white paper 2014-15 paper 2014-15.pdf2. the white paper for 2014-15 portrays a comprehensive...

WHITE PAPER 2014-15

GOVERNMENT OF KHYBER PAKHTUNKHWA

FINANCE DEPARTMENT

WHITE PAPER

2014-15

Government of Khyber Pakhtunkhwa

Finance Department

FOREWORD

White Paper on the budget is a non-technical description of the

salient features of budget. It is an endeavour to give meanings and

substance to the figures in the budget. It attempts to summarize and

unfold the mysteries hidden under budgetary classifications besides

explaining the rationale for various provisions in the budget estimates. It

is hoped that the insight provided by this document will enable the reader

to formulate an informed and independent opinion about the intent,

benefits and accuracy of various projections in the budget estimates.

2. The White Paper for 2014-15 portrays a comprehensive depiction of

the Government’s finances covering all major areas, including current

revenue receipts and expenditures, capital receipts and expenditures,

development budget, funds management, local government finances,

debt management and major public financial management reforms.

3. In order to strengthen the Public Financial Management in the

province, Output Based Budget (OBB) under Medium Term Budgetary

Framework continues to bring together financial and non-financial

information and links budget spending with departmental outcomes,

outputs, targets and indicators which in turn enhances service delivery.

OBB for 2014-17 supports the vision of the present Government and

depicts sufficient performance information for rigorous monitoring and

evaluation.

4. The Government of Khyber Pakhtunkhwa has adopted a Strategic

Development Partnership Framework (SDPF). This is in response to the

policy of the Government that aims at harmonizing donor partnership

behind the reform agenda of the Provincial Government. The Government

has spelled out its reform priorities and development partners are

expected to align their country strategies with the strategic priorities of

the provincial government. SDPF fosters mutual accountability through

setting out of individual and shared commitments on part of development

partners and Government in a coordinated and synchronized manner so

as to develop synergies for robust solutions to the impinging provincial

development challenges.

5. Provincial Government has embarked upon a rights based

development approach through Medium Term Development Plan (MTDP),

resulting in the integration of government priorities and consolidation of

strategies such as Comprehensive Development Strategy, Economic

Growth Strategy and Post Crisis Need Assessment.

6. Achievement and performance of the Government during the

current Financial Year has been quite significant despite multiple

challenges. The formulation of budget for the Fiscal Year 2014-15 would

not have been possible without the valuable guidance and active support

of political leadership of the Province. For this, I acknowledge my thanks

for Hon’ble Chief Minister, Senior Minister for Finance, Cabinet Members

and Members of the Provincial Assembly. My Special thanks are due for

the learned guidance and continuous support of Chief Secretary, Khyber

Pakhtunkhwa in shaping the budget priorities and proposals. I also

acknowledge the valuable contribution made by Development Partners,

SNG and other organizations, professional bodies and all stakeholders.

7. 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.

SYED SAID BADSHAH BUKHARI Finance Secretary

Government of Khyber Pakhtunkhwa 14th June 2014

TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE

GENERAL ABSTRACT 2014-2015

General Abstract of Revenues & Expenditure for the Year 2014-15

i

Budget at a Glance ii

Summary Position of Revenues for the Year 2013-14 & 2014-2015

iii

Summary Position of Expenditure for the Year 2013-14 & 2014-2015

iv

CHAPTERS

1 Current Revenue Expenditure 1

2 Sectoral Expenditure 5

3 Provincial Revenue Receipts 20

4 Capital Receipts and Expenditures 25

5 Local Government Act 2013 29

6 Hydro Electric Power Potential 30

7 Net Hydel Profit (NHP) 33

8 Revenues from Oil and Gas 36

9 7th National Finance Commission 44

10 Public Financial Management (PFM) 46

11 Bank of Khyber 55

12 Funds Management 58

13 Annual Development Programme 2014-15 63

TABLE OF CONTENTS

ANNEXURES DESCRIPTION PAGE

I CDL Liabilities as on 01-07-2014 97

II Detail of Premature Debt Retirement 98

III Foreign Exchange Loan Liabilities as on 01-07-2014 99

IV Disbursement of Loans in R/o of Ongoing Foreign Projects Share as on 30-06-2014

101

V General Revenue Receipts 103

VI Current Revenue Expenditure 106

VII Development Budget by Sector for the Year 2013-14 & 2014-15

108

VIII Annual Development Programme Since 1971-72 on ward 114

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

115

X Grant Wise General Abstract of Current Budget for the Year 2014-15

118

XI Medium Term Fiscal Framework 2014-17 120

(Rs. In Million)

REVENUES

Budget

Estimates

2014-15

EXPENDITURE

Budget

Estimates

2014-15

Federal Tax Assignment 227,121.193 General Public Service 73,280.963

1% of Divisble Pool for

War on Terror27,290.233 Civil Defence 62.280

Straight Transfers 29,263.451 Public Order and Safety Affairs 35,428.108

GST on Services (Provincial) 12,000.000 Economic Affairs 19,340.205

Provincial Own Receipts

(Tax & Non Tax)13,930.777 Environmental Protection 37.048

Net Profit from Hydel Power Generation 12,000.000 Housing and Community Amenities 4,770.370

Likely Availalibilty of NHP Arrears 32,272.346 Health (Excluding Health Education) 20,985.728

Hydel Power Own Generation 2,850.000 Recreation, Culture and Religion 818.078

Population Welfare Programme 477.000 Education Affairs and Services

(Including Health Education etc)87,632.332

Social Protection 7,644.888

Total-A 357,205.000 Total-A 250,000.000

Recoveries of Loans & Advances 250.000 Repayment of Loans 14,710.000

Loans and Advances 290.000

Total-B 250.000 Total-B 15,000.000

Operational Shortfall 12,000.000 ADP (Provincial) 98,378.000

ADP (Districts) 1,672.000

Foreign Projects Assistance 35,350.000 Foreign Projects Assistance 39,755.000

Total-C 47,350.000 Total-C 139,805.000

Total Revenues (Account-I) 404,805.000 Total Expenditure (Account-I) 404,805.000

Receipts and Recoveries

(Account-II)101,513.719

Capital Expenditure

(Account-II)101,513.719

C-Development ExpenditureC-Development Reciepts

GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2014-2015

A-General Revenue Receipts A-Current Revenue Expenditure

B-Current Capital ExpenditureB-General Capital Receipts

i

(Rs.In Million)

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

General Revenue Receipts 297,986.109 294,721.386 357,205.000

Revenue Expenditure 211,000.000 222,000.000 250,000.000

Net Revenue Account (Deficit/Surplus) 86,986.109 72,721.386 107,205.000

General Capital Receipts 250.000 736.552 250.000

Current Capital Expenditure 15,000.000 15,000.000 15,000.000

Net Capital Account (Deficit/Surplus) (14,750.000) (14,263.448) (14,750.000)

C-Surplus for Development (A+B) 72,236.109 58,457.938 92,455.000

PSDP - 2,213.577 -

Operational Shortfall 10,763.891 14,704.002 12,000.000

Foreign Project Assistance 35,000.000 21,060.123 35,350.000

Foreign Grants (PDMA+Others) - 8,411.976 -

Total ADP Financing Items 45,763.891 46,389.678 47,350.000

Resources for Development 118,000.000 104,847.616 139,805.000

Development Expenditure 118,000.000 104,847.616 139,805.000

Total Resources (A+B+C+D) 344,000.000 341,847.616 404,805.000

Total Expenditure (A+B+D) 344,000.000 341,847.616 404,805.000

Net (Deficit/Surplus) (Account-I) - - -

General Capital Expenditure (Account-II) 98,000.000 45,821.320 101,513.719

Less Receipts and Recoveries (98,000.000) (45,821.320) (101,513.719)

Net (Deficit/Surplus) (Account-II) - - -

BUDGET AT A GLANCE

A - GENERAL REVENUE BUDGET

B - CURRENT CAPITAL BUDGET

D - ADP FINANCING ITEMS

ii

(Rs.In Million)

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

Federal Tax Assignment 198,269.368 183,666.532 227,121.193

1% Divisible Pool for War on Terror 23,823.481 22,068.845 27,290.233

Straight Transfers 27,495.741 29,312.340 29,263.451

GST on Services (Provincial) 6,000.000 8,000.000 12,000.000

Provincial Own Receipts (Tax & Non-Tax) 8,559.263 9,845.367 13,930.777

Net Profit from Hydel Power Generation 6,000.000 6,000.000 12,000.000

Likely Availalibilty of NHP Arrears 25,000.000 25,000.000 32,272.346

Population Welfare Programme 477.000 834.240 477.000

Extra Budgetry Grant (Non-Dev) - 1,504.407 -

Transfer of Funds from Account-IV - 5,689.655 -

Hydel Power Own Generation 2,361.256 2,800.000 2,850.000

Total General Revenue Receipts (A) 297,986.109 294,721.386 357,205.000

Recoveries of Loans & Advances 250.000 736.552 250.000

Total General Capital Receipts (B) 250.000 736.552 250.000

Special Federal Grant PSDP (i+ii) - 2,213.577 -

of which: i Grants 2,184.852

ii. Loans 28.725

Foreign Grants (PDMA+Others) - 8,411.976 35,350.000

Foreign Project Assistance 35,000.000 21,060.123

Operational Shortfall 10,763.891 14,704.002 12,000.000

Total Development Receipts (C) 45,763.891 46,389.678 47,350.000

Total Revenues (A+B+C) 344,000.000 341,847.616 404,805.000

C-Development Receipts

SUMMARY POSITION OF REVENUES FOR THE YEAR 2013-14 & 2014-15

A-General Revenue Receipts

B-General Capital Receipts

iii

(Rs. in million)

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

General Public Service 59,694.034 57,520.671 73,280.963

Civil Defence 59.449 67.212 62.280

Public order and Safety Affairs 30,028.891 36,897.256 35,428.108

Economic Affairs 17,524.015 16,899.878 19,340.205

Environmental Protection 29.571 26.934 37.048

Housing and Community Amenities 4,293.132 3,777.120 4,770.370

Health (Excluding Health Education) 19,108.777 21,421.440 20,985.728

Recreation, Culture& Religion 737.289 721.221 818.078

Education Affairs and Services

(Including Health Education etc)72,687.935 75,281.203 87,632.332

Social Protection 6,836.907 9,387.065 7,644.888

Total Current Revenue Expenditure (A) 211,000.000 222,000.000 250,000.000

(i) Financial & Fiscal Affairs 8,710.000 8,710.000 14,710.000

of which Foreign Debt Management 4,385.306 4,400.000 4,975.000

of which Domestic Debt Management 4,324.694 4,310.000 9,735.000

(ii) Financial & Fiscal Affairs 6,290.000 6,290.000 290.000

Total Current Capital Expenditure (B) (i+ii) 15,000.000 15,000.000 15,000.000

ADP (Provincial) 83,000.000 80,153.869 98,378.000

ADP (Districts) - - 1,672.000

Special Federal Progamme PSDP (i+ii) 0.000 3,633.624 0.000

of which: i Grants 3,612.592

ii Loans 21.032

Foreign Project Assistance 35,000.000 21,060.123 39,755.000

Total Development Expenditure (C) 118,000.000 104,847.616 139,805.000

Total Expenditure (A+B+C) 344,000.000 341,847.616 404,805.000

SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2013-14 & 2014-15

A-Current Revenue Expenditure

B-Current Capital Expenditure

C-Development Expenditure

iv

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Chapter 1: Current Revenue Expenditure Page 1

CURRENT REVENUE EXPENDITURE Public sector budget is broadly classified into current and development which are complementary to each other. The infrastructure and other assets created out of developmental investment require current expenditure for operation and maintenance. Current budget has the following major heads of expenditure:

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

The following table depicts the increase in current budget during the last 3 years:-

(Rs. In Million)

Item Budget

Estimates 2012-13

Budget Estimates 2013-14

% Increase


% Increase

Posts 385,518 390,070 1.18 406,665 4.25

Current budget 191,600.000 211,000.000 10.13 250,000.000 18.48

Salary 115,436.987 125,237.967 8.49 145,772.12 16.40

O&M & Contingencies

29,982.110 34,351.914 14.58 41,489.190 20.78

Pension 21,581.796 24,000.000 11.20 30,819.000 28.41

Subsidies 2,500.000 2,500.000 - 2,714.900 8.60

Grant in Lieu of OZT/Local Councils

3,536.107 3,740.718 5.79 4,114.790 10

Debt servicing 9,563.000 11,169.401 16.80 13,090.000 17.20

Committed contributions/ Govt. Investment

9,000.000 10,000.000 11.11 12,000.000 20.00

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 while the salary and pension liabilities are rising at an alarming rate. The total staff strength of the provincial government is now 406,665 and the number of pensioners is about 170,000. The estimated budget for pay and pension makes up about 71% of the total current expenditure 2014-15. Increase in salaries and pension at such a rate leaves little room for the provincial exchequer to set aside adequate funds for operation, maintenance and development sector.

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The segregation of Budget 2014-15 into three parts i.e. Welfare, Administration and Development is given below:-

(Rs. In Million)

S.No Description Budget

Estimates 2013-14

% Budget

Estimates 2014-15

%

1 Welfare Budget 186,969.040 54.35 219,694.522 54.27

2 Administrative Budget 39,030.960 11.35 45,305.478 11.19

3 Development Budget 118,000.000 34.30 139,805.000 34.54

Total 344,000.000 100 404,805.000 100

WELFARE BUDGET A sum of Rs. 219,694.522 million has been allocated for utilization under Welfare Budget 2014-15, which is 54.27% of the total budget of Rs. 404,805.000 million which includes the following departments:-

(Rs. In Million)

Department Budget

Estimates 2013-14

Revised Estimates 2013-14


HIGHER EDUCATION, ARCHIVES & LIBRARIES 6,055.093 5,041.265 7,044.880

HEALTH 22,807.005 24,842.214 25,237.123

COMMUNICATION AND WORKS DEPARTMENT 2,261.341 2,142.941 2,364.697

ROADS HIGHWAYS & BRIDGES (REPAIR) 1,881.000 1,727.258 2,025.000

BUILDING & STRUCTURE (REPAIR) 783.702 781.260 875.980

BUILDING & STRUCTURE (REPAIR) 4.015 5.225 4.015

PUBLIC HEALTH ENGINEERING 4,246.762 3,744.657 4,437.853

LOCAL GOVERNMENT DEPARTMENT 1,601.734 956.729 2,963.797

AGRICULTURE 2,913.869 2,477.000 3,142.959

ANIMAL HUSBANDRY 1,466.202 1,355.000 1,707.069

CO-OPERATION 140.020 129.000 152.073

ENVIRONMENT AND FORESTRY 1,275.122 1,464.450 1,651.896

FORESTRY (WILDLIFE) 289.786 319.125 339.596

FISHERIES 168.883 173.854 193.446

IRRIGATION 3,122.158 3,158.804 3,206.651

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Department Budget

Estimates 2013-14



INDUSTRIES 184.372 167.977 224.805

MINERAL DEVELOPMENT AND INSPECTORATE OF MINES

364.479 336.630 481.864

STATIONERY AND PRINTING 88.104 116.319 97.877

POPULATION WELFARE DEPARTMENT 1,072.920 1,099.628 1,274.800

TECHNICAL EDUCATION AND MANPOWER 1,972.441 1,786.799 2,173.378

LABOUR 175.823 175.822 213.600

INFORMATION, CULTURE & PUBLIC RELATIONS 274.165 275.067 321.640

SOCIAL WELFARE, SPECIAL EDUCATION 928.324 1,111.559 1,114.157

ZAKAT & USHER DEPARTMENT 134.125 138.125 153.867

PENSION 24,000.000 24,100.004 30,819.000

SUBSIDIES 2,500.000 2,500.000 2,714.900

GOVT INVESTMENT & COMMITTED CONTRIBUTION

10,000.000 10,000.000 12,000.000

AUQAF, RELIGIOUS, MINORITY & HAJJ 112.812 75.281 114.996

SPORTS, TOURISM & MUSEUMS 303.224 324.376 321.000

DISTRICT NON SALARY 0.100 0.100 500.100

GRANT TO LOCAL COUNCILS 3,740.718 3,740.718 4,114.790

HOUSING DEPARTMENT 26.370 22.806 32.517

DISTRICT SALARY 0.100 0.100 0.100

INTER PROVINCIAL COORDINATION DEPTT 30.469 25.085 32.645

ENERGY AND POWER DEPARTMENT 58.965 56.134 63.131

TRANSPORT DEPARTMENT 109.921 137.849 155.629

ELEMENTARY AND SECONDARY EDUCATION 60,552.937 64,594.426 73,684.438

RELIEF REHABILITATION AND SETTLEMENT 5,152.578 7,439.821 5,648.253

DEBT SERVICING ( INTEREST PAYMENT ) 7,196.057 7,196.057 7,117.090

DEBT SER. ( APPRO. FOR REDUCTION OR 3,973.344 3,973.344 5,972.910

LOANS AND ADVANCES 6,290.000 6,290.000 290.000

DEBT SERVICING (LOAN FROM FEDERAL GOVT. 8,710.000 8,710.000 14,710.000

TOTAL WELFARE BUDGET 186,969.040 192,712.809 219,694.522

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ADMINISTRATIVE BUDGET A sum of Rs. 45,305.478 million has been allocated for Administration Budget 2014-15, which is 11.19% of the total budget of Rs. 404,805.000 million which includes the following departments:-

(Rs. In Million)

Department




PROVINCIAL ASSEMBLY 517.592 514.389 604.014

GENERAL ADMINISTRATION 1,832.128 2,294.545 2,070.417

FINANCE, TREASURIES & LOCAL FUND AUDIT 2,586.333 983.242 2,669.675

PLANNING & DEVELOPMENT & BUREAU OF STATISTCS

242.502 215.106 259.863

INFORMATION TECHNOLOGY DEPARTMENT 54.179 48.182 61.306

REVENUE & ESTATE DEPARTMENT 3,502.897 3,053.420 3,925.257

EXCISE AND TAXATION DEPARTMENT 459.451 479.538 535.094

HOME DEPARTMENT 1,132.914 1,202.925 1,161.890

JAILS & CONVICTS SETTLEMENT 1,072.223 1,503.440 1,300.300

POLICE 23,781.398 29,657.589 28,534.630

ADMINISTRATION OF JUSTICE 3,849.343 4,334.815 4,183.032

TOTAL ADMINISTRATIVE BUDGET 39,030.960 44,287.191 45,305.478

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Chapter 2: Sectoral Expenditure Page 5

SECTORAL EXPENDITURE

ELEMENTARY AND SECONDARY EDUCATION Elementary & Secondary Education is the biggest department of provincial government in terms of human resource, infrastructure network and budgetary allocations. The total Budget Estimates of the Elementary & Secondary Education for the current financial year 2013-2014 were Rs. 60,552.937 million, which have been revised to Rs. 64,594.426 million. For the year 2014-15 the current budget for Elementary & Secondary Education has been estimated at Rs. 73,684.438 million which makes up about 28.83% of total current revenue expenditure. The Budget Estimates 2014-2015 at both Provincial & District level are tabulated as under:-

(Rs. In Million)

Classification Budget Estimates 2014-15

Salary Non-Salary Total

091102-Govt. Primary Schools (M&F) in Khyber Pakhtunkhwa.

29,809.025 3,600.771 33,409.796

091103-Administration. Sub Divisional Education Officers ( M&F) in Khyber Pakhtunkhwa

536.174 84.896 621.070

091120-Others. (Regional institutes for Teachers Education in Khyber Pakhtunkhwa).

255.246 5.301 260.547

092101-Secondary Education. (Middle, High/ Higher Secondary Schools in Khyber Pakhtunkhwa).

3,4047.451 1,870.621 35,918.072

092102-Administration.(District Education Officers (M&F) in Khyber Pakhtunkhwa

909.077 838.196 1,747.273

093102-Proff. /Tech./Colleges/ Institutes in Khyber Pakhtunkhwa.

118.206 959.077 1,077.283

096101-Secretary Elementary & Secondary Education Department.

95.492 554.905 650.397

Total 65,770.671 7,913.767 73,684.438

Provincial Government considers education its top priority. The total allocation for 2014-15 shows an overall increase of 14% over current financial year. The non-salary budget alone has been increased by 132% with the following salient features:

(Rs. In Million)

S.No Object Allocation

1 Purchase of Classrooms consumables and Petty Repairs (Parent Teacher Council)

809.748

2 Purchase of Jute Tats 79.840

3 Provision for Missing Facilities- Conditional Grant. (DFID Assisted)

2000.000

4 Improving the activities of Elementary Education Foundation

180.000

5 Provision for Model High/Higher Schools 950.000

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6 Provision for Enrollment campaign 10.626

7 Purchase of IT Equipment 607.045

8 Purchase of Transport 222.475

9 Purchase of Furniture & Fixture 40.000

10 Repair of the offices of District Education Officers 70.000

During the course of current financial year 2013-14, a total of 1,643 posts were created on the proposal of the Elementary & Secondary Education Department, as per the detailed breakup given below:

S.No Schools Number of Schools

/Colleges Posts

Created

1 Establishment of new Govt. Primary Schools (M&F)

117 341

2 Up Gradation of Primary Schools (M&F) to Middle Status.

62 552

3 Establishment of Government High Schools. 1 16

4 Up gradation of Govt. Middle Schools (M&F) to High status.

54 432

5 Up gradation of Govt. High Schools to Higher Secondary level.

16 272

7 Establishment of Cluster Hostel. 1 3

9 Creation of posts for offices of the Sub Divisional Education Officers (M&F) Tehsil Allai District Battagram.

2 16

10 Creation of additional Posts for Elementary & Secondary Education Department.

-- 11

Total 1,643

In addition to the above, following 30 posts are proposed to be created in the SNE (Fresh) for the financial year 2014-15.

S.No Schools Posts

Created

1 Creation of post of Driver for the office of Sub Divisional Education Officer (M) Tehsil Takht-e- Nasrati District Karak.

1

2

Creation of 01 Post of Sweeper for Government Middle School Darul Uloom Drosh and 01 post of N/Qasid for Government Middle School Darul Uloom Chitral District Chitral.

2

3 Creation of posts for up gradation of Govt. Girls Primary School Panam Dheri to Middle Level in District Peshawar.

8

4 Creation of post of Senior English Teacher (Science) for Government High School Kula Dher District Charsadda.

1

5 Creation of additional post of Chowkidar for Government High School Sonoghor District Chitral.

1

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6 Creation of posts for up gradation of GGMS Shoghore to High level District Chitral.

8

7 Creation of posts for establishment of GGMS Pagorai District Shangla.

9

Total 30

Total sanctioned strength of Elementary & Secondary Education Department is as under:-

Year Provincial District Total

2014-15 1,073 186,722 187,795

The budget of Elementary & Secondary Education has been consistently increased as per the priorities of the present and previous provincial governments. The trend is presented in the table below:

Year Budget Estimates % Increase

2011-12 37,230.278 12

2012-13 46,601.669 25

2013-14 60,552.937 30

2014-15 73,684.438 22

Grants, amounting to Rs. 376.219 have also been released to the following Autonomous/Semi Autonomous Institutions during the current financial year.

S.No NAME OF INSTITUTION Rs in Million

1 Akram Khan Durrani Public School & College Bannu 123.539

2 Abbotabbad Public school & College Abbotabbad 81.890

3 Elementary Education Foundation 150.000

4 Cadet College Swat 20.790

Total 376.219

HIGHER EDUCATION

The total Budget Estimates of the Higher Education for the financial year 2013-14 were Rs. 6055.093 million which reduced upto Rs.5041.265 million in Revised Estimates with a budget saving of 1013.828 million. For the next financial year 2014-15, therefore the Budget is estimated to be Rs. 7044.880 million. The detail breakup is given below:- (Rs.in million)

S.No Function Salary Non-Salary Total

1 096101-Higher Education 102.900 56.572 159.472

2 093101-General colleges 6179.036 627.484 6806.520

3 095101-Arcives& Libraries 69.608 9.280 78.888

Total 6351.544 693.336 7044.880

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The following table depicts the position of posts created during 2013-14 and fresh posts proposed for creation during 2014-15.

A- POSTS CREATED DURING THE COURSE OF 2013-14

S.No Development Activity Number

of Colleges

Posts Created

i Establishment of Degree Colleges 3 126

ii Creation of staff for student Hostel GDC, Booni Chitral

1 2

iii Creation of Posts for starting of Science Classes at GDC Kulachi

- 04

iv Establishment of Higher Education Teachers Training Academy Peshawar

- 17

v Creation of supporting staff for Spl: Secy Higher Education Department

- 5

vi Establishment of Public Library Timer Gara Dir Lower

- 12

Total 166

B- FRESH POSTS CREATED FOR 2014-15

i Creation of posts for starting BS 4 years Programme in various College in Khyber Pakhtunkhwa

-- 300

ii Creation of staff for in various colleges in Khyber Pakhtunkhwa

-- 139

Iii Establishment of Khushal Khan Khattak Memorial Library at Akora Khattak Nowshera

-- 12

iv Creation of addl: posts at Mufti Mehmood Public Library D.I.Khan

- 02

Total 453

Grants-in-aid amounting to Rs. 262.112 million were released to Semi-Government/Autonomous Educational Institutions from time to time during the financial year 2013-14 to supplement their financial resources so that they can fulfill their operational and development needs. Details are as under:-

S.No NAME OF INSTITUTION Rs. In Million

1 Grant-in-Aid to Gomal University D.I.Khan 100.000

2 Grant-in-Aid to Hazara University Mansehra 2.000

3 Grant-in-Aid for printing of Books (Hayat-i-Mashwani) 0.112

4 Grant-in-Aid to Frontier Education Foundation (FEF) 160.000

Total 262.112

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HEALTH

Allocation in the Budget 2014-15 for Health Department has been increased from Rs.22,807.005 million to Rs. 25,237.123 million which shows an increase of 10.65%. The budget of Health Department includes Provincial & District Health Institutions and also regular Grants-in-aid to various autonomous Health Institutions. Details of the Grants-in-aid provided during the year 2013-14 and proposed for 2014-15 are as follow:-

Rs. (in million)

S.No Institutions B.E 2013-14 BE2014-15 %

increase

1 Lady Reading Hospital, Peshawar 1703.523 1762.998 3.491

2 Khyber Teaching Hospital, Peshawar 955.845 1066.512 11.578

3 Khyber Medical College, Peshawar 387.002 425.036 9.828

4 Khyber College of Dentistry, Peshawar 196.382 214.068 9.006

5 Hayatabad Medical Complex, Peshawar 1014.698 834.415 -17.767

6 Postgraduate Medical Institute Peshawar 1103.691 1298.127 17.617

7 Ayub Teaching Hospital, Abbottabad, 844.538 895.146 5.992

8 Ayub Medical College, Abbottabad 499.152 540.389 8.261

9 Institute of Kidney Diseases, Peshawar 174.312 234.551 34.558

10 Pakistan Institute of Community Ophthalmology Hayatabad Medical Complex, Peshawar

19.112 33.309 74.283

11 Khyber Girls Medical College, Peshawar 219.493 248.634 13.277

12 Bashir Bilour Memorial Children Hospital Peshawar

24.587 25.364 3.160

Total 7142.335 7578.549 6.107

Grant-in-Aid has also been proposed for the following purposes in the Budget Estimates 2014-15:-

(Rs In million)

SNo Institutions/purpose 2013-14 2014-15

1 Endowment Fund 100.00 100.00

2 Provision of Emergency Drugs for poor patients 725.00 725.00

3 Creation of posts in the project/schemes due for completion during the year

200.00 200.00

4 Red Crescent Society 2.500 2.500

5 Cardiology Unit LRH Peshawar 40.00 40.00

6 Cardiovascular LRH 20.00 20.00

7 Fatimid Foundation 5.00 5.00

8 Paraplegic Center Hayatabad Peshawar 50.00 60.00

9 Health Regulatory Authority 20.00 20.00

10 Frontier Foundation 15.00 20.00

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11 Khyber Medical University, Peshawar for KUST 61.00 61.0

12 Free Dialysis Services 60.00 60.00

13 Free angiography/angioplasty surgery 100.00 100.00

14 Electrophysiology Department at HMC 20.00 20.00

15 GIA to Hamza Foundation Peshawar -- 5.00

16 GIA for Polio Eradication Program -- 270.00

Total 1418.50 1708.50

Following steps have been taken to increase health coverage in the Province:-

During current financial year 2013-14, 1,394 (including 300 Stipendiary) posts have been created in various Health Institutions to provide better health facilities to the people of province, including creation of 279 posts for newly established Gajju Khan Medical College, Swabi & 245 posts for Nawaz Sharif Kidney Hospital Swat, .

For the financial year 2014-15, 978 (including 9 Stipendiary) posts have been proposed for various health institutions through SNE (Fresh).

LAW AND ORDER (POLICE) The Province of Khyber Pakhtunkhwa has been badly affected by terrorism that has led to a steep increase in the expenditure of Law Enforcing Agencies over the past several years. The following table is proof to this extra ordinary increase. This trend is still continuing and thus funds for essential items like POL, repair and maintenance of transport etc. have been provided at enhanced rates. Year wise increase in Budget Estimates from financial year 2009-10 onwards is tabulated below:- Rs. In Million.

Financial Year Budget Estimates % Increase/ Decrease

2010-2011 21041.940

2011-2012 18810.003 (-)10.60

2012-2013 23355.613 24.17

2013-2014 23781.398 1.82

2014-2015 28534.630 19.99

The main reasons for the 19.99% increase in Budget Estimates 2014-15 is due to the following:-

Annual increment

Increase in salaries of regular police

Increase in pay of Special Police Force and Ex-Army men

Creation of 1835 posts during the financial year 2013-14 A sum of Rs. 28534.630 million has been earmarked for Police in the budget for Financial Year 2014-15, out of which Rs. 24516.328 million is meant for salaries while Rs. 4018.302 million are for non-salary/operational expenses of the police.

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REVENUE AND ESTATE

For the Budget 2014-15 a sum of Rs. 3,925.257 million has been allocated to the Revenue & Estate Department, an increase of 12% over Budget Estimates 2013-14. The revised estimates for 2013-14 have been fixed at Rs. 3,053.420 million. In order to extend urgent relief to the general public, the Government of Khyber Pakhtunkhwa adopted various steps to eradicate chances of corruption and instructions have been issued to all Commissioners and Deputy Commissioners in Khyber Pakhtunkhwa as follow:-

a) At every transfer, the Revenue Staff has to sign a deed declaring that full transparency has been ensured in the transfer and no money has been taken from the parties concerned. The phone numbers of both the parties with their names shall be written on the deed.

b) The Divisional Commissionerates and Deputy Commissioners are advised to call any of the parties to verify whether bribe has been taken or not.

c) The General Public has been exempted from all kind of taxes on Inheritance Mutation, and Tamleek (Gift to legal heir). Besides, there is no tax on issuance of FARD.

d) Revenue Staff have been directed to provide copies of attested mutations to the applicants within a week’s time positively.

e) Each Patwari will be provided an Assistant Patwari to assist in court matters and to avoid private clerks/munshis.

The Government of Khyber Pakhtunkhwa has launched a project for the computerization of land record in seven Districts in Phase-I (i.e. Peshawar, Mardan, Abbottabad, Buner, Kohat, Bannu and D.I.Khan) to extend quick service delivery to the general public for which PC-I of Rs.803.36 million were approved and now have been revised to a total cost of Rs.1245.57 million. Contracts for digitization of land record in four Districts (D.I.Khan, Peshawar, Mardan and Abbottabad) had been awarded, where data entry is in progress. Agreements for the remaining three Districts have been signed with the contracting firms after the revision of PC-I. From the next year the digitization exercise will be extended to the remaining districts in a phased manner at a cost of Rs.2800 million. To provide legal cover to the digitization of records, necessary amendment in West Pakistan Land Revenue Act 1967 has been placed before the Provincial Assembly for approval. Amendment in The Registration Act 1908 has also been placed before the Provincial Assembly for approval to eliminate chances of registration of sale deeds by persons who do not have rights on the concerned immoveable properties. Approval of both the amendments will go a long way in improving quality of land records resulting in minimizing litigation.

