News
Sunday, June 12, 2011
KP to pay Rs 10.6m markup on debts of Rs 123 billion
Staff Report
PESHAWAR: Khyber Pakhtunkhawa (KP) government will pay a mark-up of Rs 10.60 million on loans it obtained, provincial minister for finance Muhammad Humayun Khan said Saturday.
Total outstanding debt against the provincial government stands at Rs.123110.037 million. It owes the federal governments Rs 9642.701 million while foreign exchange loans, according to budget documents, amount to Rs113467.336 million. For fiscal year 2011-12, KP government expected Rs 16.11 billion from international donors, 79 percent of which would come as grants and the rest as loans.
Because of heavy spending on security in the face of ongoing militancy in the province education and health sectors were allocated Rs 13.12 billion in comparison to Rs.18.81 billion for police, according to the budget documents. Out of Rs13.12 billion, the education sector will get Rs.10.13 billion while remaining amount will go to the health sector.
The finance minister said significant investment for the provincial development would be made in hydel power generation, mineral industry, transport, housing, tourism, and information technology. “Investment in these sectors will help the province attain financial prosperity,” Humayun Khan said.
The total volume of development schemes in 2011-2012 budget was estimated at Rs 85.14 billion and provincial share in these projects would be of Rs.69.28 billion, which is 15 percent higher than the 2010-2011 budget.
The Rs 85.14 billion development allocation would be spent on 632 ongoing schemes and 403 new projects, the minister added. “In the next year budget, development of social sector is in focus allocating nine percent for education, 15 percent for health.”
“We thank United Arab Emirates, Norway, Japan, Britain, the US, Italy, Germany, Switzerland, the European Union, the World Bank, World Food Programme and the UNDP for their support to the province’s social and economic development,” the finance minister said.
The provincial minister said the government employees’ salaries would be increased by 15 percent and pension by 15 to 20 percent despite meager financial resources and last year’s devastation by flood causing losses to the provincial exchequer of billions of rupees.
He said the conveyance allowance for the employees was exclusive for Peshawar only and from next year this allowance would be allocated to employees all over the province. “This decision will discourage government employees trying to get posted in Peshawar,” the minister said.Courtesy www.dailytimes.com.pk