Budget 2012-13 PDF

WHITE PAPER 2012-2013
Government of Khyber Pakhtunkhwa Finance Department
www.financekpp.gov.pk
FOREWORD
Budget is one of the imperative administrative tools that translate government priorities into actual implementation. In other words, Budgeting is the process of creating a plan to spend money in a way to achieve certain predefined objectives. It is composed of estimates regarding revenue and expenditure for the subsequent year. White Paper is a document that provides a snapshot about the Governments plan towards its upcoming Budget. 2. The budget for the Financial Year 2012-13 is formulated to foster
economic growth and development in the Province. Budget making cannot be done in isolation. We have to strike a balance between our needs and resources. Unfortunately, the term of this government coincided with the worst ever global and domestic recession, most active insurgency in the history of Pakistan and most devastating floods in more than 100 years. Despite such daunting challenges, the province remained steadfast and was able to provide services to its citizens during these challenging times is a matter of pride and celebration. 3. In the year 2011-12 Output Based Budget (OBB) was rolled out to a
total of 12 departments. The Output Based Budget brings together financial and non financial information and links budget spending with departmental outcomes, outputs, targets and indicators. This makes the budget document more transparent and a good tool for accountability for results. In the forthcoming budget OBB will be rolled out to all departments of the Provincial Government. 4. In year 2011-12 the Cabinet approved the concept of Internal Audit
Function. In compliance thereto, an internal audit cell was created in Finance Department, within an approved charter, in accordance with the international best practices. Internal Audit of payroll and pension was conducted on pilot basis in Finance Department that exhibited
encouraging results. The function of Internal Audit will be extended to departments of Police, Health, Elementary & Secondary Education and Communication & Works during the year 2012-13. 5. To improve the service delivery outcomes at the district level, during
FY 2011-12 the Provincial Government of Khyber Pakhtunkhwa introduced the model of Output Based Budgeting in Education and Health sectors in two districts i.e Buner and D.I Khan. For this specific program conditional grants were provided for achievement of certain outcomes. The grants to these districts were provided on the basis of agreed indicators and targets like increased enrollment and increased number of children immunized. 6. Taking encouragement from the results yielded by the program, the
Provincial Government intends to extend the methodology of conditional grants to more districts during FY 2012-13. Moreover, Provincial Government has also allocated an amount of Rs. 1 billion in its regular budget for the FY 2012-13 on account of conditional grants to districts. 7. In its efforts to alleviate poverty, the Govt. of Khyber Pakhtunkhwa
has included new pro-poor initiatives in its budget besides continuation of the ongoing special initiatives like Bacha Khan Khapal Rozgar Scheme, Benazir Health Support Scheme, Hunermand Rozgar Scheme, Stoori Da Pakhtunkhwa etc. The new special initiative includes Begum Nusrat Bhutto Oncology Services, Farm Mechanization in Khyber Pakhtunkhwa, Naway Sahar Laptop scheme, scholarship scheme for the promotion of girls education in district torghar. 8. The concept of Business Plans for the line departments is
introduced which will enable the department to translate their Strategic Plans into Operational one for a period of three years in a more consistent, coherent and uniform manner. This will accordingly make the departments accountable for the results. The Medium Term Budgetary Framework (MTBF) already provides an important base for such operational/business
plans. It is pertinent to mention here that in pursuance of the decision of the Provincial Cabinet the Strategic Business Planning is being piloted in three departments i.e Health, Population Welfare & Higher Education Department. 9. Achievement and performance of the Government during the
current Financial Year has been quite significant despite continued menace of militancy. The formulation of budget for the Fiscal Year 2012-13 would not have been possible without the valuable guidance and active support of political leadership of the Province. For this I am, grateful to the honorable Chief Minister and to the Minister of Finance. 10. 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.
(SAHIBZADA SAEED AHMAD) Secretary Finance Government of Khyber Pakhtunkhwa 8th June, 2012
TABLE OF CONTENTS
CHAPTER DESCRIPTION GENERAL ABSTRACT 2012-2013
General Abstract of Revenue & Expenditure for the Year 2012-13 Budget at a Glance Summary Position of Revenues for the Year 2011-12 & 2012-13 Summary Position of Expenditure for the Year 2011-12 & 2012-13 i ii iii iv
PAGE
2011-2012 AN OVERVIEW
1 2 3 4 Current Revenue Expenditure Sectoral Expenditure Provincial Revenue Receipts Capital Receipts and Expenditures 1 4 23 28
GROWTH AND DEVELOPMENT

5 6 7 8 9 Net Profit from Hydel Power Generation Revenues from Oil and Gas Revenues Transferred to District Governments 7th National Finance Commission Hydro Electric Power Potential 36 40 48 50 53
PUBLIC FINANCIAL MANAGEMENT

10 11 12 13 Public Financial Management (PFM) Reforms Bank of Khyber Funds Management Annual Development Programme 2012-13 56 73 77 82
TABLE OF CONTENTS
ANNEXURES
I II III IV V VI VII VIII IX X XI XII XIII
DESCRIPTION
CDL Liabilities as on 01-07-2012 Detail of Premature Debt Retirement Foreign Exchange Loan Liabilities as on 01-07-2012 Disbursement of Loans in R/o of Ongoing Foreign Projects Share as on 01-07-2012 Indicative Budgetary Ceilings (2013-15) Recurrent Budget General Revenue Receipts Current Revenue Budget Development Budget by Sector for the Year 2011-12 & 2012-13 Annual Development Programme Since 1971-72 on ward Growth in Current Revenue Budget & Revenue Receipts Since 1974-75 on ward Estimated Resources to be transferred to District Governments for the Year 2012-13 Grant Wise General Abstract of Current Budget for the Year 2012-13 Summaries of Sanctioned Strength of employees for the year 2012-13
PAGE
116 117 118 120 121 123 126 128 133 134 136 137 139
GENERAL ABSTRACT OF REVENUE AND EXPENDITURE 2012-13

(Rs. In Million)
The Rupees Comes From
Budget Estimates 2012-2013
The Rupees Goes To
A-General Revenue Receipts

Federal Tax Assignment 1% of Divisble Pool for War on Terror Straight Transfers GST on Services Provincial Own Receipts (Tax & Non Tax) Profit from Hydel Power Generation Arears of Net Hydel Profit Profit from Hydel Power Generation Population Welfare Programme
A-Current Revenue Expenditure

183,684.937 General Public Service 22,071.058 Transfer to District Governments 22,157.543 Public Order and Safety Affairs 9,886.394 Economic Affairs 7,812.221 Environmental Protection 6,000.000 Housing and Community Amenities 25,000.000 Health (Excluding Health Education) 2,402.444 Recreation, Culture and Religion 477.403 Education Affairs and Services (Including Health Education etc) Social Protection 43,996.882 83,839.264 28,783.827 11,376.305 22.479 193.326 7,236.251 604.753 10,972.648 4,574.265 191,600.000
Total-A
279,492.000
Total-A
B-General Capital Receipts

Recoveries of Loans & Advances
B-Current Capital Expenditure

250.000 i) Repayment of Loans ii) Loans and Advances 7,939.000 6,003.000 13,942.000
Total-B
250.000
Total-B (i + ii)
C-Developmental Reciepts
Provincial ADP District ADP Foreign Project Assistance Total-C Grand Total (A+B+C)
C-Developmental Expenditure
72,527.670 1,672.330 23,258.000 97,458.000 303,000.000 87,786.372 (87,786.372) -
23,258.000 Foreign Project Assistance 23,258.000 303,000.000 Total-C Total (A+B+C) Net Deficit(-)/Surplus(+) General Capital Expenditure (Account-II) Less Receipts and Recoveries Net Capital Expenditure
BUDGET AT A GLANCE
(Rs.In Million)
Description
Budget Estimates 2011-12 A - GENERAL REVENUE BUDGET
Revised Estimates 2011-12
General Revenue Receipts Revenue Expenditure Net Current Revenue Budget (Deficit ( - )/Surplus (+)
232,788.300 149,000.000 83,788.300 B - CURRENT CAPITAL BUDGET
238,975.625 161,000.000 77,975.625
279,492.000 191,600.000 87,892.000
General Capital Receipts Current Capital Expenditure Net Current Capital Budget (Deficit ( - )/Surplus (+)
250.000 15,010.000 -14,760.000 C - DEVELOPMENT BUDGET
250.000 14,669.000 -14,419.000
250.000 13,942.000 -13,692.000
Receipts Expenditure Net Development Budget (Deficit ( - )/Surplus (+) Total Resources (A+B+C) Total Expenditure (A+B+C) Net Deficit ( - )/Surplus (+) General Capital Expenditure (Account-II) Less Receipts and Recoveries Net Capital Expenditure
16,112.700 85,141.000 -69,028.300 249,151.000 249,151.000 0.000 87,706.833 (87,706.833) -
15,654.631 84,473.628 -68,818.997 254,880.256 260,142.628 -5,262.372 21,920.229 (21,920.229) -
23,258.000 97,458.000 -74,200.000 303,000.000 303,000.000 0.000 87,786.372 (87,786.372) -
ii
SUMMARY POSITION OF REVENUES FOR THE YEAR 2011-12 & 2012-13