AGRICULTURE

A sum of Rs. 3,142.959 million has been earmarked for the next financial year 2014-15. The economy of Khyber Pakhtunkhwa is mostly agrarian with more than 80% of the rural population depending on agriculture for their survival, out of which 70% are directly or indirectly engaged in agriculture. Agriculture can easily attain the status of a big industry in the Province if proper care and patronage is given to it.

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The Province is short in food commodities, producing hardly 40% of the local requirements and meets the balance requirements through import from Punjab etc. The primary concern is availability/provision of food on which the rise and fall of nations depends and, therefore, the Agriculture Department attaches high priority to it and is availing every conceivable avenue to promote the growth of agriculture. The Provincial Government of Khyber Pakhtunkhwa has converted the scheme “High Value Chain Crop Research Institute Bamkhel at District Swabi” from developmental to current side to facilitate the public by providing high quality seeds orchard for this purpose and has created 48 posts of different categories in the Institute. For the next financial year, Soil Conservation Office at District Torghar has been established and 12 posts of different categories have been created.

LIVESTOCK

A sum of Rs. 1,707.069 million has been allocated to this sector for the financial year 2014-15. Khyber Pakhtunkhwa has about 21 million animals to be vaccinated each year requiring approximately 42 million doses of vaccine. However, the local vaccine production is hardly 2 million doses per year. Therefore, the Government of Khyber Pakhtunkhwa has converted developmental scheme “The Preparation and Evaluation of Trivalent Foot & Mouth Disease Vaccine in the Directorate General of L&DD (Research) Khyber Pakhtunkhwa, Peshawar” to current side to provide high quality vaccine for livestock and has created 32 posts of different categories for this purpose. The income generated from the local production of vaccine will cover not only the entire cost of production but would also earn profit for the Government. The Institute checks and enhances the quality of vaccines. Different field trials have been performed to check the quality of vaccine and make comparisons with the available local and imported vaccines. Furthermore, technical support has been provided to MPhil and PhD students of different University of the province. Revenue Generation to that extent in case the Department covers on 10% requirements of the Province it is expected that about Rs. 25 million per year revenue would be generated. The developmental schemes “Poultry Research Institute and Strengthening of Poultry Sector in Khyber Pakhtunkhwa” at District Mansehra and Establishment of “Achai Cattle Conservations & Development Farm” at Manda Dir Lower have also been converted to current side. For this purpose, 61 posts of different categories have been created, high quality flocks, meat and eggs have been provided at lower rates to the people, and personnel of the Institute, other Government employees, rural and commercial poultry keepers have been trained. Graduate Courses have been carried out in collaboration with Khyber Pakhtunkhwa Agriculture University Peshawar, Gomal University D.I.Khan, Hazara University and other similar Organizations.

INDUSTRIES The Government of Khyber Pakhtunkhwa is striving to promote industries and trade sectors of the province. Furthermore the protection of the rights of the consumers of the province is

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also one of the top priorities of the provincial government. In the Budget for the financial year 2014-15 a provision of Rs. 224.805 million has been earmarked. Currently there are 2,365 industrial units set up in the province out of which 1,889 are running while 476 are closed. The total investment in the province amounts to Rs. 135,675 million which provides direct employment to 66,429 individuals. To further promote investment and employment in the Province, the Government has approved criteria for the utilization of land acquired by the government for industrial purposes, through which new Industrial Estates will be established. For promoting and protecting the legitimate rights of the consumers of the province and for speedy redressal of their complaints, the provincial government promulgated Consumer Protection Law in 1997. Amendments in that law have been proposed, and approved by the Law Department, to align it with the current ground realities. As per the amendments, fine of up to Rs. 50,000 and imprisonment up to 3 years will be imposed by the Director Industries and Commerce. Consumer Courts at the divisional level have also been sanctioned by the provincial government for the effective implementation of the said Law. This will enable the Government to curb the marketing of sub-standard consumer goods and services.

COMMUNICATION & WORKS DEPARTMENT For financial year 2014-2015, a sum of Rs. 5,269.692 million has been earmarked which includes Rs. 2,025.000 million for repairs and maintenance of roads, highways & bridges and Rs. 879.995 million for the maintenance and repair of buildings.

Consequent upon the transfer of maintenance and repair of certain roads to Pakhtunkhwa Highways Authority (KPHA), following receipts are now being collected by the KPHA:

a. Renewal fee of contractors registration; b. Grants for maintenance of roads if any; c. Sale of tender forms; d. Initial fee recoverable from CNG/Petrol Pumps on Provincial Highways; e. Income from lease of approaches to service station/CNG/Petrol pumps on

Provincial Highways; f. Toll tax on Provincial Highways; and g. Proportionate share in the Sugarcane Cess allocated/collected corresponding to

use of Provincial Highways in a certain zone.

PUBLIC HEALTH ENGINEERING DEPARTMENT For financial year 2014-2015, a sum of Rs. 4,437.853 million has been earmarked for Public Health Engineering Department. Following are the main functions:-

a. Maintenance of rural drinking water supply and sanitation schemes including Sewage Treatment Plants and solid waste management.

b. O&M and Salaries of all categories of staff of the PHE Department. c. Levy and collection of fees, etc. for provision of sanitation services including

Sewage Treatment and Solid Waste Management.

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d. Provision of quality drinking water to the general public and monitoring/mapping

including maintenance of water quality data base.

LABOUR Various Labour Laws and International Conventions have entrusted several rights to the workers working in different industrial and commercial undertakings. Labour Department is responsible to ensure the protection of these rights through implementation of Labour Laws. A sum of Rs. 213.600 million has been allocated for the financial year 2014-15. The Department performs the following functions:

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

the workers. iii. Registration of Trade Unions as representative bodies of workers. iv. Implementation/enforcement of various labour laws through periodic inspections. v. Adjudication on payment of wages to the workers. vi. Adjudication on payment of compensation to the workers and their heirs. vii. Enforcement of employment of Children Act, 1991 for regulating working conditions of

working children and eradication of child labour. viii. Fixation of minimum rates of wages for different categories of workers. ix. Enforcement of International System of Weights & Measures. x. Collection, compilation and dissemination of labour statistics. xi. Coordinating government efforts for eradication of child and bonded labour Gender

related issues. xii. Assisting in formulation of different policies concerning working community. xiii. Implementation of government policies concerning working community. xiv. Realizing a reasonably handsome amount of government revenue in the shape of

different fees. xv. Education of workers and employers on Labour Laws.

DISTRICT WISE LABOUR AND MANPOWER

S.No Districts Number of Workers

1 Peshawar 16016

2 Nowshera 8993

3 Charsadda 437

4 Kohat 2750

5 Karak 50

6 Bannu 1482

7 Lakki Marwat 1297

8 D.I.Khan 2862

9 Mardan 4198

10 Swabi 12229

11 Malakand 400

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12 Swat 3762

13 Dir 110

14 Buner 1880

15 Chitral 68

16 Haripur 17992

17 Abbottabad 612

18 Mansehra 920

19 Batagram 70

20 Hangu 50

21 Shangla 25

TOTAL 76204

The Directorate of Labour implements national law on child labour, carries out regular inspections and prosecutes the violators in the court of law. In accordance with the provisions of the NP&P, a Child Labour Unit (CLU) has been established in the Directorate of Labour. It has collected data on child labour in selected processes/ occupation in FATA & PATA and District Mardan. The Unit needs to be strengthened in terms of manpower and capacity building trainings. On ratification of the ILO Convention-182 and promulgation of the NP&AP, the CLU identified to the Federal Government a list of Hazardous Occupation/Processes for inclusion in the Employment of the Child Act, 1991. Recently Gender Unit has also been established in the CLU which has started functioning. The Directorate has also developed a training kit on the child labour issue containing statistics, causes & effects, and national & international instruments pertaining to the issue. Through a series of sessions more than 800 persons i.e. employers, workers’ representatives, government officials, and representatives of civil society organizations were sensitized/trained using the kit.

HOUSING “Adequate shelter for all” has been recognized as a basic human necessity under the Universal Declaration of Human Rights, as also re-affirmed by the UN Habitat Conference. The housing situation in Pakistan has continuously deteriorated over the past several years resulting in increased shortage of housing facilities and a backlog of 1.3 million units in Khyber Pakhtunkhwa. According to a World Bank report on Housing Shortage in South Asia, Pakistan stands next to Afghanistan with 31% and 35% shortage respectively. For families with average personal savings of US $ 15 per month (i.e. about Rs. 1500/- per month) and the average cost of 80 square yard (approx. 2.5 Marla) plot costing US $ 7000/- (approximately Rs. 700,000), it would take nearly 40 years for an ordinary citizen to be able to afford such a plot. One in every three people in the world will live in slums for 30 years unless governments control the unprecedented urban growth, says a UN report. Pakistan is located in a region where majority of the urban-rural population lives in the slums. In developed economies, Housing is a key economic activity mobilizing at least 40 other industries and sectors of economy. Housing Sector in Khyber Pakhtunkhwa has the potential to boost the economy & raise the living standard of the people, bring prosperity through planned housing, provision of clean drinking water facility, utilization of solar energy, construction of

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green energy-efficient buildings, hygienic/sanitary waste disposal and its utilization for power generation to overcome the energy crisis. A sum of Rs. 32.517 million has been allocated to Housing Department in the financial year 2014-15.

The Provincial Assembly has passed the Khyber Pakhtunkhwa Housing Authority (Amendment) Act 2014 for acquisition of land on the basis of land-sharing formula and to deal with issues relating to rehabilitation and settlement of landless owners. The land sharing mechanism followed by the Capital Development Authority (CDA) Islamabad has been approved in principle for adoption by the Provincial Housing Authority. Land sharing is expected to reduce burden on public exchequer and provide better compensation through ownership of developed plots for raw land vis-à-vis outdated low compensation rates under Ausat Yak Sala. Furthermore, the PHA has approved four different models of Public Private Partnership.

MINES AND MINERAL DEVELOPMENT

The total area of Khyber Pakhtunkhwa is 74521 Sq Km out of which 70% consist of mountains and rocks. The formation of these rocks contains huge prospects of different metallic/ non-metallic minerals and various precious/semi-precious gemstones. The Province has vast mineral resources which have not been exploited to their full potential. Based on the exploration done so far, excellent prospects of findings and discovering other valuable deposits exist. For the Budget 2014-15 a sum of Rs. 481.864 million has been allocated to this sector. The function of the Licensing Division is to grant mining concessions. Up till now, 450 prospecting licenses and 60 mining leases have been granted for various minerals. 13 exploration licenses for base and precious metals have also been granted to local/foreign investors.

S.No Name of Mineral Production (in Tons)

1 Antimony 82

2 Barites 2773

3 Bentonite 14263

4 Calcite 560

5 Chromite 26206

6 Coal 69664

7 Copper ore 14.5

8 Dolomite 410890

9 Emerald 695 gm

10 Feldspar 66954

11 Fire clay 12078

12 Granite 27078

13 Granite shist 650

14 Graphite 7888

15 Gypsum 356405

16 Hematite 450

17 Iron ore 13095

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18 Laterite 155802

19 Lead 129

20 Limestone 10796210

21 Magnasite 7025

22 Manganese 240

23 Marble 1091963

24 Phosphate 125327

25 Red oxide 3372

26 Rock salt 151768

27 Sand stone 2575

28 Serpentine 86

29 Shale clay 2267728

30 Silica sand 21313

31 Slate stone 413129

32 Soapstone 100524

As required under the Mines Act, 1923, inspecting staff of the inspectorate of mines are making inspection and due to rapid inspection of mines by the qualified mining Engineers, designated as inspector of mines who are working under the supervision of Chief Inspector of mines, the number of fatal accidents have been minimized to great extent and the mineral production has increased. The Inspector of Mines undertakes frequent tours to the mine side for inspection so as to ensure:

a. Reduction of mines accidents. b. Availability of trained and skilled mines labour force. c. Create awareness to mining dangers and hazards. d. Maintenance of prescribed health in mines. e. Prevention of damages to mines & mineral resources. f. Development of mining trade & mineral productivity.

PROCUREMENT OF WHEAT AND WHEAT SUBSIDY

Khyber Pakhtunkhwa is historically wheat deficit Province and purchase wheat from Punjab/PASSCO and import from abroad through Federal Government, for meeting its wheat requirements. Food Department Khyber Pakhtunkhwa also caters for the needs of FATA and Afghan refugees residing in Khyber Pakhtunkhwa. Apart from this Khyber Pakhtunkhwa has got a long porous border with Afghanistan, which is a food deficit country and traditionally depends on Pakistan especially Khyber Pakhtunkhwa for its food requirement. The impact of the storage of wheat and its products in Afghanistan is felt in Khyber Pakhtunkhwa either in the shape of shortage of supply or price hikes. In this scenario, Food Department, Khyber Pakhtunkhwa plays an important role, with the following main functions:-

i. Wheat procurement and its storage ii. Distribution of wheat iii. Control over the price of essential items iv. Sugar cane and production of sugar

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The annual requirements of wheat are worked out in consultation of Ministry of National Food Security & Research Cell (NFS&R) Islamabad in April every year. The calculations for the year 2014-15 are as under:-

Area Population according to 1998 census projected

@2.61%annually

Requirement @ 124KG per head per

annum (M.Tons)

Settled Area 28,000,656 3,472,081

FATA 5,080,497 629,982

Afghan Refugees 1,550,000 192,200

Total 34,631,153 4,294,263

The total wheat requirement is 4,294,263 M.Tons per annum. After adjustment of local production of 1,158,069 M. Tones, the net requirements is 3,136,194 M.Tons. This deficiency is met through open market from the surplus wheat produced by Punjab. The Food Department issues a specific quota to all districts on the basis of population to stabilize prices in the market during the lean period from September to April. An overview of the quantity of wheat released during the last 3 year, from Govt. godowns is given in the following table:-

Year Opening Balance (M.Ton)

Recipt During year (M.Ton)

Total Releases (M.Ton)

Closing Balance (M.Ton)

2011-12 91,312 444,028 535,340 430,553 104,787

2012-13 104,787 325,397 430,184 383,657 46,527

2013-14 46,527 502,232 548,759 492,506 556,253

In consultation with the Federal Govt. and by the approval of Chief Minister Khyber Pakhtunkhwa, Finance Department has fixed a procurement target of 0.450 million metric tons from local farmers. The RCC has maintained the rate of Rs. 1200/- per 40 kg of the last year. However, keeping in view the experience of last year, it was felt appropriate to raise the rate to Rs. 1250/- per 40 kg as was done by Sindh Government. This increase was made to encourage the growers/farmers and parties to offer their wheat to Food Department for sale enabling it to meet the target. For the procurement of wheat a credit line of Rs. 10.000 billion is being availed from the Bank of Khyber on the basis of competitive biddings. The total cost of this wheat is Rs. 14,062.500 million, a part of which would be arranged from the Food Account-II. In case this procurement target is met fully or even partially, the Department would save billions of rupees which are paid to Punjab or PASSCO as incidental and transportation charges. The wheat purchased locally or from Punjab/PASSCO is stored in 27 PRCs/godowns spread all over the Province having capacity of 354,000 M.Tons. Under the CDS the Department plans to increase this capacity to 600,000 M.Tons by 2017. At the time of purchase of wheat, Food department bears the cost of wheat as well as the expenditure on account of transportation charges/incidentals which is the landed cost of wheat. In order to provide cheaper flour to the general public the department releases wheat to the flour mills at a price lower than the landed cost and the differential burden is taken up

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by the provincial government in the form of subsidy. A sum of Rs. 2714.900 million has been allocated in Budget 2014-15 for payment of Food Subsidy. Details of subsidy paid during the last six years are as under:-

Year Quantity of Wheat Released (M.Ton)

Subsidy Paid (Rs. in Million)

2008-09 444,931.791 2,000.000

2009-10 401,589.199 1,500.000

2010-11 191,483.000 2,000.000

2011-12 359,753.000 2,000.000

2012-13 383,657.000 2,500.000

2013-14 492,127.000 2,500.000

There are currently 234 flour mills in Khyber Pakhtunkhwa and FATA, out of which only 189 are functioning as per details given below:-

Detail Khyber

Pakhtunkhwa FATA Total

Functional 188 01 189

Non Functional 39 06 45

Total 227 07 234

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Chapter 3: Provincial Revenue Receipts Page 20

PROVINCIAL REVENUE RECEIPTS The Provincial Revenue Receipts for the financial year 2014-15 are estimated at Rs. 28780.777 million, comprising of Tax Receipts of Rs. 19452.809 million (67.6%) and Non-Tax receipts of Rs. 9327.968 million (32.4%). Tax receipt includes GST on Services of Khyber Pakhtunkhwa which is Rs.12000.000 million. Tax Receipts comprises of (11.8%) direct taxes and (88.2%) indirect taxes. The direct taxes include taxes on Agriculture Income, Property, Land Revenue Profession, Trade and Callings etc. The Revised Estimates of direct taxes during 2013-14 is Rs. 2005.910 million as compared with the Budget Estimates 2014-15 of Rs. 2311.809 million, shows an increase of 15.2%. Indirect taxes comprise of Provincial Excise GST on Services, Motor Vehicle Tax, Stamp Duties, Cess of all types, Electricity Duty etc. Revised Estimates for financial year 2013-14 from indirect taxes is estimated as Rs. 10631.900 million, registering an increase of 61.2% over the Budget Estimates 2014-15 of Rs. 17141 million. The trend of Provincial Tax Receipts from 2009-10 to 2014-15 is demonstrated in the following tables. Most of the taxes show an increased growth rate. 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 2014-15, objectively and in line with the potential of the Department concerned.

(Rs. in Millions)

TAX

Actual Estimated

2009-10 2010-11 2011-12 2012-13 Budget

2013-14 Revised 2013-14

Budget 2014-15

DIRECT TAXES

Tax from Agriculture

15.740 17.532 20.081 21.958 22.000 24.000 79.000

Urban Immovable Property Tax (Net)

84.613 77.567 86.400 98.100 107.910 107.910 122.809

Tax on Transfer of Property (Reg.)

45.645 58.013 80.166 81.004 80.000 89.000 100.000

Land Revenue 571.630 770.892 1271.666 1185.829 1111.173 1300.000 1430.000

Tax on Profession, Trades & Callings

89.044 98.178 131.420 129.961 165.000 165.000 230.000

Urban CVT Provincial

--- 247.606 240.310 291.654 210.000 320.000 350.000

Total Direct Taxes

806.672 1269.788 1830.043 1808.506 1696.083 2005.910 2311.809

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(Rs. in Millions)

TAX

Actual Estimated

2009-10 2010-11 2011-12 2012-13 Budget

2013-14 Revised 2013-14

Budget 2014-15

Total Indirect Taxes

Provincial Excise 23.636 23.381 26.415 19.944 30.000 30.000 33.000

Motor Vehicle Tax+R.Permit+Fitness

833.916 874.884 865.237 934.479 1072.000 1075.000 1206.000

Stamp Duty 357.360 408.610 588.596 614.916 600.000 670.000 740.000

Entertainment Tax 0.679 0.023 0.008 0.016 --- --- ---

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

229.622 262.887 278.299 250.959 382.000 348.400 605.000

Electricity Duty/fee on account of Elecy.Rules.

38.846 584.134 41.735 349.182 507.505 507.500 557.000

GST on Services Khyber Pakhtunkhwa

---- ---- ---- 3430.187 6000.000 8000.000 12000.000

Infrastructure Dev: Cess

---- ---- ---- ---- ----- 1.000 2000.0000

Total Indirect Taxes 1,484.059 2153.919 1800.290 5599.683 8591.505 10631.900 17141.000

Total Provincial Taxes

2,290.731 3423.667 3630.333 7408.189 10287.588 12637.810 19452.809

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 2014-15, a sum of Rs. 9327.968 million is estimated as per given table:-

(Rs. in Millions)

Sector Budget

2013-14 Revised 2013-14

Budget 2014-15

Income from Property and Enterprises.

Interest 116.356 116.356 116.356

Dividends 20.000 20.000 20.000

Own Hydel Generation 2361.256 2800.000 2850.000

General Administration. 138.150 180.750 188.500

Law and Orders. 621.824 804.490 940.231

Community Services. 674.000 940.000 1030.000

Social Services. 369.993 469.289 518.251

Economic Services. 1946.580 2154.400 3104.908

Miscellaneous. 384.772 522.272 559.722

Total Non-Tax Receipts 6632.931 8007.557 9327.968

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Further department-wise/sector-wise non-tax receipts (receipts from Community Services, Social Services, and Economic Services) are 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 Millions)

Sector Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Budget

2013-14 Revised 2013-14

Budget 2014-15

Building, Communication & PBMC.

731.302 381.047 447.869 608.398 450.000 660.000 730.000

Public Health 98.982 128.078 168.736 184.239 224.000 280.000 300.000

KP.H.A* *112.202 *101.845 *133.184 **** *130.600 *140.000 *150.000

TOTAL 830.284 509.125 616.605 792.637 674.000 940.000 1030.000

* 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 Millions)

Sector Actual

2009-10 Actual

2010-11

Actual 2011-12

Actual 2012-13

Budget 2013-14

Revised 2013-14

Budget 2014-15

Higher Education, Archives & Libraries

68.419 101.899 90.602 168.711 105.150 174.256 191.500

Elementary & Secondary Education

38.065 48.885 51.148 6.071 60.000 70.000 77.000

Technical Education 18.424 18.451 21.179 20.894 23.000 23.000 25.000

Museum 0.347 1.116 1.255 1.381 0.950 1.400 1.500

Tourism -- -- 12.347 12.425 11.150 14.000 18.000

Health 72.248 83.438 124.671 188.111 169.203 186.123 204.736

Manpower Management

2.553 3.893 0.522

0.509 0.540 0.510 0.515

Total 200.056 257.682 301.724 398.102 369.993 469.289 518.250

The receipts in respect of Elementary & Secondary Education and Health Department are being maintained / deposited in Provincial Account-I. The receipt of big territory institutes/hospitals are retained by health department in line with the autonomous status given to the health institutions.

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

Sector Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Budget

2013-14 Revised 2013-14

Budget 2014-15

Agriculture 101.199 98.056 121.656 149.036 131.300 171.000 188.100

Fisheries 13.388 18.770 19.906 23.679 21.000 26.000 28.000

Livestock & Dairy Development

41.336 57.170 68.199 77.013 67.000 84.400 93.600

Environment (Forests & Wildlife)

1035.687 761.990 395.734 605.979 524.000 527.000 768.500

Irrigation 267.372 328.077 321.349 370.873 417.000 425.000 500.000

Mineral Development.

563.146 651.781 734.238 758.410 710.280 810.000 1436.308

Printing + Registration Renewal of Printing Press

50.588 52.675 71.396 68.797 70.000 105.000 77.000

Industries 2.923 3.438 3.659 3.342 6.000 6.000 13.400

Total: 2075.639 1971.957 1736.137 2057.129 1946.580 2154.400 3104.908

General Administration includes admission/examination fees of Public Service Commission, receipts-in-aid of superannuation, and receipts under the Weights & Measures and Trade Employees Act. Civil Administration includes receipts from Home & Tribal Affairs, 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 Millions)

Sector Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Budget

2013-14 Revised 2013-14

Budget 2014-15

A-General Administration

104.193 134.301 146.262 155.774 138.150 180.750 188.500

B- Law and Order 569.347 524.384 701.791 635.268 621.824 804.490 940.231

Administration of Justice

96.476 98.493 128.825 135.903 137.000 175.000 190.000

Police + Private Security Companies

469.436 417.871 568.630 486.503 477.324 615.490 735.231

Jails 3.435 8.020 4.336 12.862 7.500 14.000 15.000

Total (A+B): 673.540 658.685 848.053 791.042 759.974 985.240 1128.731

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INCOME FROM PROPERTY AND ENTERPRISES The provision under this component is for interest on loans & advances and dividends. For financial year 2013-14, Rs. 116.356 million and Rs. 20.000 million respectively are proposed to be accrued on this account. ENERGY AND POWER Receipts from Sale of Electricity of Hydel Power Station Own Generation: The Malakand-III, Pehur & Shishi power station projects have been commissioned. Income from sale of electricity accrued during the current financial year would be Rs. 2.8 billion approximately. For the next financial year 2014-15 an income of Rs. 2.850 billion is expected.

PHYDO has already been requested by Finance Department to take up fresh hydel projects at the earliest, for which Finance Department will provide necessary funds. By doing so, more receipts can be expected in the future. Provincial Government is working on various initiatives for increase in the Provincial revenue, which are;

i. An independent Survey for tax potential/tax units is under consideration. ii. Khyer Pakhtunkhwa Revenue Authority has been established (KPRA) w.e.f 01-07-2013

for collection of Sales Tax on Services and Infrastructure Development Cess in Khyber Pakhtunkhwa. KPRA has collected Rs. 4323.411 million on account of Sales Tax on Services and hopefully the Revised Target assigned to it will be achieved by the close of current financial year.

Electricity Duty Electricity duty is collected by PEPCO on behalf of the provincial government. The duty used to be adjusted by PEPCO against the arrear of electricity dues of provincial government departments/local bodies. With the efforts of provincial government (through the Energy Monitoring Cell of Finance Department), the issue has been resolved and PEPCO has paid Rs. 200 million on this account during current financial year 2013-14. Details of total provincial receipts (targets & actual realization) during the last eight years are depicted in the following table:-

(Rs. in Millions)

S.No Years Revised

Estimates Actual Recovery

1 2006-07 51.000 4773.667

2 2007-08 6234.929 5322.875

3 2008-09 6427.252 5430.248

4 2009-10 7392.428 6414.189

5 2010-11 8737.589 8828.664

6 2011-12 9994.422 10057.427

7 2012-13 14400.254 11720.048

8 2013-14 20670.367 15,304.574

(Up to April 2014)

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Chapter 4: Capital Receipts and Expenditures Page 25

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 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 2013-14 (Budget and Revised) and 2014-15 (Budget) is reflected in the following table:-

(Rupees in million)

S. No

Nomenclature Budget

Estimates 2013-14



i Recoveries of Loans and Advances

250.000 736.552 250.000

TOTAL: 250.000 736.552 250.000

The Current Expenditure on Capital Account includes the following: -

a) Repayment of Federal Loans (CDL). 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 Cooperative Bank.

The position regarding the above components of current expenditure on Capital Accounts for 2013-14 (Budget and Revised) and 2014-15 (Budget) is shown in the following table:-

(Rupees in million)

S.No Nomenclature Budget

Estimates 2013-14



i Repayment of Federal Loans (CDL) 3124.694 3124.694 8205.000

ii Repayment of Foreign Loans 4385.306 4400.000 4975.000

iii Repayment of SBP Loan for Recapitalization of Bank of Khyber

1200.000 1185.306 1530.000

iv Loans to Provincial Government Employees. 80.000 80.000 80.000

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

10.000 10.000 10.000

vi Loan to Cooperative Bank 200.000 200.000 200.000

vii Pro Poor Welfare Schemes 6000.000 6000.000 ---

TOTAL 15000.000 15000.000 15000.000

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The outstanding debt liability of the Provincial Government on account of Federal Loans (Cash Development Loans) as on 1st July, 2014 is Rs. 7983.890 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. An amount of Rs. 7500.000 million has been earmarked for the financial year 2014-15. 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 to 4% Repayment period 30 to 40 years Grace period 10 years

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The details of outstanding liability on account of these loans against the Government of Khyber Pakhtunkhwa is Rs. 88529.243 million as on 1st July 2014 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 30.6.2014 is Rs. 31525.789 million against the allocated share of Khyber Pakhtunkhwa. Total outstanding debt against the Provincial Government as on 1st July, 2014 is Rs. 128038.922 million as detailed below:-

Federal Government Loans Rs. 7983.890 million Foreign Exchange Loans Rs. 120055.032 million

Total: Rs. 128038.922 million WRITE OFF LOANS & ADVANCES TO PROVINCIAL GOVERNMENT EMPLOYEES For facilitating the provincial government employees the provisions are made under these heads for construction of houses, 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 amount of rupees one billion in five installments. As such three installments of Rs.200.000 million each were released during financial year 2010-11 to 2012-13. Against Rs 1000.000 million, amount of Rs. 600.000 million has been released so far. The bank will provide loans on easy terms for necessary equipment of farming, seeds, poultry, dairy & live- stocks and to rural women for handicrafts. In this regard, a sum of Rs. 200.000 million (5th Installment) has been earmarked for the financial year 2014-15.

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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 2013-14 and 2014-15 on account of internal and external debt is given in the table:-

(Rs. in million)

Nomenclature

Budget 2013-14 Revised 2013-14 Budget 2014-15

Mark up Payment

Repayment of Principal

Mark up Payment


Mark up Payment


A-INTERNAL DEBT

i) C.D.Loans 1006.482 3124.694 1006.482 3124.694 927.000 8205.000

ii) Un-funded Debt (GP

Fund) 4600.000 --- 4600.000 --- 4600.000 ---

iii) Other Floating

Debt 500.090 --- 467.186 --- 500.090 ---

Sub-Total (A) 6106.572 3124.694 6073.668 3124.694 6027.090 8205.000

B - Loans From Foreign Agencies

1089.485 4385.306 1122.389 4400.000 1090.000 4975.000

C - Other Debt Servicing

3973.344 --- 3973.344 --- 5972.910 ---

Sub-Total (B&C) 5062.829 4385.306 5095.733 4400.000 7062.910 4975.000

D – Domestic Debt (SBP)

--- 1200.000 --- 1185.306 --- 1530.000

Total (A+B+C+D) 11169.401 8710.000 11169.401 8710.000 13090.000 14710.000

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Chapter 5: Local Government Act 2013 Page 29

LOCAL GOVERNMENT ACT 2013 As a result of enforcement of LGA 2012, all devolved Departments of defunct District Government were realigned with the Administrative Department at provincial level w.e.f. 01-01-2013, and accordingly the budget of erstwhile devolved Departments of the district level Offices/Departments was provincialized w.e.f. 01-07-2013. Resultantly, modalities of Account-IV were also discontinued w.e.f. 01-07-2013. The Administrative Secretaries are now the Principal Accounting Officers for the purpose of accounting and financial management of district level offices/departments. The Local Government and Rural Development Department has notified promulgation of new LGA 2013 except its Section 120. Section 1(3) provides that the Act shall come into force on such date as the Government may appoint by notification, and different dates may be appointed for different provisions. Sections 11 and 12 of the Act provide the composition of District Government which shall consist of District Council and District Administration made up of the devolved offices. Provision of section 120 of LGA 2013 has been withheld which provides that Local Government Act 2012 has not yet been repealed. Section 51 of the Act provides the establishment of Provincial Finance Commission. The Commission shall make recommendations to Government on the amount of funds for Local Government (devolved departments/offices) out of provincial consolidated fund in accordance with the parameters contained under section 53 of the Act. Section 120 of the Act under which all Local Councils were created has yet to be enforced; hence, the Local Councils constituted under Act 2012, still prevail. Therefore, Municipal Corporation Peshawar/Municipal Committees will receive their grant in lieu of Octroi whereas District Councils will receive grant in lieu of Zilla Tax as per practice in vogue. Grants will continue to remain an important factor of fiscal transfers to Local Councils. During financial year 2014-15 Rs.4.114 billion are estimated to be transferred to these Local Councils. As a result of 7th NFC Award, it was recognized that sales tax on services is a provincial subject under the Constitution of Pakistan and may be collected by respective provinces. Accordingly the provincial share in the divisible pool tax amount equivalent to 1/6th of Sale Tax are distributed based on 50% on the ratio of population and 50% on the ratio of Octroi and Zilla Tax audited collection for the financial year 1998-99 was discontinued. However, Provincial Government has been providing the amount in lieu of Octroi & Zilla Tax grants out of own resource till current financial year 2013-14 to compensate the losses resulting from abolition of Octroi & Zilla Tax collection in June 1999. It has now been realized that the grant to TMAs/Local Councils in lieu of Octroi and Zilla Tax has become a permanent and regular liability of the Provincial Government and, therefore, grant in lieu of Octroi and Zilla Tax has now been renamed as Grants to TMAs/District Government/Local Councils in the budget documents to compensate for income previously derived from Octroi & Zilla Tax (OZT).

