White Paper On KP Budget 2014-15

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 Governments 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 Honble 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
14
th
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 7
th
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 Terror
27,290.233 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 Expenditure C-Development Reciepts
GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2014-2015
A-General Revenue Receipts A-Current Revenue Expenditure
B-Current Capital Expenditure B-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
Budget
Estimates
2014-15
%
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.

WHITE PAPER 2014-15

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
Budget
Estimates
2014-15
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
WHITE PAPER 2014-15

Department
Budget
Estimates
2013-14
Revised
Estimates
2013-14
Budget
Estimates
2014-15
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

WHITE PAPER 2014-15

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

WHITE PAPER 2014-15

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 weeks 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--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

WHITE PAPER 2014-15

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

WHITE PAPER 2014-15

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

WHITE PAPER 2014-15

The outstanding debt liability of the Provincial Government on account of Federal Loans
(Cash Development Loans) as on 1
st
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 Governments 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
IFAD
Markup rate 1 to 4%
Repayment period 30 to 40 years

WHITE PAPER 2014-15

The details of outstanding liability on account of these loans against the Government of
Khyber Pakhtunkhwa is Rs. 88529.243 million as on 1
st
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 1
st
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 (5
th
Installment) has been earmarked
for the financial year 2014-15.

WHITE PAPER 2014-15

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
Repayment
of Principal
Mark up
Payment
Repayment
of Principal
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
WHITE PAPER 2014-15

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 7
th
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 1/6
th
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).

WHITE PAPER 2014-15

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
WHITE PAPER 2014-15

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 MoUs 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 2
nd
phase of Feasibility Study and its further
development in Khyber Pakhtunkhwa through private sector rather than public sector. Process
WHITE PAPER 2014-15

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)
WHITE PAPER 2014-15

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 31
st
October 2005, to resolve the dispute on computation of Net
Hydel Profits. The Arbitration Tribunal announced its award on 9
th
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 7
th
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 16
th
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 1
st
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 Ministers 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 Districts & 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 31
ST
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 31
ST
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 18
th
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 consumers 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 7
TH
NFC AWARD

PAYMENT OF NET PROCEEDS OF ROYALTY ON CRUDE OIL:-According to the 7
th
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
Districts, 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 DCS 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: 7
th
National Finance Commission Page 44
7
TH
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 7
th
NFC Award on 18
th
March 2010 has resolved the long
standing issue of distribution of resources between the Federation and Provinces of Pakistan.
In the 7
th
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 7
th
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: 7
th
National Finance Commission Page 45
The subvention/special grant and grant in lieu of Octroi and Zilla Tax (1/6
th
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 1/6
th
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
7
th
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 UKs
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 Pakistans 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 Pakistans 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
S
u
b

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a
t
i
o
n
a
l

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o
v
e
r
n
a
n
c
e

(
S
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)

P
r
o
g
r
a
m
m
e

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 KPs 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
Pakhtunkhwas 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 Engineers 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.
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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 managers 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 30
th
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)
Year
Opening
Balance
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 30
th
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)
Year
Opening
Balance
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 peoples 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 30
th
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 couldnt 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 & Womens 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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0
20
40
60
80
100
120
140
160
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i
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B
i
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i
o
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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 governments 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
80000
100000
120000
Local Component
Foreign Assistance
72 %
28 %
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s

i
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M
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l
i
o
n

Local Component Foreign Assistance
ADP 2014-15 100050 39755
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 years 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:-

(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

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

Construction of new Muhafiz Khanas/ Record Rooms at Peshawar, Mansehra and
Mardan.
Construction of 100 Nos 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

Billion Trees Tsunami.
Establishment of Nurseries on 79.7 Acres of land.
Afforestation over 15662 acres.
Linear plantation over of 525 Kms.
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
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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 equipments/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

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 workers 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 18
th
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

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 sectors 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 departments 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--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 Centres 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

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 Governments 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 governments 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 departments 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

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
Developing secondary arteries linking national motorways and trade corridors to
promote economic growth
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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 kms of roads and 11 bridges
(with total span of 603 meter) in the province by 2015. An allocation of Rs.9590.000 Million

