ISLAMABAD - The Annual Plan Coordination Committee (APCC) has approved a developmental outlay of Rs 1763 billion for the federal PSDP and provincial ADPs for the fiscal year 2018-19 and recommended to the National Economic Council to increase it to Rs2312 billion.

“During current fiscal our developmental outlay was more than Rs 2000 billion and in the upcoming PSDP it is going to be above than Rs 2000 billion,” claimed federal minister for planning Ahsan Iqbal while talking to media during APCC meeting. The committee has set GDP growth target at 6.2 percent for 2018-19 against the provisional estimates of 5.8 percent during 2017-18.

“The finance ministry has provided the Indicative Budget Ceiling (IBC) of Rs 750 billion but we have recommended its increase to Rs 1000 billion which is required for the continuation of momentum we have attained during past few years,” the minister said.

He said that the provinces have yet to finalise their ADPs and hoped that it will be presented before the upcoming NEC meeting.

The APCC meeting, which was presided over by the planning minister, was attended by provincial representatives and officials of the ministries and divisions. The APCC considered a developmental portfolio of Rs1763 billion for fiscal 2018-19 which includes Rs750 federal PSDP and Rs1013 provincial ADPs.

It is pertinent to mention here that for the current fiscal 2017-18 the national development outlay was Rs 2,113 billion with Rs1001 billion for federal PSDP and Rs1112 for provincial ADPs. The federal PSDP includes Rs607 billion rupee component and Rs 143 billion FEC, while provincial ADPs are Rs1013 billion which will include Rs 865 billion component and Rs148 billion FEC.

There are minor changes in the Indicative Budget Ceiling provided by the finance ministry to the ministries and division,” official source privy to the meeting said. The major change is likely to be made to the IBC of HEC from Rs 35 billion to Rs 45 billion. The increase was made on the special directive of the planning minister Ahsan Iqbal.

APCC has the mandate to make recommendation  within the IBC provided by Finance, however it has requested to increase the federal PSDP from Rs 750 billion to Rs 1300 billion which will take the federal and provincial budget outlay to Rs2313 billion. The final decision in this regard will be made by NEC which is scheduled to mee early next week, most probably on Monday, the source said.

The committee has set GDP growth target at 6.2 percent for 2018-19 against the provisional estimates of 5.8 percent during 2017-18. Agriculture is projected to grow with 3.8 percent in 2018-19, the same as per the current fiscal year, industry at 7.6 percent for 2018-19 against the provisional estimate of 5.8 percent for the current fiscal., manufacturing at 7.8 percent in the upcoming fiscal against 6.2 percent in the 2017-18, LSM at 8.1 percent for 2018-19 against 6.1 percent in the current fiscal year while growth for services is projected at 6.5 percent for 2018-19 against 6.4 percent in 2017-18.

The inflation target of 6 percent for 2018-19 was recommended against 4 percent for the current fiscal year, while total investment as percentage of GDP has been projected at 17.2 percent for 2018-19 as against 16.4 percent in 2017-18, national savings as percentage of GDP has been estimated at 13.3 percent for 2018-19 compared to 12.1 percent in 2017-18 while foreign savings (external resources) have been projected at 3.8 percent of the GDP for 2018-19 against 4.4 percent for 2017-18.

APCC has also set exports target at $27.3 billion for 2018-19 against $24.5 billion, imports at $56.5 billion for 2018-19 against $53.1 billion for 2017-18, trade balance at $29.2 billion for 2018-19 against $28.6 billion for 2017-18, current account deficit at $12.5 billion for 2018-19 against $13.7 billion for 20171-8 while CAD percentage of GDP has been estimated at 3.8 percent for 2018-19 against 4.4 percent for 2017-18.

The national development outlay at Rs 1,763 billion including federal PSDP of Rs 750 billion has been proposed for fiscal year 2018-19.