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Chapter 6: Hydro Electric Power Potential Page 30

HYDRO ELECTRIC POWER POTENTIAL The Province of Khyber Pakhtunkhwa is blessed with vast natural resources like water, forests, minerals, gem stones, oil and gas. There are several ideal locations for generation of hydro electricity. ACTIVITIES DURING 2013-14 By the grace of Almighty Allah, Energy & Power Department through its attached wing Pakhtunkhwa Energy Development Organization (PEDO previously PHYDO) is operating four Hydropower Projects in Malakand, Swabi and District Chitral. The total installed capacity of these hydropower projects is 105 MW, as given below:-

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 a handsome amount of revenue at about Rs. 2.5 billion per annum for the Province. Besides the above completed Hydropower Projects, the Government of Pakistan has signed a loan agreement with the Asian Development Bank (ADB) for the development of Hydropower Potential in Khyber Pakhtunkhwa. Under this agreement, PEDO is constructing two projects having a total installed capacity of 20 MW (17 MW Ranolia HPP Kohistan and 2.6 MW Machai HP Mardan). The 2.6 MW Machai HP Mardan project will be completed by August 2014 whereas 17 MW Ranolia HPP Kohistan will be completed by December 2014. Under the same loan arrangement feasibility studies of three sites were also carried out and based on these studies PC-I have been framed out of which the Jabori HPP (10 MW) Mansehra, Karora HPP (11 MW) Shangla, and Koto HPP (40.8 MW) Dir Lower have been approved. Management Consultants have been hired for all three projects and selection for Contractor on EPC basis has been advertised. In order to attract private investment, PEDO has also conducted pre-feasibility study of 10 raw sites in various districts of Khyber Pakhtunkhwa and advertisement for award to private sector has been done. In order to make the Provincial Policy more investor friendly, Hydel Power Policy 2006 has been revised wherein limit of 5 MW has been removed and now unsolicited site of any capacity can be awarded on first come first serve basis. Energy & Power Department has prepared Action Plan 2012-22 under which PEDO has started work on the following six Hydel Projects having an installed capacity of 250.8 MW. These projects are in various phases of planning like selection of management consultants, award of EPC contract, mobilization of contractor and physical works on site.

1 Gorkin Matiltan HPP Swat 84.0 MW 2 Daral Khwar Swat 36.0 MW

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3 Koto HPP Dir 40.8 MW 4 Karora HPP Shangla 11.0 MW 5 Jabori HPP Mansehra 10.0 MW 6 Lawi HPP Chitral 69.0 MW Total Installed Capacity 250.8 MW

Award of contract is in final stages for Matiltan and Lawi HPP.

In addition to above, three PC-Is with combined capacity of 426 MW have been approved by ECNEC in its meeting held on 31-12-2013(150 MW Sharmai HPP Dir, 144 MW Shusghai-Zhendoli HPP Chitral and 132 MW Shogo Sin HPP Chitral) on public private partnership mode. In addition to construction projects Energy & Power Department has also started feasibility studies on various tributaries in the Province. PC-II was approved for 13 sites with a capacity of 1322 MW. During feasibility study on various sites, the number of projects has been increased to 15 with total potential of 1911 MW. Six feasibility studies have already been completed, whereas, five more will be completed by June 2014. The remaining four will be completed by December 2014.

S.No Project Name Potential

(MW)

1 GahritSwirLasht, Chitral 334

2 BooniZait, Chitral 176

3 Jamshill More LashtChitral 260

4 LaspurMarigram, Chitral 133

5 Naran Dam, Mansehra 190

6 BarikotPatrak , Dir 65

7 PatrakShringal , Dir 46

8 ShigoKach , Dir 96

9 Ghor Band , Shangla 14

10 Nandihar, Batagram 10

11 ArkariGol , Chitral 79

12 IstaruBunni , Chitral 52

13 Mujigram Shogo , Chitral 51

14 Balakot , Mansehra 300

15 Batakundi HPP 105

Total 1911 MW

In addition to above, the Government of Khyber Pakhtunkhwa signed two MoU’s for development of Lower Palas Valley Hydropower (665 MW District Kohistan) and Spat Gah Hydropower Project (496 MW, District Kohistan) under public private partnership mode. The total cost of the project would be US $ 3 billion. The project will be built on debt-equity ratio of 80:20. The share of Government of Khyber Pakhtunkhwa would be 25% of the equity portion. A Joint Development Agreement will be signed soon. In order to attract private sector investment in Hydropower sector in the province, Energy & Power Department has decided to carry out 2nd phase of Feasibility Study and its further development in Khyber Pakhtunkhwa through private sector rather than public sector. Process

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of carrying out feasibility study and its further development of following three new sites, with a potential of about 956 MW) will be started within the year 2013-14:

Torcap-Guddubar HPP District Chitral 409 MW

Kari-Muskhur HPP District Chitral 446 MW

Gabral-Kalam HPP District Swat 101 MW

No development can be sustainable without the ownership and participation of the community. Therefore, community participation has been made the cornerstone of the development planning process. Energy & Power Department has started execution of 356 mini/micro hydel stations in 12 districts of Malakand and Hazara Divisions. Keeping in view the salient feature of community participation, 20% contribution of community is mandatory for successful running of the scheme. The capacity of the project will vary from 10 kW to 500 kW. In order to overcome the locational disadvantage and to harness the comparative advantages, the Province has no other option but to utilize its natural resources to boost industrialization. Hence, the Government has decided to divert Pehur Hydel Power project generation to Gadoon Industrial Estate. This approach will not be limited to Pehur only. The government also is planning to establish industrial estate near generation units to provide cheap energy to industries. In this regard consultancy will be awarded soon to look into all available options. Our province is facing immense load shedding even though being major producer of low cost hydel power generation. In order to overcome this crisis, Provincial Government intends to take over management of PESCO. In this regard Consultancy will be awarded during current financial year 2013-14. INITIATIVES FOR THE YEAR 2014-15

Emphasis on Hydel Power Generation in Khyber Pakhtunkhwa through short, medium and long term interventions. New hydel project has been included for construction in ADP 2014-15.

All avenue are under consideration for taping hydel potential of the Province. As per general consideration, Generation of 1 MW power will cost US$ 2-3.00 Million

Emphasis on Power Generation in Khyber Pakhtunkhwa through Gas Fired or Coal based Power project in Private Sector

Efficient utilization of Net Hydel Profits.

Devising Comprehensive Hydel Power policy frame work in Khyber Pakhtunkhwa.

Exploration of funds through different sources including donors/ DFIs/ banks/ private sector/ Floating of shares/ Energy bonds/ road shows etc

Off grid/ rural electrification through mini-micro Hydel and solar projects The following targets have been set forth in ADP 2014-15:

1. Construction of 300 MW Balakot HPP District Mansehra (10 % Equity) 2. Construction of 14 MW Ghorband HPP District Shangla(10 % Equity) 3. Construction of 188 MW Naran Dam District Mansehra (10 % Equity) 4. Construction of 10 MW Nandihar HPP District Batagram (10 % Equity) 5. Construction of 51 MW MujigaramShaghore HPP District Chitral (10 % Equity) 6. Construction of 52 MW IstaroBooni HPP District Chitral (10 % Equity) 7. Construction of 79 MW ArkariGol HPP District Chitral (10 % Equity)

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Chapter 7: Net Hydel Profit (NHP) Page 33

NET HYDEL PROFIT (NHP) 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. 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 itself for the year 1991-92. During the proceeding of the 7th NFC Award, the Federal Government has played key role in the resolution of a long drawn issue of payment of Rs. 110 billion on account of Net Hydel Profits to Khyber Pakhtunkhwa and has agreed to honour the judgment of Arbitration Tribunal. The Federal Government has released Rs. 10 billion on 16th November 2009 and balance amount of Rs. 100 billion has been committed to be paid in four equal installments of Rs. 25 billion each will be made on 1st July every year. In this regard Federal Government has released full amount of Rs. 110 billion upto June, 2014.

The matter was vigorously pursued by the Province at the highest level with Federal Finance Division and other concerned quarters. Federation was pleased to mandate a technical

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committee to resolve the issue during 7th NFC. Stance of the Government of Khyber Pakhtunkhwa on the issues of Net Hydel Profits before the Technical Committee 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”.

In this respect, a series of meetings by the technical committee were held under the chairmanship of Mr.Rana Asad Amin, Special Secretary Finance, Finance Division, Government of Pakistan (as he then was) with due participation of all the stakeholders including WAPDA, Ministry of Water & Power, NEPRA etc. The Technical Committee after thorough deliberations made a number of decisions to resolve the afore-described controversies. These decision were later considered at the level of Finance Minister on 14-03-2013 at the sidelines meeting of 8th NFC and were accordingly circulated on 16-03-2013. The decisions taken are as under:

(i) NHP from 2005-06 and onward (Principal + Markup):-The committee decided

that an amount of Rs.45 billion be paid to the Govt of Khyber Pakhtunkhwa assuming different NHP Rates at Ps.60 per KWh for 2005-06, Ps.70 per KWh for 2006-07 and 2007-08 ,Ps.80 per KWh for 2008-09 and 2009-10 and Ps. 90 per KWh for 2010-11 and 2011-12.

(ii) Uncapping of existing NHP:-Against the Provincial Government claim made on the basis of Award indexation formula or on the basis of KCM; the Federal Govt: agreed that the rate of NHP shall be Rs.1.10 per kwh to be approved w.e.f next financial year with an indexation @ 5% per annum.

(iii) Markup on unpaid Award amount of Rs. 110 billion upto 2004-05:-The Committee agreed that payment of Rs. 56.59 billion may be paid to Government of Khyber Pakhtunkhwa as markup on Award amount.

In light of the above decisions the Government of Khyber Pakhtunkhwa has taken up the issue with Ministry of Water & Power / WAPDA / NEPRA and Finance Division for early settlement. Realizing the importance of issue, the present Provincial Government has been actively engaged since its came into power for the resolution of the issue of NHP at all levels bringing it for its logical conclusion. In this connection, the Provincial Government has made full efforts by arranging consultative Jirgas of the ex-Finance Ministers, MNAs/ Senators of the Khyber Pakhtunkhwa and Parliamentary Leaders of the Provincial Assembly. In this regard, a meeting between Prime Minister and Chief Minister Khyber Pakhtunkhwa was also held in Islamabad on 28-01-2014 wherein besides other financial issues, the issue of NHP arrears as well as uncapping was also discussed. In pursuance of the decision taken in the meeting, the Chief Minister’s Secretariat requested Federal Finance Ministry for the arrangement of a follow up meeting between the Federal Finance Minister and Chief Minister, Khyber Pakhtunkhwa. In this regard recent development is the promise of Federal Finance Minister on 20.05.2014 during approval proceedings of six-monthly NFC Report that soon after the Budget, latest by July 2014, a secretary level meeting will be convened to iron out differences and resolving the dispute in light of earlier decision made so for.

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10% Share of Net Hydel Profit to the Districts where Dams are Located The Provincial Government has decided to transfer 10% share of Net Hydel Profits receivable from WAPDA/Federal Govt. to the respective districts where the dams are located. In this regard earlier Report of the Committee headed by the Chief Secretary, for devising a mechanism for utilization of the 5% share was approved by the Provincial Cabinet, effective from Financial Year 2008-09. The said share will be over and above the District’s & Provincial ADP which will be utilized on Developmental activities (i.e. Technical Education, Health facilities, and roads, scholarship for the effectives, Water supply schemes, Electricity and supply of Gas. The then Chief Minister Khyber Pakhtunkhwa on the occasion of windup speech on Budget 2012-13 in the Provincial Assembly announced to enhance the share of NHP from 5% to 10% with effect from 01-07-2012. Now on the basis of 10% share of NHP the Provincial Government is providing Rs. 600 million to the respective district from financial year 2012-13 and onward.

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Chapter 8: Revenues from Oil and Gas Page 36

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, Karak and Hangu. As of April 2014, an area of around 361,218.72 square kilometer is under exploration for oil and gas throughout the country out of which 27,710.26 square kilometers i.e. 7.67 % 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 in the Khyber Pakhtunkhwa is given in the following table:-

A) ACTIVE LICENSES IN KHYBER PAKHTUNKHWA

S.No Operator Block Districts/ Areas Grant Date

Relinquish Date

Area (Sq. Km)

1 MOL 3370-3 (Tal) Kohat, Karak, Bannu, Hangu, Adamkhel, and North Waziristan

11-02-1999 18-06-2014 3688.83

2 Hycarbex 3371-13 (Peshawar)

Peshawar, Orakzai & Khyber Agency

4-06-2010 3-06-2015 2487.77

3

MGCL

3271-1 (Karak) Karak, Bannu, North Waziristan & Mianwali

14-04-2005 1-06-2016 2359.64

4 3371-16 (Peshawar East)

Swbi, Mardan Kohat, Nowshera & Attock

21-02-2014 20-02-2019 1840.25

5

OGDCL

3371-5 (Gurgalot) Kohat & Attock 28-06-2000 9-08-2014 346.92

6 3370-10 (Nashpa) Attock, Mianwali, Kohat, Karak & North Waziristan

16-4-2002 16-04-2015 778.94

7 3370-12 (latambar) North Waziristan, Karak & Bannu 24-10-2005 13-12-2016 331.47

8 3270-6 (Wali) South Waziristan, Laki Marwat & Bannu

31-05-2006 13-12-2017 2179.26

9 3371-10 (Kohat) Peshawar, Nowshera Kohat, Adam Khel

27-04-2005 19-12-2015 1107.21

10 3371-17 (Baratai) Kohat 10-2-2014 9-02-2019 38.92

11 3070-16 (Pezu) Lakki Marwat, Tank, D.I Khan & DG Khan

21-02-2014 20-02-2019 2430.73

12 3369-1 (Orakzai) Kurram Agency, Orakzai Agency & Hango

28-02-2014 27-02-2019 1708.04

13 3370-14 (Tirah) Khyber Agency , Kurram Agency & Orakzai Agency

21-03-2014 20-03-2019 1945.64

14 Al Haj 3169-4 (Baska North)

D.I. Khan, Zhob, Tank, South Waziristan

28-02-2014 27-02-2019 2487.36

15 OPL 3170-2 (Marwat) Laki Marwat, Tank, DI Khan & South Waziristan

22-01-2007 21-12-2017 1792.87

16 PPL 3270-7 (Zindan) Mianwali, Bakkar, DI Khan Lakki Marwat

16-02-2010 15-02-2016 2495.93

17 Tullow 3370-13 (Bannu West)

Bannu, Kohat , Kurram, North Waziristan

27-04-2005 31-08-2017 1229.57

(Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)

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B) ACTIVE LEASES IN KHYBER PAKHTUNKHWA

S.No Opeartor Lease District Grant Date Relinquish

Date Area

(Sq. Kms)

1

MOL

Manzalai Karak 11-01-2007 10-01-2032 382.89

2 Makori Karak 16-04-2012 15-04-2035 50.70

3 Makori Wast Karak 09-10-2013 08-10-2038 30.66

OGDCL

Mela Kohat 02-04-2013 01-04-2028 77.57

Chanda Kohat, Mianwali 01-06-2002 31-05-2022 32.32


The oil and gas sites in Khyber Pakhtunkhwa fall in Potohar Region, wherein almost all the major oil /gas fields including Chanda, Tal 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. WELLS UNDER DRILLING Exploration activity is continued at three places as per detail given below:-

Wells Under Drilling

S.No Well Name Well Type Operator Spud Date Tentative date

of completion Status

1 Mela-04 Development OGDCL 3/4/2013 23/01/2015 Drilling

2 Manzalai-11 Development MOL 27/12/2013 07/10/2014 Drilling

3 Malgin-I Exploratory MOL 28/02/2014 22/12/2014 Drilling


Production of oil and gas for the year 2013-14 & 2014-15 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 2013-14 and 2014-15 are given below:-

REVISED & ESTIMATED OIL AND GAS PRODUCTION FOR THE YEAR 2013-14 & 2014-15

Company Field District Name

July 2013 – June 2014 (Revised Estimate)

July 2014 June 2015 (Budget Estimate)

Mol

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

Manzali Karak 411,755.91 36,023.17 332,880 24,203.58

Makori Karak 94,445.00 976.57 18,250 319.75

Makori East

Karak 2,371,782.40 13,257.33 4,640,245.00 16,135.30

MamiKhel Kohat 645,069.94 16,521.58 204,400 11,782.16

Maramzai Hangu 940,603.33 35,220.88 1,339,550 36,500.00

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OGDCL

Mela Kohat 1,324,663.00 4,945.82 788,400.00 8,840.54

Chanda Kohat 961,809.00 1,923.76 620,500.00 1,619.22

Nashpa Karak 5,463,463.00 21,252.64 5,230,815.00 22,296.78

Sheikhan Kohat

Total 12,213,591.58 130,121.75 13,175,040 121,697.33

Average per day 33,461.89 356.50 36,096.00 333.42


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 US BARRELS) AS ON 31ST DECEMBER, 2013

Operator Field Year of

Discovery Original

recoverable Cumulative production

Balance, Recoverable

MOL

Makori 2005 11.00 3.7 7.3

Manzali 2002 8.00 6.00 2.00

MamiKhel 2008 3.00 1.700 1.300

Makori East

2011 43.00 3.00 40.00

Maramzai 2009 10.00 2.100 7.900

OGDCL

Chanda 1999 34.567 14.318 20.249

Mela 2006 22.440 11.292 11.148

Nashpa 2009 57.610 13.458 44.152

Shekhan 2010 0.058 0.008 0.051

Sub Total 189.675 55.575 134.100


B. GAS RESERVES (BILLION CUBIC FEET) AS ON 31ST DECEMBER, 2013

Company Field Year of

Discovery Original

recoverable Cumulative production

Balance, Recoverable

BTU SCF

MOL

Makori 2005 221.000 51.00 170.00 1091

Manzali 2002 570.00 382.00 188.00 1032

MamiKhel 2008 80.00 39.00 41.00 1073

Makori East 2011 278.00 11.00 267.00 1182

Maramzai 2009 363.00 54.00 309.00 1075

OGDCL

Chanda 1999 68.879 30.253 38.626 828

Mela 2006 185.00 37.077 147.923 1170

Nashpa 2009 277.470 47.992 229.478 1130

Shekhan 2010 11.680 1.680 10.000 1040

Sub Total 2055.029 654.002 1401.027


The Provincial Government gets revenues on account of the following: -

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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 Provincial Government has decided to setup an Oil & Gas company with the name “Khyber Pakhtunkhwa Oil & Gas Company” which has started its function under administrative control of Energy & Power Department. It may be mentioned with a lot of pride that the Khyber Pakhtunkhwa is first Province to have established provincial Oil & Gas Company. Other provinces are following us. Furthermore, for the first time in the history of the Provinces, fully independent KPOGCL Board has been established and most of the members are from Private Sector. The Chairman of the Board is also from Private Sector. 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”.

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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 2014-15 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:-

(Rs in Million)

S.No Year Royalty on Crude Oil

Royalty on Gas

Excise Duty

on Gas

Gas Dev: Surcharge

Total

1 2004-05 (Actual) 263.793 109.370 44.280 69.828 487.271

2 2005-06 (Actual) 492.009 351.050 24.591 316.229 1,183.879

3 2006-07 (Actual) 1,090.718 462.418 123.290 632.717 2,309.143

4 2007-08 (Actual) 3,027.076 537.988 206.236 418.236 4,189.536

5 2008-09 (Actual) 3,111.402 733.212 149.130 246.028 4,239.772

6 2009-10 (Actual) 1,942.240 1,261.458 286.046 1,026.155 4,515.899

7 2010-11 (Actual) 8,341.297 3,814.063 1,098.413 3,315.039 16,568.812

8 2011-12 (Actual) 11,651.551 4,153.840 1,173.511 1,786.062 18,764.964

9 2012-13 (Actual) 12,871.058 3,740.504 1,371.329 1,647.816 19,630.707

10 2013-14

(Revised Estimate) 18,791.804 4,452.696 1,582.700 4,485.140 29,312.340

11 2014-15

(Budget Estimate) 16,357.690 4,234.362 2,443.140 6,228.259 29,263.451

Actual and estimated well-head wise production figures of oil & gas from financial year 2007-08 to 2014-15 is indicated in the following tables respectively: -

PRODUCTION OF OIL (BARRELS) DURING FINANCIAL YEARS 2007-08 TO 2014-15

S. No

Receipts Head

Actual Estimated

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

(RE) 2014-15

(B.E)

1 Chanda (Shakardara Kohat)

2,058,926 1,818,588 1691088 1523822 1436673.00 1199736.00 961809.00 620500.00

2 Manzali (Karak) 137,231 149,717 1049932 1608099 1325083.04 917454.00 411755.91 332880

3 Makori (Karak) 771,595 676,310 297578 597641 52776.00 144132.00 94445.00 18250

4 Mela (Kohat) 1,721,515 2125,126 2044641 1630434 1734178.00 1333192.00 1324663.00 788400

5 Nashpa (Karak) - - 219472 1955981 3233.789 4843059.00 5463463.00 5230815.00

6 Makori East (Karak)

- - - 12370 17351.00 1560855.00 2371782.40 4640245.00

7 Maramzai (Hangu)

- - - 83959 643808.89 692117.00 940603.33 1339550

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8 MamiKhe (Kohat)l

- - - 431003 557765.07 555827.00 645069.94 204400

9 Sheikhan (Kohat)l

- - - 6034 1146.00 142.00

10 Tolang (Kohat)l

- - - - 313 0

Total 4,689,267 4,769,741 5302711 7849343 9470883 11246514 12213591.58 13175040


PRODUCTION OF GAS (MILLION CUBIC FEET) DURING FINANCIAL YEARS 2007-08 TO 2014-15

S.No Receipts Head

Actual Estimated

2007-08

2008-09

2009-10

2010-11

2011-12 2012-13 2013-14

(R.E) 2014-15

(B.E)

1 Chanda (Shakardara Kohat)

3,032 2,682 2754 2612 2812.09 2604.00 1923.76 1619.22

2 Manzali (Karak) 12,552 13,392 61513 92991 79618.71 61493.00 36023.17 24203.58

3 Makori (Karak) 10,314 9,349 3839 8593 8143.78 3036.00 976.57 319.75

4 Mela (Kohat) 3,809 5,936 6265 4804 6699.38 6561.00 4945.82 8840.54

5 Nashpa (Karak) - - 583 6504 11502.75 17222.00 21252.64 22296.78

6 MamiKheil (Kohat) - - - 7657 10031.71 11563.00 16521.58 11782.16

7 Maramzai (Hangu) - - - 2047 16549.77 18227.00 35220.88 36500.00

8 Makori East (Karak)

- - - 49 70.18 5528.00 13257.33 16135.30

9 Sheikhan (Kohat)

- - - 914 509.45 98.00

10 Tolang (Kohat)

- - - 0 200 0

Total 29,707 31,359 74954 126173 136137.78 126332 130121.75 121697.33


PRODUCTION BONUS Under sub clause 3 of 4.1.2 “Production Bonuses” of the Petroleum Exploration and Production Policy 2012, the Production bonuses will be expended on social welfare projects in and around the respective contract areas according to the guidelines issued by the Provincial Government from time to time. The Energy & Power Department, Khyber Pakhtunkhwa has accordingly issued guidelines for the utilization of Production Bonus obligations of the exploration and production companies vide letter No. SO E&P/1-58/2012 dated 24-04-2013. The composition of the Committee to utilize production bonuses is as follows:-

MNA (s) of the District (In case more than one MNA is available in the respective District’s, the MNA of the constituency area from where

maximum petroleum is produced)

Chairman

MPA (s) of District. Member

Deputy Commissioner of the District Secretary

E&P Company (Two representatives) Vice Chairman and Member

Representative of concerned Department at the District Member

Assistant Commissioner of concerned Tehsil Member

Divisional Monitoring Officer (DMO) of Monitoring and Evaluation Directorate, P&D Department.

Member

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Secretary of the Petroleum Social Development Community (PSDC) will open and administer a joint bank account (the Account) with the title “Petroleum Social Development Fund (PSDF)”, to be operated by Deputy Commissioner and Vice Chairman for the purpose of funding projects identified by the PSDC through any Production Bonus payable by the E&P Company. All those producing E&P companies who are obligated to pay Production Bonus to the Government for social welfare projects/ infrastructure development in and around the respective contract area will deposit the Production Bonus directly in Account of the Secretary (DC) in consultation with the Provincial Government, in a separate account to be opened for the purpose. The proceeds of production bonus against Tal & NASHPA block of MOL and OGDCL is as under:-

DETAIL OF FUNDS ON ACCOUNT OF PRODUCTION BONUSES TRANSFERRED IN THE

RESPECTIVE DC’S ACCOUNTS DURING YEAR 2013-2014

S.No Company

Name Leases

District (s)

Date of Deposited

Amount Deposited US$

1

OGDCL Nashpa

Karak 25/10/2013

736,922

Kohat 248,766

Sub Total 985,688

2

MOL

Tal (Manzalai, Makori & Makori

East)

Karak

4/11/2013

2,527,422

Hangu 1,018,429

Kohat 853,459

Sub Total 4,399,310

Grant Total 5,384,998


SOCIAL WELFARE OBLIGATION OF E&P COMPANIES OPERATING IN KHYBER PAKHTUNKHWA

PROVINCE

Name of Company

Name of Block

District/Location SW Obligation 2013-14 (US $)

SW Obligation 2014-15 (US $)

MOL

Tal Kohat, Karak, Bannu, Hangu, Ademkhel& North Waziristan

250,000 250,000

Margala North

Haripur, Abbottbad, Attock & Rawalpindi & Islamabad

10,000 10,000

Hycarbex Peshawar Peshawar, Orakzai& Khyber Agency 30,000 30,000

MGCL Karak Karak, Bannu, North Waziristan &Mianwali

30,000 30,000

OGDCL

Gurglot Kohat&Attock 20,000 20,000

Nashpa Attock, Mianwali, Kohat, Karak& North Waziristan

150,000 150,000

Latambar North Waziristan, Karak&Bannu 10,000 10,000

Wali South Waziristan, LakiMarwat&Bannu 10,000 10,000

Kohat Peshawar, Nowshera, Kohat, Adam Khel

10,000 10,000

Soghri Kohat&Attock 10,000 10,000

Chanda Kohat & Mianwali 20,000 20,000

Mithakel Karak & Mianwali 20,000 20,000

OPII Marwat LakiMarwat, Tank, D.I.Khan& South Waziristan

10,000 10,000

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PPL

Dera Ismail Khan

D.Ismail Khan, Layyah & Bakhar 30,000 30,000

Dhoke Sultan Kohat, Attack & Mianwali 30,000 30,000

Zindan Mianwali, Bakkar, D.I. Khan &LakkiMarwat

30,000 30,000

Tullow Bannu West Bannu, Kurram, North Waziristan, Hnagu & Lakki Marwat

10,000 10,000

China Zhenhua

Baska D.I.Khan, D.G.Khan, Musakhel & Zhob 20,000 20,000

Total SW Obligation 700,000 700,000


TRANSFER OF 10% ROYALTY SHARE OF OIL AND GAS TO THE CONCERNED DISTRICTS The Provincial Government had decided to transfer 10% 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 then Chief Secretary, Khyber Pakhtunkhwa regarding utilization of 10% share has already been approved by the Provincial Cabinet. However the Provincial Government has now amended the said policy of 10% share of royalty on oil & gas. The salient features of the amendment are as under.

a. Minimum size of a scheme financed out of 10% share of Royalty on Oil & Gas

will be Rs. 1,000,000/- (one million). b. 10% 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 10% share is over and above the size of District and Provincial ADP. Utilization of 10%

share in the respective districts would certainly supplement the development activities and

improve the socio-economic condition of the area. For the Financial Year 2013-14, a sum of

Rs. 1963.071 million has been released to the concerned Districts i.e. Kohat, Karak & Hangu as

10% share of royalty on oil, gas.

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Chapter 9: 7th National Finance Commission Page 44

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 Khyber 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 7th NFC Award 2010. 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%

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Chapter 9: 7th National Finance Commission Page 45

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 100 100

*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.

Comparative position of the total transfers to Provinces under NFC Award for the financial year 2014-15 is as follows:-

FUNDS TO BE TRANSFERRED TO THE PROVINCES DURING 2014-15

(Rs in Million)

Province %share

Budget Estimate 2014-15

1% of total Divisible Pool for War on

Terror grant (1.8% of the provincial

pool)

Total

Punjab (51.74%)

803,779.106 803,779.106

Sindh (24.55%)

381,383.399 381,383.399

Khyber Pakhtunkhwa

(14.62%) 227,121.193 27,290.233 254,411.426

Baluchistan (9.09%)

141,212.835 141,212.835

Total 1,553,496.533 27,290.233 1,580,786.766

Net % share of

provinces under

the 2010 NFC

Award

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Chapter 10: Public Financial Management (PFM) Page 46

PUBLIC FINANCIAL MANAGEMENT (PFM)

Public Financial Management (PFM) includes all components of the province's budget process - both upstream (including strategic planning, medium term budgetary framework, annual budgeting) and downstream (including revenue management, procurement, control, accounting, reporting, monitoring and evaluation, audits and oversight). Sound systems of PFM are important for democratic governance, macro-economic stability, effective use of available resources and poverty reduction. A sound PFM system is a precondition for making it possible to effectively channelize resources to service delivery e.g. basic education and health services. The Provincial Government of Khyber Pakhtunkhwa is fully cognizant of the significance of effective PFM systems embarked upon significant PFM reforms - lying at the heart of its overall Governance Reforms agenda. This chapter dwells on some of the key strategic interventions undertaken by the Govt. of Khyber Pakhtunkhwa as part of its reforms agenda. Medium Term Budgetary Framework & Output Based Budgeting In order to initiate the budget cycle as per the spirit of Medium Term Budgetary Framework (MTBF)/Output Based Budgeting and to ensure appropriate institutional mechanisms to approach the budget 2014-15 in the best possible manner a roadmap was developed. Following are some of the salient features which guided the budget 2014-15 under MTBF:

i. Forward Budget Estimates (FBEs) for a period of 3 years i.e. 2014-17 were formulated by Finance Department.

ii. Development of Medium Term Fiscal Framework (MTFF) for a period of 3 years i.e. 2014-17. The MTFF is composed of fiscal projections of receipts and expenditure of Provincial Government over the medium term. It forms the basis for development of indicative budgetary ceilings which enhance predictability of resource commitment to different sectors, promoting greater confidence, continuity and sustainability in economic and social policies by the Government. The MTFF is given in Annex-XI.

iii. Fundamental improvements in the Integrated Budget Call Circular (BCC) were introduced. The improved BCC ensures greater integration of recurrent and development portfolios with a focus on service delivery, through the introduction of necessary formats for the identification of reforms initiatives by relevant quarters of the government i.e. Reforms Working Groups and Sectoral Coordination Committees constituted under the Strategic Development Partnership Framework (SDPF). In addition, provisions were embodied in the BCC to ensure (i) an assessment of medium term challenges with respect to foreign grants and project assistance, in collaboration with development partners, and (ii) flexibility for the E&SE to supplement their Budget Estimates with additional statements under the coding structure of new Chart of Accounts. The Senior Minister, Finance, formally endorsed the BCC along with indicative budgetary ceilings and BCC was issued to all line departments.

iv. For the first time block development budget ceilings for 3 years i.e. 2014-17 were finalized and issued to P&DD along with detailed guidelines.

v. Improved guidelines for the formulation of the ADP 2014-15. A move towards integrated budgeting, detailed guidelines on ceilings, and multiyear planning were some of the key improvements introduced in the guidelines.