(Rs.In Million)
Description
Budget Estimates 2011-12 A-General Revenue Receipts 149,988.109 18,022.142 13,806.524 10,030.027 7,349.078 6,000.000 25,000.000 477.403 2115.017 232,788.300 B-General Capital Receipts
Revised Estimates 2011-12 152,735.048 18,352.207 17,493.778 8,922.767 7,879.422 6,000.000 25,000.000 477.403 2,115.000 238,975.625
Budget Estimates 2012-13 183,684.937 22,071.058 22,157.543 9,886.394 7,812.221 6,000.000 25,000.000 477.403 2,402.444 279,492.000
Federal Tax Assignment 1% Divisible Pool for War on Terror Straight Transfers GST on Services Provincial Own Receipts (Tax & Non-Tax) Net Hydel Profits Arears of Net Hydel Profit Population Welfare Programme Profit from Hydel Power Generation Total General Revenue Receipts (A)
Recoveries of Loans & Advances Total General Capital Receipts (B)
250.000 250.000 C-Development Receipts
250.000 250.000
250.000 250.000
Special Fedral Grant PSDP (i+ii) of which: i Grants ii. Loans Other Foreign Grants Foreign Project Assistance Total Development Receipts (C) Total Receipts (A+B+C)
16,112.700 16,112.700 249,151.000
3,087.993 3,073.118 14.875 5,052.124 7,514.514 15,654.631 254,880.256
23,258.000 23,258.000 303,000.000
iii
SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2011-12 & 2012-13

(Rs. in million)
Description
Budget Etimates 2011-12 A-Current Revenue Expenditure 38,221.347 61,142.802 23,160.460 10,003.845 22.471 157.166 5,431.310 500.538 8,994.713 1,365.348 149,000.000 B-Current Capital Expenditure
Revised Estimates 2011-12 36,540.014 66,819.003 26,946.727 10,467.242 18.340 138.734 6,035.604 522.515 8,779.617 4,732.204 161,000.000
Budget Etimates 2012-13 43,996.882 83,839.264 28,783.827 11,376.305 22.479 193.326 7,236.251 604.753 10,972.648 4,574.265 191,600.000
General Public Service Transfer to District Governments Public order and Safety Affairs Economic Affairs Environmental Protection Housing and Community Amenities Health (Excluding Health Education) Recreation, Culture& Religion Education Affairs and Services (Including Health Education etc) Social Protection Total Current Revenue Expenditure (A)
(i) Financial & Fiscal Affairs of which Foreign Debt Management of which Domestic Debt Management (ii) Financial & Fiscal Affairs Total Current Capital Expenditure (B) (i+ii)
9,849.000 6,228.889 3,620.111 5,161.000 15,010.000 C-Development Expenditure
9,508.000 5,929.625 3,578.375 5,161.000 14,669.000
7,939.000 4,239.008 3,699.992 6,003.000 13,942.000
Provincial ADP Districts ADP Special Federal Progamme PSDP (i+ii) of which: i Grants ii Loans Foreign Project Assistance Total Development Expenditure (C) Total Expenditure (A+B+C) General Capital Expenditure (Account-II) Less Receipts and Recoveries Net Capital Expenditure
67,508.000 1,520.300 0.000
70,062.259 1,520.300 5,376.555 5,336.571 39.984
72,527.670 1,672.330 0.000
16,112.700 85,141.000 249,151.000 87,706.833 (87,706.833) -
7,514.514 84,473.628 260,142.628 21,920.229 (21,920.229) -
23,258.000 97,458.000 303,000.000 87,786.372 (87,786.372) -
iv
INTRODUCTION
The Province of Khyber Pakhtunkhwa, spreads over an area of 74,521 sq km, and has a population of over 22 million. Nature has gifted Khyber Pakhtunkhwa with rich cultural and tourism friendly environment. The Province is blessed with resources which can help to increase the provinces share of GDP growth ratio. Khyber Pakhtunkhwa is largely dependent on the transfers from Federal government in the system of fiscal federalism. Share of the Provincial Receipts in lieu of the 7th NFC Award, during the FY 2011-12 from the federal divisible pool has been lesser, than anticipated. Budgetary allocations for fiscal year 2011-12, reflects heightened priority to income generation sector i.e. Hydel generation, oil and gas exploration, tourism, mineral development, agriculture and water. The development of growth sector is complemented with sizeable commitment of resources to Social Services in Education, Health and Population welfare. With the passage of 18th Constitutional Amendment Act 2010 in the Constitution of Islamic Republic of Pakistan and the omission of Concurrent Legislative list, many subjects have been transferred to the Province. This development in itself presents a formidable challenge for the Province as transfer of these functions is likely to intensify the spending pressures on the provincial government. A rising trend in the fiscal allocations has been analyzed. The current budget of the Province has been increased by 29% in 2012-13 from year 2011-12. The salary budget has increased at an alarming rate of 34% because of the intensified recruitment. Allocation of pension has shown an increase by 35%. The operational budget of the Government has increased by 27%, whereas, debt servicing has been reduced by 10%. Percentage increase from the last years budget is depicted in the following table:-
(Rs. In Million) S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 Department Elementary & Secondary Education Higher Education Health Population Welfare Law and Order Environment/ Forest Agriculture Irrigation Communication & Works Public Health Engineering Labour Mines and Minerals Excise and Taxation Budget 2011-12 545.20 4,739.89 7,837.25 170.69 18,810.00 913.98 965.84 2,340.79 2,326.87 134.38 84.96 295.55 101.79 Budget 2012-13 681.07 5,390.62 10,330.37 207.68 23,355.61 1,117.28 1,238.67 2,799.91 2,456.48 167.03 95.27 336.95 115.77 % Increase 24.92% 13.73% 31.81% 21.67% 24.17% 22.24% 28.25% 19.61% 5.57% 24.30% 12.13% 14.01% 13.73%
By and large the year 2011-12 has been a year of progress, development, social uplifts and financial reforms. This segment will highlights the Governments priority spendings in various sectors.
CURRENT REVENUE EXPENDITURE

Pakistan is fighting war on terrorism alongside its western allies. The brunt of war on terror in being borne by the Khyber Pakhtunkhwa as it is the front line province. This proxy war has pushed the Khyber Pakhtunkhwa to adopt three pronged strategy i.e offensive, defensive and consolidatory. The allocation of resources in the Khyber Pakhtunkhwa budget for financial year 2012-13 has been made accordingly. The following two areas are core features of Governments priority allocation:(a) (b) Strategy to Develop Human Resource. Maintenance of Infrastructure.
STRATEGY TO DEVELOP HUMAN RESOURCE: The strategy adopted for allocation of resources is to boost human resource development in the province. Human Development can essentially be defined in terms of expansion of people and their range of choices. As such it focuses on the ability to lead a long and healthy life, to acquire knowledge and be able to enjoy decent standard of living. These, in turn, depend upon access to basic services like Education and Health, expansion of income earning opportunities and greater participation in both economic and political process. The human resource development plays pivotal role in the overall improvement of the economy of the province. Budgetary allocations have been made keeping aforementioned position in view. MAINTENANCE OF INFRASTRUCTURE: The Province has huge infrastructure in the shape of roads, bridges, buildings, health facilities, schools, colleges, agriculture farms, irrigation canals and dams. Sizable amount of funds have always been allocated in the budget of every financial year for the maintenance of that infrastructure. The budget is composed of two components; current (operational budget) and development (adding to the infrastructure). It is a common perception that revenue expenditures are non productive. However, if amalgamated judiciously both current and developmental expenditures are complementary to each other. The infrastructure and other assets created out of developmental investment require current expenditure for operational maintenance, the same needs staff and machinery to run and operate. The current budget has the following major heads of expenditure (Grant Wise General Abstract of Current Budget 2012-13, given in the Annexure-XII):i. ii. iii. iv. Salary Operational Budget or O&M Pension Subsidies
Chapter 1: Current Revenue Expenditure

v. vi.
Debt servicing Funding of deferred liabilities/Public Account
The salary budget of the province is increasing at an alarming rate. The following table depicts the increase in posts and salary budget during the last 3 years:(Rs. in millions)
Item Current Budget Posts Salary budget O&M Pension Debt servicing Subsidy Committed contributions/ Govt. Investment BE % BE % 2010-11 Increase 2011-12 Increase 127,958.000 60 149,000.000 16 375,935 9 377,132 0.32 76,000.000 58 86,000.000 13 22,897.396 82 26,403.192 15 11,000.000 53 16,000.000 45 9,660.604 19 10,596.808 10 2,500.000 25 2,500.000 5,900.000 195 7,500.000 27 BE % 2012-13 Increase 191600.000 29 385,518 2.22 115,436.987 34 33,518.217 27 21,581.796 35 9,563.000 -10 2,500.000 9,000.000 20
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. The pension liability is also on the rise, which will increase with the frequency of retirement. Debt servicing is another liability which has been somewhat contained by premature retirement of expensive (high mark up) debts. Funding of the deferred liabilities on account of Pension and GP fund is another major expenditure, which is piling up. The investment on account of GPF and Pension fund have reached Rs. 18,498.840 and Rs. 12,440.900 million respectively as on 30th June 2012, which is however far less than the actual liability that has accrued against the provincial government. For the financial year 2012-13, the Current Revenue Expenditure has been estimated to be Rs. 191,600.000 million, against Rs. 161,000.000 million in 2011-12, showing an increase of 19%. Brief analysis of the Current Budget is as follows:(Rs. in Millions) Budget Estimate 2012-13 115,436.987 44,298.544 71,138.443 31,498.437
S.No Salary: 1
Description
Budget Estimate 2011-12 86,000.000 35,174.722 50,825.278 24,453.192
Revised Estimate 2011-12 94,226.072 37,724.593 56,501.479 29,164.620
a) Provincial b) Districts
Non Salary:

a) Provincial b) Districts* 3 Repair & Maintenance: Road, Highway & Bridges (Repair) Buildings & Structure (Repair) 4 5 6 7 Pension Wheat Subsidy Government Investment / committed contribution Debt Servicing Total
14,135.668 10,317.524 1,950.000 1,400.000 550.000 16,000.000 2,500.000 7,500.000 10,596.808 149,000.000
18,847.096 10,317.524 2,507.768 1,892.160 615.608 15,953.940 2,000.000 7,500.000 9,647.600 161,000.000
18,797.616 12,700.821 2,019.780 1,455.000 564.780 21,581.796 2,500.000 9000.000 9,563.000 191,600.000
(*Includes District Non-Salary & Octroi Zilla Tax)
The Pay Bill of the Provincial Government is increasing at an alarming rate. The strength of human resource has risen from 300,849 to 385,518 posts over 7 years; between the fiscal year 2006-07 and 2012-13, which can be seen at the following table:-
STAFF STRENGTH OF KHYBER PAKHTUNKHWA EMPLOYEES FROM 2006-07 TO 2012-13 Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Provincial 81,651 95,209 105,384 118,213 144,716 140,006 140,564 District 219,198 226,783 224,328 225,926 231,219 237,126 244,954 Total 300,849 321,992 329,712 344,139 375,935 377,132 385,518
It is important to mention here that increase in creation of posts at such a rate leaves little room for the Provincial exchequer to set aside adequate funds for operation, maintenance and developmental sector.