436 kms 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

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

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

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 provinces economy is mainly agrarian and it predominantly
depends on an effective irrigation system. This year out of the total water sectors 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
Year
S.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
2
IDA-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
4
IDA-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
6
IDA-1113-Pak (Bannu Leather Goods Services
Control Project)
0.75% 80 half yearly 1-8-1991 *0.444
7
IDA-1163-Pak (On-Farm Water Management
Project)
0.75% 80 half yearly 1-12-1991 *1.044
8
IDA-1239-Pak (Irrigation System Rehab:
Project)
0.75% 80 half yearly 1-10-1992 *1.461
9 IDA-1487-Pak Command Water Mangt Project 0.75% 80 half yearly 15-6-1994 *1.968
10
IDA-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
13
IDA-1888-Pak (2nd Irrigation System and
Rehabilitation Project)
0.75% 50 half yearly 1-8-1998 *2.171
14
IDA-2003-Pak (1988 Flood Damages Restoration
Project)
0.75% 50 half yearly 15-9-1999 *1.490
15
IDA-2154-Pak (2nd Agriculture Research
Project)
0.75% 50 half yearly 1-11-2000 *2.269
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
20
IDA-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
22
IDA-3906-Pak (Second NWFP Community
Infrastructure Project)
0.75% 50 half yearly 15-9-2014 *38.486
23
IDA-3932-Pak NWPF Structural Adjustment
Credit (SAC II)
0.75% 50half yearly 15-9-2014 *90.000
24
IDA-3932-I Pak NWFP Structural Adjustment
Credit (SAC II)
0.75% 50 half yearly 15-9-2014 *50.000
25 IDA-4177-Pak (Developmental Policy Credit-I) 0.75% 50 half yearly 15-9-2006 *93.039
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
29
ADB-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
31
ADB-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
34
ADB-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
Description
Rate 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
Description
Rate of
Interest
No. of
Installments
First
Installment
Due from
35
ADB-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
37
ADB-917-Pak (2nd Farm to Market Road
Project)
1% 50 half yearly 1-2-1999 *8.384
38
ADB-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
40
ADB-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
43
ADB-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
47
ADB-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
55
ADB-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
59
West 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 Loans
Rate of
Interest
No. of
Installments
First
Installments
due from
Allocated
Share
Outstanding
Balance/ Amount
disbursed upto
30-6-2014
1
IDA-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 15-11-2002
SDR 2.196
*3.107
*2.019
3
IDA-2468-Pak (1992 Flood
Damages Restoration Project)
0.75% 50 half yearly 15-3-2003 *2.500 *1.689
4
IDA-2687-Pak (Primary Education
Project)
0.75% 50 half yearly 15-8-2005 *88.890 *68.888
5
IDA-2829-Pak (NWFP Community
Infrastructure Project)
0.75% 50 half yearly 1/7/2006
*16.662
SDR 10.617
*13.329
6
IDA 3516-Pak NWFP Emergency
Rehabilitation Project
0.75% 50 half yearly 15-6-2011 SDR 16.600 *18.989
7
IDA-3516-1 Pak (Investment
Programme-I)
1% 50 half yearly 15-12-2015 --- *10.256
8
ADB 1534 Pak Secondary
Education Project
1% 50 half yearly 1/2/2008
SDR 6.175
*8.197
*6.865
9
ADB 1671 Pak Women Health
Project
1.50% 50 half yearly 15-10-2005 *7.117 *4.893
10
ADB-1672 Pak- Malakand Rural
Dev:Project
1% 50 half yearly 1.9.2008
SDR 30.852
*41.808
*35.537
11
ADB-1787 Pak- Barani Area
Development Project Phase-II
1.50% 50 half yearly 15-05-2009
SDR 40.065
*52.000
*40.083
12
ADB-1854Pak NWFP Urban Dev.
Project
1.50% 50 half yearly 15-10-2008 SDR 3.038 *3.79
13
ADB-1877 Pak- Agriculture Sector
Programme(ASPL-II)
1.50% 32 half yearly 1/3/2010 *9.477 *6.811
14
ADB-1878-Pak Agriculture Sector
Programme
Libor + 0.60% 48 half yearly 1/3/2005 *15.588 *4.889
15
ADB-1900 Pak- Reproductive
Health Project
1.5% 48 half yearly 15-05-2010 SDR 3.812 *0.272
16
ADB-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
19
ADP-2286-Pak Renewable Energy
Development Sector
Libor + 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 Loans
Rate 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
20
ADP-2287-Pak Renewable Energy
Development Sector
1.50% 48 half yearly 15-12-2014 SDR 6.793 *0.409
21
IBRD-3327-Pak (On-Farm Water
Mangt. Project Phase-III)
0.75% 50 half yearly 15-9-2001 *2.300 *1.38
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
(Rupees in Million)
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
(Rupees in Million)
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)
Budget
Estimates
2013-14
Budget
Estimates
2014-15
Revised
Estimates
2013-14
Accounts
2012-13
* *
106
Annex-VI
Classification
(Rupees in Million)
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
Peshawar
700.000
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 Village
80.000 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 Mardan
6.748 0.840
Project for Strengthening Routine Immuinization in Khyber
Pakhtunkhwa
10.000 10.089
Capicity Building of Technical Teachers and TVC in Malakand 205.205 205.205
Establishment of Drug Addicts Detoxification & Rehabilitation Centre
Swabi
50.000
Capicity Building of Government Officers for Social Participation of
Persons
3.000 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 Swat
557.580 666.251 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 Haripur
15.564 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
3
FINANCE, TREASURIES AND
LOCAL FUND AUDIT
2,586,333,000 983,242,000 1,164 2,254,950,000 414,725,000 2,669,675,000
4
PLANNING & DEVELOPMENT
AND BUREAU OF STATISTICS
242,502,000 215,106,000 323 196,358,000 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
12
HIGHER EDUCATION, ARCHIVES
& LIBRARIES
6,055,093,000 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
26
MINERAL DEVELOPMENT AND
INSPECTORATE OF MINES
364,479,000 336,630,000 772 268,671,000 213,193,000 481,864,000
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
29
TECHNICAL EDUCATION AND
MANPOWER
1,972,441,000 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
31
INFORMATION, CULTURE &
PUBLIC RELATIONS
274,165,000 275,067,000 377 153,714,000 167,926,000 321,640,000
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
NO
DEPARTMENTS
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
NO
DEPARTMENTS
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
36
GOVERNMENT INVESTMENT &
COMMITTED CONTRIBUTION
10,000,000,000 10,000,000,000 - - 12,000,000,000 12,000,000,000
37
AUQAF, RELIGIOUS, MINORITY
& HAJJ AFFAIRS
112,812,000 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
43
INTER PROVINCIAL
COORDINATION
30,469,000 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
46
ELEMENTARY & SECONDARY
EDUCATION
60,552,937,000 64,594,426,000 187,795 65,770,671,000 7,913,767,000 73,684,438,000
47
RELIEF 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
49
STATE TRADING IN FOOD
GRAINS AND SUGAR
86,000,000,000 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

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