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vi. Indicative Budgetary Ceilings for a period of 3 years i.e. 2014-17 were issued to all departments for the recurrent and development budgets by Finance and Planning & Development Departments along with BCC and ADP Guidelines respectively.

vii. Significant improvements were made to the Budget Order 1 to ensure greater compliance with the BCC by giving due consideration to indicative budgetary ceilings and focusing on performance information instead of incremental budgeting.

viii. The departmental log frames for Output Based Budget were thoroughly reviewed and updated to effectively translate the strategic objectives of the government as set forth in the SDPF and Integrated Development Strategy.

ix. Presentation of Budget Strategy Papers as part of the annual budget process for the approval of the Cabinet.

x. Pre budget hearings held with all line departments by Finance and P&D Departments to finalize the proposed budgets of line departments with due regard to the indicative budgetary ceilings and ensure their alignment with the strategic objectives of the Government.

Districts Delivery Challenge Fund The District Delivery Challenge Fund (DDCF) is £ 2.7 Million component of Sub National Governance Programme (SNG), aims to identify and finance scalable interventions, designed to improve public service delivery which can be incorporated into the provincial and district budgets during and beyond the lifetime of the project. The fund is initially focusing on Primary Education and Primary Health in the six districts of Buner, Haripur, Nowshera, Karak, Lakki Marwat, and D.I Khan. More specifically, the DDCF will work along the Govt. System to:

Finance innovative and potentially scalable pilot approaches (Education & Health Sector)

Build evidence of what works to improve service delivery system

Meet the needs of poor and marginalised people in SNG target districts;

In order to operationalize the Fund, a Working Group has been constituted by the provincial government to oversee the DDCF under the overall supervision of the Steering Committee. The pilot projects must ensure that they a) work in partnership with government on improving service delivery, b) result directly in increased access to services or improved quality of services that benefit poor people, c) demonstrate how it will provide equitable access to women and marginalised groups, d) is implemented in the six target districts in priority sectors, e) has the potential to be scaled-up, f) is not easily supported by other sources of finance and can be implemented within a 12-18 months period. Total fund for DDCF in KP is £2.7 million (approx. PKR 450m), to run into four funding rounds (1st round launched in January 2014), the Grant award value for each project is in the range between: £50,000-£300,000 (approx. PKR 8.5m-50m). The fund is competitive in nature consisting of two stages application process i) concept note and ii) full application. The fund has a comprehensive communication, monitoring, evaluation and physical and financial progress review mechanism elaborated in the “Fund Operations Manual”. Round-1 of the fund has been launched in January 2014, receiving an overwhelming response from different organizations. Round-2 of the fund for Health Sector will be launched in June 2014.

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Budget Transparency Review (BTR) One of the key dimensions of an open and orderly PFM system is that comprehensive fiscal and budget information is accessible to the public. There are different ways in which countries develop institutional mechanisms to guarantee that fiscal information is publicly available and also that opportunities exist for different actors to engage with the budget process. There is, however, recognition that budget transparency brings a wide array of benefits, from extended focus on social sector spending and reduced corruption to increased scrutiny of executive action and better prioritisation of public investment. The Govt. of Khyber Pakhtunkhwa as per its agenda has strong commitment to provide clean and efficient government, empower people to take decisions about their affairs and ensure that rights of the citizens are respected. The Right to Information and Right to Services Acts are two important initiatives of the Provincial Government for the attainment of these objectives. Besides, fresh PEFA Assessment has also been agreed with the World Bank support to be initiated in 2014-15. The Finance Department in collaboration with SNG Programme conducted BTR Study during 2013-14. The purpose of the study was to (i) conduct a baseline assessment of the transparency and accessibility of the budget of the Government of Khyber Pakhtunkhwa based on international good practice, (ii) identify areas of potential reform which if implemented would improve budget transparency and accessibility, (iii) build the capacity of the Government, in particular the Finance Department (FD) to assess and strengthen budget transparency and (iv) provide a basis for the FD to respond to the requirements of recent RTI legislation for the province. The Open Budget Survey (OBS) is not usually conducted at sub-national level though it could be, as the budgetary processes of sub-national governments are very similar, in most cases, to those of national governments with transparency and accessibility issues being the same. This review therefore resorted to the OBS methodology which was applied to the budget process and documents of the Government of Khyber Pakhtunkhwa. Districts Output Based Budgeting & Conditional Grants The Conditional Grant is an innovative model to facilitate service delivery improvement at the district level which is being implemented in Khyber Pakhtunkhwa. It was piloted by the Government of Khyber Pakhtunkhwa in 2011-12 with GBP 2 million support of UK’s Department of International Development (DFID) in D.I.Khan and Buner districts under Output Based Budgeting (OBB) in education and health departments. 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 objectives, 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 six districts. These business plans also contained a set of agreed indicators and targets to monitor results. Based on success of the conditional grant at pilot phase, the Government of Khyber Pakhtunkhwa allocated PKR 1 billion in its regular budget for Education & Health sector for the financial year 2012-13 (which was extended to FY 2013-14) for the up-scaling of

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conditional grant in the two pilot districts and its extension to four other districts i.e. Lakki Marwat, Nowshera, Haripur and Karak. Under the Health sector the funds were utilized to: i) revitalize and strengthen the health service delivery and nutrition services, and ii) strengthen infrastructure of Basic Health Units. Elementary & Secondary Education department has used the funds in improving the efficiency of service delivery through community involvement by providing money to Parent Teacher Councils (PTCs) of schools to provide the following missing facilities:

i. Additional class rooms ii. Group latrine iii. iii.Boundary Wall iv. Water Supply v. Electrification

The funds for the conditional grants are released by the Finance Department while the Elementary & Secondary Education and Health Departments are responsible for execution of the program through their respective district officers, EDOs Education and Health. District and Sector wise break-up of the releases up till date is given below: Rs. (in million)

Districts Education Sector Health Sector Total

Buner 209.346 22.532 231.878

D.I Khan 219.216 23.451 242.667

Karak 128.621 31.572 160.193

Haripur 133.691 25.255 158.946

Nowshera 113.621 22.945 136.566

Lakki Marwat 123.048 21.220 144.268

Total 927.543 146.975 1,074,518

UK DFID'S SUB NATIONAL GOVERNANCE PROGRAMME Governance lies at the heart of Pakistan’s economic and social challenges. Experience has shown that top-down governance reform programmes cannot on their own produce concrete benefits for citizens. The 18th Constitutional Amendment devolved responsibility for the provision of basic services, such as health and education, to the Provincial Governments. The Sub-National Governance programme (SNG) was launched in April 2013 with the aim of supporting improvement of government service delivery in the provinces of Punjab and Khyber Pakhtunkhwa (KP). SNG is a GBP 38 million programme split over four and a half years ending in September 2017. The programme works in 6 districts in KP. These are: Buner, Haripur, Nowshera and Dera Ismail Khan, Karak and Lakki Marwat.

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The programme approach puts service delivery needs at the starting point of all activities. This is accompanied by rigorous monitoring and evaluation, enabling piloting and scaling up. Programme Components SNG has five main components in KP:

1) Public Financial Management (PFM) and Planning: Technical assistance in Khyber

Pakhtunkhwa at the provincial and district levels to help the provinces better plan, budget for and target services through the improved use of evidence and more consultation with poor communities

2) Challenge Funds: Setting up a District Delivery Challenge Fund (DDCF) to enable districts to innovate with ways of improving services

3) Geographical Information System (GIS): Supporting the linking of GIS initiatives between provincial and district levels, and helping address issues such as lack of evidence-based planning and inadequate spatial data for monitoring and planning at district levels

4) OBB & Conditional Grants: Scaling up Output Based Budgeting (OBB) in Khyber

Pakhtunkhwa from 12 to 32 provincial line departments and providing earmarked financial aid to roll out conditional grants in 6 districts

5) Externally Financed Outputs (EFOs): Assisting the World Bank to develop and implement Right to Information (RTI) legislation to improve government transparency and accountability. SNG has also funded the World Bank to conduct a Public Expenditure and Financial Accountability (PEFA) assessment in Pakistan’s Federally Administered Tribal Areas (FATA)

Key Results Achieved, as at May 2014

Establishment of Khyber Pakhtunkhwa Revenue Authority (KPRA): Provided technical assistance to the establishment of the KPRA. The authority was established in July 2013 and is now collecting provincial General Sales Tax on services (GST). Rs 4.3 billion GST was collected till Q3 against the provincial government GST on services target for current financial year set at Rs6 billion.

Strategic Development Partnership Framework (SDPF) aimed at harmonizing donor interventions with the reform agenda of the Provincial Government was adopted by the Provincial Government in October 2013 through a Strategic Dialogue. The SNG is

Sub

Nat

ion

al

Go

vern

ance

(SN

G)

Pro

gram

me

Public Financial Management (PFM) & Planning

Challenge Funds

Geographical Information System (GIS)

Conditional Grants (KP)

Externally-Financed Outputs (EFOs) with the World Bank

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supporting the quarterly Strategic Dialogue between the development partners and the provincial government for alignment of interventions with government priorities.

Integrated Development Strategy (2014-18) was launched at the Second Strategic Dialogue Meeting between the Provincial Government and the development partners held on 31st March 2014 in Islamabad. The Integrated Development Strategy (IDS) updates and integrates the existing provincial development strategies – Comprehensive Development Strategy, Post Crisis Needs Assessment, and Economic Growth Strategy to align these with priorities of the government; reflects a paradigm shift from infrastructure oriented development to human development; and provides a linkage between SDPF and budgetary resource allocation.

Sales Tax Survey aimed at increasing the base of eligible taxpayers registered with KP Provincial Revenue Authority (KPPRA) and collection of sales tax in the province was started in the selected districts in March 2014 following piloting and training of enumerators of survey teams. The Final Tax Survey Report is scheduled to be completed by June 2014.

Design of Provincial Finance Commission (PFC) Award: providing technical support to the design of KP’s inter-governmental fiscal transfer systems. Strategic Development Partnership Framework (SDPF)/ Integrated Development Strategy (IDS) Integrated Development Strategy (IDS) reflects a paradigm shift in development agenda of the Provincial Government. Instead of brick and mortar, the strategy recognises that transparent, corruption free government, efficiency in security and justice systems and citizen participation are fundamental to establish a harmonious society and growing economy. It proposes policies to institute good governance to achieve growth. Policies aimed at reducing corruption, improving human capital and raising trust and participation of people are adopted to increase productivity in the economy. Lowering corruption will reduce wastage of financial resources and attract investment to stimulate growth. The important drivers of growth in this strategy are access to education and health services, transparent and accountable government and citizen participation in development of the province. Strategic development priorities identified in IDS are linked to budget streams. IDS is based on the consultative process initiated under Strategic Development Partnership Framework (SDPF) which, for the first time provided a platform to involve both bilateral & multilateral development partners to achieve donor harmonization with strategic development objectives of provincial government. Sectoral Coordination Committees under SDPF ensured that development partners, government counterparts and line departments worked together to finalise priorities and action plans which translate into budget estimates for the next four years i.e. 2014-15 to 2017-18.

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Community Driven Local Development (CDLD) Policy - District Governance and Community Development Programme Citizens’ participation through community development programmes is a key to achieving the goals of transparency, accountability as well ensuring equity and inclusiveness in the development process. Recognizing the role of citizens in development and governance the Government of Khyber Pakhtunkhwa has approved the Community Driven Local Development (CDLD) policy which provides a policy framework and governance structure for ensuring the key role of citizens in development planning and implementation especially the marginalized groups in the society. The CDLD Policy clearly outlines the government of Khyber Pakhtunkhwa’s major reform initiative of providing space to citizens to fully participate in development activities through governance institutions’ reengineering and development projects investment. The main objective of this policy is to bring government departments closer to the citizens and create trust among the public in the governance system. The European Union is providing assistance to the GoKP both in terms of projects investment and technical assistance for streamlining and developing governance institutions for the implementation of the CDLD Policy. Under its District Governance and Community Development (DGCD) Programme the EU is providing 64 Million Euros for the six districts of Malakand division comprising of Swat, Shangla, Chitral, Dir Upper, Dir Lower, and Malakand to implement the CDLD policy. The DGCD programme has been designed around the key concept of CDLD i.e. mobilization, participation and ownership of local community. This model is a blend of government development projects implementation systems and the community based development paradigm which is an innovation in terms of funding through the normal PFM system to the community based organizations CDLD Funds for Malakand The DGCD funding under the CDLD Policy is a start up of the implementation of CDLD policy by the GoKP under its exclusive ownership to achieve its objectives of Community Development at the grassroots level. In this regard, the government has allocated an amount of PKR 500 million to initiate the activities of the programme. Under the DGCD programme the total funding made available by the EU over a period of four years for six districts of Malakand is to the tune of 64 Million Euros which will be granted by the EU as budgeter support to the Government of Khyber Pakhtunkhwa as annual tranches in start of the financial year. This amount comes to about PKR 8900 Million over four years’ time which is about 11 percent of the total ADP of the province.

YEAR WISE FUNDING PATTREN

Year 1 Year 2 Year 3 Year 4 Total

EU Share in (EUR)

9,000,000 18,000,000 19,000,000 18,000,000 64,000,000

Fixed 9,000,000 6,000,000 6,000,000 6,000,000 27,000,000

Variable - 12,000,000 13,000,000 12,000,000 37,000,000

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Internal Audit Function in Departments of Khyber Pakhtunkhwa Numerous public sector audit activities and reporting relationships exist among different jurisdictions and in different forms of government. The key point, however, is that public sector audit activities must be configured appropriately to enable public sector entities to fulfill their duty to be accountable and transparent to the public while achieving their objectives effectively, efficiently, economically, and ethically.

Internal controls were identified as an area of high risk and low confidence in the pre-award assessment of the Government of Khyber Pakhtunkhwa (GoKP) conducted by Deloitte in March 2010. In this context, the Government of Khyber Pakhtunkhwa (GoKP) took several initiatives in order to be more responsive, responsible and accountable. One of these initiatives was the establishment of internal audit function across the Provincial Government departments, offices, organizations, autonomous bodies, etc. A charter which lays down a very comprehensive and solid foundation for building an effective internal audit function has been approved. The charter describes fairly comprehensive objectives, scope of work, organization, authority, reporting and accountability provisions of the IA wing. While it was decided to introduce the IA function in all Provincial Government Departments, the Finance Department (FD) decided to start with three prioritized departments (Health, Education and C&W) and Pension & Payroll on pilot basis. As a start using its own resources the Finance Department started with an audit of Pension & Payroll first. Realizing the technical complexities involved Finance Department Govt. of Khyber Pakhtunkhwa felt the need for additional technical assistance and approached Assessment & Strengthening Program –RSPN for assistance in the implementation of their reform agenda. The idea was to establish IA functions within three departments on a pilot basis and equip them with the latest tools and technologies tailored to the needs of the local environment and enabling them to achieve their intended objectives. These pilot models were then to be replicated across the Government. So far ASP-RSPN has developed and implemented following tools and methodologies;

1. Governance Structure ensuring independence and objectivity 2. Establishing reporting relationships and flow of work 3. Internal Audit Methodology in line with International Standards on Auditing, including

step by step procedures to be followed during the planning, execution and reporting stages of the audit.

4. Developing planning and permanent files templates, forms and model illustrative files. 5. Job Descriptions for internal auditors and their supervisors 6. Pilot audits at Education, Health and Pension & Payroll 7. Critical processes documentation for Education Department (Secretariat, Directorates,

DEO and Schools). 8. Critical processes documentation for Communication & Works Department (Secretariat,

Chief Engineer’s Office, SE Office, XEN) 9. Critical processes documentation for Health Department (Secretariat and DG Health) 10. Identification of Financial and Performance risks within each step of the processes and

mitigating control recommendations. 11. Audit report formats

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Preparation of Strategic Plans for Line Departments of Government of Khyber Pakhtunkhwa (KP) In line with its reform program particularly in the area of public financial management and governance, the Provincial Government planned to prepare ‘Strategic Plans’ for each of its Administrative Departments in order to define its strategy, set its direction, and make decisions on allocating its resources to pursue this strategy. These strategic plans will include a Situation Analysis of the departments, development of Strategic Plans in line with identified outcomes and outputs, Annual Action Plans aligned with Annual Output Based Budgets (OBB) and a tracking mechanism for goals and targets for each department. In this context a steering committee headed by the Additional Chief Secretary (P&D) to oversee and provide strategic direction to the whole project has also been constituted. Establishment of Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA) Public Procurement worldwide has become a specialized undertaking in the contemporary world. Government Departments generally face institutional capacity issues in their internal control, fiscal management and procurement administration which hamper their overall performance and service delivery. It has been determined that there is a strong and direct correlation between transparent public procurements and economic development. Government of Khyber Pakhtunkhwa with the technical assistance of World Bank and DFID has initiated an integral PFM reform initiative. One of the aspects of these reforms was the establishment of Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA), an autonomous body capable of providing legal and regulatory framework to Provincial Government Departments and other Public entities/organizations for procurement. The Provincial Government of Khyber Pakhtunkhwa on the analogy of Federal Public Procurement Regulatory Authority (FPPRA) and Sindh model (SPPRA) tabled Pubic Procurement Regulatory Authority bill on the floor of Provincial Assembly for establishment of KPPRA Authority. The bill was passed on September 03, 2012 and it become an Act, on September 20, 2012. In pursuance of the provisions of KPPRA Act 2012, the Procurement Rules 2014 have been notified by Finance Department and the Authority has been established and is providing legal and regulatory framework to Provincial Government Departments and other Public entities/organizations for procurement.

http://en.wikipedia.org/wiki/Strategy

http://en.wikipedia.org/wiki/Decision_making

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Chapter 11: Bank of Khyber Page 55

BANK OF KHYBER “Custodian of Rich Values”

Introduction The Bank of Khyber was established in 1991 through Act No. XIV, passed by the Provincial Legislative Assembly of the KHYBER PAKHTUNKHWA Province of Pakistan. It was awarded status of a scheduled bank in September 1994. The Bank of Khyber enjoys a unique position, and stands out amidst the other banks operating within Pakistan, and has the privilege of being bracketed amongst the only three government banks in the country. Our Vision To become Leading Bank providing efficient and dynamic services in both Islamic and Conventional banking through expanded nationwide network. Our Mission To increase shareholders’ value and provide excellent service and innovative products to customers through effective corporate governance, friendly work environment and contributing towards an equitable socioeconomic growth Core Values

i. Highest quality of service ii. Professionalism iii. Integrity iv. Team Work v. Innovation and utilization of latest Technology vi. Risk Mitigation vii. Corporate Social Responsibility Strategic Objectives

Provide value added services through operational expansion, geography and upgraded systems.

Build and manage a diversified equity portfolio optimizing optimum returns.

Mobilize funds in a cost effective manner to meet the financing needs.

Achieve sustainable growth and be competitive in commercial operations.

Undertake Islamic & Conventional banking services and participation in financing syndicates.

Build a corporate culture of equality, trust and team spirit as we remain dedicated to be a socially responsible organization.

Future Outlook Going towards 2014, there are considerable economic, political and social challenges surrounding Pakistan. The external account pressures, high ratio of unemployment and illiteracy, severe energy crisis, worsening law and order situation had an extremely adverse

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impact on short term growth prospects, revival of the business environment in particular and overall economy in general. However, positive economic factors like continuous rise in foreign remittances, reduction in Consumer Price Inflation (CPI) and thriving agrarian economy, signify that there is no doubt that Pakistan has tremendous economic potential and its economy can turn around quickly in the future. Tough economic decisions would be required in order to put the economy on the growing path so as to generate employment, corrects the structural imbalances and improves the macroeconomic indicators. Most important for the breakout is to fundamentally improve the country's fiscal deficit and to broaden the tax base to raise one of the lowest tax participation rates in the region, promote equity, and provide the revenues needed to fund necessary government functions. Given the challenges on hand, 2014 is expected to be yet another difficult year. Considering the overall macroeconomic and geo-political outlook, significant pressure is expected on banking sector margins in the wake of low benchmark rates and limited financing opportunities. Accordingly, our Bank intends to focus on building and maintaining quality advances portfolio and to enhance its focus on customer Service quality and major cost rationalization initiatives through continuous improvement in automation and product innovations. Efforts are also underway to target new market segments and to improve efficiency and productivity in Bank's overall performance. Keeping the pace of moving forward, the State Bank of Pakistan has approved Bank's expansion plan and allowed 16 new branches to be opened in the country in the year 2014 wherein 6 branches will be conventional and 10 branches will be Islamic. These branches are planned to be opened in Peshawar, Lahore, Karachi, quetta, Jhang, Mandi Bahauddin, Shaikupura, Turnol (Rawaplindi) , Taxila, Saleh Khana, Takht Bhai, Jhangera and Thana. In order to play its due role under the corporate social responsibility, the Bank has provided services to the Provincial Government to successfully launch Khud Kafalat Scheme in Khyber Pakhtunkhwam so as to enable the people to start new or enhance their already established businesses by availing interest free small loans. Achievement by The Bank Of Khyber During Financial Year 2013

The bank achieved the historic landmark of 101 fully functional branches in the economy.

The bank earned net profit of tax of Rs. 1,154 million which is highest of the history

Currently, the Bank's paid-up capital stands at Rs.10.00 billion and in compliance with MCR requirements of the SBP.

The credit rating of the bank has been upgraded in the year 2013. JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the medium to long term entity rating of the Bank from ‘A-’ (Single A Minus) to ‘A’ (Single A) while the short term rating has been upgraded from ‘A2’ (A Two) to A1 (A one). Outlook on the assigned rating is “Stable”.

The Pakistan Credit Rating Agency Limited (PACRA) has upgraded long term entity rating of the Bank from “A-“ (Single A Minus) to “A” (Single A) and short term entity rating has also been upgraded from “A2” (A Two) to A1 (A one) .Rating outlook is “stable”.

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The ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The Bank recorded strong growth of 29% in deposits which increased to Rs.77,218 million as at December 31, 2013 as compared to Rs.60,043 million as at December 31, 2012.

Gross Advances registered a growth of 29%, increased to Rs.38,339 million as at December 31, 2013 as compared to Rs.29,738 million of the corresponding year.

The Balance Sheet Size of the Bank registered a YoY growth of 32% to reach at Rs.108, 170 million as at December 31, 2013 which is highest in the history.

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Chapter 12: Funds Management Page 58

FUNDS MANAGEMENT Funds Management is the professional management of various securities (shares, bonds and other securities) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds). Industry scope

The business of investment has several facets, the employment of professional, research (of individual assets and asset classes), dealing, settlement, marketing, internal auditing, and the preparation of reports for management Board. Long-term returns It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). For example, over very long holding periods (e.g. 10+ years) in most countries, equities have generated higher returns than bonds, and bonds have generated higher returns than cash. According to financial theory, this is because equities are riskier (more volatile) than bonds which are themselves more risky than cash. Diversification An investment fund that contains a wide array of securities to reduce the amount of risk in the fund. Actively maintaining diversification prevents events that affect one sector from affecting an entire portfolio, make large losses less likely. Performance measurement Fund performance is often thought to be the acid test of fund management, and in the institutional context, accurate measurement is a necessity. For that purpose, institutions measure the performance of each fund for internal purposes components and also measured by external firms that specialize in performance measurement. Risk-adjusted performance measurement Performance measurement should not be reduced to the evaluation of fund returns alone, but must also integrate other fund elements that would be of interest to investors, such as the measure of risk taken. Several other aspects are also part of performance measurement: evaluating if managers have succeeded in reaching their objective, i.e. if their return was sufficiently high to reward the risks taken; how they compare to their peers; and finally whether the portfolio management results were due to luck of the manager’s skill. The need to answer all these questions has led to the development of more sophisticated performance measures, many of which originate in modern portfolio theory.

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The Government cautiously regulates its funds and investment and aims to benefit the subscribers of the funds, during and after, their service. 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 markup brings heavy toll on the Provincial exchequer. If both these revenue expenditures are put together, it exceeds the Provincial own receipts. Foreseeing this adverse and unfavorable 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. The Khyber Pakhtunkhwa Govt. established the following Funds:

1. General Provident Investment Fund 2. Pension Fund 3. Hydel Development Fund

General Provident Investment Fund Investing Provincial Reserves in safe and well protected instruments for maximum profits and benefits was the prime factor behind the establishment of this Fund. Therefore, a fund was established called Khyber Pakhtunkhwa General Provident Investment Fund in the year 1991-92 with initial allocation of Rs. 200 million as equity. To oversee the affairs of the fund, a Fund Management Board, under the Chairmanship of the Chief Secretary, Khyber Pakhtunkhwa has been established. It has diversified composition comprising 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. Moreover, Finance Secretary heads Investment Committee which was constituted to carry out the day to day functions of the Fund. It has a total size of Rs 33,635.62 million (Government contribution Rs. 16,694 million + un-appropriate Profit Rs. 16,941.62 million) up to 30th June, 2014.

General Provident Investment Fund

(Rs. in million)

Year Opening Balance

Released during the year

Total Profit during

the Year Cumulative

Total

Till 30.06.07

3,050 3,050.00 5,125.78 8,175.78

2007-08 8,175.78 300 8,475.78 783.86 9,259.64

2008-09 9,259.64 300 9,559.64 971.53 10,531.17

2009-10 10,531.17 300 10,831.17 1,395.78 12,226.95

2010-11 12,226.95 800 13,026.95 1,564.40 14,591.35

2011-12 14,591.35 2,000 16,591.35 1,929.24 18,520.59

2012-13 18,520.59 6,944 25,464.59 2,281.55 27,746.14

2013-14 27,746.14 3,000 30,746.14 2,889.48 33,635.62

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Pension Fund The necessitated of Fund to meet the ever increasing pension liabilities of the retired Government employees. The Government of Khyber Pakhtunkhwa was established a Fund name Pension Fund in 1997-98 with initial allocation of Rs. 150 million as seed money. The Chief Secretary heads the Management Board, constituted to look after this Fund. Up to 30th June 2014, it will have a total size of Rs 21,302.11 million (Government contribution Rs. 11,850 million + Profit Rs. 9,452.11 million).

Pension Fund

(Rs. in million)


Released during the

year Total

Profit during the Year

Cumulative Total

Till 30.06.07

3,050 3,050.00 1,875.51 4,925.51

2007-08 4,925.51 400 5,325.51 389.04 5,714.55

2008-09 5,714.55 400 6,114.55 564.05 6,678.59

2009-10 6,678.59 400 7,078.59 727.95 7,806.55

2010-11 7,806.55 600 8,406.55 1,233.87 9,640.42

2011-12 9,640.42 2,000 11,640.42 1,363.86 13,004.28

2012-13 13,004.28 2,000 15,004.28 1,513.26 16,517.54

2013-14 16,517.54 3,000 19,517.54 1,784.57 21,302.11

Hydel Development Fund The Government of Khyber Pakhtunkhwa established Hydel Development Fund in 1992 with an initial allocation of Rs 50 million. The Fund was provided with legal cover through enactment namely Khyber Pakhtunkhwa, Hydel Development Fund Ordinance 2001. The objective of this Fund was to develop Hydel capacity of the Province. This Fund is controlled by a Management Board headed by the Chief Minister, Khyber Pakhtunkhwa, with Minister for Finance, Minister for Irrigation & Power, Chief Secretary, Additional Chief Secretary, Finance Secretary, Secretary Energy & Power as its members. To perform 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 Provincial Govt. has contributed Rs.22,609.71 million as equity in the fund whereas, profit of Rs. 10,657.86 million has been earned upto 30th June, 2014. Out of which an amount of Rs. 9,332.96 million has been utilized so for by the Energy & Power Department. The Fund has contributed Rs. 2,551.490 million in development of Malakand III HPP and Rs.425.500 million in Pehur HPP. The Fund also contributes Rs. 1,781.147 million in Feasibility study of Raw Sites in Khyber Pakhtunkhwa, Rs. 2,309.899 million for Construction of Daral Khwar HPP District Swat, Rs. 4,510.249 million for construction of Lawi HPP Chitral, Rs. 90.000 million for construction of Karora HPP District Shangla, Rs. 45.000 million for construction of Jabori HPP, Rs. 1,572.867 million for construction of Matiltan HPP.

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HYDEL Development Fund (Rs. in million)


Released during

the year Total

Profit during

the Year

Fund Utilized

Cumulative Total

Till 30.06.07

1,810.00 1,810.00 1,183.26

2,993.26

2007-08 2,993.26 200.00 3,193.26 133.23

3,326.49

2008-09 3,326.49 500.00 3,826.49 217.90

4,044.39

2009-10 4,044.39 10,599.71 14,644.09 1,030.93

15,675.02

2010-11 15,675.02 1,500.00 17,175.02 1,424.13

18,599.15

2011-12 18,599.15 2,000.00 20,599.15 2,337.37 1,020.80 21,915.72

2012-13 21,915.72 3,000.00 24,915.72 2,021.26 2,989.94 23,947.04

2013-14 23,947.04 3,000.00 26,947.04 2,309.79 5,322.22 23,934.61

In general the investments of the fund are grouped into:

Fixed-Income Investments.

Non Fixed-Income Investments.

Fixed-Income Investments are those whose returns are predetermined or known at the time of making the investment. The Fixed Income Investment may include the following category of investments:

Treasury Bills.

Fixed Deposits.

Bonds.

Bank Deposits.

Corporate Finance. Non Fixed-Income Investments are variable in the value of their returns and tend to have longer gestation periods but in the long term have the advantage of capital appreciation, developmental in nature and generally create jobs within the economy. Included in this category are the following:

Equity (Both listed and unlisted).

Unit Trusts.

A Fund Cell has been established in the Finance Department to manage the affairs of these Funds, which is responsible to maintain accounts of these Funds, conduct audit of the accounts and convene meetings of the Boards / Investment Committees. According to Law of these Funds, Director General (Commercial) Audit, Lahore is responsible to carryout audit of the accounts of the Funds. Besides, internal audits are conducted on yearly basis through Chartered Accountant firms. It is quite pleasing that there has been a steady growth in funds due to better management. Funds are being managed professionally, diligently and with extreme caution. Diversified

Financial

Viability

Fund Cell

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portfolios have been developed to align the investment system and draw maximum advantage by minimizing risks factor with best-recognized financial practices. The management placed over Rs.12.531 billion of the Funds in Commercial Banks under the guidance of Chief Manager, State Bank of Pakistan and Managing Director, The Bank of Khyber in meetings of the Investment Committee. There are mainly two variables which come under consideration while placing funds with Banks i.e. Credit Ratings and Interest Rates. 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. 18.537 billion in T-Bills, and around Rs 40.905 billion in PIBs. b) Mutual Funds The management has invested over Rs. 190.363 million in various Mutual Funds. c) Trading Separate Trading Accounts have been maintained by the Management for active trading in stocks and for financing against shares (CFS). The management allowed trading in blue-chip stocks only. The Provincial Government of Khyber Pakhtunkhwa looks for ways & means and tools & techniques to modernize these Funds and bring them in harmony with innovative, creative and new concepts of investments, while keeping safety of the Funds its top most priority. Regular audits are carried out to ensure this objective.