SECTORAL EXPENDITURE
The Provincial Government has initiated a reform program i.e Provincial Reforms Program to improve the governance system of the Province. A key component of this program is to improve the Financial Management System for bringing transparency, participation and predictability in the budget making process. The reason behind these initiatives is to make the Current and Developmental Expenditure more realistic, pragmatic, accountable and for better service delivery to the general masses.
ELEMENTARY AND SECONDARY EDUCATION

The Parent-Teacher-Council has been empowered by granting financial autonomy to it. The school funds are directly transferred to the bank accounts of the PTCs for utilization of funds according to the requirements of the school. Third Party audit has been introduced for the first time to ensure transparency and accountability. SANCTIONED STRENGTH OF ELEMENTARY & SECONDARY EDUCATION DEPARTMENT Year 2012-13 Provincial District 1,034
Total
182,032 183,066
Against the Revised Estimates of Rs. 564.315 million for 2011-12 of the Elementary & Secondary Education Department (Provincial Budget), an amount of Rs. 681.068 million has been allocated in the Budget Estimates 2012-13, showing an increase of 20.68%. Figures for district level education for the financial year 2012-13 have been projected proportionately on the basis of previous trend (as district budget has not yet been prepared). The projected budget for district level Elementary and Secondary Education sector for the financial year 2012-13 is Rs. 74,643.516 million. (Rs. in Millions) FINANCIAL YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (BE) REVISED ESTIMATE 15,614.621 17,606.510 19,710.142 22,173.910 25,278.257 36,770.205 51,478.287 74,643.516 % CHANGE 18.89 12.76 11.95 12.50 14.00 45.46 40.00
Chapter 2: Sectoral Expenditure

Since 2008-09, total number of schools has increased from 26907 to 27456. Similarly enrolment has increased from 3.597 million to 3.871 million students. The table given below elaborates the position:School Type Primary Middle High Higher Total No. of Schools 2009-10 2010-11 2011-12 22398 22608 22760 2526 2540 2557 1697 1759 1836 286 300 303 26907 27207 27456 Enrolment 2010-11 2011-12 2776642 2838847 219687 230645 562568 591292 201899 210796 3763796 3871580
2009-10 2654285 207921 538874 196000 3597080
(Source: EMIS Report E&SE Department 2011-12) In 2011-12, the position of establishment of Govt. Primary Schools (M&F) and up gradation of Govt. Primary Schools (M&F) to Middle/ Govt. Middle Schools (M&F)to High and High schools to Higher Secondary status is given below:S.No i. ii. iii. iv. v. vi. vii. viii. Schools Govt. Primary Schools (M&F) Up Gradation of Primary schools (M&F) to Middle Status. Establishment of High Schools. Up gradation of Govt. Middle Schools (M&F) to High status. Up gradation of Govt. High Schools to Higher Secondary level. Starting of Science Classes in Higher Secondary Schools. Establishment of Cluster Hostel. Creation of Additional Posts for High School Total Number of Schools /Colleges 321 161 5 136 29 5 2 Posts Created 952 1288 75 952 493 30 6 18 3,814
For the financial year 2012-13, plan for establishment/up-gradation of schools and creation of posts is given below:S.No i. ii. Schools Additional Posts for existing high School. Additional Posts for existing middle School. Posts Created 2,147 6 5

iii.
Creation of Posts for Dy. District Officer (M&F) Tor Ghar. Total
12 2,165
HIGHER EDUCATION
In the year 2011-12 new colleges have been established across the province, especially for the females. To cater for the operational needs of institutions grants have been provided to cadet colleges and public schools. Detail of Budget earmarked for Higher Education, Archives & Libraries (Provincial) for the financial year 2012-13 is as under:(Rs. in Millions) Budget Estimates 2012-13 Non Salary Total Salary 87.415 51.747 139.162 4492.073 700.872 5192.945 49.666 8.842 58.508 5390.615
S.No 1. 2. 3
Function Secretariat General Colleges Archives & Libraries Total
Budget Estimates 2011-12 145.320 4540.199 54.372
4739.891 4629.154 761.461
Existing colleges are being upgraded to postgraduate level where required. The following table depicts the position of posts created during 2011-12 and fresh posts proposed for creation in financial year 2012-13. A- POSTS CREATED DURING THE COURSE OF 2011-12 Number of Posts S.No Development Activity Colleges Created i. Establishment of Degree Colleges. 10 423 Total 423 B- FRESH POSTS CREATED FOR 2012-13 i. Additional Posts for Existing Colleges. 42 105 Creation of Posts in Directorate of ii. 1 Higher Education. Creation of Posts for Establishment of Rehman Baba Complex/Library iii. 2 25 Peshawar & Hakim Abdus Salam Library Haripur. Creation of Additional Staff for Director iv Archives & Library/Public Library 6 Abbottabad & Mardan.

Total
137

HEALTH
Health Department is the primary agent of high quality, promotive, preventive, curative and rehabilitation health services. The department has sound physical infrastructure already in place comprising of 86 Rural Health Centers, 781 Basic Health Units, 549 other Primary Health Centers with health workforce of approximately 60,000 people (regular & contract), making it the third largest department of the province. A network of 143 hospitals inclusive of 4 autonomous hospitals is spread throughout the province. Allocation in the Budget of 2012-13 for Health Department has been increased from Rs. 7,837.251 million to Rs 10,330.374 million, which shows an increase of 32%. Budget of Health Department also includes regular Grants in Aid to various Autonomous Health Institutions. Detail of these grants provided during the Year 2011-12 and 2012-13 are as follows:(Rs. In million) B.E. % 2012-13 Increase 1305.490 13 843.694 6 339.315 8 171.370 17 622.349 15 924.203 52 676.960 34 424.975 17 157.356 14 17.380 19 16 20
S.No 1 2 3 4 5 6 7 8 9 10 11 12
Institution Lady Reading Hospital, Peshawar. Khyber Teaching Hospital, Peshawar Khyber Medical College, Peshawar. Khyber College of Dentistry Peshawar Hayatabad Medical Complex. Post Graduate Medical Institute Ayub Teaching Hospital, Abbottabad. Ayub Medical College, Abbottabad. Institute of Kidney Diseases Pesh. Pakistan Institute of Community Ophthalmology Hayatabad Medical Complex Peshawar. Khyber Girls Medical College Pesh. Khyber Institute of Child Health Total
B.E. 2011-12 1152.949 797.353 313.982 146.889 543.096 606.040 504.059 362.082 137.596 14.606
182.523 212.233 19.958 4761.175 5,715.283
Grant-in-Aid have also been proposed for the following purposes in the Budget Estimates 2012-13:(Rs. In million) S.No 1 2 Institution/Purpose Endowment Fund. Provision of Emergency Drugs for poor wounded patients. 2011-12 100.000 100.000 2012-13 100.000 100.000

3 4 5 6 7 8 9 10
Creation of posts in the projects/schemes due for completion during the year. Cardiology Unit, Lady Reading Hospital, Peshawar. Cardiovascular Unit, Lady Reading Hospital, Peshawar. Fatimid Foundation Paraplegic Centre Hayatabad Peshawar. Health Regulatory Authority. Frontier Foundation Peshawar. Khyber Medical University Peshawar.
200.000 40.000 20.000 2.000 20.000 20.000 30.000 61.000
200.000 40.000 20.000 5.000 40.000 20.000 15.000 61.000
ACHIEVEMENTS DURING THE YEAR 2011-12: Revision and approval of the functions of Health Department in the light of 18th Amendment to be fed in the Rules of Business of the Government of Khyber Pakhtunkhwa for the better management of the departments mandate. Three District HQs Hospitals in Charsadda, Tank and D.I.Khan completed. Three Category-C Hospitals including Takhtbai, Chakdara and Shabqadar completed. Establishment of 5 additional wards comprising of 150 beds at HMC with additional operation theatre and Intensive Care Unit (ICU) and purchase of medical equipments worth 202 million. Introduction of skill development programme to award scholarships in the field of nursing and physiotherapy was introduced. Under this programme, Endowment fund was established under Chief Ministers Initiative amounting to Rs. 500 million to impart trainings to develop skills of competent youth in the field of nursing and physiotherapy. 131 students were awarded scholarship out of total of 158 students. Gynae/Peads ward at Ayub Teaching Hospital completed. Project with Multi donor Trust Fund for Revitalizing and Strengthening the Health Services Delivery and Nutrition Services in Crises affected districts of Khyber Pakhtunkhwa under Public Private Partnership. Under the Memorandum of Understanding signed with Novartis, 487 patients Chronic Myeloid Leukaemia were provided during the year. Deeping of Output Based Budgeting and piloting of the District Conditional Grant in two districts i.e D.I.Khan and Buner. Continued functioning of several programmes i.e Family Planning and Primary Health Care, MNCH program, TB control, HIV/ADIS control, Roll Back Malaria and Hepatitis Control. Finalization of the Secondary Health Care Reference Manual. Negotiations on the Social Health Protection. DHIS, this year has started reporting the performance of the tertiary hospitals. Free of cost treatment of TB patients throughout the province under DOTS strategy.

