NEC approves GDP growth FY20-21 target

By Staff Reporter
Thursday – June 11, 2020
ISLAMABAD: The national economic council (NEC), Wednesday, approved the macroeconomic framework for proposed annual plan 2020-21 and the gross domestic product (GDP) growth target, along with sectoral growth projections of agriculture, industry and services for fiscal year (FY) 2020-21.

According to an official statement, prime minister (PM) Imran Khan chaired the meeting of NEC in the federal capital.

The NEC also approved the national development outlay 2020-21 and federal public sector development programme (PSDP).

The meeting further approved constitution of NEC sub-committee to provide strategic guidance, maintain oversight and ensure inter-provincial coordination on sustainable development goals (SDG).

The NEC reviewed the state of economy during current FY 2019-20 and the outlook for FY 2020-21, it was noted that the upward trajectory of economy, made possible after huge efforts of the incumbent, was severely affected by COVID-19 (coronavirus) pandemic.

The meeting appreciated the steps taken by the incumbent for the revival of the economy especially protecting the poor segments of society from the adverse impacts of lockdown.

The NEC reviewed, in detail, PSDP for FY 2019-20 and the proposed development outlay for FY 2020-21.

It was informed that this is the first time that PSDP includes only those projects that have already been approved by the relevant forums which is strictly in accordance with the best practices of planning.

This will ensure fast implementation of the PSDP projects and optimum utilisation will be ensured leading to economic growth.

While reviewing the progress of PSDP 2019-20, it was noted that various initiatives taken by the federal government have contributed towards expediting the development process by timely implementation of critical development schemes.

These initiatives include among others enhancing the sanctioning powers of departmental development working party (DDWP) from Rs. 60 million to two billion rupees, central development working party (CDWP) from three billion rupees to Rs. 10 billion and executive committee of the national economic council (ECNEC) above Rs. 10 billion, quarterly authorisations without originating demand, real-time information on expenditures through SAP system and establishment of public private partnership authorities to facilitate involvement of private sector in complementing the development process.

It was informed that 149 projects costing Rs. 827 billion will complete/expected to complete by June 30, 2020.

The meeting was informed that PSDP projects for FY 2020-21 are especially focusing on development of less-developed areas of the country including Balochistan, merged areas of Khyber Pakhtunkhwa (KP), Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK).

PM Khan stated that in wake of coronavirus pandemic, the government was prioritising those sectors which promised job opportunities to the youth, agriculture sector and up-gradation of public health system in the country.

He emphasised upon the need for ensuring close and seamless coordination between the federal and provincial governments during finalisation and implementation of the development projects.

PM Khan also underscored the need for employing technology to monitor the progress of the ongoing projects.

In this context, he stressed upon the need for ensuring public participation in the development process through provision of real-time information and getting their feedback on implementation status of the projects.

PM Khan directed that biannual meeting of the NEC be ensured to review progress of PSDP projects.