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Chapter 13: Annual Development Programme 2014-15 Page 63

ANNUAL DEVELOPMENT PROGRAMME 2014-15

INTRODUCTION

he Government of Khyber Pakhtunkhwa is cognizant of the core and peripheral hindrances to

its development process. Intrinsically, the province is faced with the challenges of slow economic growth, unemployment, poverty and poor social service delivery. Negligence and seepage of resources as a result of weak execution and accountability has manifested in public frustration and a disconnect between public planning and people’s needs. The government is committed to address the root causes of this malaise through tangible policy measures to prevent and minimize the public displeasure. Keeping the above in view, the present government is committed to bring about major shifts both at policy and implementation level through transparent, efficient & equitable resource distribution mechanism in all the development sectors of the province. The following Reforms Initiatives have been undertaken by the Provincial Government. Sectoral Reforms in Khyber Pakhtunkhwa he Government of Khyber Pakhtunkhwa, in response to the mandate and expectations of the

people, embarked upon a comprehensive reforms agenda to transform government into a true service to the citizen. The agenda of “Change”, articulates the long neglected aspirations of the people of Khyber Pakhtunkhwa i.e. good governance, responsive social services delivery, economic prosperity and peace for all, to be achieved through:

• Institutional Reforms • Human Development • Economic Revival and • Security

The Government initially chose four sectors as priority interventions that were later on extended to Twenty Seven Departments. The government of Khyber Pakhtunkhwa has pioneered the introduction of a new Local Government System in the country, devolving the powers to the grass-root level, introducing the concept of Village and Neighborhood Councils. Accountability and Transparency in government business is another area of focus of the incumbent government. After extensive consultations, the Law on Accountability /Ehtisab Commission has been passed by the Provincial Assembly. The promulgation of Right to Information Law is a big leap towards improved governance in the province. The Law enables the citizen to have access to information of public importance. The execution of the Law will lead to reduction in corruption and empowering the citizens to meaningfully participate in the democratic process. In response to the aspirations of the people, the provincial Government promulgated the Right to Services Law with the spirit to establish rights of the citizens and to empower them to have access to timely public service delivery. The Law will ensure delivery of basic services

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by the Government functionaries timely and transparently and will enable the common man to get rid of traditional bureaucratic delays. In order to minimize the possibility of conflict between the Government/Public functionaries and the Private sector, the promulgation of the Conflict of Interest Law is in the offing. The consultation process is underway and soon the law will regulate public functionaries for discharging public responsibilities transparently and selflessly. Strategic Development Partnership Framework (SDPF) SDPF reflects a total recasting of the traditional donor recipient relationship to a peer to peer relationship, to address regional and provincial development challenges with a clear focus on poverty reduction and inclusive growth. Vision Attainment of a secure, just and prosperous society through socio-economic and human resource development, creation of equal opportunities, good governance and optimal utilization of resources in a sustainable manner. Mission

• Ensure peace and security for all Khyber Pakhtunkhwa citizens • Provide a clean and efficient Government • Empower the people to play a role in decision making about their affairs.

SDPF has been prepared through a consultative process involving all the stakeholders including government functionaries, political leadership, development partners, sectoral experts, academia media and civil society. The outcome of this consultative process has been aligned with the existing three key policy documents i.e. Comprehensive Development Strategy (CDS), Economic Growth Strategy (EGS) and Post-Crisis Needs Assessment (PCNA). In order to achieve the outcome of the SDPF, Sectoral Coordination Committees (SCCs) have been constituted to convert these outcomes into action plan. These SCCs with the active participation of the sector specialists from all the development partners shared their findings with the provincial government and donors on 15th August 2013 and 30th March 2014. The alignment of SDPF policies and priorities with the budget has been ensured through the Medium-Term Budgetary Framework (MTBF). Pre-budget consultations were held with civil society and donors in addition to the stakeholders within the government and accordingly, budget priorities have been finalized. Integrated Development Strategy

In response to the poor socio-economic indicators of Khyber Pakhtunkhwa due to natural and human-made disasters, various steps were taken in the past to put the rehabilitation and development process in the province on track. The Planning and Development Department (P&DD) mainly developed three strategies i.e. Comprehensive Development Strategy (CDS), Economic Growth Strategy (EGS) and Post-Crisis Needs Assessment (PCNA) to prompt and augment development. The goals and objectives set under these strategies couldn’t produce the expected results in an appropriate and adequate manner. While continuing its development planning and implementation initially through the same strategies the ruling

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Coalition Government of Khyber Pakhtunkhwa under the Agenda of “Change” developed an “Integrated Development Strategy” (IDS) for the next five years. The IDS articulates the long neglected aspirations of the people of Khyber Pakhtunkhwa i.e. good governance, responsive social services delivery, economic prosperity and peace for all. The newly developed Integrated Development Strategy (IDS) is comprised of the following pillars;

i. Economic Growth and Job Creation ii. Peace Building and Rule of Law iii. Tangible Progress in social service delivery- Health and Education iv. Improved Citizen Participation v. Improved Transparency and Accountability vi. Enhanced Fiscal Space vii. Gender Equity viii. Donor Harmonization

Status of Millennium Development Goals in the Province

he narrow resource base available with the province to deal with the ambitious

commitments of MDGs and the natural & manmade calamities has substantially hindered the progress towards achieving the set out targets. To reduce the Extreme Poverty and Hunger, from 39% to 13%, the province could not achieve the stipulated targets. Under Universal Primary Education, the province could only achieve the net primary enrolment ratio of 67% against the target of 100%.The Literacy rate has improved from 38 % to 52 % against the envisaged target of 88%. The Gender Equality & Women’s Empowerment showed a steady growth pattern as the Ratio of girls to boys in primary education is at 0.81 against the target of 1, the ratio of youth literacy (15 to 24 year old) is at 0.60 against the target of 1, share of women in wage employment in the non-agriculture sector is at 6.54 against the target of 14. The IMR or infant mortality rate was supposed to drop down from 79 to 40 (death per live 1000 births) against which the province could only achieve 60. The MMR or Maternal Mortality Rate was targeted to be reduced from 275 to 140 per 100,000 but the actual achievement is 250 per 100,000. Limited data is available for all the six indicators under the goal of Combating HIV/AIDS, Malaria and other diseases. To Ensure Environmental Sustainability of forest covered area and the land area protected for conservation of wildlife stand at 17.4% and 12.4% against 6% & 12% respectively, which are above the MDGs targets. APPROVAL OF DEVELOPMENT PROJECTS IN 2013-14

very year certain numbers of new projects become part of Annual Development Plan

alongwith on-going projects in various sectors. These projects are approved by the project approving fora working at various levels. These include the Provincial Development Working Party, Central Development Working Party and Executive Committee of National Economic Council. In the current financial year, 19 PDWP meetings were held wherein 293 Projects pertaining to different sectors were approved. Similarly, during the current financial year 13 CDWP meetings were held wherein 6 projects pertaining to Khyber Pakhtunkhwa were approved. Whereas, during the CFY 9 ECNEC meetings were held wherein 10 projects were approved.

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ADP Trend 1970-2014

ADP Year

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 as depicted in the table below:- (Rs. in Million)

Year Size of A.D.P Revised Size of A.D.P

1970-1971 150.570 124.872

1974-1975 400.000 500.000

1979-1980 767.000 702.850

1984-1985 1244.700 1245.424

1989-1990 2197.625 2198.649

1994-1995 6963.974 7349.212

1999-2000 6072.386 8057.541

2004-2005 16195.025 15365.249

2009-2010 51156.956 46330.547

2010-2011 69283.682 61103.166

2011-2012 85141.000 79217.559

2012-2013 97458.000 98000.971

2013-2014 118000.000 104,847.616*

2014-2015 139805.000

(*Includes PSDP of Rs. 3,633.624 million)

REVIEW OF ADP 2013-14

he original size of the ADP 2013-14 was Rs.118000.000 Million, which included foreign aid

component of Rs.35000.000 Million. The provincial government’s contribution in the ADP was Rs.83000.000 Million. The provincial program comprised of 983 projects including 609 ongoing and 374 new projects out of which, 209 projects were completed.

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Budget Estimates of ADP 2013-14

(Rs. in Million)

S. No. Budget Estimates Allocation %age

A Provincial Budget 83000.000 70%

B *Foreign Assistance 35000.000 30%

Total(A+B) 118000.000

*Foreign Assistance includes Rs.30695.28 (88%) as grant and Rs. 4304.72(12%) as loan.

ORIGINAL & REVISED ALLOCATIONS FOR ADP 2013-14 The original sectoral allocations of local resources in ADP 2013-14 and revised allocation after re-appropriation are given as under:-

(Rs. in Million)

S.No Sector Budget

Allocation

% Age of

Allocation

Revised Budget

Allocation

% age of

Revised Allocation

% age Utilization (against B. Allocation)

1 Agriculture 1532.204 1.8 1209.680 1.5 79.0

2 Auqaf, Hajj 106.000 0.1 66.028 0.1 62.3

3 Building 1215.655 1.5 1215.655 1.5 100.0

4 District's ADP 1672.330 2.0 1672.330 2.1 100.0

5 DWSS 3261.756 3.9 2522.290 3.1 77.3

6 E&SE 8107.140 9.8 8020.407 10.0 98.9

7 Energy 1417.881 1.7 1344.469 1.7 94.8

8 Environment 56.999 0.1 22.966 0.0 40.3

9 Finance 3886.293 4.7 3593.283 4.5 92.5

10 Food 500.233 0.6 401.761 0.5 80.3

11 Forestry 569.459 0.7 500.228 0.6 87.8

12 Health 7998.077 9.6 5231.101 6.5 65.4

13 Higher Educ. 5722.546 6.9 6211.135 7.7 108.5

14 Home 3702.967 4.5 3702.968 4.6 100.0

15 Housing 949.001 1.1 375.801 0.5 39.6

16 Industries 3237.586 3.9 2655.197 3.3 82.0

17 Information 210.538 0.3 32.093 0.0 15.2

18 Labour 22.500 0.03 3.500 0.004 15.6

19 Law & Justice 818.677 1.0 803.151 1.0 98.1

20 Mines & Min. 586.499 0.7 199.614 0.2 34.0

21 Pop. Wel. 224.801 0.3 121.373 0.2 54.0

22 Reg. Dev. 14759.621 17.8 10012.172 12.5 67.8

23 R&R 1447.435 1.7 99.621 0.1 6.9

24 R&D 803.857 1.0 1999.108 2.5 248.7

25 Roads 10258.329 12.4 17762.569 22.2 173.2

26 S/Welfare 492.805 0.6 446.722 0.6 90.6

27 Sports 871.000 1.0 950.800 1.2 109.2

28 ST&IT 571.150 0.7 571.150 0.7 100.0

29 Transport 166.276 0.2 108.259 0.1 65.1

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0 20000 40000

60000

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120000

Local Component

Foreign Assistance

72 %

28 %

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ADP 2014-15 100050 39755

Budget Estimates of ADP 2014-15

30 Urban Dev. 4692.092 5.7 3899.631 4.9 83.1

31 Water 3138.293 3.8 4398.807 5.5 140.2

Total 83000.000 100 80153.869 100 97 %

MAIN FEATURES OF ANNUAL DEVELOPMENT PROGRAM 2014-15

he outlay of ADP, 2014-15 is Rs 139805.000 Million, with an increase of 18.5 % over the

last year’s development program. The ADP comprises of 1251 projects, with 711 ongoing & 540 new. Formulated on the basis of priorities of the line departments/agencies solicited under the Integrated Development Strategy, the ADP envisages substantial allocations for all the development sectors. The details of source of funding are tabulated below:-

Budget Estimates of ADP 2014-15 (Rs. in Million)

S.No Budget Estimates Allocation % age

A Provincial Budget 100050.000 72 %

B Foreign Assistance * 39755.000 28 %

Total (A+B) 139805.000

*Foreign Assistance includes an amount of Rs. 31486 (79%) as grant and Rs. 8269 (21%) as loan.

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FORMULATION OF ADP 2014-15 he ADP 2014-15 has been formulated after an intensive consultative process. The process

included a series of sessions with all the line departments/agencies, Finance Department, Advisor to CM for Planning & Development Department and the Chief Minister, in order to seek their guidance. Highlights of ADP 2014-15 In view of the allocated resources, the following order of priority has generally been observed:

20.5 % increase in Local Component of ADP

14% increase in Foreign Assistance of which about 79 % is grant

56 % allocations for 711 on-going Projects & 44 % allocation for 540 new Projects

Throw-forward on the lower side, 2-3 yrs

Priority to consolidation than expansion

Priority to Health, Education, Energy & Power, Sports, Tourism & Youth Affairs

Provisions for reform initiatives especially in Health, Education, IT, Skill Dev., Mines & Minerals, Agriculture and Local Government

Encouraging Public Private Partnership

Mass Transit System for Peshawar

Schemes to address traffic and sanitation issues in Peshawar

Pro-Poor Initiatives

Equitable distribution of funds among the regions.

Sector-Wise Allocation The sector-wise allocations for ongoing and new schemes in ADP 2014-15 are as under:-

(Rs. in Million)

S.NO

Sector

Schemes Schemes Total

(On Going) (New)

No Allocation No Allocation No Allocation

1 Agriculture 31 1052.841 15 534.159 46 1587.000

2 Auqaf, Hajj 9 84.000 8 65.000 17 149.000

3 Building 25 881.000 16 390.000 41 1271.000

4 District's ADP 0 0.000 1 1672.000 1 1672.000

5 DWSS 15 4328.658 11 1522.342 26 5851.000

6 E&SE 44 5081.940 16 3050.060 60 8132.000

7 Energy & Power 19 2805.399 17 240.601 36 3046.000

8 Environment 7 50.000 3 7.000 10 57.000

9 Finance 19 3663.962 6 430.038 25 4094.000

10 Food 4 314.000 7 187.000 11 501.000

11 Forestry 36 346.000 11 669.000 47 1015.000

12 Health 67 6580.650 26 1699.350 93 8280.000

13 Higher Education 24 3738.892 28 2441.108 52 6180.000

14 Home 34 2885.494 21 614.506 55 3500.000

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Regional Development

12%

Roads 10%

Health 8%

E&SE 8%

Pro-Poor Initiatives 8% Urban Development

7%

Higher Education 6%

DWSS 6%

Water 5%

Finance 4%

Home 4%

Industries 3%

Energy & Power 3%

Relief & Rehabilitation

2%

others 14%

Sector Wise Allocation - ADP 2014-15

15 Housing 7 950.999 2 5.001 9 956.000

16 Industries 43 2763.690 16 707.310 59 3471.000

17 Information 5 166.999 6 57.001 11 224.000

18 Labour 3 26.000 0 0.000 3 26.000

19 Law & Justice 20 765.723 13 284.277 33 1050.000

20 Mines & Mineral 8 333.000 8 293.000 16 626.000

21 Population Welfare 4 110.378 7 219.622 11 330.000

22 Pro-Poor Initiatives 12 0.120 1 7900.000 13 7900.120

23 Regional Development 23 3129.611 21 9129.269 44 12258.880

24 Relief & Rehabilitation 4 1408.541 4 644.459 8 2053.000

25 Research & Development 9 352.899 6 648.101 15 1001.000

26 Roads 81 5518.287 153 4071.713 234 9590.000

27 Social Welfare 22 319.102 12 180.898 34 500.000

28 Sports, Tourism 31 1045.999 13 279.001 44 1325.000

29 ST&IT 22 580.050 10 419.950 32 1000.000

30 Transport 8 133.000 2 67.000 10 200.000

31 Urban Development 9 4366.590 15 3100.410 24 7467.000

32 Water 66 2722.109 65 2014.891 131 4737.000

Total ADP 711 56505.933 540 43544.067 1251 100050.000

Foreign Assistance

39755.000

Grand Total

139805.000

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Foreign Assistance or the year 2014-15, the size of foreign assistance is Rs.39755.000 Million for 75 projects.

Out of the foreign assistance Rs.31486 Million is grant while Rs.8269 Million is loan. The sector wise allocation of foreign assistance is tabulated as under:-

(Rs. In Million)

S.No Sectors Allocations No of Projects %Age

1 Agriculture 868.440 1 2

2 DWSS 0.100 1 0.0003

3 Elementary & Secondary Education 11794.580 29 30

4 Energy & Power 2611.080 1 7

5 Finance 1280.000 1 3

6 Forestry 350.720 1 1

7 Health 2930.544 6 7

8 Home 3614.028 7 9

9 Industries 1606.205 3 4

10 Law & Justice 294.841 1 1

11 Regional Dev. 4734.634 10 12

12 Research & Dev. 619.099 3 2

13 Roads 7676.626 5 19

14 Social Welfare 56.183 2 0.1

15 Sports, Tourism 25.000 1 0.1

16 Urban Development 1292.920 3 3

TOTAL 39755.000 75 100

The individual contributions by the Development Partners of the Provincial Government are as under:-

(Rs. in Million)

S.No Donor Grant Loan Total

1 DFID & EU (SBSE) 11527.000 11527.000

2 MDTF 5940.000 5940.000

3 JICA 218.000 5158.000 5376.000

4 ADB 700.000 3111.000 3811.000

5 USAID 2961.000 2961.000

6 European Union 2280.000 2280.000

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DFID & EU (SBSE) 29%

MDTF 15%

JICA 13%

ADB 10%

USAID 7%

European Union 6%

DFID 4%

INL 3%

UNDP 3%

KFW 3%

Other Donors 7%

Foreign Assistance

7 DFID 1556.000 1556.000

8 INL 1390.000 1390.000

9 UNDP 1144.000 1144.000

10 KFW 1113.000 1113.000

11 WORLD BANK 660.000 660.000

12 AusAid 602.000 602.000

13 GIZ 600.000 600.000

14 SDC 309.000 309.000

15 NORAD 258.000 258.000

16 CIDA 150.000 150.000

17 CVF JAPAN 53.000 53.000

18 ITALIAN Debt Swap 25.000 25.000

Total 31486 8269 39755.000

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Sector-wise Investment Programs in ADP 2014-15

AGRICULTURE A: Agriculture Vision To develop a vibrant agricultural sector that promotes value addition and helps tap international markets for agriculture produce Policy

To shift from conventional cropping pattern to high value, high yield crops, fruits, and vegetables

To minimize the environmental risks associated with unsustainable means of agricultural production

Reforming the agricultural marketing system to improve profitability, productivity and value for money for producers and consumers

To revitalize/reform the agriculture research and extension system of the Province, including the induction of private sector in research and extension

B: Fisheries Vision Conserve, manage and develop aquatic resources in public and private sector to meet protein requirement of the masses Policy

Increasing fish production through replenishment of fish resources in natural water bodies

Aquatic research and conservation program focusing on productivity enhancement, disease control, nutrition, genetics, pollution control and protection of vulnerable species

Promotion of fish and shellfish farming

Promotion of Public Private Partnerships to bring in private sector

Introduction of co-operative fishing to alleviate poverty C: Livestock Vision To create an enabling environment for the livestock sector by removing market distortions, supporting efficient use of public resources and encouraging participation of private sector in the industry to increase the contribution of the sector to the GDP of the province by 20% in 3 years. Policy

Redefining the role of the public sector in the governance, management, planning and development of livestock related infrastructure, services and facilities

Creation of a demand-driven approach to markets for livestock related goods and services

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Recognition that there is a cost for goods and services associated with the delivery of livestock related goods and services

Elimination of resource allocation distortions in the livestock sector

To promote sustainable use of resources in the livestock sector

To develop an independent policy for socially and economically disadvantaged groups he Khyber Pakhtunkhwa has predominantly an agrarian economy and more than 80% of the

rural population depends for its 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 requirement on import from other provinces. Therefore, the primary concern is food security. Provincial agriculture department, therefore, attaches high priority to this aspect and is availing every conceivable avenue that promotes the growth of agriculture. This department has under-taken a number of special/ new initiatives in the last five years under the ADP programs for accelerating agriculture development in Khyber Pakhtunkhwa Province. A mega project “Gomal Zam Dam Command Area Development and On Farm Water Management for High Value and High Efficiency Agriculture Project (USAID Assisted)” for land development and water management practices mainly in DI Khan and Tank districts with a total cost of 3373.350 Million including foreign assistance 2200.000 Million has been approved and will start operation during 2014-15. An allocation of Rs.1587.000 Million has been made for total of 46 projects out of which 31 are ongoing with allocation of Rs.1052.841 Million and 15 are new with allocation of Rs.534.159 Million. The following major targets will be achieved in this sector:-

Fruit Orchards will be established on 3470 Acres of Land.

76000 true to type fruit plants will be distributed among the farmers

32.50 Acres fruit plants nurseries will be established

21800 Nursery plants of Guava, Citrus, pecan, Olive and Litchi will be produced.

7000 metric tons wheat seed will be procured and distributed among the farming communities to enhance wheat production

100 Solar Pumps will be installed

1800000 animals will be treated/de-wormed

200000 animals will be vaccinated

Establishment of new fish hatchery in Swabi over 175 kanal AUQAF, HAJJ & MINORITY AFFAIRS Vision Ensuring adequate protection, conservation and sustainable use of Auqaf properties, mosques, shrines and promotion of religious harmony in the province. Policy

Safe guarding and promoting the rights of minorities

Better management and maintenance of Auqaf properties as per the provisions of The North-West Frontier Province Auqaf Properties Ordinance 1979

Improving facilities at mosques and shrines and ensuring security around mosques in order to provide peaceful environment for the devotees.

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Explore, Identify, and document historic shrines in neglected and far-flung areas. he Constitution of Islamic Republic of Pakistan provides for protection of rights of minorities

living in the province. The Government of Khyber Pakhtunkhwa initiated various projects to provide basic amenities of life and raise standard of living of the minorities living in the Province. In addition to this, the department will also implement projects pertaining to promotion of religious activities and improvement of Deeni Madaris in the province. An allocation of Rs.149.000 Million has been made for total of 17 projects out of which 9 are ongoing with allocation of Rs.84.000 Million and 8 are new with allocation of Rs.65.000 Million. The following major targets will be achieved in this sector:-

Scholarship scheme for Minority Students.

Improvement and Rehabilitation of Madaris, Gurdwaras and Churches.

Establishment of Quran/Hadis Mahal.

Improvement and rehabilitation of Madaris and Mosques in Khyber Pakhtunkhwa.

Welfare Package for Minorities in Khyber Pakhtunkhwa.

Special Package for Kalash Community.

BUILDING Vision Constructing and maintaining residential and office accommodation facilities in the public sector to render functionally adequate services in cost efficient manner in order to ensure conducive environment for an effective public service delivery system. Policy

Stock taking of existing assets and facilities for comprehensive planning of public housing

Master planning for sequencing developments to cater for building needs under various government departments

Adoption of standardized plans for construction of residences and offices

Provision of adequate infrastructure to Judiciary, Police and Jails to improve security and delivery of justice to common people

Provision of residential facilities for employees in lower grades

Protection/restoration of heritage buildings he Building sector covers Building at district and provincial level. At district level it covers

the public buildings pertaining to District/Tehsil Administration and residential accommodation while at provincial level it includes Civil Secretariat, Pakhtunkhwa Houses, Rest Houses and residential accommodation. An allocation of Rs.1271.000 Million has been made for total of 41 projects out of which 25 are ongoing with allocation of Rs.881.000 Million and 16 are new with allocation of Rs.390.000 Million. The following major targets will be achieved in this sector:-

Construction of High Rise Flats at Nishter Abad, Peshawar.

Additional accommodation for Khyber Pakhtunkhwa Public service Commission.

Construction of residences & bachelor Hostel in All District Headquarters for Government Servants in Khyber Pakhtunkhwa.

Construction of 05 Nos. Ministers residences at Hayatabad.

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Construction of Hanger for MI-17 at Peshawar Airport. DISTRICT DEVELOPMENT FUND he Provincial Government has allocated an amount of Rs.1672.000 Million to the Districts

for Development under the Provincial Finance Commission Award. DRINKING WATER SUPPLY AND SANITATION Vision To provide adequate and safe water supply and extending sanitation coverage to un-served and underserved areas Policy

Provision of potable water with a focus on un-served, underserved, brackish and rain-fed areas

To introduce community participation in the planning, management and development of water supply and sanitation infrastructure, facilities and services

To halve by 2015, the proportion of people without access to safe drinking water

To halve by 2015, the proportion of people without access to sanitation

To develop the technical and financial capacities of water supply utilities and local governments for improvements in water supply and sanitation

resh water is liquid of life. The supply of water is finite, but demand is rising rapidly as the

population growth and the water use per capita increases. Similarly, along with water, sanitation is regarded as the basis of development. Provincial Government is giving special importance for Development works in Public Health Engineering Department and in this respect efforts are being made that such like projects are covered in each and every part of the province, for which drinking water could be supplied to the masses. Keeping in view, the importance in this sector the government will take adequate measures to provide sanitation facilities and provision of potable drinking water to the population in all the corners of the Province. 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. An allocation of Rs.5851.000 Million has been made for total of 26 projects out of which 15 are ongoing with allocation of Rs.4328.658 Million and 11 are new with allocation of Rs.1522.342 Million. The following major targets will be achieved in this sector:-

Construction of water supply schemes in Khyber Pakhtunkhwa.

Construction of sanitation scheme in Khyber Pakhtunkhwa.

Construction of Gravity based Water supply Scheme for Batkhela

Establishment of E-Governance Cell and CBIS for Water Charges collection in PHED.

Water Supply scheme Kotaka Barghu Adamzai, Lakki Marwat and Risalpur Nowshera.

Rehabilitation of existing old Water Supply Scheme.

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EDUCATION

Vision A progressive Khyber Pakhtunkhwa with equal access to education for all Policy

Accelerate achievement of Millennium Development Goals by 2015

Standardizing Primary Education across the Province

Encouraging the completion of full primary schooling by all children

Addressing gender disparity by promoting gender equality, affirmative action and the empowerment of women

Enhancing the quality of education infrastructure, facilities and services

Removing gender and ethnic disparities by promoting universal access to education

Enabling tertiary educational institutions to be autonomous and accountable in terms of finance, administration and academics

Reforming college level education through the development of career placement and other linkages with the job market

ducation plays pivotal role in the progress of nations. Pakistan in general and Khyber

Pakhtunkhwa in particular lags behind in the field of education from many countries of the region. The overall literacy rate in Pakistan is 58% (70 % male & 47 % Female) whereas, in Khyber Pakhtunkhwa, the literacy rate is 52% (72% Male & 35 % Female). Keeping in view the above, education sector has become the top priority of the Provincial Government. The main focus of new projects is to promote education at the primary level, create a gender balance, and fulfil the infrastructural requirements of existing institutions including staff, equipment, furniture, teachers training and essential repairs. The government is committed to provide free and quality education to all up to higher secondary level. Besides, upgradation of different levels of schools in the development programme, the higher education sector has also planned to establish new degree colleges in the province. Moreover, new blocks & hostels will be constructed and computer equipment will be provided in various colleges for imparting education in information technology and other sciences. An allocation of Rs.14312.000 Million has been made for total of 112 projects out of which 68 are ongoing with allocation of Rs.8820.832 Million and 44 are new with allocation of Rs.5491.168 Million. The following major targets will be achieved in this sector:-

Establishment of 60 Primary Schools (Boys &Girls) on need basis.

Up-gradation of 40 Primary schools to Middle level in deficient Union councils.

Up-gradation of 35 Middle schools to High level in deficient Union councils.

Up-gradation of 15 High schools to Higher Secondary level in deficient Union Councils

Establishment of 170 IT laboratories in existing Government High and Higher Secondary Schools in Khyber Pakhtunkhwa

Construction of 25 examination halls in Government High and Higher Secondary Schools in Khyber Pakhtunkhwa

Construction of 500 Early Child Care Education (ECCE) rooms in Government Schools in Khyber Pakhtunkhwa

Construction of 500 additional classrooms in Government Schools in Khyber Pakhtunkhwa through PTCs.

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Provision of furniture in 2300 High/Higher Secondary Schools.

Provision of sports facilities in 2400 High Schools.

Rs. 80.000 Million has been allocated for 97 Talented and Poor students of the Province.

An endowment fund has been introduced with an initial grant-in-aid amounting to Rs. 51.890 Million for talented and poor students of the Province.

Rs. 800.000 Million allocated for training purposes for which previously no attention was given.

Construction of auditorium at Public Library at Haripur.

Establishment of Project Management Unit for Re-organization of Higher Education.

Establishment of Government Colleges (Male/Female) in Khyber Pakhtunkhwa.

Strengthening of Directorate of Colleges of Higher Education Department. ENERGY & POWER Vision To develop the potential of the province in hydel power generation, alternate energy and oil & gas to contribute significantly in the redressal of energy crises in the country and to generate resources for self-sustainability of the Province Policy

Emphasis on Hydel Power Generation in Khyber Pakhtunkhwa through short, medium and long term interventions.

To raise the capacity of PHYDO and Energy & Power Department to the highest level of excellence.

Associate in Hydel development, Private Parties & Foreign companies (Korea, China) in Partnership with the Govt. of Khyber Pakhtunkhwa and Local private sector (Tri Partied Partnership)

Efficient utilization of Net Hydel Profits.

Mitigating the effects of Power short falls by developing feasible alternate energy sources.

Thrust on Thermal Power generation in Southern districts utilizing flare gas.

Developing Hydel policy frame work in Khyber Pakhtunkhwa.

Establishment of Oil refinery in Khyber Pakhtunkhwa in Partnership with PSO. he Province of Khyber Pakhtunkhwa has been blessed with huge hydel potential and large

reserves of oil and gas. The resources are not only contributing in decreasing the gap between the energy demand and supply but also earning billion of rupees for the Province. Production of oil and gas in Khyber Pakhtunkhwa has opened new avenues of economic development in the province. Huge deposits of oil & gas have been discovered in southern belt of the Province, including district Kohat, Karak and Hangu. As per Petroleum Exploration & Production Policy 2012, the Provincial Government has taken non-working interest in Pezu and Barati Blocks along with OGDCL. An allocation of Rs.3046.000 Million has been made for total of 36 projects out of which 19 are ongoing with allocation of Rs.2805.399 Million and 17 are new with allocation of Rs.240.601 Million. The following major targets will be achieved in this sector:-

Electrification of Un-Electrified villages through Solar/Alternate energy in remaining Districts of KP.

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Construction of 300 MW Balakot HPP District Mansehra.

Construction of 14 MW Ghorband HPP District Shangla.

Construction of 84 MW Matiltan Gorkin HPP Swat.

Construction of 69 MW Lawi, Chitral.

Development of Renewable energy in Khyber Pakhtunkhwa.

Construction of 10 MW Nandihar HPP District Batagram.

Construction of 51 MW Mujigaram Shaghore HPP District Chitral.

Construction of 52 MW Istaro Booni HPP District Chitral.

Construction of 79 MW ArkariGol HPP District Chitral. ENVIRONMENT Vision Ensure the conservation, rehabilitation and enhancement of the environment and drive sustainable development in the province while mitigating environmental pollution. Policy

Implementation of the provisions of Multilateral Environmental Agreements (MEAs)

Integrate environmental considerations in the policy and planning processes

Enhance the institutional capacity of Environmental Protection Agency and other Government and non-Government organizations for the efficient management of the environment

Create awareness about environmental issues amongst the youth across educational institutions, civil society and various other stakeholders

Monitoring of pollution level in air, surface water & groundwater 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, monitoring of ambient air quality, water and noise pollution across the province and promotion of environment education. An allocation of Rs.57.000 Million has been made for total of 10 projects out of which 7 are ongoing with allocation of Rs.50.000 Million and 3 are new with allocation of Rs.7.000 Million. The following major targets will be achieved in this sector:-

Establishment of EPA complex at Peshawar.

Establishment of three Divisional Offices of EPA Khyber Pakhtunkhwa at Mardan, Kohat and Bannu.

Establishment of Climate Change Cell for Multilateral Environments (MEAs) in EPA at EPA Peshawar.

Hazardous waste Management through Public Private Partnership in KP.

Updation of Revised Environmental Profile of KP. FINANCE his sector include 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

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Patwarkhanas and Tehsil revenue complexes in different districts of the province. An allocation of Rs.4094.000 Million has been made for total of 25 projects out of which 19 are ongoing with allocation of Rs.3663.962 Million and 6 are new with allocation of Rs.430.038 Million. The following major targets will be achieved in this sector:-

Construction of new Muhafiz Khanas/ Record Rooms at Peshawar, Mansehra and Mardan.

Construction of 100 No’s Patwar Khanas in Khyber Pakhtunkhwa.

Capacity Building & Strengthening of Finance Department.

Revitalization of District Financial Management Information System.

