Musharraf promises whopping PSDP

ISLAMABAD: President Pervez Musharraf on Friday said the next year Public Sector Development Programme (PSDP) would have an unprecedented allocation of Rs 415 billion and indicated subsidies on essential items in the upcoming budget to provide relief to the common man.

Addressing the 18th Award ceremony of All Pakistan Newspapers Society (ANPS), the president also renewed his commitment to holding fair and transparent elections in 2007 and said all elections would take place in accordance with the Constitution.

On record increase in PSDP allocations — which hovered around Rs 100 billion between 1988-99 — the president said it has been possible due to sustained growth in recent years and also pledged to reduce poverty and provide employment to people.

“The PSDP for 2006-07 is of Rs 415 billion,” he said, adding that the massive development activity would lead to poverty alleviation through increased investment in a host of promising sectors and resultant generation of employment opportunities.

In his wide-ranging address, the president also vowed to continue fight against terrorism and extremism and said he is determined to address some of the lingering problems facing the country including stabilisation of situation in the tribal regions and socio-economic emancipation of the people in Balochistan.

President Musharraf also indicated relief for the common man in the next national budget to ease inflationary pressure that had been caused by the soaring international oil prices and increase in supply and demand due to economic growth.

Hinting at measures such as price capping and control, he said subsidies on essential items in the next national budget would greatly offset price hike pressure on common man. He said the government is determined to improve living standard of the people and provide them gas, electricity and safe drinking water at their doorsteps.

President Musharraf said the government has mapped out a comprehensive strategy to sustain the economic growth and transfer fruits of development down to the common people. He listed a number of mega projects including Coastal Highway, Gwadar Port, Mirani Dam that were started a few years ago, and said that these were nearing completion and the people would soon begin to reap their benefits.

“One has to see these developments with an optimism,” the president said, adding, “I have full faith in the country, the nation and the people”. Information Minister Muhammad Ali Durrani and APNS President Mir Shakil-ur-Rehman flanked the president. PML President Chaudhry Shujaat Hussain, Secretary General Mushahid Hussain Sayed, Minister of State for Information and Broadcasting Tariq Azim, Minister for Railways Sheikh Rashid Ahmed, Governor Balochistan Owais Ghani, Chief Minister Punjab Ch Pervaiz Elahi and CM Sindh Ghulam Arbab Rahim also attended the awards ceremony.

Speaking about challenges confronting the country, the president assigned top priority to curbing extremism and stabilizing the Federally Administered Tribal Areas. He said the government has been successful in its counter-terrorism efforts through military actions and is also focused on arresting extremism and extremist tendencies through a multi-pronged strategy, which involves reinvigoration of political agents system.

Explaining, the president said best people would be made political agents and would have special privileges and benefits. Levies and Frontier Constabulary would reinforce political agents in discharge of their responsibilities.

In addition, he declared that a Fata Development Authority is being established, the Fata Secretariat being strengthened and added that these steps together with Rs 10 billion annual expenditure on development projects in the tribal region would lead to socio-economic emancipation of the people. These steps will provide employment to people, reduce poverty and contain extremism, he added.

Pakistan, he said, is following a holistic strategy to stem extremism from society through a combination of short- and long-term measures that include stopping misuse of loudspeakers at places of worship, banning extremist organizations and publication of hate material and also improving the curriculum and mainstreaming Madaris.

Commenting on Balochistan, he stressed that there has been a visible improvement in law and order and now the local tribesmen ousted by a handful of chieftains were returning home. He said as many as 12,726 people belonging to local Kalpar and Masuri tribes, who had been forced out to live miserable lives in other provinces, have returned to Balochistan.

“The government has provided them cattle and trucks for earning a respectable livelihood — there has been a visible improvement as a result of the government’s measures,” the president observed.

He said it is only at a few places where a handful of local chieftains from Bugti, Mengal and Marri tribes have been blackmailing successive governments and maintain private militia to try to disrupt the process of development.

In contrast, an overwhelming majority of the people in the province is pro-development and favours the policies and actions of the government for realizing their long-awaited progress. “Balochistan will be stabilized in a few months,” he declared.

hmm RS.415 billion ..almost 7BN USD+... do u know what it actually means...? it means we have to spend RS 1.5 or 2 billion daily...isn't it huge?

So PSDP would be about $ 576 Million for each month that will translate into about $ 18-21 Million daily. Now that is good amount of money that get things moving in Pakistan and sustained investment into Pakistan will soon put in a good standing.


No wonder Nawaz or Benzire now want to come back to Pakistan....

president musharaf puts pakistan back on the right track and they want to come back to fill their pockets again

yes, that is true. this is a truly commendable move by the government. the rumors had been that the PSDP would be around 350 billion Rs. it had been nearly finalized. a sudden increase of 75 billion Rs is a good sign that the government really wants to push its agenda before 2007 elections. the focus i am guessing for this upcoming budget will be very socialist oriented. we'll see the provision of gas, electricity and clean water get a lot of attention. there will be money in the budget for dams and for brick water course lining. i think the next two or three years will see this amount get to 600 billion rupees, meaning it would be $10 billion. for a country of 150 million people, thats not a bad amount at all. good job GoP!

Guys,
It sounds a really good amount and should go a long way in solving alot of social problems by improving the situation in terms of unequal distribution of wealth. Few words of caution however.

1)My concern is, alot of it could end up in the pockets of people who dont deserve it.

2)Is it really a well thought out plan and a logical follow up to growth and increase in reserves or just a way to depict things this way and garner support for 2007 elections. Do we really have money to do this or we are just doing it to make a point here? Our growth has been lower than 7 which was predicted for year 2006. Then we have earth quake reconstruction going on. There has been a big hike in military expenditures.

I really hope that measures are taken according to needs and availablity of funds than on the basis of short sighted goals.

The infrastructure is not yet there to absorb such a sudden increase in PSDP. That has been happening for a few years already. Every year there is a shortfall of about 20% atleast, so the whole budget is not utilized.

Building of Bhasha dam is a welcome step. More projects of such magnitude should be built. Apart from the benefits the infrastructure will provide, the poor are bound to benefit as the contractors would have to employ thousands of laborers.