Promotional training imparted to 102 personnel from management cadre, 149 personnel from general cadre and induction training to 39 nurses making it a total workforce of 396 people trained in the year 2011-12. Provision of Rs. 1148.5 million for the establishment of Fountain house for Psychiatric patients for which 40 kanals land was earmarked last year.

10
Provision of Rs. 200 million for the construction of Accident and Emergency Unit in the District HQr Hospital, Charsadda. Purchase of CT Scan machine for Lady Reading Hospital, Peshawar at a cost of Rs. 90 million. Launch of World Food Programme assisted Promoting Safe Motherhood and Child Nutrition Programme with a fund of Rs. 752 million. Project for Strengthening Routine Immunization in Khyber Pakhtunkhwa with a funding of Rs. 12 million from JICA. Up-gradation of 5 Basic Health Units to Rural Health Centres. Construction of additional hostels for doctors/nurses in Lady Reading hospital Peshawar. Purchase of Medical equipments for Gynae Ward in District Headquarter hospital Chitral at a cost of Rs. 42.758 million. Treatment of 1553 Hepatitis B, and 6214 Hepatitis C patients under Hepatitis Control Programme.
PRIORITY PLANS/WAY FORWARD The priorities of the Government of Khyber Pakhtunkhwa in the health sector are designed to achieve the MDG targets 4, 5 and 6. They are as follows: Improve Governance and Strengthen Management. Initiate the Culture of the Informed Decision Making. Improve Regulation and Quality Assurance. Human Resource Development. Disaster Risk Reduction and Management. Improve Accessibility to Health Care. In the coming year, Health Department aims at the consolidation of the existing health Services in the province. The following are planned for the upcoming financial year. Problems in the performance of health care delivery system of Khyber Pakhtunkhwa have long been dictating the need of organizational restructuring which has been finalized on paper and approved as a major activity planned in the coming years. The introduction of output based budgeting system at the district level, as the actual primary and secondary service delivery are devolved in the districts. The replication of the financial mechanism of conditional grants for improved service delivery in all district of province. Strengthened internal Public Financial Management systems and introduction of Internal Audit. Implementation of Minimum Health Service Package.

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Establishment of Zulfiqar Ali Bhutto Medical College Peshawar at the cost of Rs. 350 million. Completion of 3 Category-C and 9 Category-D Hospitals. Completion of 228 bedded Women & Children hospital in Peshawar. Completion of Causality Ward in District Hospitals of D.I.Khan and Kohat. Purchase of 7 fully equipped ambulances for all teaching hospitals of the province. Launch of Prevention and Control Programme of Dengue virus with an allocation of Rs. 265 million. Rollout of District Conditional grant to 4 more districts. Award of scholarships to 158 students in the field of Nursing and Physiotherapy in the coming year. Strengthening of monitoring and procurement system to reduce fiduciary risk. Introduction of a programme for integration of RMNCH, LHW and Nutrition.
POPULATION WELFARE DEPARTMENT

Population Welfare is a vital programme of national importance. While recognizing the need to reduce unwanted fertility, the programme is providing Family Planning and Reproductive health Services to the common people throughout the Province. The programme is mainly focused on birth and child health care. The department aims to achieve population stabilization by 2020 through decline in fertility and mortality rates. The programme is also active in the area of providing awareness about small family norms. Major achievements of Population Welfare Department include; Reduction of Population Growth Rate (PGR) from 1.94% to 1.89%. Decline in total fertility Rate (TFR) from 4.65 to 4.56%. Achieved Contraceptive Prevalence Rate (CPR) of 29.15%.
Keeping in view the important role of Population Welfare Department the following targets will be focused: Reduction of Population Growth Rate (PGR) from 1.89% to 1.84%. Decline in total fertility Rate (TFR) from 4.56 to 4.47%. Achieved Contraceptive Prevalence Rate (CPR) of 30.22%.
Provincial Governments budget allocation for 2011-12 and 2012-13 is as follows:(Rs. In million) Budget Estimates 2011-12 Revised Estimates 2011-12 Budget Estimates 2012-13

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170.688
127.964
207.679

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LAW AND ORDER

Khyber Pakhtunkhwa is the main targeted province in the ongoing wave of terrorism and extremism. The below table highlights the number of attacks and scarifies rendered by law enforcement agencies in wave of terrorist activities. Consequently the expenditure on Police has increased steadily during last four years.
DETAILS OF TERRORIST ACTIVITIES (EXPLOSIONS, MISSILE ATTACKS, FIRING, SUICIDAL ATTACKS AND BLAST AT CDS/BARBAR SHOPS ETC) NO OF CASES Police REGISTERED 168 53 PERSON KILLED FC 33 Army CIVIL: TOTAL Police 6 118 210 104 PERSON INJURED FC 34 Army CIVIL: TOTAL 30 269 437
YEARS 01.07.2011 To 31.12.2011 01.01.2012 To 27.05.2012 TOTAL
161 329
28 81
1 34
1 7
81 199
111 321
94 198
12 46
4 34
301 570
411 848
A sum of Rs. 23,355.613 million has been earmarked for Police in the budget for Financial Year 2012-13, out of which Rs. 19,226.011 million is meant for salaries and Rs. 4129.602 million for non-salary/operational expenses for the police force.
ENVIRONMENT/FORESTS/WILDLIFE
Environment Protection and conservation of natural resources is one of the priority areas of focus for sustainable development. Last year the provincial government despite its limited resources provided funds for the establishment of three divisional offices in Mardan, Kohat and Bannu, conducting feasibility studies for hospital wastes management, electronic wastes and introducing environmental friendly technologies in brick kilns to control pollution in the province. It is worth mentioning that the present government also provided funds in the earlier year for the establishment of regional offices in D.I.Khan, Abbottabad and Mingora. Environmental Protection Agency (EPA) is a regulatory body for enforcement of the Pakistan Environmental Protection Act 1997. The Agency plays an important role in the dissemination of information pertaining to environmental concerns to the general public through mass awareness campaign and print and electronic media, monitoring of ambient air quality, water and noise pollution across the province and promotion of environmental education. In

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order to fulfill its regulatory obligations, the provincial government provided Rs. 74.000 million in 2011-12 for 16 different projects, which are at various stages of completion. Carrying forward the Provincial Govt. agenda of ensuring clean environment for its peoples, an allocation of Rs. 94.745 million has been proposed in ADP 2012-13 for 12 ongoing and 04 new schemes. Under the new schemes a separate building for EPA Headquarter office will be constructed, regulatory capacities of the EPA will be strengthened, and effective monitoring and pollution control regime will be established. Similarly, solar energy initiatives will be started to reduce energy crisis and dependence on electricity which is already in shortage. These initiatives of the provincial government will have a positive impact on the environment and economy of the province. FOREST The total forests area of Pakistan is about 4.8%. Khyber Pakhtunkhwa is rich in forestry resources as compared to the rest of the three provinces. The Forests cover of Khyber Pakhtunkhwa is 17.4% and the Forests of this province account for about 40% of the total forest area of the country. In addition to 17.4% 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. WILDLIFE 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 mammals, 456 species of birds and 43 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 Pakistan. The Wildlife Department is mandated for conservation and management of these species. The Sectoral strategy for achieving of objectives of conservation includes the following: Enforcement of Wildlife Laws. Establishment and Maintenance of Protected Areas. Propagation of Threatened and Endangered Species of Wildlife. Conservation Awareness Programme. Community Participation in Conservation of flora and fauna. In-situ and Ex-situ Conservation Programs
For financial year 2012-13 a sum of Rs. 1,117.283 million has been earmarked against the Revised Estimates of Rs. 1,051.944 million for the year 2011-12.
AGRICULTURE
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THE PRIMARY GOAL OF AGRICULTURE SECTOR IS:
To ensure food security, poverty alleviation and to generate employment opportunities through achieving higher growth rate in this vital sector of the economy. Agriculture sector has a vital role in fostering the economy of Khyber Pakhtunkhwa. About 80% rural population of the province is dependent for their livelihoods upon this sector. Keeping in view, the vitality of the department, the provincial government initiated certain steps for the development of this sector. Advanced technology is being used to precisely level the farms on scientific patterns not only for sustainable use of water but also to increased crop productions. Farm Services Centers established at District and Tehsil level provide improved varieties of seeds, Agriculture machinery, other agricultural inputs and education/training to farmers in modern techniques of agriculture and livestock breeding. The Khyber Pakhtunkhwa has almost an agrarian economy and more than 80% of the rural population depends for their 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 requirements on import from Punjab etc. Therefore, the primary concern is food on which the rise and fall of the nations depends. Provincial agriculture department, therefore, attaches high priority to this aspect and is availing every conceivable avenue that promotes the growth of agriculture. The following major targets will be achieved in the sector: laying out of 1100 acres of fruits orchards 235 Nos of adoptive research plots will be laid out laying out of 1515 Nos of seasonal & off seasonal vegetable demonstration plots laying out of 500 Nos of off season vegetable demonstration plots 1,350 Nos fodder demonstration plots will be laid out 1200 acres wheat & maize plots will be laid out with progressive farmers for certified seed production 5,000 Metric tone improved wheat seed will be procured & distributed 65 tones of Maize hybrid seed will be produced Propagation of 50,000 Nos of olive plants 10,000 Nos of Fruit plants will be distributed Turmeric will be cultivated on 130 acres 280 acres area will be brought under cotton crop in D.I Khan and Tank Districts 75 Nos of structures will be constructed for making compost fertilizer 7970 Nos of farmers will be trained 250 Nos fish farmers will be trained