Establishment of retirement benefits and death compensation cell. FOOD Vision To ensure food security and safe and healthy food for the Province Policy

To eradicate adulteration of food by 2018

Better Planning for the sector n wake of global climatic changes, rising population and nutrition intake values, it is of paramount important for the government to initiate efforts not only to increase production of staple food but also ensure food safety and quality by providing requisite infrastructure in the vicinity of the cropping areas. An allocation of Rs.501.000 Million has been made for total of 11 projects out of which 4 are ongoing with allocation of Rs.314.000 Million and 7 are new with allocation of Rs.187.000 Million. The following major targets will be achieved in this sector:-

Feasibility study for assessment and detailed designing of food grain godowns in Malakand, Dir Upper, Swabi, Buner & Kohat.

Purchase of land for food grain godown in Tank, Charsadda, and Shangla & Chitral.

Provision of weigh station in existing food grain godown of the Province. FORESTRY Vision To Develop and maintain forestry sector resources in the province in a scientific, environmentally sustainable and socially acceptable manner Policy

Improved management of forest stock

Increasing forest/ tree cover through cost effective and sustainable plantation through outsourcing mode.

Better use of precious water resources

Developing rangelands for increasing the fodder/ feed resources through reseeding and rotational grazing for poverty alleviation.

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WILDLIFE Vision To protect wildlife resources to maintain bio-diversity and to make them ecologically stable and safeguard them for current and future generations. Policy Protection, preservation and management of natural habitat of diversified wildlife species endowed to the province

Promote wildlife based tourism through development of safaris and trophy hunting Ecologically-balanced wildlife policy

The total forests are of Pakistan is about 4.8%. Khyber Pakhtunkhwa is rich in forestry resources compared to the rest of the three provinces. Forest cover of Khyber Pakhtunkhwa is 20.3% and the forests of the province account for about 36% of the total forest area of the country. In addition to 20.3 % 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. 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 the mammals, 456 species of birds and 56 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 the whole of Pakistan. The Wildlife Department is mandated for conservation and management of these species. An allocation of Rs.1015.000 Million has been made for total of 47 projects out of which 36 are ongoing with allocation of Rs.346.000 Million and 11 are new with allocation of Rs.669.000 Million. The following major targets will be achieved in this sector:-

Billion Trees Tsunami.

Establishment of Nurseries on 79.7 Acres of land.

Afforestation over 15662 acres.

Linear plantation over of 525 Km’s.

Demarcation over 45000 acres

1800 acres area will be brought under range land management.

Conservation and Management of Wild Life.

Rehabilitation and remodelling of Dhodial Peasantry HEALTH Vision Work towards a healthy population in partnership with the private sector and civil society and develop effective and efficient healthcare systems targeted towards women in reproductive age and critical illness coverage. Policy

Upgradation and optimal usage of health care facilities leading to measurable improvement in primary, secondary and tertiary health care.

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Building upon and improving health delivery systems and health management systems with measurable impact on Health MDGs 4, 5 & 6

Social protection for low income and vulnerable income groups.

Capacity building for evidence and outcomes based planning with emphasis on data analysis research.

Focusing on Community led community health programs and public private partnerships.

eing a high priority sector, the provincial government has committed to provide modern and

vibrant health care system to its people. The new development portfolio is designed in consonance with the Millennium Development Goals and the local requirements. While translating the recommendations of reforms into actions, major thrust will be on completion of on-going development portfolios especially; the infrastructure projects at tertiary, secondary and primary levels. The focus will be to consolidate & strengthen the existing hospitals across the province through provision of requisite staff, equipment and medicines instead of expanding the hospitals network. The strengthened preventive care interventions will cover the entire province from addressing the nutrition deficiencies of the people; to cater for communicable diseases and free treatment of cancer and Hepatitis patients. A massive new program “Poverty Eradication Initiatives” will be commissioned which will be implemented all over the province and ensure medical & surgical supplies, construction of community midwifery centers through micro health franchise model and child health initiatives. The “Social Health Protection Initiative” will commence its operations in 4 districts. “Mobile Medical Services” project will be initiated to expand outreach services in the remote areas of the province and an “Independent Monitoring Unit” will be established to gauge the performance of the department at all levels. An allocation of Rs.8280.000 Million has been made for total of 93 projects out of which 67 are ongoing with allocation of Rs.6580.650 Million and 26 are new with allocation of Rs.1699.350 Million. The following major targets will be achieved in this sector:-

980 cancer patients will be provided free treatment.

3 DHQ Hospitals in Nowshera, Kohistan and Hangu will be completed.

DHQ Hospital in District Torghar will be established.

Cat-D Hospitals in Hangu and Kohistan will be completed.

Social Health Insurance scheme will be launched in the Districts of Mardan, Malakand, Chitral & Kohat.

Mobile health services will be provided in remote and inaccessible areas.

“Poverty Eradication Initiatives” project will be initiated for all the districts.

HOME Vision To ensure effective and professional provision of public security and law enforcement Policy

Capacity building of Law Enforcement Agencies

To improve infrastructure for Law Enforcement Agencies

To improve infrastructure for jails

To build capacity for better planning

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In this new sector there are three main sub sectors including Home & Tribal Affairs, Police Department & Prison infrastructure. Massive allocations have been made for strengthening 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. 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 allocation of Rs.3500.000 Million has been made for total of 55 projects out of which 34 are ongoing with allocation of Rs.2885.494 Million and 21 are new with allocation of Rs.614.506 Million. The following major targets will be achieved in this sector:-

Safe City Project Peshawar.

Strengthening of security Crescent around Peshawar

Construction of CTD Headquarters Nowshera

Construction of School of investigation Peshawar

Construction of 6 Police lines at Charsadda, Peshawar, Nowshera, Chitral, Shangla & Upper Dir.

Construction of 5 Police Stations at Nowshera, Swabi, Bannu, Dir lower & DI Khan

Construction of 3 Police Post at Charsadda, DI Khan, Haripur and Kohistan.

Boundary walls for police buildings in Khyber Pakhtunkhwa.

Establishment of model police stations in the Province. HOUSING Vision Constructing and maintaining residential and office accommodation facilities in the public sector to render functionally adequate services in cost efficient manner in order to ensure conducive environment for an effective public service system. Policy

Stock taking of existing assets and facilities for comprehensive planning of public housing

Master planning for sequencing developments to cater for building needs under various government departments

Adoption of standardized plans for construction of residences and offices

Provision of adequate infrastructure to Judiciary, Police and Jails to improve security and delivery of justice to common people

Provision of residential facilities for employees in lower grades

Protection/restoration of heritage buildings he 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 Programme, the department besides pursuing the ongoing interventions will launch new housing scheme in Peshawar for installation of boundary pillar around 8500 kanal land acquired for creation of land bank in PHA at Surizai Bala & Ghari Chandan Peshawar. An allocation of Rs.956.000 Million has been made for total of 9 projects out of which 7 are

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ongoing with allocation of Rs.950.999 Million and 2 are new with allocation of Rs.5.001 Million. The following major targets will be achieved in this sector:-

Establishment of Housing Schemes for Government Servants and General Public in Khyber Pakhtunkhwa.

Development of Various Housing Schemes on the existing State Land for Government Servants / General Public in Khyber Pakhtunkhwa.

Installation of boundary pillar around 8500 Kanal land acquired for Creation of land bank in PHA at Surizai Bala and Ghari Chandan Peshawar.

Feasibility Study for construction of 13 KM long and 1150ft wide approached road to new Model Town at Urmar District Peshawar.

INDUSTRIES Vision To support growth of locally and internationally competitive industries, generating employment and technological upgradation. To advocate sustained growth in export, government revenues and industrial and service sector profits. Policy

Public sector to ensure creation of business enabling environment for the private sector to come forward, grow and prosper.

Business primarily to be left to the private sector.

Ensuing economic activity and growth will lead to increased employment opportunities leading to poverty reduction and increase in earnings and income.

Public Sector to facilitate provision of state of the art infrastructure ndustrial Sector can play a pivotal role in the uplift and well-being of a nation. The main focus in the industrial sector is to produce skilled manpower, essential for the industrialization of the province. In order to meet the increasing demand for skilled workers in various production and services sectors of the Province, The Technical Education & Manpower department will mainly concentrate on establishing Polytechnic institutes, Commerce colleges, Technical & Vocational Institutes through its ongoing and new portfolio. An allocation of Rs.3471.000 Million has been made for total of 59 projects out of which 43 are ongoing with allocation of Rs.2763.690 Million and 16 are new with allocation of Rs.707.310 Million. The following major targets will be achieved in this sector:-

Establishment of small industrial estate Abbottabad-II.

Rehabilitation of existing SIDB small industrial estates (D.I. Khan, Bannu, Kohat and Mansehra).

Establishment of Mineral Based Industrial Estate at Chitral.

Provision of equipment’s/tools/furniture in existing GPIs/GCTs

Construction of Auditorium in GCMS(w) Peshawar

Establishment of GTVC Shawa, Swabi & Akbar Pura Nowshera.

Establishment of GPI at Tehkal Peshawar and Tor-Ghar.

Establishment of Khyber Pakhtunkhwa Technical University.

Feasibility study for establishment of Industrial Estate at District Karak & Kohat.

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INFORMATION Vision To provide factual and broad based projections of socio-economic, political and religious affairs of the province to the general masses in the print and electronic media. Establishing an adequate institutional framework for protecting and promoting Language, Art and Culture of the Province. Encouraging and inculcating commitment in the youth of the Province for national solidarity within the ideological framework of Pakistan Policy

Having a definite and dedicated program for the conservation, protection and safeguard of entire cultural heritage in Khyber Pakhtunkhwa.

Promoting Language, Art & Culture of the Province

Expanding the existing net of media coverage by allowing new entrants for television.

Encouraging telecast of documentaries for the projection of culturally enriched province.

Preservation and protection of cultural heritage and tourists attractions by promoting public private partnerships.

Encouraging youth participation in social and political affairs.

Promoting positive values among the educated youth of KP in order to channelize

ue to the advent of fast medium of communication, the entire world today has assumed the shape of a cohesive village where no one can live in isolation. The information department in line with the requirements of the present era has formulated its own communication strategy keeping in view the needs and aspiration of the masses and also ensures the freedom of media as well as welfare of the journalist community. An allocation of Rs.224.000 Million has been made for total of 11 projects out of which 5 are ongoing with allocation of Rs.166.999 Million and 6 are new with allocation of Rs.57.001 Million. The following major targets will be achieved in this sector:-

Construction of Press club at Hangu.

Construction of Hall in Press Club Haripur

Construction of cultural complex at Abbottabad

Establishment of Ethnological Gallery for Display of cultural Objects in the Premises of Nisheter Hall Peshawar.

LABOUR Vision To promote healthy labour management practices for greater socio-economic progress and social justice in the work place by means of worker’s rights protection and ensuring industrial peace. Recognizing the importance of adequate and fair remuneration, workers health and welfare, and under taking special measures including health care coverage for families, education and housing. Policy

Improvement of working conditions and Environment

Discouraging and combating bonded labor and child labor in the province

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Promotion of welfare of industrial and commercial workers

Strengthening of Labor management relations.

Exploring new avenues to absorb skilled labor of the province

anpower plays a very important role in the overall development of a nation. Labour community constitutes an integral and important part of the manpower of a nation. There are instances that nations endowed with properly managed and satisfied manpower have achieved heights of success even in the face of scarcity of other natural resources. It is an admitted fact that a satisfied workforce can bring about exponential increase in the productivity of a nation. That is why vigilant nations have always been trying to release its workforce from various encumbrances by providing them various facilities. To ensure guaranteed rights to the workers, the Labour Department through its attached Departments, implements various Labour Laws. Similarly, for provision of the aforementioned welfare facilities, other organizations/institutions work under the Labour Department. An allocation of Rs.26.000 Million has been made only for 3 ongoing projects with no new project in their portfolio. The following major targets will be achieved in this sector:-

Establishment of child and bonded Labour Unit in Labour Department.

Review of Policies, Laws and rules in wake of 18th Constitutional amendment.

Establishment of Resource Cell and Reporting System in Labour Department. LAW & JUSTICE Vision To ensure access to affordable timely and equitable justice Policy

Improved infrastructure for judicial officers

Capacity building of relevant stakeholders of the legal justice system

Research and Development n this sector, schemes pertaining to Law department & Peshawar High court are considered. The law department deals with the human rights & Government Pleaders office while the Peshawar High Court mainly encompasses the judiciary process across the province. An allocation of Rs.1050.000 Million has been made for total of 33 projects out of which 20 are ongoing with allocation of Rs.765.723 Million and 13 are new with allocation of Rs.284.277 Million. The following major targets will be achieved in this sector:-

Establishment of Mobile Courts in Khyber Pakhtunkhwa.

Feasibility Study & Master Planning for Construction of ‘Model Anti-Terrorism Courts”.

Construction of Judicial Complex at Mardan.

Establishment of Darul Qaza at Thames Hotel Swat.

Khyber Pakhtunkhwa Bar Council Building Peshawar. MINES & MINERALS Vision To increase Mineral sector’s contribution to the GDP by promoting large scale private sector investment.

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Policy

Formulation of an efficient and suitable Policy framework for the province.

Formulation of a competitive regulatory framework based on international best practices

Having proper Institutional arrangements in place for efficient management of the Mineral sector and implementation of the Mineral Policy.

he Khyber Pakhtunkhwa, Province covers a total area of 75421 Sq Km out of which 70%

contains mountains & rocks. Being a mountainous region, Khyber Pakhtunkhwa 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 department has been making strenuous efforts to explore and develop mineral resources by involving private sector due to huge mineral potential of the province. An allocation of Rs.626.000 Million has been made for total of 16 projects out of which 8 are ongoing with allocation of Rs.333.000 Million and 8 are new with allocation of Rs.293.000 Million. The following major targets will be achieved in this sector:-

Exploration of coal resources in KP

Establishment of Mines Monitoring & Surveillance Units.

Updation of Mineral Exploration data.

Exploration and Management of Minerals at Chitral. POPULATION WELFARE Vision To promote a healthy and industrious population through smart family planning Policy

To develop population welfare programme for KP

Initiate pilot projects for population welfare

Capacity building for population welfare department

overty 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 urbanization exacerbate rising levels of poverty. The department’s strategy recognizes to promote the small family norm; invest in the youth and achieve this investment by maintaining a focus on the male population vis-à-vis behavior change and awareness. The programme is mainly focused on birth spacing and mother and child health care. The Program is wide in scope, touching on poverty reduction and also sustainable development. The department aims to achieve replacement level fertility by 2035 through expeditious completion of demographic transition that entails decline both in fertility and mortality rate. In this sector, the department besides implementing ongoing program will construct Reproductive Health Service Centers in Karak & Lakki Marwat districts to provide qualitative service delivery in these areas, implement innovative pilot project on Population Welfare Program, establish 100 Family Welfare Centre’s and Maternal Service Units in in Khyber Pakhtunkhwa. An allocation of Rs.330.000 Million has been made for total of 11 projects out

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of which 4 are ongoing with allocation of Rs.110.378 Million and 7 are new with allocation of Rs.219.622 Million. The following major targets will be achieved in this sector:-

Renovation and construction of regional training institute Peshawar.

Establishment of 100 Family Welfare Centers in Khyber Pakhtunkhwa.

Establishment of Mobile Service Units in Districts Battagram, Dir (Upper), Malakand & Torghar.

Establishment of Regional Training Institute, Malakand.

Purchase of land for Regional training Institute, Abbottbad.

Innovative pilot projects for promotion of Population Welfare Programme. PRO-POOR SPECIAL INITIATIVES

The coalition Government of Khyber Pakhtunkhwa is committed to produce a people friendly budget. In the current budget 2014-15 apart from other objectives. The Government is focusing on poor and marginalized sections of society in order to develop their socio-economic conditions. An allocation of Rs.7900.120 Million has been made for total of 13 projects out of which 13 are ongoing with allocation of Rs.0.120 Million and 1 are new with allocation of Rs.7900.000 Million. REGIONAL DEVELOPMENT A: Regional Development Vision Removing inter-regional disparities through strategically planned multi-sectoral strategies aimed at sustainable and equitable economic growth across all regions Policy

In order to remove regional disparities, Allocation of adequate resources to the relatively disadvantaged regions through both domestic and regional sources should be ensured

Create an impetus for multi-sectoral regional development that is sustainable and ensures continuity in the under privileged areas

Target impoverished population through income generation and social development programs to alleviate poverty in less privileged regions

B: Local Government and Community Development Vision Enhance the Local Government’s ability to generate revenue and optimally utilize the available resources while meeting the needs of their respective administrative units, Including the ability to deliver municipal services and provide infrastructure facilities. Policy

To enable cities and towns in the Province to become engines of economic growth

To create efficient mechanisms for governance of urban and rural areas that can facilitate the flow of goods and services

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To address inter-jurisdictional and intra-jurisdictional issues between cities, towns and villages

To build the capacity of local governments to provide municipal infrastructure, facilities and services

he area development projects are based on the concept of complete development, in the

project location. This will be achieved by the significant role in enhancing the agriculture productivity, natural resource management and rural development. The mega projects in the province, namely Kala Dhaka Area Development Projects & Kohistan Regional Development Projects are in progress in the respective areas. Developmental works on rural roads, Provision of potable water & sanitation, pavement of streets and other such interventions will be carried out through different projects. In the Local Development sub-sector, most of funds have been reserved for ongoing projects. An allocation of Rs.12258.880 Million has been made for total of 44 projects out of which 23 are ongoing with allocation of Rs.3129.611 Million and 21 are new with allocation of Rs.9129.269 Million. The following major targets will be achieved in this sector:-

Establishment of water & sanitation Services Peshawar (WSSP)

Strengthening of TMAs in KP through Asset Creation.

Clean Drinking Water for All (CDWA)

Provision of LED/Solar Roads Lights to Selected Districts of KP

Municipal Services Delivery Project (USAID Assisted)

Improvement of Water Supply, Sewerage/Drainage system in selected Districts of Khyber Pakhtunkhwa.

Special Package for Development Initiatives in KP

District Development Initiatives

Southern Area Development Project

Procurement of Compactor Multi-loader and Mechanical Sweepers. RELIEF & REHABILITATION Vision Development of safer communities through an effective system for management and prevention of emergencies and disasters Policy

Development of a safer and resilient community to through proactive approach towards emergencies and disaster management, community awareness and training

to have positive socio-economic impact on the society by reducing disabilities and deaths due to injuries

he provincial government’s endeavors in creating Relief, Rehabilitation & Settlement

department in fact 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 &

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community based Disaster Management Strategies, Capacity building of related stakeholders throughout the province etc. An allocation of Rs.2053.000 Million has been made for total of 8 projects out of which 4 are ongoing with allocation of Rs.1408.541 Million and 4 are new with allocation of Rs.644.459 Million. The following major targets will be achieved in this sector:-

Establishment of Emergency Rescue Services (Rescue 1122) in DI Khan, Abbottabad & Swat.

Reconstruction and Rehabilitation of Disaster Affected Infrastructure in Khyber Pakhtunkhwa.

Establishment of DRM Strategic Management Unit in PDMA.

Revamping of PEOC and MIS section for PDMA. RESEARCH AND DEVELOPMENT Vision To promote strategic and output based planning to integrate sectoral plans into a coherent policy framework Policy

Improve delivery of public services

Enhancing the productivity sectors

Reducing poverty, inequality and addressing vulnerability

Enhancement of private sector participation through Public Private Partnership

Ensuring balanced urban, regional and gender development

Accelerated and balanced economic growth An allocation of Rs.1001.000 Million has been made for total of 15 projects out of which 9 are ongoing with allocation of Rs.352.899 Million and 6 are new with allocation of Rs.648.101 Million. The following major targets will be achieved in this sector:-

Piloting Innovative ideas to address key issues of Khyber Pakhtunkhwa.

Establishment of change management Unit, In P&D Department.

Provision for multiple indicators cluster survey (MICS-IV). ROADS Vision Upgradation and maintenance of modern road network under optimal and efficient development and management regimes. Policy

Enhance road densities through construction and upgrading of existing network

Rehabilitation of roads that have outlived their designed life

Construction of missing road links

Preparing Asset Management Plan for the Provincial Road Sector

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Improving Road Safety and undertaking improvements in road design and specifications

Dualization of main arteries and improving geometry of existing roads eeping in view, the deplorable conditions of roads special attention is being given to the

improvement of existing infrastructure in the nook and corner of the province. Efforts will be made to extend the existing road network to the remote and less developed areas of the Province. Work will also be expedited on the JICA assisted rural road rehabilitation project for providing a sustainable road chain in the rural areas. The department with the assistance of JICA will execute a mega project wherein it will construct 478 km’s of roads and 11 bridges (with total span of 603 meter) in the province by 2015. An allocation of Rs.9590.000 Million has been made for total of 234 projects out of which 81 are ongoing with allocation of Rs.5518.287 Million and 153 are new with allocation of Rs.4071.713 Million. The following major targets will be achieved in this sector:-

436 km’s black topping and Dualization of roads would be constructed

20 RCC Bridges & steel bridges would be completed.

Construction of RCC Bridge over Tochi River.

Feasibility Study & Construction of RCC Bridge on Kabul River at Kishti Pul, Nowshera.

Extension of Black Topping of Dagger to Gokand Road. SOCIAL WELFARE AND WOMEN DEVELOPMENT Vision To develop an integrated and comprehensive social protection system for general population of KPK especially women, deprived, poor and the most vulnerable segments of the society Policy

Build strategies that reduce poverty, protect household consumption and support capacity building and productive inclusion

Build healthy living facilities for the most vulnerable groups including , base of the pyramid women and children and destitute senior age group citizens

Capacity building of the vulnerable groups by imparting skills to make them contributory members of the society while earning livelihood for themselves

Build safety nets through service chain for the welfare of the poorest

Work on eradicating drug menace; and medico-legal protection of women, children and old age prisoners

To invest in women development to reduce gender disparity

n social Welfare and Women Empowerment sector, focus will be 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 the wellbeing and safeguarding of destitute women, orphans, beggars, drug addicts and special persons. The prominent proposals in the new portfolio are construction of Dar-ul-Kafala in Peshawar, Social Welfare Complex in Bannu, Schools for hearing impaired in Kohistan, Malakand, Buner & Battagram and centres for Mentally Retarded and Physically Handicapped children in Kohistan & Battagram, Welfare Homes for orphans and destitute in Hangu & Swabi. Moreover, under a massive program, two dastakari

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centres will be established in all tehsils of the province. An allocation of Rs.500.000 Million has been made for total of 34 projects out of which 22 are ongoing with allocation of Rs.319.102 Million and 12 are new with allocation of Rs.180.898 Million. The following major targets will be achieved in this sector:-

3 Social Welfare Complexes will be completed in Charsadda, Swabi & Karak districts.

School for Hearing Impaired children will be completed at Dir Lower.

4 schools for hearing impaired children will be established at Kohistan, Malakand, Buner &Battagram districts.

2 Dastakari centres will be established in each tehsil of the province.

Under the Tazeem lasile Wal-Mehroom project 50,000 patients will be provided free treatment, 7,000 orphan students will be provided stipends and 1400 persons will be trained in different skills.

SPORTS, TOURISM, CULTURE AND MUSEUMS TOURISM Vision Promote Khyber Pakhtunkhwa as a preferred tourist destination, nationally in the short-to-medium term and globally in the long term Policy

Develop a Tourism Policy for KP Province

Develop a Public-Private Partnership (PPP) Framework for Increased private sector investment in KP tourism sector

Increase tourist traffic in the province by at least 10% every year over the next five years

Ensure maximum investment (domestic and foreign) in the tourism sector over the next five years

SPORTS Vision Develop a competitive advantage in sports through state of the art facilities and infrastructure, accessible to all citizens of the province Policy

Promotion of sports through various interventions at gross root level

Restoration, upgradation and creation of state of the art infrastructure

Research and Development

Development of state of the art infrastructure with cutting edge sports facilities. erformance of Tourism sector is interconnected with the Law & Order situation, better

infrastructure and performance of other sectors. Considering these factors, the government is committed in promoting this sector on priority basis. During the Financial Year 2014-15, Seventeen (17) Archeological sites would be rehabilitated. The heritage site of Takht Bhai will also be improved for the facilitation of Buddhist tourists. The traditional festivals of Shandoor, Kalash, and other similar activities will be held in order to provide ample

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opportunities to the tourists for recreation. Play grounds throughout the Province will be developed. An allocation of Rs.1325.000 Million has been made for total of 44 projects out of which 31 are ongoing with allocation of Rs.1045.999 Million and 13 are new with allocation of Rs.279.001 Million. The following major targets will be achieved in this sector:-

Construction of Sports complex Charsadda

Construction of sports stadium at District Swabi.

Establishment of international standard multipurpose Gymnasium at Abbottabad.

Establishment of Sports Academy for the Talented Youth of Khyber Pakhtunkhwa.

Holding of traditional & Tourism festivals, Broghal, Shandoor, Kalash, Food festivals and Khan-Pur festival.

Construction of Water sports Tourism facilities at Khan-Pur.

Construction of Kund Pedestrian, Wooden Bridge.

Establishment of Picnic Spots at suitable Places in Malam Jaba. SCIENCE AND INFORMATION TECHNOLOGY Information Technology Vision To make the province a hub of information technology and to promote economic growth in the IT sector through enabling IT policies and harness the potential of Information Technology as a key contributor to the development of KPK by providing the people of the KPK easy access to the information technology resources. Policy

Investing strongly in research, training and education. Support the local IT industry through building a province wide infrastructure.

Building infrastructure for the electronic handling of the land records.

IT research funding geared towards educational institutes and organizations

Capacity building in the public IT sector.

Introducing computer based programs and protocols for government departments.

Introduction of E-governance regimes in key sectors.

eeping in view the importance of modern technologies one can easily conceive that Information Technology can play a vital role in all the running transactions/operations of the Government. The ST&IT department is using its technical Capabilities to bring a constant attention towards implementation of such policies which cover the gap between local and international demands. To achieve such goal the ST&IT Department endeavors various initiatives for the information Technology in Khyber Pakhtunkhwa. These initiatives consist of IT Education, HRD, and Software Development activities, E-Governance & IT infrastructure. During the current financial year ST&IT department has initiated (12) different projects for Govt. Department of Khyber Pakhtunkhwa to make their efficiency better and more transparent. An allocation of Rs.1000.000 Million has been made for total of 32 projects out of which 22 are ongoing with allocation of Rs.580.050 Million and 10 are new with allocation of Rs.419.950 Million. The following major targets will be achieved in this sector:-

Establishment of Citizen Facilitation Centers in Khyber Pakhtunkhwa.

Office Automation System (pilot for 5 Departments).

E-Enablement of Municipal Corporation Peshawar.

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KP Security Solution.

F/S for Khyber Pakhtunkhwa Net Work.

Promotion & Development of S&T in Khyber Pakhtunkhwa.

Human Resource Development through skill development programme/Training.

Establishment of Security System in Khyber Pakhtunkhwa TRANSPORT Vision To alleviate the vehicular and commuter traffic congestion issues by providing an alternative urban transport system which is fast, comfortable and is easily accessible. Policy

To introduce new and improve existing public transport system

To ensure convenient, safe and time efficient transport based on modern technology

To provide jobs and alleviate poverty he aim of the Transport Department is to provide safe, reliable, affordable and environment

friendly transport system and ensure efficient mobility of people and goods for the welfare of the people through economic growth and poverty reduction. Keeping in view the transport & traffic issues. An allocation of Rs.200.000 Million has been made for total of 10 projects out of which 8 are ongoing with allocation of Rs.133.000 Million and 2 are new with allocation of Rs.67.000 Million. The following major targets will be achieved in this sector:-

Establishment of transport Complex at Peshawar.

Computerization of Motor Vehicle fitness certificate.

Computerization of Driving Licenses in Khyber Pakhtunkhwa.

Strengthening of Govt: Driving School Peshawar.

Establishment of Transport Planning & Traffic Engineering Unit.

Establishment of Transport Planning & Traffic Engineering Unit (TP&TEU)

Master Planning for urban transportation URBAN DEVELOPMENT Vision To make cities the engines of economic growth Policy

To improve the overall governance structures/systems of major cities

To promote participatory approaches to urban planning, management and development

To enable urban infrastructure and service providers to deliver high quality infrastructure, facilities and services to inhabitants

To induct the private sector in service delivery in order to reduce the financial burden on public sector agencies

To improve the regime for land tenure, delivery of municipal services and access to urban markets

To standardize the formulation and implementation of planning practices in urban areas

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To improve the credit worthiness of cities and to enable public private partnerships in the planning, management and development of urban infrastructure, facilities and services

To provide optimally designed Mass Transit Systems in the major cities of the Province. n this sector various developmental activities will be undertaken to improve infrastructure in the urban area of the province. Urban areas are important to the national economy as these are considered the focal points for trade, commerce and governance. Moreover, bridges, flyovers, extension & widening of roads, will be constructed for an effective load management of traffic in the city. Besides, the government had also initiated a project “Urban Policy Unit”. Proposed Mandate of the Urban Policy Unit is to assist in formulation of Urban Provincial Planning and policy framework, policies, byelaws and rules. It is to lead inter departmental, inter provincial and inter cities coordination for synergies and integration, and to coordinate with donors on urban matters. This Unit has to undertake capacity building and technical support to line departments in managing urban affairs, and to provide guidance and advice on institutional reforms and organizational restructuring. This unit will formulate economic regeneration and growth strategies for urban clusters and urban region, and will maintain Provincial GIS, and generate research and disseminate innovations in urban sectors. The Urban Policy Unit has started as a Project, but will become a Regular Directorate of the P&D Department. The staff required will also increase with time, as new initiatives are launched. An allocation of Rs.7467.000 Million has been made for total of 24 projects out of which 9 are ongoing with allocation of Rs.4366.590 Million and 15 are new with allocation of Rs.3100.410 Million. The following major targets will be achieved in this sector:-

Designing and construction of Flyover at Phase-III entry, Hayatabad, Peshawar.

Construction of Bus stands/terminals in selected districts of KP

Establishment of Bachat Bazars in Selected Districts of KP.

Modernization of slaughter Houses in Peshawar Region on Public Private Partnership on the concept of Lahore Meat Company.

Mass Transit facility in Peshawar (PPP/Donor).

Slums & informal settlements upgradation Programme in Khyber Pakhtunkhwa.

City Strategic Development Plan for Divisional Head Quarters in Khyber Pakhtunkhwa.

Beautification of Peshawar city (through outsourcing).

Peshawar uplift program. WATER Vision To enhance Agricultural productivity by ensuring requisite, equitable and reliable irrigation supplies to cultivable lands of KPK. Policy

Sustainable development of irrigation infrastructure with focus on holistic management and institutional reforms.

Transparent and sustainable management of water resources

Improving irrigation service delivery

Improving on-farm water management rrigation serves as a lifeline for the agriculture sector. As Agriculture is the main source of

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livelihoods in rural areas of the province, therefore, a sustainable irrigation system becomes eminent for the province. 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 the construction of Dams new including Gul Dheri Dam, Dhoke Toru-Jhangra Dam, Kiyala Dam, Kundal Dam & Zamir Gul Dam District Kohat. Besides, the department will also execute diverse projects pertaining to construction & improvement of irrigation channels, construction of new flood protection works and installation of tube wells. An allocation of Rs.4737.000 Million has been made for total of 131 projects out of which 66 are ongoing with allocation of Rs.2722.109 Million and 65 are new with allocation of Rs.2014.891 Million. The following major targets will be achieved in this sector:-

Improvement / extension to Guide Bund for Protection of area between Guide Bund and upto Spur No.1 Dera Darya Khan Bridge.

Providing Railing/ Fencing of canal passing through Peshawar city.

Flood management of Shah Alam and Naguman Rivers.

Revamping of Jindi River Charsadda.

Construction of Flood embankment on river side of Kabul River (Reach No.1) and (Reach No. 2).

Construction Kiyala Dam district Abbottabad with CCA of 3000 acres.

Kundal Dam District Swabi with CCA of 5000 acres

Zamir Gul Dam District Kohat with CCA of 2000.

