8 HEALTH 5,520 4,856 110 434 96 103 301 23 7,548 1 18 1,018 - 384 - 1,879 2,162 1,166 306 12 25,937

9 COMMUNICATION AND 3,846 844 - 427 248 491 201 2 201 37 305 28 29 32 - 29 95 31 - - 6,846 9 COMMUNICATION AND WORKS 3,846 844 - 427 248 491 201 2 201 37 305 28 29 32 - 29 95 31 - - 6,846

10 PUBLIC HEALTH ENGINEERING 6,696 99 - 1,814 24 - 227 - 128 1 177 45 3 19 - 31 52 23 - - 9,339

11 LOCAL GOVERNMENT 1,035 - - 26 - 49 935 - 26 - 1 25 - 26 - 26 25 - - - 2,174

12 AGRICULTURE 1,071 14 3 153 132 623 159 4 130 13 58 31 - 41 - 16 195 65 27 - 2,735

13 ANIMAL HUSBANDRY 1,183 - 2 24 2 726 105 - 198 - 109 2 - 64 - - 173 30 9 - 2,627

14 CO-OPERATION 59 2 - - 102 - 45 - - - 54 - - 19 - 20 - - - - 301

15 ENVIRONMENT & FOREST 41 - - 1 131 26 45 1 27 - - - - 2 - - 4 - - - 278

16 FORESTRY (WILDLIFE) - - - - 20 - 6 - 6 - - - - - - - - - - - 32

17 FISHERIES 34 - - 12 160 - 30 - 20 - 15 - - 6 - 3 13 - - - 293

18 INDUSTRIES 38 - - - - - 24 - 12 - 9 - - 11 - 12 11 - - - 117

19 POPULATION WELFARE 997 - - 100 848 - 100 274 8 - 219 49 - 8 8 54 100 24 8 - 2,797 19 POPULATION WELFARE 997 - - 100 848 - 100 274 8 - 219 49 - 8 8 54 100 24 8 - 2,797

20 LABOUR 42 - - 19 - - 14 - 59 - 5 6 - 8 - 23 8 3 - - 187

21 SOCIAL WELFARE & SPECIAL EDUCATION 664 - - 71 45 108 98 112 160 1 114 42 - 37 15 39 208 24 1 - 1,739

22 SPORTS, CULTURE, TOURISM & MUSEUMS 110 - 2 1 3 - 25 - - - - - - 25 - 18 7 - - - 191 & MUSEUMS

63,825 6,033 131 3,496 4,217 2,142 91,067 433 40,911 180 1,330 1,592 32 1,700 25 16,228 8,932 2,046 597 37 244,954 TOTAL

141

kpk white paper budget 2012-13

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