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107 Nos of field days & workshops will be conducted 850 Nos soil conservation structures will be constructed 8530 meters of Water Courses/Channels will be improved 354 Nos water courses will be rehabilitated 315 Nos water storage tanks will be constructed for irrigation purpose Installation of Drip/Sprinkle Irrigation on 2000 Acres of land Precision land leveling of 3000 Acres will be carried out 25 Nos of Bulldozers will be purchased for land development 8000 hectares of waste land will be developed 60 Tube wells will be installed 110 Nos of Solar Pumps, Submersible Pump & Diesel Centrifugal Pumps will be installed 595,275 animals will be treated 932,739 Animals will be vaccinated 37,931 Artificial Insemination will be performed 30,000 Nos of day old chicks will be purchased/reared and further distributed among 1200 female farmers 1,151,000 Nos of Poultry Birds will be vaccinated 30 Nos of veterinary dispensaries will be established 3,200 Nos of calves will be adopted 50 male calves of improved breed will be distributed in farmers community 30,000 liters of milk will be collected and processed 50,000 sheep will be sheared from the farmers associations and the farmers association will be sensitized for wool making. Fish hatchery of 100 Kanal area will be established at District Swabi 75 Nos. Fish Farms will be established.
For financial year 2012-13 a sum of Rs. 1,238.666 million has been earmarked against the Revised Estimates of Rs. 922.574 million for the year 2011-12.
IRRIGATION
Khyber Pakhtunkhwa is a food deficient province. Since agriculture is the major water harvester, therefore sustainability of this sector directly depends on timely and adequate availability of water. Total cultivable land of the province is 6.55 million acres whereas irrigated area is only 2.27 million acres. Due to lack of industrial development in the province, the importance of agriculture is crucial which mainly depends on a smooth and effective Irrigation system. Its total wheat requirements annually is about 3.2 million tons of which its domestics production is hardly about 1 million tons. It faces a food deficient of nearly 2.2 million tons of wheat per annum which is met from PASSCO and open market purchases from Punjab. WATER 2011-12:

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Keeping in view the importance of water sector about 5000 million rupees have been spent during the current financial year 2011-12 to achieve the following targets. The Balambat Irrigation Scheme in district Dir Lower has been completed which will provide irrigation facilities to about 11360 acres land of district Dir upper and Dir lower. Construction of 04 Nos. small dams (Loughar Dam Karak, Karak Dam Karak, Khairbara Dam Haripur and Jabba Khatak Dam Nowshera) has been started which is in advance stage of completion. These small dams upon completion would irrigate a new area of about 5200 acres. Feasibility studies for 08 Nos. small dams sites while the detail design for 06 Nos. small dams have been completed. The work on Gomal Zam Dam located at South Waziristan Agency has been accelerated and 90 % work on the main dam has been completed. The dam upon completion would irrigate an area of about 163000 acres besides power generation of 17.4 MW. Installation of about 80 Nos. Tube Wells and Lift Irrigation Schemes under privatization policy has been started to provide irrigation water to approximately 10000 acres of agricultural land. Restoration activities on major structures like Munda Head Works, Amandara Head Works and Tangi Lift Irrigation Scheme have been expedited to ensure un-disrupted supplies to command area of about 450000 acres. Flood protection schemes on vulnerable locations all over the province have been constructed which would save about 10,000 acres of land from erosive action of floods Canal patrol roads in length of approximately 60 km have been constructed/reconditioned to provide better communication facilities to the dwellers of the area Dozens of small nature irrigation channels and ponds have been constructed to improve local irrigation network.
WATER 2012-13: It is planned that the following targets would be achieved in the financial year 2012-13. Bazai Irrigation scheme located in District Mardan and Malakand Agency would be completed which would provide irrigation facilities to an additional area of 25000 acres. Khandan Jonali Koch Irrigation Scheme in district Chitral would be completed which would irrigate an area of about 1200 acres. Hero Shah Minor off taking from upper Swat Canal having CCA of 2140 acres would be completed.

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Remodeling of Link Channel of Upper Swat Canal System (Swabi) and extension of Nandrak minor would be completed which will bring 1500 acres new area under command of upper Swat Canal System. Work on new small dam in district Abbottabad would be started. About 50 Nos. new tube wells would be constructed which will provide irrigation facility to an area of about 8000 acres. Canal Patrol Roads in a length of about 75 km would be constructed/reconditioned. Protection facilities will be provided to an area of about 15000 acres against the flood hazards in vulnerable locations. New small irrigation schemes in most feasible sites would be constructed besides rehabilitation of existing small schemes. Work on raising of Baran Dam district Bannu would be initiated to meet up the shortages of Marwat Canal System.
TECHNICAL EDUCATION
The importance of technical education is constantly growing and knowledge-based industries are now occupying the center stage in its development. Technical education as a major driver of economic development is well established, and this role will increase with changes in technologies. In the past Technical Education has never been a priority area for the governments in this province, but the present government has given special importance to it. As technical education and advancement is the only way to compete with the world and to boost the economy, therefore, the government has allocated an amount of Rs. 2818.341 million (Rs.2818.341 local + Rs.10 foreign fund) for the year 2012-13, to establish new technical institutes, modernize the old ones and increase the capacity and enrollment of students. Number of different Technical Institutes/Colleges and enrollment are given as below: Category College of Technology Polytechnic / Mono Technical Institutions GCMS/Commerce Institutes Vocational Institutions Technical Teachers Training Institutions Advance TTC, Peshawar NUMBER Male Female Total 11 0 11 10 23 27 1 1 3 2 18 0 0 13 25 45 1 1 14 15 TEACHING STAFF Male Female Total 591 0 591 195 74 20 0 0 269 20 14 15
S.No 1 2 3 4 5 6

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Total
73
23
96
224
94
318
ENROLLMENT IN DIFFERENT TYPES OF INSTITUTES ENROLMENT Male Female Total 11182 0 11182 3881 13825 3258 285 89 32520 405 248 760 0 0 1413 4286 14073 4018 285 89 33933
S.No 1 2 3 4 5 6
Category College of Technology Polytechnic / Mono Technical Institutions GCMS/Commerce Institutes Vocational Institutions Technical Teachers Training Institutions Advance TTC, Peshawar Total
PUBLIC HEALTH ENGINEERING:

For financial year 2012-2013 a sum of Rs. 167.032 million has been earmarked for Public Health Engineering Department (Provincial) to carry out mainly the following functions: Construction and maintenance of Rural Drinking Water Supply and Sanitation Schemes including Sewage Treatment Plants and Solid Waste Management. Levy and collection of fees, etc. For supply of water for drinking purposes. Levy and collection of fees, etc. for provision of Sanitation services including Sewage Treatment and Solid Waste Management. Planning and designing of water supply and sanitation projects including Sewage Treatment and Solid Waste Management financed from Provincial and/or Federal Funds. Water quality monitoring/mapping including maintenance of water quality database. (Rs. in million) Revised Budget Estimates Estimates 2011-12 2012-13 119.576 167.032
Head Public Health Engineering
Budget Estimates 2011-12 134.378

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LABOUR
Various Labour Laws and International Conventions has entrusted various rights to the workers working in different industrial and commercial undertakings. Labour Department (Directorate of Labour) is responsible to ensure these rights to the workers through implementation of these laws / conventions. In this regard the Directorate of Labour performs the following duties / functions: FUNCTIONS: Maintenance of Industrial Peace. Promotion of settlement of industrial disputes, individual and collective grievances of the workers. Implementation/enforcement of various labour laws through periodic inspections. Adjudication on payment of Wages to the workers. Adjudication on payment of compensation to the workers and their heirs. Registration of Trade Unions as representative bodies of workers. Enforcement of employment of Children Act, 1991 for regulating working conditions of working Children and eradication of child labour. Fixation of Minimum rates of Wages for different categories of workers. Enforcement of International system of Weights & Measures. Collection, compilation and dissemination of labour statistics. Providing free legal aid to bonded laborers with the assistance of Federal Government. Coordinating government efforts for eradication of child and bonded labour Gender related issues. Assisting in formulation of different policies concerning working community. Implementation of government policies concerning working community. Discharging role assigned to in various tripartite bodies and conferences. Realizing a reasonably handsome amount of government revenue in shape of different fees. DISTRICT WISE LABOUR AND MANPOWER S.No 1 2 3 4 5 6 7 8 District Peshawar Nowshera Charsadda Kohat Karak Bannu Lakki Marwat D.I.Khan Number of Workers 21210 6840 1152 6170 90 1720 930 3750

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9 10 11 12 13 14 15 16 17 18 19 20 21
Mardan Swabi Malakand Swat Dir Buner Chitral Haripur Abbottabad Mansehra Batagram Hangu Shangla TOTAL
7680 13550 560 2980 390 1570 60 17180 3780 1150 90 75 10 90937

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ACHIEVEMENTS: Unprecedented Industrial Peace in the province. Improvement in the working conditions of the workers through implementation of various labour laws. Fixation of Minimum Wages for different categories of workers. Contributed in provincialisation, simplification, codification and rationalization of Labour Laws. Contributed in formulation of labour and inspection policies. Verification of POL & CNG stations.
For financial year 2012-13 a sum of Rs. 95.266 million has been allocated against the Revised Estimates of Rs. 83.876 million for the year 2011-12.
MINES AND MINERAL DEVELOPMENT