Work on detail design and construction of Pehur High Level Canal having CCA of 25000 acres and Siran Right Bank Canal having CCA of 12000 acres would be initiated, through Asian Development Bank assistance.

Annex-I

Description Rate of mark up Outstanding Balance

1993-94 15.94% 721.399

1994-95 15.59% 366.559

1997-98 8.50% 1489.735

1999-2000 11.21% 252.075

2829.768

1992-93 15.24% 50.675

1993-94 15.94% 534.417

1994-95 15.59% 218.775

1999-2000 11.21% 1022.009

1825.876

Discription Rate of mark up Outstanding Balance

1998-99 17.71% 2.448

1999-2000 11.21% 925.981

2000-01 11.70% 722.340

2001-02 10.72% 413.704

2002-03 7.42% 202.922

2003-04 7.20% 11.598

2005-06 9.79% 313.453

2007-08 10.14% 636.925

2008-09 13.80% 98.875

3328.246

7983.890

CDL LIABILITIES AS ON 01-07-2014

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)

97

Annex-II

(Rs. In Million)

Financial

YearS.No Name of Loans

Rate of

Markup

Amount

Retired

Prematurly

Saving Per

Annum

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

98

Annex-III

1 IDA-678-Pak (3rd Education Project) 0.75% 80 half yearly 15-2-1987 *0.254

2IDA-683-Pak (Flood Damages Restoration

Project) 0.75% 80 half yearly 15-5-1987 *0.963

3 IDA-755-Pak (Hazara Forestry Project) 0.75% 80 half yearly 1-4-1998 *0.158

4IDA-877-Pak (Salinity Control & Reclamation

Project Mardan) 0.75% 80 half yearly 1-4-1989 *9.651

5 IDA-892-Pak (4th Primary Education Project) 0.75% 80 half yearly 1-9-1989 *0.543

6IDA-1113-Pak (Bannu Leather Goods Services

Control Project)0.75% 80 half yearly 1-8-1991 *0.444

7IDA-1163-Pak (On-Farm Water Management


8IDA-1239-Pak (Irrigation System Rehab:


9 IDA-1487-Pak Command Water Mangt Project 0.75% 80 half yearly 15-6-1994 *1.968

10IDA-1499-Pak (Small Industries Dev. Board

Project)0.75% 80 half yearly 15-1-1995 *0.092

11 IDA-1602-Pak (2nd Primary Education Project) 0.75% 80 half yearly 1-11-1995 *7.876

12 IDA-1603-Pak (On-Farm Water Mangt. Project) 0.75% 80 half yearly 1-11-1995 *1.884

13IDA-1888-Pak (2nd Irrigation System and

Rehabilitation Project)0.75% 50 half yearly 1-8-1998 *2.171

14IDA-2003-Pak (1988 Flood Damages Restoration


15IDA-2154-Pak (2nd Agriculture Research


16 IDA-2240-Pak (Family Health Project) 0.75% 50 half yearly 1-11-2001 *8.534

17 IDA-2593-Pak (Social Action Program) 0.75% 50 half yearly 1-8-2004 *3.825

18 IDA-2999-Pak (National Drainage Programme) 0.75% 50 half yearly 15-11-2007 *1.421

19 IDA-3050-Pak (Social Action Programme-II) 0.75% 50 half yearly 15-9-2008 *6.104

20IDA-3687-Pak NWFP Structural Adjustment

Credit (SAC I)0.75% 50 half yearly 15-12-2012 **5425.606

21 IDA-3776-Pak (Provincial HIV AIDS Control) 0.75% 50 half yearly 15-6-2013 *3.330

22IDA-3906-Pak (Second NWFP Community

Infrastructure Project)0.75% 50 half yearly 15-9-2014 *38.486

23IDA-3932-Pak NWPF Structural Adjustment

Credit (SAC II)0.75% 50half yearly 15-9-2014 *90.000

24IDA-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 *93.039

26 IDA-4316-Pak (Developmental Policy Credit-II) 0.75% 50 half yearly 29-9-2007 *129.359

27 ADB-433-Pak (Aquaculture Dev: Project) 0.75% 60 half yearly 1-5-1990 *0.082

28 ADB-495-Pak (On Farm Water Mangt. Project) 1% 60 half yearly 15-5-1991 *0.835

29ADB-723-Pak (Chashma Command Area

Development Project)1% 60 half yearly 15-12-1994 *15.529

30 ADB-758-Pak (Farm to Market Roads Project) 1% 50 half yearly 1-4-1996 *1.129

31ADB-759 Pak (Science Education for Secondary

School Project) 1% 60 half yearly 15-5-1996 *0.789

32 ADB-838-Pak (Chitral Area Dev. Project) 1% 60 half yearly 15-12-1997 *11.214

33 ADB-850-Pak (3rd Health Project) 1% 50 half yearly 1-3-1998 *4.566

34ADB-851-Pak (Fruit and Vegetable Marketing

Project) 1% 50 half yearly 15-4-1998 *0.503

FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2014

S.No

(Figures in million)

Balance as

on

1.7.2014

DescriptionRate of

Interest

No. of

Installments

First

Installment

Due from

99

Annex-III

FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2014

S.No


Balance as

on

1.7.2014

DescriptionRate of

Interest

No. of

Installments

First

Installment

Due from

35ADB-874-Pak (Chashma Right Bank Irrigation

Project Stage-II)1% 50 half yearly 15-4-1998 *3.330

36 ADB-916-Pak (2nd Aquaculture Dev: Project) 1% 50 half yearly 15-1-1999 *1.444

37ADB-917-Pak (2nd Farm to Market Road

Project)1% 50 half yearly 1-2-1999 *8.384

38ADB-957-Pak (1988-Flood Damages Restoration

Project)1% 50 half yearly 1-10-1999 *1.674

39 ADB-973-Pak (Livestock Development Project. 1% 50 half yearly 15-2-2000 *1.248

40ADB-976-Pak (Swabi Salinity Control and

Reclamation Project)1% 50 half yearly 15-12-1999 *12.023

41 ADB-977-Pak (Primary Education Girls Project) 1% 50 half yearly 15-6-2000 *2.951

42 ADB-1004-Pak (2nd Urban Dev: Project ) 1% 50 half yearly 15-6-2000 *34.650

43ADB-1146-Pak (Chashma Right Bank Irr: Project

Stage-III)1% 50 half yearly 15-3-2002 *44.473

44 ADB-1179-Pak (Barani Area Dev. Project) 1% 50 half yearly 15-3-2003 *15.720

45 ADB-1185-Pak (Provincial Highway Project) 1% 50 half yearly 15-3-2003 *6.571

46 ADB-1200-Pak (Health Care Dev. Project) 1% 50 half yearly 15-3-2003 *2.074

47ADB-1209-Pak (Flood Damages Restoration

Sectors Project)1% 50 half yearly 15-3-2003 *10.219

48 ADB-1210-Pak (Teacher Training Project) 1% 50 half yearly 15-2-2003 *4.046

49 ADB-1278-Pak (Middle School Project) 1% 50 half yearly 15-01-2004 *11.310

50 ADB-1294-Pak (Pehur High Level Canal Project) 1% 50 half yearly 15-05-2004 *92.510

51 ADB-1301-Pak Social Action Program-I 1% 50 half yearly 15-9-2004 *10.263

52 ADB-1373-Pak (Technical Edu: Project) 1% 50 half yearly 15-11-2005 *3.116

53 ADB-1401-Pak (Rural Access Road Project) 1% 50 half yearly 1-2-2006 *20.583

54 ADB-1403-Pak (Forestry Sector Project) 1% 50 half yearly 15-5-2006 *33.548

55ADB-1454-Pak (Primary Education Girls Project-

II)1% 50 half yearly 1-1-2007 *2.945

56 ADB-1493-Pak Social Action Program-II 1% 50 half yearly 15-03-2007 *20.382

57 IFAD-18-Pak (4th Agriculture Dev. Project) 1% 80 half yearly 1-9-1989 *0.355

58 IFAD-83-Pak (On-Farm Water Mangt. Project) 1% 80 half yearly 1-6-1992 *0.244

59West German No.8267528 (Hospital Equipment

in Khyber Pakhtunkhwa)0.75% 80 half yearly 30-6-1994 ***2.633

60

West German No. 8267585 (Drinking Water

Supply in Refugees Camps in Khyber

Pakhtunkhwa).

0.75% 80 half yearly 30-6-1994 ***3.760


Name of Currency Foreign

Currency

Conversion

rate for

2014-15

Pak Currency

U.S. Dollar 835.076 1US$=Rs.99 82672.524

Pak-Rupees 5425.606

DM (German Marks) 6.393 1DM=Rs.67.4351 431.113

88529.243

*US Dollar ** Pak-Rupees *** DM (German mark)

Total

100

Annex-IV

S.No Name of LoansRate of

Interest

No. of

Installments

First

Installments

due from

Allocated

Share

Outstanding

Balance/ Amount

disbursed upto

30-6-2014

1IDA-2245-Pak (On-Farm Water

Management Project)0.75% 50 half yearly 15-9-2001 *4.590 *2.753

2

IDA-2383-Pak (Environmental

Protection and Resource

Conservation Project)

0.75% 50 half yearly 15-11-2002SDR 2.196

*3.107*2.019

3IDA-2468-Pak (1992 Flood

Damages Restoration Project) 0.75% 50 half yearly 15-3-2003 *2.500 *1.689

4IDA-2687-Pak (Primary Education

Project) 0.75% 50 half yearly 15-8-2005 *88.890 *68.888

5IDA-2829-Pak (NWFP Community

Infrastructure Project)0.75% 50 half yearly 1/7/2006

*16.662

SDR 10.617*13.329

6IDA 3516-Pak NWFP Emergency

Rehabilitation Project 0.75% 50 half yearly 15-6-2011 SDR 16.600 *18.989

7IDA-3516-1 Pak (Investment

Programme-I)1% 50 half yearly 15-12-2015 --- *10.256

8ADB – 1534 Pak Secondary

Education Project1% 50 half yearly 1/2/2008

SDR 6.175

*8.197*6.865

9ADB – 1671 Pak Women Health

Project1.50% 50 half yearly 15-10-2005 *7.117 *4.893

10ADB-1672 –Pak- Malakand Rural

Dev:Project1% 50 half yearly 1.9.2008

SDR 30.852

*41.808*35.537

11ADB-1787 –Pak- Barani Area

Development Project Phase-II1.50% 50 half yearly 15-05-2009

SDR 40.065

*52.000*40.083

12ADB-1854–Pak NWFP Urban Dev.

Project 1.50% 50 half yearly 15-10-2008 SDR 3.038 *3.79

13ADB-1877 –Pak- Agriculture Sector

Programme(ASPL-II)1.50% 32 half yearly 1/3/2010 *9.477 *6.811

14ADB-1878-Pak Agriculture Sector

ProgrammeLibor + 0.60% 48 half yearly 1/3/2005 *15.588 *4.889

15ADB-1900 –Pak- Reproductive

Health Project1.5% 48 half yearly 15-05-2010 SDR 3.812 *0.272

16ADB-2103 –Pak- WFP Road Dev.

Project Libor + 0.60% 40 half yearly 1/2/2010 **17750.229 **7955.463

17 ADB-2104-Pak Road Dev: Sector 1.50% 48 half yearly 1/2/2013 SDR 3.404 *2.17

18

ADB-2135 –Pak Restructuring and

Vocational Training System

Project

1.50% 48 half yearly 15-05-2013 SDR 7.339 *1.817

19ADP-2286-Pak Renewable Energy

Development SectorLibor + 0.60% 40 half yearly 15-12-2011 **12508.650 **244.11

DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE


AS ON 01-07-2014

101

Annex-IV

S.No Name of LoansRate of

Interest

No. of

Installments

First

Installments

due from

Allocated

Share

Outstanding

Balance/ Amount

disbursed upto

30-6-2014

DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE


AS ON 01-07-2014

20ADP-2287-Pak Renewable Energy

Development Sector1.50% 48 half yearly 15-12-2014 SDR 6.793 *0.409

21IBRD-3327-Pak (On-Farm Water

Mangt. Project Phase-III)0.75% 50 half yearly 15-9-2001 *2.300 *1.38

Name of Currency Foreign

Currency

Pak

Currency

U.S. Dollar 226.839 22457.061

Japanese Yen 8199.573 9068.728

31525.789

* US Dollar ** Japanese Yen

Conversion rate for

2013-14

Total


1 US $=Rs. 99

1 ¥ =Rs. 1.1060

102

Annex-V

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

I-PROVINCAL TAX RECEIPTS 10,287.588 12,637.810 19,452.809

GST on Services 6,000.000 8,000.000 12,000.000

Agriculture Income Tax 22.000 24.000 79.000

Urban Immoveable Property Tax (net) 107.910 107.910 122.809

Registration (Transfer of Property) 80.000 89.000 100.000

Land Revenue 1,111.173 1,300.000 1,430.000

Tax on Professions 165.000 165.000 230.000

Provincial Excise 30.000 30.000 33.000

Stamp Duties 600.000 670.000 740.000

Receipts under Motor Vehicles Acts 1,072.000 1,075.000 1,206.000

Tobacco Development Cess 312.000 312.000 565.000

Kohistan Development Fee 25.000 0.000 0.000

Infrastructure Development Cess 0.000 1.000 2,000.000

Electricity Duty 507.505 507.500 557.000

Fee for Real Estate Dealrs 10.000 10.000 11.000

Electronic Media 15.000 2.400 3.000

Hotel Tax 20.000 24.000 26.000

Urban Capital Value Tax 210.000 320.000 350.000

II- NON-TAX RECEIPTS 6,632.931 8,007.557 9,327.968

Civil Administration Receipts

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 138.150 180.750 188.500

Fees from Public Service Commission 18.500 40.000 45.000

Receipt in aid of Superannuation 50.000 50.000 50.000

Weights and Measures 17.650 30.750 33.500

GENERAL REVENUE RECEIPTS (Rupees in Million)

103

Annex-V

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15


Local Fund Audit 52.000 60.000 60.000

Receipts from Law and Order 771.824 1,024.490 1,180.231

Administration of Justice 137.000 175.000 190.000

Jails and Convict Settlement 7.500 14.000 15.000

Police,Arm Licence and others fees 627.324 835.490 975.231

Receipts from Social Services 369.993 469.289 518.251

Higher Education Archives & Libraries 105.150 174.256 191.500

Elementary & Secondary Education 60.000 70.000 77.000

Technical Education 23.000 23.000 25.000

Health 169.203 186.123 204.736

Manpower Management 0.540 0.510 0.515

Museums and Tourist Deptt. 12.100 15.400 19.500

Receipts from Community Services 674.000 940.000 1,030.000

Buildings and Communications 450.000 660.000 730.000

Public Health Engineering 224.000 280.000 300.000

Receipts from Economic Services 1,946.580 2,154.400 3,104.908

Agriculture 131.300 171.000 188.100

Fisheries 21.000 26.000 28.000

Wildlife 14.000 17.000 18.500

Animal Husbandry 67.000 84.400 93.600

Forestry 510.000 510.000 750.000

Irrigation 417.000 425.000 500.000

Industries 6.000 6.000 13.400

Stationery and Printing 70.000 105.000 77.000

Industrial Safety Explosives (Min: Dev) 710.280 810.000 1,436.308

Registration's Renewel Fee of Ptg Presses 0.000 0.000 0.000

104

Annex-V

Description

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15


Miscellaneous Receipts 234.772 302.272 319.722

Hydel Power Own Generation 2,361.256 2,800.000 2,850.000

Provincial Receipts (I + II) 16,920.519 20,645.367 28,780.777

III-FEDERAL TAX ASSIGNMENT 198,269.368 183,666.532 227,121.193

Taxes on Income 77,375.842 71,520.659 94,921.081

Custom Duties 22,163.477 19,357.037 22,602.791

Sales Tax 85,865.181 82,348.109 95,902.435

Capital Value Tax (CVT) 0.000 48.611 55.944

Central Excise 12,864.868 10,392.116 13,638.942

IV-Straight Transfers 27,495.741 29,312.340 29,263.451

Royalty on Crude Oil 16,103.850 18,791.804 16,357.690

Royalty on Natural Gas 5,071.637 4,452.696 4,234.362

Gas Dev: Surcharge 5,127.490 4,485.140 6,228.259

Excise Duty on Natural Gas 1,192.764 1,582.700 2,443.140

V-Net Profit from Hydel Power Generation 6,000.000 6,000.000 12,000.000

VI-Likely Availability of NHP Arrears 25,000.000 25,000.000 32,272.346

VII-1% of Divisible Pool for War on Terror 23,823.481 22,068.845 27,290.233

VIII-Population Welfare Programme 477.000 834.240 477.000

IX-Extra Budgetry Grant 0.000 7,194.062 0.000

Total Revenue Receipts ( I to IX) 297,986.109 294,721.386 357,205.000

105

Annex-VI

General Public Service 40,848.570 59,694.034 57,520.671 73,280.963

Executive and Legislative Organs, Financial

and Fiscal Affairs (Voted) 21,035.991 32,384.053 29,822.061 40,839.661

Executive and Legislative Organs, Financial

and Fiscal Affairs (Charged) 5,761.902 11,744.076 11,769.378 13,756.101

Transfers 12,679.853 13,988.534 14,013.296 16,912.129

General Services 1,351.109 1,555.616 1,894.386 1,748.449

General Public Services not elsewhere defined 19.715 21.755 21.550 24.623

Civil Defence 59.449 67.212 62.280

Public Order and Safety Affairs 28,991.466 30,028.891 36,897.256 35,428.108

Law Courts (Voted) 2,474.771 2,622.880 3,014.398 2,854.369

Law Courts (Charged) 813.358 948.539 1,190.411 1,065.851

Police 23,768.106 24,042.616 29,916.162 28,852.180

Prison Administration and Operation 1,068.813 1,072.223 1,503.440 1,300.300

Administration of Public Order 866.418 1,342.633 1,272.845 1,355.408

Economic Affairs 17,074.800 17,524.015 16,899.878 19,340.205

General Economic, Commercial and Labour Affairs 147.681 308.425 298.019 342.409

Agriculture, Food, Irrigation, Forestry and Fishing 10,942.784 11,597.061 11,270.294 12,828.504

Fuel and Energy 653.993 158.965 156.134 163.131

Mining and Manufacturing 296.938 386.367 348.142 537.772

Construction and Transport (Voted) 4,973.380 5,035.964 4,789.308 5,421.306

Construction and Transport (Charged) 31.433 4.015 5.225 4.015

Other Industries 28.591 33.218 32.756 43.068

Environment Protection 58.630 29.571 26.934 37.048

Housing and Community Amenities 3,614.386 4,293.132 3,777.120 4,770.370

Housing Development 19.701 26.370 22.806 32.517

Community Development 411.239 20.000 9.657 300.000

Water Supply 3,183.446 4,246.762 3,744.657 4,437.853

Health 15,799.536 19,108.777 21,421.440 20,985.728

Medical Product, Appliances & Equipment 35.085 39.066 43.963 50.551

Hospital Services 13,760.337 16,157.588 18,636.652 17,979.567

Public Health Services 453.177 1,043.948 1,195.532 872.031

Health Administration 1,550.937 1,868.175 1,545.293 2,083.579

Classification

(Rupees in Million)

CURRENT REVENUE EXPENDITURE

Budget

Estimates

2013-14

Budget

Estimates

2014-15

Revised

Estimates

2013-14

Accounts

2012-13

* *

106

Annex-VI

Classification

(Rupees in Million)

CURRENT REVENUE EXPENDITURE

Budget

Estimates

2013-14

Budget

Estimates

2014-15

Revised

Estimates

2013-14

Accounts

2012-13

* *

Recreation, Culture and Religion 583.527 737.289 721.221 818.078

Recreation and Sporting Services 131.613 133.988 157.930 137.583

Cultural services 113.651 165.715 157.393 175.798

Broad Casting and Publishing 135.677 164.753 172.413 179.431

Religious Affairs 187.242 246.937 213.406 268.863

Administration of Information, Recreation

and Culture 15.344 25.896 20.079 56.403

Education Affairs and Services 65,841.625 72,687.935 75,281.203 87,632.333

Pre-primary and Primary Education Affairs

and Services 27,324.941 27,601.145 31,886.689 34,291.413

Secondary Education Affairs and Services 27,885.957 29,595.672 31,610.453 37,665.345

Tertiary Education Affairs and Services 8,362.989 11,199.480 10,039.893 13,841.627

Education Services not definable by level 306.741 314.419 338.129 377.313

Subsidiary Services to Education 126.803 145.152 154.327 164.073

Administration 1,834.194 3,832.067 1,251.712 1,292.562

Social Protection 6,141.037 6,836.907 9,387.065 7,644.887

Administration 4,929.012 5,381.673 7,621.436 5,838.318

Other 1,212.025 1,455.234 1,765.629 1,806.569

Total Current Revenue Expenditure 178,953.577 211,000.000 222,000.000 250,000.000

107

Annex-VII

Budget

Estimates

Revised

Estimates

Annual Dev:

Program

Foreign

Project

Assistance

Total

ANNUAL DEVELOPMENT PROGRAMME

Agriculture 2,003.952 1,210.520 1,587.000 868.440 2,455.440

Auqaf, Hajj & Minority Affairs 106.000 66.028 149.000 - 149.000

Building 1,215.655 1,215.655 1,271.000 - 1,271.000

Drinking Water & Sanitatioin 3,550.998 3,031.532 5,851.000 0.100 5,851.100

Elementary & Secondary Education 24,076.426 13,153.016 8,132.000 11,794.580 19,926.580

Energy and Power 2,222.601 2,909.802 3,046.000 2,611.080 5,657.080

Environment 56.999 22.966 57.000 57.000

Finance 5,029.293 3,593.283 4,094.000 1,280.000 5,374.000

Food 500.233 401.761 501.000 501.000

Forestry 719.459 575.228 1,015.000 350.720 1,365.720

Health 10,088.226 6,011.451 8,280.000 2,930.544 11,210.544

Higher Education 5,722.546 6,211.135 6,180.000 - 6,180.000

Home 6,684.186 5,060.694 3,500.000 3,614.028 7,114.028

Housing 949.001 375.801 956.000 956.000

Industries 4,458.355 3,121.959 3,471.000 1,606.205 5,077.205

Information 210.538 32.093 224.000 224.000

Labour 22.500 3.500 26.000 26.000

Law & Justice 1,043.677 823.151 1,050.000 294.841 1,344.841

Mines and Mineral 586.499 199.614 626.000 626.000

Population Welfare 224.801 121.373 330.000 330.000

Pro-Poor Initiatives - - 7,900.120 7,900.120

Regional Development 17,349.458 12,829.881 12,258.880 4,734.634 16,993.514

Relief & Rehabilitation 1,447.435 99.621 2,053.000 2,053.000

Research and Development 1,648.657 2,712.791 1,001.000 619.099 1,620.099

Roads 15,695.909 25,160.240 9,590.000 7,676.626 17,266.626

Social Welfare 606.005 503.084 500.000 56.183 556.183

Sports, Tourism, Archaeology

& Youth Affairs 871.000 950.800 1,325.000 25.000 1,350.000

ST & IT 571.150 571.150 1,000.000 1,000.000

Transport 166.276 108.259 200.000 200.000

Urban Development 5,229.342 3,936.881 7,467.000 1,292.920 8,759.920

Water 3,270.493 4,528.393 4,737.000 4,737.000

Total ADP (I) 116,327.670 99,541.662 98,378.000 39,755.000 138,133.000

DISTRICT ADP (II) 1,672.330 1,672.330 1,672.000 1,672.000

Total (I+II) 118,000.000 101,213.992 100,050.000 39,755.000 139,805.000

2013-14 Budget Estimates 2014-15

DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2013-14 & 2014-15

DEVELOPMENT PROGRAMME

(Rs. in million)

108

Annex-VII

Budget

Estimates

Revised

Estimates

Annual Dev:

Program

Foreign

Project

Assistance

Total

2013-14 Budget Estimates 2014-15

DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2013-14 & 2014-15

DEVELOPMENT PROGRAMME

(Rs. in million)

SPECIAL PROGRAMME (PSDP)

Access to Justice Programme (AJP) - 21.032 - - -

Elementary & Secondary Education - 240.349 - - -

Health - 1,981.358 - - -

Regional Development - 150.000 - - -

Water - 1,240.885 - - -

Total PSDP (III) - 3,633.624 - - -

Total Annual Development Programme

(I+II+III) 118,000.000 104,847.616 100,050.000 39,755.000 139,805.000

109

Annex-VII

PARTICULARS

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

ADB 1,304.720 1,565.333 3,111.080

Development of Renewable Energy in Khyber Pakhtunkhwa 804.720 1,565.333 2,611.080

Mass Transit facility in Peshawar (Public Private Partnership/Donor) 500.000 500.000

JAPANESE / JICA 3,000.000 3,200.000 5,158.000

Emergency Rural Road Rehabilitation Project 3,000.000 3,200.000 5,158.000

Sub Total (I) Foreign Loans 4,304.720 4,765.333 8,269.080

ADB - - 700.000

Feasibility Study for References Desgin for Mass Transit System in

Peshawar700.000

UNDP 875.880 1,499.554 1,143.500

Strengthening of Rule of Law in Malakand 362.880 363.000 443.400

Refugee affected & hosting Area Programme 500.000 1,133.554 700.000

Sustainable Land Management Programmet o combat Desertification

and Land Degradation in Khyber Pakhtunkhwa 3.000 3.000 0.100

Capacitating Economic Governance & Accelerating MDGs 10.000

SDC 341.000 389.800 309.000

Livelihood Programme Hundukush 190.000 168.600 159.000

Water for Livelihoods 151.000 221.200 150.000

NAS/INL 1,972.176 2,602.843 1,389.607

Construction of Javed Iqbal Shaheed Police Line Kabal Swat - 34.725

Kohistan Area Development Project 188.687 6.697 119.714

Kala Dhaka Area Development Project 110.150 60.000 150.000

Construction of three Police Stations & one Police Line in Swat 400.000 11.206

Upgradation / Rehabilitation of Road from Chakdara to Madian - Kanjo

to Dhamana Village80.000 1,146.752 230.000

Construction & Remodeling of Southern Bypass detouring Hayatabad. 500.000 1,084.668 300.000

Construction of Joint Police Training Centre at Nowshera 468.339 250.001 283.846

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

225.000 20.000 294.841

JICA / JAPAN ASSISTED. 624.395 566.444 271.577

Gravity Flow Water Supply Scheme, Abbottabad. 289.242 509.242

Gravity Flow Water Supply Scheme, Mansehra. 0.100

Establishment of Working Women Hostel at Hayatabad Peshawar 60.200 53.362 53.183

Establishmnt of Model Fish Farm in Private Sector in Peshawar,

Nowshera and Mardan6.748 0.840

Project for Strengthening Routine Immuinization in Khyber

Pakhtunkhwa10.000 10.089

Capicity Building of Technical Teachers and TVC in Malakand 205.205 205.205

Establishment of Drug Addicts Detoxification & Rehabilitation Centre

Swabi50.000

Capicity Building of Government Officers for Social Participation of

Persons3.000 3.000 3.000

NORAD 466.501 70.000 257.806

Basic Education Improvement Project Khyber Pakhtunkhwa. 395.500 5.000 257.806

Assistance to Basic Education Improvement Project for Repair/

Rehabilitation of Flood Affected Schools in Khyber Pakhtunkhwa 71.001 65.000

DEVELOPMENT BUDGET

(Rs. in million)

A-EXTERNAL RESOURCES

I-FOREIGN LOANS

II-FOREIGN GRANTS

110

Annex-VII

PARTICULARS

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

DEVELOPMENT BUDGET

(Rs. in million)

UK/DFID 14,861.129 6,608.392 11,502.350

Foreign Assistance Provincial Health & Nutrition DFID Grant Under UK

Pakistan Support- 161.513

Peace Building Initiative for Khyber Pakhtunkhwa Project 750.000 710.000 575.576

Bridge of Malakand Division SH construction of Abutments/approach

and Launching of Steel Bridges under Flood Damages Restoration

Project in Swat, Chitral, Dir Lower & Dir Upper

400.000 400.000 520.000

DFID Assisted Steel Bridge in Affected Area of Malakand 700.000 700.000

Reconstruction/Rehabilitation of building in Govt. Schools 160.644 182.318

Strenghthening of Planning Cell E&SE Department 12.000 1.500 10.000

Provision of Stipends to Secondary Schools Girls 1,000.000 1,080.816 1,250.000

Support to Khyber Pakhtunkhwa Education Sector (1st Tranche) 1,111.973 2,492.922

Support to Khyber Pakhtunkhwa Education Sector (2nd Tranche) 1,415.907 444.323 1,150.859

Support to Khyber Pakhtunkhwa Education Sector (2nd Tranche) 1,560.605

Support to Khyber Pakhtunkhwa Education Sector (3rd Tranche) 2,726.000

Khyber Pakhtunkhwa ESP Str. Curriculum, delivering on the roadmap,

capacity building, delivering Education to all and EEF activities (3rd

Tranche)

4,089.000

Provisioin of new policy initiatives in E&SE (3rd tranche) 500.000

Sub-National Governance Programm in Khyber Pakhtunkhwa 435.000 435.000 450.000

Upgradation of 50 Middle Schools to High level in Khyber Pakhtunkhwa 300.000

Establishment of 50 Primary and 50 middle schools in rented building in

Urban Areas of Khyber Pakhtunkhwa

71.000

Upgradation of 150 middle schools to High level (B&G) in Khyber

Pakhtunkhwa on needs basis

270.000

Upgradation of 50 Girls Primary Schools to Middle level in Khyber

Pakhtunkhwa

211.250

Upgradation of 100 Govt High Schools to Higher Secondary level in

Khyber Pakhtunkhwa

450.000

Upgradation of 25 High Schools to Higher Secondary level in deficient

Union Councils

265.000

Upgradation of 50 primary schools to middle level in Khyber

Pakhtunkhwa

180.000

Upgradation of 150 High Schools to Higher Secondary level (B&G 30:70)

in Khyber Pakhtunkhwa on needs basis

124.994

Upgradation of 120 primary schools to middle schools (B&G) in Khyber

Pakhtunkhwa on need basis

246.988

Upgradation of 25 Govt High Schools to Higher Secondary level in

Khyber Pakhtunkhwa (B&G) on need basis

300.000

Reconstruction of 760 Non-Strategy Earthquake affected schools -

Schools furniture project in Khyber Pakhtunkhwa 2,500.000

Upgradation of 100 Govt Primary schools to middle level (B&G) in

Khyber Pakhtunkhwa

350.000

Upgradation of 100 middle schools to High level in Khyber Pakhtunkhwa

(B&G 30:70) on need basis

400.000

Construction of 500 additional classrooms in Khyber Pakhtunkhwa

through PTCs

325.000

Curriculum Development in 5 Languages, Composing and printing of

curriculum and Manuals, Training of Master Trainers and Printing of

extra books.

111.683

111

Annex-VII

PARTICULARS

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

DEVELOPMENT BUDGET

(Rs. in million)

Repair/Rehabilitation of 700 Govt Primary, Middle, High & Higher

Secondary Schools Partially Damages due to floods 2010 through PTCs in

Khyber Pakhtunkhwa

300.000

Khyber Pakhtunkhwa Girls Community School project 220.000

Construction of new block (consisting 30 rooms) in Government Higher

Secondary School No.1

-

Construction of 500 early Childhood Education rooms in existing primary

schools in Khyber Pakhtunkhwa through PTCs

220.000

Upgradation of 50 middle schools to High level in deficient Union

Councils

210.000

Upgradation of 100 High Schools to Higher Secondary schools (B&G) in

Khyber Pakhtunkhwa on needs basis

390.000

Khyber Pakhtunkhwa Early Childhood Education (ECE) Project 100.000

MDTF 2,804.280 1,738.102 5,939.625

Southern Area Development Project 500.000 377.658 1,304.000

Strengthening of Health Services in Khyber Pakhtunkhwa 500.000 11.863 1,447.000

Economic Revatalization in Khyber Pakhtunkhwa 500.000 426.490 562.000

Governance Support Programme - Establihsment of PCNA Support Unit

in Khyber Pakhtunkhwa 246.700 246.700 168.999

Upgradation / Rehabilitation of Road from Chakdara to Madian - Sharif

Abad to Kanjo Swat557.580 666.251 1,618.626

Competative Industries Project for Khyber Pakhtunkhwa 500.000 9.140 839.000

USAID 1,315.000 728.983 2,961.360

Gomal Zam Dam Command Area Development and On-Farm Water

Management for high value and high efficiency Agriculture Project 465.000 868.440

Establishment of Urban Policy Unit 150.000 28.983 92.920

Municipal Service Delivery Project 700.000 700.000 1,000.000

Conflict Victims Support Prigram - 1,000.000

Italian Debt Swap 147.764 160.718 25.000

Development of Model Bio-Gas for Domestic Purpose (Peshawar,

Charsadda, Nowshera, Abbottabad and Haripur15.564 31.132

Reconstruction of Flood Structures along Kiali (Swat)River in Charsadda 132.200 129.586

Archaelogy Community Tourism Field School Project 25.000

World Bank 450.000 - 660.000

Integration of Health Services Delivery with special focus on MNCH,

LHW and Nutrition Programme 450.000 660.000

UNICEF 0.100 - -

Provision for Multiple Indicators Cluster Survey in Khyber Pakhtunkhwa 0.100

CIDA 237.250 237.250 150.000

Construction of Abutments and Launching of Canadian SteelBridges

provided to Pak Army for Khyber Pakhtunkhwa 200.000 200.000 150.000

Feasibility Study for Mass Transit System in Peshawar 37.250 37.250

GTZ 400.100 225.000 600.720

Support for Development Planning 250.000

Establishment of Blood Transfusion Centers in Khyber Pakhtunkhwa 0.100

Regional Fund Malakand 250.000 150.000

Sustainable Management of Bio-Diversity in Malakand (Swat & Chitral) 150.000 75.000 350.720

112

Annex-VII

PARTICULARS

Budget

Estimates

2013-14

Revised

Estimates

2013-14

Budget

Estimates

2014-15

DEVELOPMENT BUDGET

(Rs. in million)

KFW 1,130.049 606.974 1,113.455

Equipment for Basic Health in Khyber Pakhtunkhwa 508.886 210.811 257.665

Infrastructure Support to Khyber Pakhtunkhwa 300.000

Strengthening of TB Control Programme, Khyber Pakhtunkhwa 396.163 396.163 330.790

Social Health Protection Initiative for Khyber Pakhtunkhwa 225.000 225.000

EUROPEAN UNION 5,069.656 860.730 3,860.000

KP District Governance & Community Dev. Program 1,143.000 1,280.000

Education Sector Reforms(2nd Tranche) Estt. Of 100 Primary Schools on

need basis and contruction of 10 Playgrounds 156.478 165.506

Construction of 400 Additional Classrooms in Existing Government

Schools in Khyber Pakhtunkhwa 40.178 25.224

Education Sector Reforms (3rd tranches) 1,430.000 670.000 680.000

ESR Upgradation of 50 Primary & 50 Middle Schools, Construction of 15

Playgrounds and 350 Addl. Class Rooms (4th tranche)1,300.000 900.000

Rule of Law Programme in Khyber Pakhtunkhwa 1,000.000 1,000.000

AUS AID - - 601.920

Citizen Engagment for Social Services Delivery 601.920

Sub-Total (II) Foreign Grants 30,695.280 16,294.790 31,485.920

A-Total External Resources (I + II) 35,000.000 21,060.123 39,755.000

B-Provincial Contribution 83,000.000 80,153.869 100,050.000

C-Public Sector Development Programme(PSDP) - 3,633.624

Total Development Resources(A+B+C) 118,000.000 104,847.616 139,805.000

113

Annex-VIII

(Rs. In Million)

Year Size of ADP Revised Size of ADP

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 1,002.323

1982-83 1,228.000 1,174.275

1983-84 1,176.500 1,191.500

1984-85 1,244.700 1,245.424

1985-86 1,697.000 1,912.787

1986-87 2,131.250 2,131.250

1987-88 2,472.250 2,471.050

1988-89 2,164.235 2,164.235

1989-90 2,197.625 2,198.649

1990-91 2,506.171 2,851.434

1991-92 4,813.715 4,881.569

1992-93 6,575.385 5,002.873

1993-94 4,959.000 4,764.638

1994-95 6,963.974 7,349.212

1995-96 7,665.634 8,081.917

1996-97 8,711.517 5,659.089

1997-98 4,884.740 5,498.215

1998-99 6,072.386 7,771.653

1999-00 5,745.220 8,057.541

2000-01 9,212.509 7,272.140

2001-02 7,986.220 8,710.147

2002-03 13,673.261 11,289.186

2003-04 14,696.006 12,882.982

2004-05 16,195.025 15,365.249

2005-06 21,000.000 24,397.398

2006-07 26,630.432 26,542.103

2007-08 39,462.372 32,913.949

2008-09 41,544.935 39,000.603

2009-10 51,156.956 46,330.546

2010-11 69,283.682 64,977.526

2011-12 85,141.000 84,473.628

2012-13 97,458.000 88,130.610

2013-14 118,000.000 *104,847.616

2014-15 139,805.000

ANNUAL DEVELOPMENT PROGRAMME

SINCE 1971-72 ON WARD

(*Includes PSDP of Rs. 3,633.624 million)

* *

114

Annex-IX

(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 --- 81.5

R.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 --- 119.9

R.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 50.0

R.E 83.7 93.1 176.8 2.2 373.6 --- 123.3 675.9 955.9 (-) 280.0 223.6 56.4

77-78 B.E 88.7 127.2 215.9 (-) 6.8 401.1 --- 104.8 715.0 1,149.1 (-) 434.1 398.7 35.4

R.E 93.4 119.4 212.8 14.8 426.9 --- 107.6 762.1 1,137.0 (-) 374.9 352.6 22.3

78-79 B.E 96.8 135.5 232.3 12.7 461.8 --- 104.8 811.6 1,314.3 (-) 502.7 456.8 45.9

R.E 96.6 201.3 297.9 (-)10.8 512.3 --- 108.5 907.9 1,391.2 (-) 483.3 468.4 14.9

79-80 B.E 101.3 162.8 264.1 11.2 562.8 --- 104.8 942.9 1,557.1 (-) 614.2 566.9 47.3

R.E 123.0 209.9 332.9 14.8 736.9 --- 104.8 1,189.4 1,674.8 (- ) 485.4 475.0 10.4

80-81 B.E 127.4 250.0 377.4 12.3 881.3 --- 104.8 1,375.8 1,877.6 (-) 501.8 445.8 56.0

R.E 143.2 260.7 403.9 13.2 1,060.4 --- 107.3 1,584.8 2,031.8 (-) 447.0 447.0 ---

81-82 B.E 154.4 276.6 431.0 12.3 1,203.1 --- 104.7 1,751.1 2,292.9 (-)541.8 531.6 10.2

R.E 174.7 282.6 457.3 37.0 1,132.6 --- 106.4 1,733.3 2,538.9 (-) 805.6 805.6 ---

82-83 B.E 188.7 296.2 484.9 16.6 1,223.6 --- 104.8 1,829.9 2,714.7 (-) 884.8 874.8 10.0

R.E 212.0 308.0 520.0 24.8 1,223.6 --- 105.4 1,873.8 2,989.7 (-) 1115.9 1,115.9 ---

83-84 B.E 212.0 340.2 552.2 16.0 1,364.3 --- 104.8 2,037.3 3,454.3 (-) 1417.0 1,396.0 21.0

R.E 238.3 374.6 612.9 50.7 1,374.6 --- 116.6 2,154.8 3,705.2 (-) 1550.4 1,550.4 ---

84-85 B.E 257.5 375.4 632.9 66.8 1,537.4 --- 104.8 2,341.9 4,334.7 (-)1992.8 1,992.8 ---

R.E 264.3 395.9 660.2 70.1 1,457.0 --- 119.3 2,306.6 4,512.1 (-) 2205.5 2,205.5 ---

85-86 B.E 288.9 412.3 701.2 75.0 1,622.0 --- 104.7 2,502.9 5,201.0 (-) 2698.1 2,698.1 ---

R.E 284.1 414.1 698.2 51.8 1,622.0 --- 130.7 2,502.7 5,453.7 (-) 2951.0 2,951.0 ---

86-87 B.E 307.2 430.2 737.4 52.8 1,622.0 --- 104.8 2,517.0 6,466.3 (-) 3949.3 3,949.3 ---

R.E 303.6 434.5 738.1 34.6 1,615.6 --- 130.3 2,518.6 6,811.8 (-) 4293.2 4,293.2 ---

87-88 B.E 309.3 466.1 775.4 34.6 1,831.3 --- 104.7 2,746.0 7,382.9 (-) 4636.9 4,636.9 ---

R.E 338.6 619.5 958.1 72.5 1,988.6 --- 111.4 3,130.6 7,997.1 (-) 4866.5 4,866.5 ---

88-89 B.E 369.2 531.1 900.3 74.6 2,204.5 --- 104.8 3,284.2 8,685.1 (-) 5400.9 5,400.9 ---

R.E 374.7 556.3 931.0 174.8 3,030.5 --- 136.9 4,273.2 8,607.4 (-) 4334.2 4,022.6 311.6

GROWTH IN CURRENT REVENUE BUDGET & REVENUE RECEIPTS SINCE 1974-75 ON WARD* *

115

Annex-IX

(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


89-90 B.E 369.3 581.8 951.1 159.6 3,330.2 --- 104.8 4,545.7 9,291.2 (-) 4745.5 3,735.8 1,009.7

R.E 405.6 714.5 1,120.1 197.4 3,934.0 --- 134.8 5,386.3 9,385.6 (-) 3999.3 3,574.7 424.6

90-91 B.E 391.6 691.6 1,083.2 202.4 4,356.0 --- 104.8 5,746.4 10,558.7 (-) 4812.3 3,475.6 1,336.7

R.E 430.5 759.8 1,190.3 72.8 4,301.6 --- 132.0 5,696.7 10,281.7 (-) 4585.0 4,029.7 555.3

91-92 B.E 440.3 799.7 1,240.0 25.4 6,582.4 5,987.5 204.8 14,040.1 12,732.3 (+) 1307.8 --- ---

R.E 435.7 864.3 1,300.0 20.7 6,444.1 5,999.9 402.5 14,154.8 12,737.3 (+) 1417.5 --- 926.4

92-93 B.E 527.2 972.8 1,500.0 19.6 7,304.0 6,800.0 204.8 15,828.4 14,370.8 (+) 1457.6 --- ---

R.E 688.8 958.8 1,647.6 19.7 7,366.0 5,680.0 205.2 16,038.5 14,579.0 (+) 1459.5 --- 1,938.9

93-94 B.E 639.0 1,031.0 1,670.0 9.3 8,277.2 7,500.0 204.8 17,661.3 16,511.3 (+) 1150.0 --- ---

R.E 634.2 1,040.8 1,675.0 9.3 9,392.1 5,482.0 209.5 17,785.9 16,635.9 (+) 1150.0 --- 2,898.8

94-95 B.E 686.4 1,128.0 1,814.4 11.7 11,139.0 7,800.0 4.8 20,769.9 19,189.9 (+) 1580.0 --- ---

R.E 724.3 1,272.7 1,997.0 17.6 11,454.7 6,500.0 10.0 21,279.3 19,404.5 (+) 1874.8 --- 2,718.9

95-96 B.E 875.8 1,236.0 2,111.8 12.8 13,873.1 7,970.0 4.7 23,972.4 21,972.4 (+) 2000.0 --- ---

R.E 810.2 1,487.3 2,297.5 13.9 14,345.1 6,000.0 4.8 24,631.3 23,564.0 (+) 1067.3 --- 4,140.8

96-97 B.E 803.3 1,596.3 2,399.6 15.2 16,226.7 8,500.0 4.8 27,146.3 26,862.0 (+) 284.3 --- ---

R.E 1,006.7 1,754.1 2,760.8 629.1 16,134.5 6,000.0 4.8 28,029.1 25,800.0 (+) 2229.1 --- 5,154.9

97-98 B.E 1,407.9 1,867.1 3,275.0 (-) 775.0 15,064.0 9,423.0 3,310.0 30,297.0 30,058.5 (+) 238.5 --- ---

R.E 1,167.7 1,714.1 2,881.8 (-)381.8 14,086.4 6,000.0 3,327.6 29,337.0 29,451.0 (-) 114.0 --- 6,270.4

98-99 B.E 1,472.8 2,124.9 3,597.7 (-) 752.3 16,018.6 10,466.0 3,674.0 33,004.0 33,004.0 --- --- ---

R.E 1,389.3 2,262.8 3,652.1 (-)646.6 14,579.5 6,000.0 3,675.3 31,726.3 32,004.0 (-) 277.7 --- 7,497.4

99-2000 B.E 1,705.4 2,336.5 4,041.9 (-)830.2 16,867.7 11,624.0 4,078.0 35,781.4 35,493.0 (+) 288.4 --- ---

R.E 1,592.7 2,336.0 3,928.7 (-)827.9 16,613.6 6,000.0 4,057.3 35,395.7 35,263.5 (+) 132.2 --- 8,847.2

2000-01 B.E 1,740.9 2,509.1 4,250.0 (-) 955.0 21,227.5 12,899.0 4,310.7 41,732.2 39,132.2 (+) 2600.0

R.E 1,381.8 2,207.7 3,589.5 (-) 648.2 19,217.8 6,000.0 3,827.6 31,986.7 33,673.3 (-) 1038.4 --- 10,331.9

2001-02 B.E 1,862.3 2,096.1 3,958.4 (-) 776.2 21,552.2 14,328.0 4,258.6 44,067.3 45,040.4 (-) 973.13

R.E. 2,020.1 1,943.4 3,963.5 (-)953.5 19,411.8 6,000.0 3,898.0 32,323.2 34,623.0 (-) 559.845 1,195.1

2002-03 B.E 1,987.9 2,089.9 4,077.9 (-)1262.9 22,728.3 15,904.0 3,898.0 46,767.1 48,564.0 (-) 1796.9 159.0

R.E 2,140.4 2,103.4 4,243.8 1,047.9 22,872.2 6,000.0 3,898.0 37,039.3 36,171.6 867.7 221.0 13,761.6

2003-04 B.E 2,148.5 2,009.8 4,158.3 1,788.5 25,750.4 17,653.0 3,898.0 51,459.7 47,114.7 4,345.1

R.E 2,019.1 1,999.8 4,018.9 3,125.2 25,660.3 6,000.0 3,898.0 39,577.2 38,400.0 1,177.2 --- 15,737.7

398.5

116

Annex-IX

(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


2004-05 B.E 2,278.7 2,149.4 4,428.1 3,132.0 29,344.1 8,000.0 4,500.0 46,272.2 42,650.0 3,622.2

R.E 2,339.8 2,210.7 4,550.5 --- 30,215.0 6,000.0 45,000.0 45,265.5 42,650.0 2,615.5 17,911.5

2005-06 B.E 2,528.5 2,365.5 4,894.0 3,132.0 35,458.2 8,000.0 10,000.0 58,352.2 51,062.0 7,290.2 ---

R.E 2,633.9 2,555.2 5,189.1 --- 36,805.1 6,000.0 5,000.0 65,462.8 60,693.0 (-) 8799.6 12,473.2 20,302.6

2006-07 B.E 3,053.6 2,741.4 5,795.0 --- 44,034.5 8,000.0 9,712.5 67,542.0 54,500.0 (+) 13042.0

R.E 3,049.5 2,682.3 5,731.8 --- 44,645.1 6,000.0 9,765.3 66,142.2 55,173.6 (+) 10968.5 22,932.9

2007-08 B.E 3,809.1 3,172.7 6,981.8 --- 55,690.1 6,000.0 11,907.8 80,579.7 61,000.0 (+) 19579.7

R.E 3,904.6 3,075.2 6,979.8 --- 55,954.2 6,000.0 11,349.1 80,283.1 61,450.0 (+) 18833.1 0.5 25,826.2

2008-09 B.E 4,737.3 3,473.4 8,210.7 71,445.8 6,000.0 14,432.2 100,088.7 67,300.0 (+) 32788.7

R.E 3,749.2 3,425.5 7,174.7 69,965.7 6,000.0 13,183.3 96,323.7 75,600.0 (+) 20723.7 1,682.0 29,008.8

2009-10 B.E 5,991.9 3,655.7 9,647.6 83,218.5 6,000.0 14,822.5 113,688.6 80,000.0 (+) 33688.6

R.E 3,497.0 4,711.8 8,208.8 93,998.7 16,000.0 15,207.4 133,414.9 109,000.0 (+) 24414.9 11,506.6 32,509.0

2010-11 B.E 15,559.5 3,155.2 19,556.7 --- 173,033.6 31,000.0 198,590.3 127,958.0 (+) 70632.3

R.E 4,135.6 5,583.2 9,718.8 182,294.2 155,939.5 31,000.0 4,047.0 200,705.3 139,500.0 (+) 61205.3

2011-12 B.E 4,529.2 6,014.4 10,543.6 --- 191,245.0 31,000.0 --- 232,788.3 149,000.0 (+) 83788.3 --- ---

R.E 12,571.5 6,345.7 18,917.2 --- 189,058.4 31,000.0 2,264.3 241,239.9 161,000.0 (+) 80239.9 --- ---

2012-13 B.E 13,862.5 6,238.5 20,101.0 --- 228,391.0 31,000.0 --- 279,492.0 191,600.0 (+) 87892.0 --- ---

R.E 8,164.9 6,235.3 14,400.2 --- 231,525.4 31,000.0 245,925.6 195,000.0 (+) 50925.6 --- ---

2013-14 B.E 10,287.6 6,632.9 16,920.5 --- 250,065.6 31,000.0 --- 297,986.1 211,000.0 (+) 86986.1 --- ---

R.E 12,637.8 8,007.5 20,645.3 243,076.1 31,000.0 294,721.4 222,000.0 (+) 72721.4

2014-15 B.E 19,452.8 9,327.9 28,780.7 284,152.0 44,272.3 357,205.0 250,000.0 (+) 107205.0

---

---

---

---

---

117

Annex-X

SALARY NON SALARY TOTAL

1 PROVINCIAL ASSEMBLY 517,592,000 514,389,000 539 360,249,000 243,765,000 604,014,000

2 GENERAL ADMINISTRATION 1,832,128,000 2,294,545,000 2,434 1,011,374,000 1,059,043,000 2,070,417,000

3FINANCE, TREASURIES AND

LOCAL FUND AUDIT2,586,333,000 983,242,000 1,164 2,254,950,000 414,725,000 2,669,675,000

4PLANNING & DEVELOPMENT

AND BUREAU OF STATISTICS242,502,000 215,106,000 323 196,358,000 63,505,000 259,863,000

5 INFORMATION TECHNOLOGY 54,179,000 48,182,000 96 40,658,000 20,648,000 61,306,000

6 REVENUE & ESTATE 3,502,897,000 3,053,420,000 7,926 2,550,556,000 1,374,701,000 3,925,257,000

7 EXCISE & TAXATION 459,451,000 479,538,000 1,160 356,012,000 179,082,000 535,094,000

8 HOME AND CIVIL DEFENCE 1,132,914,000 1,202,925,000 1,167 462,790,000 699,100,000 1,161,890,000

9 JAILS & CONVICTS SETTLEMENT 1,072,223,000 1,503,440,000 3,470 892,061,000 408,239,000 1,300,300,000

10 POLICE 23,781,398,000 29,657,589,000 70,141 24,516,328,000 4,018,302,000 28,534,630,000

11 ADMIISTRATION OF JUSTICE 3,849,343,000 4,334,815,000 6,587 3,416,048,000 766,984,000 4,183,032,000

12HIGHER EDUCATION, ARCHIVES

& LIBRARIES6,055,093,000 5,041,265,000 11,119 6,351,544,000 693,336,000 7,044,880,000

13 HEALTH 22,807,005,000 24,842,214,000 48,200 18,807,264,000 6,429,859,000 25,237,123,000

14 COMMUNICATION & WORKS 2,261,341,000 2,142,941,000 8,109 2,124,943,000 239,754,000 2,364,697,000

15

ROADS HIGHWAYS & BRIDGES

(REPAIR) AND BUILDINGS &

STRUCTURES (REPAIR)

2,668,717,000 2,513,743,000 - - 2,904,995,000 2,904,995,000

16 PUBLIC HEALTH ENGINEERING 4,246,762,000 3,744,657,000 10,147 2,294,457,000 2,143,396,000 4,437,853,000

17 LOCAL GOVERNMENT 1,601,734,000 956,729,000 7,385 1,522,135,000 1,441,662,000 2,963,797,000

18 AGRICULTURE 2,913,869,000 2,477,000,000 6,329 2,275,086,000 867,873,000 3,142,959,000

19 ANIMAL HUSBANDRY 1,466,202,000 1,355,000,000 3,763 1,269,852,000 437,217,000 1,707,069,000

20 CO-OPERATION 140,020,000 129,000,000 355 133,257,000 18,816,000 152,073,000

21 ENVIRONMENT & FORESTRY 1,275,122,000 1,464,450,000 4,210 1,335,814,000 316,082,000 1,651,896,000

22 FORESTRY (WILDLIFE) 289,786,000 319,125,000 1,018 272,836,000 66,760,000 339,596,000

23 FISHERIES 168,883,000 173,854,000 495 158,762,000 34,684,000 193,446,000

24 IRRIGATION 3,122,158,000 3,158,804,000 7,307 1,911,358,000 1,295,293,000 3,206,651,000

25 INDUSTRIES 184,372,000 167,977,000 413 170,598,000 54,207,000 224,805,000

26MINERAL DEVELOPMENT AND

INSPECTORATE OF MINES364,479,000 336,630,000 772 268,671,000 213,193,000 481,864,000

27 STATIONERY AND PRINTING 88,104,000 116,319,000 186 57,897,000 39,980,000 97,877,000

28 POPULATION WELFARE 1,072,920,000 1,099,628,000 3,687 950,103,000 324,697,000 1,274,800,000

29TECHNICAL EDUCATION AND

MANPOWER1,972,441,000 1,786,799,000 4,648 2,038,000,000 135,378,000 2,173,378,000

30 LABOUR 175,823,000 175,822,000 389 158,884,000 54,716,000 213,600,000

31INFORMATION, CULTURE &

PUBLIC RELATIONS274,165,000 275,067,000 377 153,714,000 167,926,000 321,640,000

32

SOCIAL WELFARE, SPECIAL

EDUCATION & WOMEN

EMPOWERMENT

928,324,000 1,111,559,000 2,098 728,156,000 386,001,000 1,114,157,000

GENERAL ABSTRACT OF BUDGET ESTIMATES CURRENT EXPENDITURE

DEMAND

NODEPARTMENTS

BUDGET

ESTIMATES

2013-14

REVISED

ESTIMATES

2013-14

POSTS

2014-15

BUDGET ESTIMATES 2014-15

* *

118

Annex-X

SALARY NON SALARY TOTAL

GENERAL ABSTRACT OF BUDGET ESTIMATES CURRENT EXPENDITURE

DEMAND

NODEPARTMENTS

BUDGET

ESTIMATES

2013-14

REVISED

ESTIMATES

2013-14

POSTS

2014-15

BUDGET ESTIMATES 2014-15

* *

33 ZAKAT & USHER 134,125,000 138,125,000 300 115,457,000 38,410,000 153,867,000

34 PENSION 24,000,000,000 24,100,004,000 - - 30,819,000,000 30,819,000,000

35 SUBSIDIES 2,500,000,000 2,500,000,000 - - 2,714,900,000 2,714,900,000

36GOVERNMENT INVESTMENT &

COMMITTED CONTRIBUTION10,000,000,000 10,000,000,000 - - 12,000,000,000 12,000,000,000

37AUQAF, RELIGIOUS, MINORITY

& HAJJ AFFAIRS112,812,000 75,281,000 44 20,465,000 94,531,000 114,996,000

38 SPORTS, TOURISM & MUSEUMS 303,224,000 324,376,000 733 205,820,000 115,180,000 321,000,000

39 DISTRICT NON SALARY 100,000 100,000 - - 500,100,000 500,100,000

40 GRANT TO LOCAL COUNCILS 3,740,718,000 3,740,718,000 - - 4,114,790,000 4,114,790,000

41 HOUSING DEPARTMENT 26,370,000 22,806,000 39 19,324,000 13,193,000 32,517,000

42 DISTRICT SALARY 100,000 100,000 - 100,000 - 100,000

43INTER PROVINCIAL

COORDINATION30,469,000 25,085,000 56 24,813,000 7,832,000 32,645,000

44 ENERGY AND POWER 58,965,000 56,134,000 95 40,329,000 22,802,000 63,131,000

45 TRANSPORT 109,921,000 137,849,000 335 126,853,000 28,776,000 155,629,000

46ELEMENTARY & SECONDARY

EDUCATION60,552,937,000 64,594,426,000 187,795 65,770,671,000 7,913,767,000 73,684,438,000

47RELIEF REHABILITATION AND

SETTLEMENT 5,152,578,000 7,439,821,000 1,254 407,575,000 5,240,678,000 5,648,253,000

--DEBT SERVICING ( INTEREST

PAYMENT )7,196,057,000 7,196,057,000 - - 7,117,090,000 7,117,090,000

--

DEBT SER. ( APPRO. FOR

REDUCTION OR AVOIDANCE OF

DEBT)

3,973,344,000 3,973,344,000 - - 5,972,910,000 5,972,910,000

211,000,000,000 222,000,000,000 406,665 145,772,122,000 104,227,878,000 250,000,000,000

48 LOANS AND ADVANCES 6,290,000,000 6,290,000,000 - - 290,000,000 290,000,000

--DEBT SERVICING (LOAN FROM

FEDERAL GOVT.DISCHARGED)8,710,000,000 8,710,000,000 - - 14,710,000,000 14,710,000,000

15,000,000,000 15,000,000,000 - - 15,000,000,000 15,000,000,000

226,000,000,000 237,000,000,000 406,665 145,772,122,000 119,227,878,000 265,000,000,000

49STATE TRADING IN FOOD

GRAINS AND SUGAR86,000,000,000 33,821,320,000 1,148 332,142,000 86,181,577,000 86,513,719,000

--DEBT SERVICING (FLOATING

DEBT )12,000,000,000 12,000,000,000 - - 15,000,000,000 15,000,000,000

98,000,000,000 45,821,320,000 1,148 332,142,000 101,181,577,000 101,513,719,000

*

TOTAL (REVENUE BUDGET)

C A P I T A L E X P E N D I T U R E

Grant description has been changed from 'Grant in lieu of Octroi & Zila Tax' to 'Grant to Local Councils' for 2014-15 as under 7th NFC

Award, GST in lieu of Octroi & Zila Tax has been discontinued.

TOTAL (Capital Buget)

GRAND TOTAL (Revenue + Capital)

C A P I T A L E X P E N D I T U R E - FOOD (ACCOUNT-II)

TOTAL Capital Budget (Account-II)

*

119

Annex-XI

B.E

2013-14

R.E

2013-14

B.E

2014-15

Forecast

2015-16

Forecast

2016-17

Total Revenue 344,000 341,848 404,805 459,171 523,869

Federal Transfers 249,588 235,048 283,675 325,145 372,772

Federal Tax Assignment 198,269 183,667 227,121 258,918 295,167

1% for War on Terror 23,823 22,069 27,290 31,111 35,466

Straight Transfers 27,496 29,312 29,263 35,116 42,139

Provincial Tax & Non Tax Revenue 16,921 20,645 28,781 32,593 36,603

Provincial Tax Receipts 10,288 12,638 19,453 22,275 25,189

Property tax 188 108 123 138 154

General Sales Tax(Provincial) 6,000 8,000 12,000 14,000 16,000

Excise duties 30 30 33 36 40

Stamp duties 600 670 740 829 928

Motor vehicles tax 1,072 900 990 1,109 1,242

Infrastructure Dev Cess 0 1 2,000 2,240 2,509

Other 2,398 2,929 3,567 3,924 4,316

Provincial Non-Tax Receipts 6,633 8,007 9,328 10,318 11,414

Interest 116 116 116 128 141

Irrigation 417 425 500 550 605

Hydel Own Generation 2,361 2,800 2,850 3,192 3,575

Others 3,738 4,666 5,862 6,448 7,093

Profits from Hydro electricity 31,000 31,000 12,000 6,000 6,000

Grants 31,172 34,920 27,558 35,682 46,244

Population Welfare 477 834 477 477 477

Incentive on Cash Balance 0 1,504 0 0

Funds Transferred from Distt A/C-IV 0 5,690 0 0

PSDP(Federal) 0 2,185 0 0 0

Foreign Grants (PDMA) 0 1,679 0

Foreign Grants (Others) 0 6,733

Foreign Grants (FPA) 30,695 16,295 27,081 35,205 45,767

Capital Receipts 4,555 5,531 8,519 10,250 10,250

Recovery of Investment & loans 250 737 250 250 250

Access to Justice Programme 0 29 0 0 0

Foreign Loans (FPA) 4,305 4,765 8,269 10,000 10,000

Operational shortfall 10,764 14,704 12,000 15,000 15,000

Likely availibility of NHP arrears 0 0 32,272 34,500 37,000

Total Expenditure 344,000 341,848 404,805 459,171 523,869

Medium Term Fiscal Framework (2014-17)

(Rs. in million)

*

120

Annex-XI

B.E

2013-14

R.E

2013-14

B.E

2014-15

Forecast

2015-16

Forecast

2016-17

Medium Term Fiscal Framework (2014-17)

(Rs. in million)

*

Current Expenditure 211,000 222,000 250,000 289,601 336,403

Wages 125,238 131,532 145,772 169,096 196,151

Pension 24,000 24,100 30,819 39,680 50,790

Non-wage O&M and Contingency 30,645 35,999 37,287 42,672 49,073

Relief Measures 3,707 2,959 4,202 4,623 5,085

Subsidy 2,500 2,500 2,715 2,715 2,715

Transfers to Local Councils 3,741 3,741 4,115 4,526 4,979

Investment & comm: contribution 10,000 10,000 12,000 13,200 14,520

Interest Payments 11,169 11,169 13,090 13,090 13,090

Capital Expenditure 15,000 15,000 15,000 10,759 10,152

Domestic Debt 1,200 1,185 1,530 1,530 -

Federal Debt 3,125 3,125 8,205 3,437 3,781

Foreign Debt 4,385 4,400 4,975 5,473 6,020

Initiatives & Others 6,290 6,290 290 319 351

Fiscal Space 118,000 104,848 139,805 158,811 177,315

Development Expenditure 118,000 104,848 139,805 158,811 177,315

ADP(Provincial) 81,328 78,482 98,378 79,526 85,084

ADP(Districts) 1,672 1,672 1,672 34,080 36,464

PSDP - 3,634 - - -

FPA 35,000 21,060 39,755 45,205 55,767

Total Revenue 344,000 341,848 404,805 459,171 523,869

Total Expenditure 344,000 341,848 404,805 459,171 523,869

Surplus /Deficit - - - - -

121

WHITE PAPER AIMS AT:

Provision of necessary assistance to develop an understanding of

the budget and budget process in proper perspective. Preparation and publishing of an explanatory memorandum to the

Annual Budget Statement every year. Highlighting the trends of realization and utilization of resources of

Provincial Budget for Financial Year 2014-15. Description of Government’s policy of openness and transparency. Helping the discerning reader to evaluate financial and economic

implications for various budgetary allocations. Elucidating Revenue Assignment Mechanism, Provincial

Taxation Structure, Debt Liability and Development Program.

white paper 2014-15 paper 2014-15.pdf2. the white paper for 2014-15 portrays a comprehensive...

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