The vision for mineral development must focus intensely on social mobilization and poverty alleviation through strategies relying on public-private sector participation, decentralization and good governance resulting improved growth and development. The strategic goals of the government are to attract both foreign and local private risk capital to Khyber Pakhtunkhwa mineral sector for expansion of employment opportunities; enhancement of skills; sustained development of mineral bearing areas; expanded business opportunities for local industries; increased revenue flow to the provincial and federal Government; technology transfer; regional infrastructure development and an improved database for mineral resources of the province. GRANT OF PROSPECTING LICENSES & MINING LEASES: To activate the mineral activities in the province and to ensure the participation of private sector for boosting up the mineral development activities about 1211 mining concessions for different minerals have been granted in the private sectors. The details of these mining concessions in respect of various mining titles and minerals are as under:
Division Peshawar Mardan Kohat D.i.khan Hazara Malakand Prospecting Licenses Miming leases Total
73 19 48 36 171 267
70 120 92 36 120 159
143 139 140 72 291 426

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Total
616
597
1,211
COLLECTION OF ROYALTY ON MINERALS: Under the Khyber Pakhtunkhwa, Mining Concession Rules-2005 and Labour Welfare Act-1967 a substantial amount of revenue in the shape of Royalty is being collected from minerals. For financial year 2012-13 a sum of Rs. 336.950 million has been allocated against the Revised Estimates of Rs. 274.383 million for the year 2011-12.
EXCISE & TAXATION

The Excise and Taxation Department Khyber Pakhtunkhwa plays a vital role in the Provincial exchequer and the Government has been generous enough to provide funds and resources to Excise and Taxation Department by introducing capacity building programs in order to improve the efficiency of the staff on the one hand and to broaden the tax net of the province on the other hand. The Urban Immovable Property Tax is the second most important tax of the Province. The recovery obtained from this head 85% share of the recovery is given to the Local Government. The Local Government provides Civic and Urban facilities to the people in its domain. In order to improve the higher resource deficiency of the Local Government, the Provincial Government has broaden the tax net by introducing certain reforms like A+ category on both sides of G.T Road of Provincial HQs where the economic activity has made tremendous progress. By these measures the tax is collected @ Rs. 12/- sq feet from the commercial properties and double tax on the rented properties as per formula. These steps have greatly improved the recovery. Moreover, Excise and Taxation Department has started to receive its already computerized property tax on modern Geographical Information System (GIS) basis to acquire computerized maps for a transparent tax culture. The GIS is going to be start from Peshawar as Pilot Project which should be further extended to other districts after successful completion in Peshawar. GIS base property tax would enable to extend by including new units and accurate measurement of the existing property units. It is all because of the initiatives of the present government that Excise & taxation Department achieved the last two consecutive years tax targets which is itself a bright chapter in the history of Excise and Taxation Department. For financial year 2012-13 a sum of Rs. 115.769 million has been allocated against the Revised Estimates of Rs. 95.015 million for the year 2011-12.
SUBSIDY ON PROCUREMENT OF WHEAT

WHEAT REQUIREMENT OF KHYBER PAKHTUNKHWA:

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Food Department, Khyber Pakhtunkhwa plays an important role which is summarized as under: Food Procurement, rationing and distribution. Storage of Food grain. Control over the price. PROCUREMENT OF WHEAT ESTIMATED REQUIREMENT FOR THE YEAR 2012-13: Annual estimated requirements of wheat are prepared with consultation of National Food Security and Research (NFS&R) Islamabad in April every year. Breakup of annual wheat requirements of Khyber Pakhtunkhwa is given as below:Population according to 1998 Census plus 2.61% increase annually 27,193,553 4,825,328 1,550,000 33,568,881 Requirements @ 124 KG per head per annum. (M.Tons) 3,372,000 598,340 192,200 4,162,540
Area Settled Area FATA Afghan Refugees Total
It is evident from the above that wheat requirements of Khyber Pakhtunkhwa are above 4,162,540 m.tons. After adjustment of local production of 1,021,965 m.tons the net requirements comes to 3,140,575 m.tons. This deficiency is met out through open market mechanism of demand and supply to maintain the market prices stable and meet any crisis situation the Food Department issues a specific quota to each district on the basis of population. An overview of the quantity of wheat released during the last 3 year, from Government Godowns is given in the following table:Opening balance (M.Ton) 161,736 175,856 91,201 Receipt during year (M.Ton) 523,527 396,430 492,762 Closing Balance (M.Ton) 175,856 91,201 102,745
Year
Total
Releases (M.Ton) 509,407 481,085 481,218
2009-10 2010-11 2011-12
685,263 572,286 583,963
STORAGE OF WHEAT: Wheat stores meant for Khyber Pakhtunkhwa are transported through carriage contractors from Punjab as well as Karachi at the rates approved by the Provincial Food Committee. The

25
wheat is stored in food grains godowns, stock are released to flour mills according to requirements and quota. At present, Food Department has a storage capacity of 327,150 m.tons. These godowns are scattered over 27 Provincial Reserved Centers all over the Province.

26
WHEAT INCIDENTALS: Food Department Khyber Pakhtunkhwa procures wheat from Government of Punjab/PASSCO or imports through Trading Cooperation of Pakistan Karachi. A considerable amount is spent on its transportation and storage. However the wheat is released to flour mills at subsidized rates fixed by Government. The gap is met out from Provincial Government exchequer through subsidy. WHEAT SUBSIDY FOR THE YEAR 2011-12 & 2012-13: The requirement of wheat for financial year 2011-12 was assessed at 2,500,000 m.tons. Due to supply of Atta from Punjab, the quantity was reduce to 600,000 m.tons with an estimated subsidy of Rs. 4,224.600 million. As the subsidy is paid on the basis of actual off take, therefore, Finance Department has restricted the revised estimate at the level Rs.2,000 (million). An amount of Rs. 2500.000 million has been committed for the purpose in the year 2012-13.

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PROVINCIAL REVENUE RECEIPTS

The Provincial Receipts for the financial year 2012-13 are estimated at Rs. 20101.059 million, comprising Tax Receipts of Rs. 1,3862.494 million (69%) Non-Tax receipts of Rs. 6,238.565 million (31%). Tax receipt includes GST on Services of Rs. 9886.394 million being collected by Federal Board of Revenue (FBR) on behalf of the Provincial Government. Tax Receipts comprises of 7.2% direct taxes and 61.8% indirect taxes. The direct and indirect taxes are explained as under:The taxes which come under direct taxes include taxes on Agriculture, Property, Land Revenue, Trade and Callings etc. The Revised Estimates of receipts from direct taxes during 2011-12 is Rs. 1403.650 million as compared with the Budget Estimates 2012-13 of Rs. 1462.100 million, shows an increase of 4.1%. Indirect taxes comprise of GST on services Provincial Excise, Motor Vehicle Tax, Stamp Duties, Cess of all types, Electricity Duty etc. Revised Estimates for financial year 2011-12 from indirect taxes is estimated of Rs. 11167.807 million as compared with the Budget Estimates 2012-13 of Rs. 12400.394 million registering an increase of 11%. The trend of taxes under Provincial Tax Receipts since 2007-08 to 2012-13 is demonstrated in the following tables. Most of the heads incorporated in the tables show upward trend in growth rate since 2007-08 to 2010-11. 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 2012-13, objectively and in line with the potential of the Department concerned. (Rs. in million)
Actual Estimated
TAX 2007-08
DIRECT TAXES Tax from Agriculture Urban Immovable Property Tax (Net) Tax on Transfer of Property (Reg.) Land Revenue
Tax on Profession, Trades & Callings
Urban CVT Provincial Total Direct Taxes
2008-09
2009-10
2010-11
Budget 2011-12
Revised 2011-12
Budget 2012-13
19.707
56.091
67.476
603.992
84.170
--831.436
17.344
41.595
56.103
572.652
92.365
--780.059
15.740
84.613
45.645
571.630
89.044
--806.672
17.532
77.567
58.013
770.892
98.178
247.606
1269.788
21.000
141.700
70.000
758.000
150.000
160.000
1300.700
21.000
92.650
70.000
915.000
120.000
185.000
22.000
98.100
72.000
920.000
150.000
200.000
1403.650
1462.100
Chapter 3: Provincial Revenue Receipts

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24
(Rs. in million)
Actual TAX 2007-08 2008-09 2009-10 2010-11 Budget 2011-12 10030.027 30.000 898.890 550.000 1.000 Estimated Revised 2011-12 8922.767 25.000 900.340 550.000 -Budget 2012-13 9886.394 30.000 957.000 600.000 --
INDIRECT TAXES GST on -Services Provincial 31.370 Excise Motor Vehicle 667.494 Tax Stamp Duty 411.504 Entertainment 4.731 Tax Others/ Hotel Tax/Real Estate Dealer 221.811 Electronic Media/TDC/ KDF Electricity 33.490 Duty Total Indirect 1370.400 Taxes Total Provincial 2201.836 Taxes
-28.345 699.093 358.435 3.059
-23.636 833.916 357.360 0.679
-23.381 874.844 408.610 0.023
248.381
229.622
262.887
379.000
299.700
377.000
34.294 1371.607
38.846 1,484.059
584.134 2153.879
450.405
470.000
550.000
12,339.322 11,167.807 12,400.394
2151.666
2,290.731
3423.667
13,640.022 12,571.457 13,862.494
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 2012-13, Rs. 6,238.565 million are estimated as per given table:(Rs. in million) Budget Revised Budget Sector 2011-12 2011-12 2012-13 Income from Property and Enterprises. Interest 116.356 116.356 116.356 Dividends 20.000 20.000 20.000 Own Hydel Generation 2115.017 2115.000 2402.444 General Administration. 127.600 127.950 132.700 Law and Orders. 496.263 534.535 558.762 Community Services. 430.000 595.000 630.000 Social Services. 295.816 282.333 255.874

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Economic Services. 1968.526 2207.006 1759.307 Miscellaneous. 284.522 347.552 363.122 Total Non-Tax Receipts 5854.100 6345.732 6238.565 Further Department-wise, Sector-wise Non-Tax receipt is discussed as under:The composition of receipts from Community Services is as under: i. Tolls on roads and bridges. Sale of tender forms. ii. 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 million)
Sector Building, Communication & PBMC. Public Health TOTAL KP.H.A* Actual 2007-08 185.386 96.788 282.174 107.497 Actual 2008-09 147.794 91.535 239.329 108.966 Actual 2009-10 271.302 98.982 370.284 112.202 Actual 2010-11 381.047 128.078 509.125 101.845 Budget 2011-12 270.000 160.000 430.000 115.000 Revised 2011-12 370.00 225.000 595.000 110.000 Budget 2012-13 400.000 230.000 630.000 120.000
* Receipt retained by Khyber Pakhtunkhwa Highway Authority in the Road Maintenance Fund.
The composition of receipts from Social Services is as under:a) Education. Health. b) c) Manpower Management. (Rs. in million)
Sector Higher Education, Archives & Libraries Deptt Elementary & Secondary Education Deptt Technical Education. Museum. Tourism Deptt Health Deptt Manpower Management Actual Actual Actual Actual Budget Revised 2007-08 2008-09 2009-10 2010-11 2011-12 2011-12 68.419 83.948 11.286 --55.924 1.716 86.466 38.065 10.475 --54.771 2.107 18.424 0.347 -72.248 2.553 48.885 18.451 1.116 -83.438 3.893 45.000 19.000 0.350 -164.901 0.450 45.000 20.000 0.750 10.000 102.988 0.475 3.000 21.000 0.800 11.000 114.449 0.500 101.899 66.115 103.120 Budget 2012-13 105.125

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Total
152.874
153.819
200.056
257.682
295.816
282.333
255.874
The receipt in respect of Primary and Secondary Education and Health Department at District level is retained in the Districts Account No.IV for utilization within the same sectors as per decision of the Provincial Government. Similarly, receipts of big teaching hospitals are retained by these hospitals in line with the financial autonomy given to them The composition of receipt from Economic Services is as under:(Rs. in million)
Sector Agriculture Fisheries Livestock & Dairy Development Forests & Wildlife* Irrigation Mineral Development. Printing + Registration Renewal of Printing Press Industries Total: Actual 2007-08 117.120 11.119 31.573 547.572 268.156 336.923 Actual 2008-09 88.895 10.931 36.380 594.630 220.422 298.584 Actual 2009-10 101.199 13.388 41.336 1035.687 267.372 563.146 Actual 2010-11 98.056 18.770 57.170 761.990 328.077 651.781 Budget 2011-12 106.650 14.000 45.200 710.000 405.926 633.000 Revised 2011-12 100.250 16.000 49.500 811.000 524.926 649.280 Budget 2012-13 125.250 20.000 51.500 420.000 402.677 680.280
27.693 2.205 1342.361
36.796 2.455 1289.093
50.588 2.923 2075.639
52.675 3.438 1971.957
51.200 2.550 1968.526
53.200 2.850 2207.006
56.500 3.100 1759.307
*NB Receipt from Forest reduced (BE 2012-13) to divert it to Forest Development Fund in accordance with Cabinet decision
The General Administration includes Examination Fees, receipts-in-aid of superannuation and receipts under the Weights and Measures and Trade Employees Act. The Civil Administration includes receipts from Home & Tribal Affairs Department, 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 million)
Sector A-General Administration B- Law and Order Actual 2007-08 78.194 349.956 Actual 2008-09 99.715 506.680 Actual 2009-10 104.193 569.347 Actual 2010-11 134.301 524.384 Budget 2011-12 127.600 496.263 Revised 2011-12 127.950 534.535 Budget 2012-13 132.700 558.762

27
Administration of Justice Police + Private Security Companies Jails Total (A+B):
53.429 289.180 7.347 428.150
64.965 434.655 7.060 606.395
96.476 469.436 3.435 673.540
98.493 417.871 8.020 658.685
100.000 389.763 6.500 623.863
100.600 427.435 6.500 662.485
101.230 450.532 7.000 691.462
INCOME FROM PROPERTY AND ENTERPRISES: This includes provision for interest of Rs. 116.356 and dividends of Rs. 20.000 million in the R.E 2011-12, whereas in B.E 2012-13 the provision is Rs. 116.356 million and Rs. 20.000 million respectively. ENERGY AND POWER i) Receipts from Sale of Electricity of Hydel Power Station Own Generation: The Malakand-III, Pehur, Shishi & Reshun Hydel Power Station Projects have been commissioned. The approximately income from sale of electricity accrued during the current financial year would be Rs. 2 billion approximately. Income upto 2.4 billion is expected during the year 2012-13. ii) Electricity Duty: Electricity duty is collected by WAPDA on behalf of the Provincial Government. At times WAPDA did not credit the electricity duty to Provincial Government and adjusted the amount collected against electricity bills, usually of local governments. Energy Monitoring Cell of Finance Department is playing active role to resolve the issue of source deduction by Federal Government/WAPDA. SHYDO authorities have already been requested by Finance Department to take up fresh Hydel project at the earliest and Finance Department will provide necessary funds. By doing so, Finance Department will get more receipt in future. Details of total provincial receipts (targets & actual realization) during the last eight years are depicted in the following table:-
S.No 1 2
Years 2004-05 2005-06
Budget Estimates 4021.775 4474.166
Actual Recovery 4224.614 4340.707

28
3 4 5 6 7 8
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
5200.000 6220.000 7444.202 7537.200 7231.624 19494.122
4773.667 5322.875 5430.248 6414.189 8828.664 7125.578 Up to April 2012 (Rs. In Million)

29
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 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 2011-12 (Budget and Revised) and 2012-13 (Budget) is reflected in the following table:(Rupees in million) Revised Budget Budget Estimates Estimates Estimates 2011-12 2011-12 2012-13 250.000
250.000
S. No i
Nomenclature Recoveries of Loans and Advances TOTAL:
250.000
250.000
250.000
250.000
The Current Expenditure on Capital Account includes the following: a) Repayment of Federal Loans. 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 Small Medium Enterprises & Cooperative Bank/Traders. f) Pro Poor Welfare Scheme The position regarding the above components of current expenditure on Capital Accounts for 2011-2012 (Budget and Revised) and 2012-13 (Budget) is shown in the following table:(Rupees in million) Budget Revised Estimates Estimates 2011-12 2012-13 4728.889 3039.008 3578.375 3699.992 1200.736
90.000
S.No
Nomenclature
i ii
iii
iv
Repayment of Federal Loans Repayment of Foreign Loans Repayment of SBP Loan for Recapitalization of Bank of Khyber Loans to Provincial Government Employees.
Budget Estimates 2011-12 4728.889 3620.111 1500.000

60.000
1200.000
60.000
Chapter 4: Capital Receipts & Expenditures

28
v vi vii
Write off of Loans and Advances to Provincial Govt. Employees Loan to ,SMEs /Traders & Cooperative Bank Pro Poor Welfare Schemes TOTAL
1.000 600.000 4500.000 15010.000
1.000 570.000
1.000 200.000
4500.000 5742.000 14669.000 13942.000
The outstanding debt liability of the Provincial Government on account of Federal Loans (Cash Development Loans) as on 1st July, 2012 is Rs. 9161.813 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. 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 World Bank (IDA) Terms & conditions

29
Service Charges Repayment period Grace period Asian Development Bank (ADB) Service Charges Repayment period Grace period IFAD Markup rate Repayment period Grace period
0.75% 25 years 10 years
1 % to 1.5% 15 30 years 10 years
1% & 4% 30 to 40 years 10 years
The details of outstanding liability on account of these loans against the Government of Khyber Pakhtunkhwa is Rs. 88431.786 million as on 1st July 2012 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 30.6.2012 is Rs. 32940.707 million against the allocated share of Khyber Pakhtunkhwa. Total outstanding debt against the Provincial Government as on 1st July, 2012 is Rs. 130534.306 million as detailed below:Federal Government Loans Foreign Exchange Loans Total: Rs. 9161.813 million Rs. 121372.493 million Rs. 130534.306 million
LOAN/WRITE OFF LOANS TO PROVINCIAL GOVERNMENT EMPLOYEES: For facilitating the provincial government employees the provisions are made under these heads for construction/purchase of houses, motor cars, 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. ii. In case of Government servants in BPS-I to BPS-15, full outstanding amount is waived off; In case of Government servants in BPS-16 & above, the outstanding amount is waived off on the basis of following formula:-

30
Outstanding amount 1. Upto Rs. 20,000/2. Beyond Rs. 20,000/-
Extent of write off Full outstanding amount Rs.20,000/- plus 50% of residual liability Subject to total relief not exceeding Rs. 1.5 lac (inclusive of Rs. 20,000/-).

31
LOAN TO COOPERATIVE BANK: Provincial Government has revived the Cooperative Bank and is providing an amount of rupees one billion in installments. 1st installment of Rs.200.000 million was released during financial year 2010-11 and 2nd installment of Rs. 200.000 million has been released during financial year 2011-12. The bank will provide loans on easy terms for necessary equipment of farming, seeds, poultry, dairy & live stock and to rural women for handicrafts. A sum of Rs. 200.000 million (3rd Installment) has been earmarked for the next financial year 2012-13. 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 2011-12 and 2012-13 on account of internal and external debt is given in the table:(Rs. in million)
Nomenclature Budget 2011-12 Mark up Repayment charges of Principal Revised 2011-12 Mark up Repayment Charges of Principal Budget 2012-13 Mark up Repayment charges of Principal
A-INTERNAL DEBT i) C.D.Loans ii) Un-funded Debt (GP Fund) iii) Other Floating Debt Sub-Total (A) B - Loans From Foreign Agencies C - Other Debt Servicing Sub-Total (B&C) D Domestic Debt (to SBP) Total (A+B+C+D) 1133.968 4000.000 800.000 5933.968 1126.919 3535.921 5463.999 -10596.808 4728.889 ----4728.889 3620.111 -3620.111 1500.000 9849.000 1149.328 3300.000 200.000 4649.328 1462.351 3535.921 4998.272 --9647.600 4728.889 ----4728.889 3578.375 --3578.375 1200.736 9508.000 1076.822 3600.000 500.000 5176.822 1086.088 3300.090 4386.178 --9563.000 3039.008 ----3039.008 3699.992 --3699.992 1200.000 7939.000
PRO-POOR WELFARE SCHEMES/SPECIAL INITIATIVES: An amount of Rs. 4500.000 million was allocated for Pro Poor Welfare Schemes in the budget 2011-12. Major work has been completed on the different components and the schemes shall

32
be continued during 2012-13 with an allocation of Rs. 5742.000 million. Major components wise status of the initiatives is as follows:-

33
ONGOING INITIATIVES: i. BACHA KHAN KHPAL ROZGAR SCHEME: The scheme is aimed at employment generating, interest free micro financing of Rs. 25,000 to 100,000 through The Bank Khyber to the people of the province. 30 % of the financing is reserved for women. The funds are allocated to the districts in accordance with PFC formula. The Bank of Khyber has already launched the scheme and a sum of Rs. 1080 million has been disbursed among 11986 applicants. For this purpose Rs. 1.000 billion have already been provided during 2011-12 and an additional sum of Rs. 1.000 billion will be provided during 2012-13. PAKHTUNKHWA HUNERMAND ROZGAR SCHEME: In order to provide employment opportunities to skilled youth and reduce poverty and promote income generating economic activities in the province, Khyber Pakhtunkhwa Hunermand Rozgar Scheme was initiated. Under this scheme loan in the range of 50,000 to 300,000 is being granted to diploma/certificate holders from Vocational or Skill Development Centers at very soft terms of 5% markup only. The loan facility shall be available for business activity in the fields of marble, gem stones, minerals, handicrafts, automobile repairing, plumbing, electrician, furniture, light engineering, garments, embroidery, hair dressing and beauty salons, leather products, information technology and all such subjects leading to economic stabilization. 30% of the funds shall be reserved for females. The programme is being executed through The Bank of Khyber and coordinated by the Directorate of Technical Education and SMEDA. An amount of Rs. 1300 million has been allocated for the purpose. The scheme will be continued during next F.Y 2012-13. RIWAITI HUNERMAND SCHEME: Khyber Pakhtunkhwa has a rich historic and cultural heritage. Many arts and crafts have its distinctive features such as architecture, music, tiles work, pottery, inscription, jewelry etc. To keep such folk crafts alive, the artisans are being supported under Riwaiti Hunermand Scheme for which an amount of Rs. 150.000 million was allocated during 2011-12 and a sum of Rs, 300.000 million has been allocated during the next financial year 2012-13. BENAZIR HEALTH SUPPORT PROGRAMME- TREATMENT OF PATIENTS OF HEPATITIS-C: In order to provide free treatment to the poor patients suffering from hepatitis-C an endowment fund has been established in Health Department with an amount of Rs. 1000 million during 2010-11 and 2011-12. The scheme shall continue during the next financial year 2012-13. ESTABLISHMENT OF IT PARKS: IT industry can turn around the wheel of economy and create unlimited employment opportunities if the potential is exploited properly.
ii.
iii.
iv.
v.

34
A scheme was initiated during 2011-12 for the establishment of IT Parks in Khyber Pakhtunkhwa. Under this scheme the potential investors and Multinationals are offered attractive incentives, to establish call centers in the Province. For this purpose a Steering Committee has been constituted under the Chairmanship of Chief Minister. Khyber Pakhtunkhwa IT Board has been established under an Act of the Provincial Assembly. For this purpose a sum of Rs. 400.000 million has already been provided and a further sum of Rs. 600.000 million has been allocated in the budget 2012-13. vi. STORI DA PAKHTUNKHWA SCHEME: Stori Da Pakhtunkhwa Scheme or stars of Pakhtunkhwa scheme has been launched to motivate and encourage talented students. The first 10 position holders in Matric and Intermediate Arts and Science, from each Education Board in the province are being granted Rs. 10,000 (Matric) and Rs. 15,000 (Inter) respectively for a period of two years. The objective is to encourage talented students, improve the quality of education and foster the spirit of competition among the students. An amount of Rs. 88.100 million has been disbursed during the CFY 2011-12 and a sum of Rs. 100.000 million has been allocated for this purpose in the budget 2012-13. ROKHANA PAKHTUNKHWA PUBLIC PRIVATE PARTNERSHIP SCHEME: Quality education is the top priority of the provincial government. In order to inculcate continuation of education, the government shall pay the fee of all boys and girls in class 9th and 10th in private schools; in two Union Councils of each district, where there is no high school; under public private partnership. A sum of Rs. 500.000 million has been allocated during the CFY 2011-12 and a sum of Rs. 500.000 million has been earmarked during the ensuing financial year 2012-13. TRAINING IN CENTERS OF EXCELLENCE IN MARKET ORIENTED TECHNOLOGY: Under this Scheme, diploma and certificate level technical training is being imparted to 1500 male and female students in various market demand based technologies in the technical institutes in the Province and Punjab. For this purpose Rs. 300.000 million has been allocated in the budget 2011-12 and the scheme shall continue for three years. B.SC AND M.SC NURSING SCHEME: Health is another priority area. In order to improve the quality of service delivery in the hospitals and improve the efficiency of nursing staff, the government is launching a B.Sc and M.Sc nursing programme. In this regard the facility available under Khyber Medical University and Agha Khan Medical University shall be availed. For this purpose a sum of Rs. 500 million has been allocated in the budget 2011-12. The scheme will be continued with the same allocation during the next financial year 2012-13.
vii.
viii.
ix.
NEW INITIATIVES:

35
x.
xi.
FARM MECHANIZATION IN KHYBER PAKHTUNKHWA: Farm Mechanization is the need of the hour. In order to educate farmers to use modern tools with increase in productivity, the Provincial Government intends to provide funds to Farm Services Centers. For this purpose an amount of Rs. 500.000 million has been earmarked in the budget 2012-13. BEGUM NUSRAT BHUTTO ONCOLOGY SERVICES: The number of cancer patients has drastically been increased during the past few years. Cost of medicines and treatment of this fatal disease is out of reach poors as well as common people. In order to provide free medicine to the poor patients suffering from cancer the Provincial Government has allocated an amount of Rs. 500.000 million in the budget 2012-13. SCHOLARSHIP SCHEME FOR PROMOTION OF GIRLS EDUCATION IN DISTRICT TORGHAR: Human Resource Development is an essential tool for Socio Economic development. The female literacy rate in the newly created District Tor Ghar is alarming. In order to motivate parents to admit their daughters and reduce their dropout rate, a scholarship scheme for girls students is proposed, within the parameters such as; a) Rs. 1500 per month shall be granted to 250 girls students from class 1-5, for five years, from the five Tapas of the District, in the ratio of their respective population b) Rs. 2000 per month shall be granted to 250 girls students from class 6-10, for five years, from the five Tapas of the District, in the ratio of their respective population c) 50 students per class shall be selected on merit through ETEA test every year. In order to inculcate merit and spirit of competition and discourage misuse of the facility, the existing students shall undergo ETEA test every year d) 90% attendance shall be essential to qualify for the scholarship e) the scholarship shall be granted for 9 working months every year f) the girl students shall be allowed to study in any primary/middle/high school in the district. SCHOLARSHIP SCHEME FOR PROMOTION OF GIRLS EDUCATION IN DISTRICT KOHISTAN: On the analogy of District Tor Ghar, a scholarship of Rs. 2000 per month shall be granted to girls students of class 6-10 in District Kohistan within the parameters such as; (a) Rs. 2000 per month shall be granted to 100 girls students per class from class 6-10, for five years (b) 100 students per class shall be selected on merit through ETEA test every year. In order to inculcate merit and spirit of competition and discourage misuse of the facility, the existing students shall undergo ETEA test every year to qualify of the scholarship (c) 90% attendance shall be essential to qualify for the scholarship (d) the scholarship shall be granted for 9 working months every year (e) the girl students shall be allowed to study in any primary/middle/high school in the district. A sum of Rs. 45.00 million shall be spent on the scheme during five years period. A sum of Rs. 242.000 million shall be spent on the program in both the districts collectively.
xii.
xiii.

36
xiv.
NAWAY SAHAR LAPTOP SCHEME: The Provincial Government has always aimed at promotion of education in the Province. For this purpose Naway Sahar Laptop scheme is introduced to encourage and attract talented students to education. Under this scheme 25000 laptops will be distributed among students who have completed 16 years of education and 100 top students of intermediate class in all Boards. Rs. 1 billion is allocated for the said scheme in the year 2012-13. LONG TERM FINANCING FACILITY FOR DEVELOPMENT OF INDUSTRIES IN KHYBER PAKHTUNKHWA: The Provincial Government has decided to allocate seed money to Bank of Khyber which will act as part time DFI. This is to be extended to investors investing in Labour Intensive, Expert Oriented and Imports Substitutive industries. Tenure of the loan is 8 years, debit equity ratio 60:40, interest is 7% per annum and grace period is 2 years. For this purpose an amount of Rs. 1000.000 million has been allocated in the budget 2012-13. MASS TRANSIT SYSTEM FOR PESHAWAR: There was once a Babu Train use to ply between Nowshera and Peshawar, which has been disband due to unavoidable circumstances. According to research, overhead bridges are not a solution to traffic problems. In order to cope with the growing pressure of traffic in Peshawar, launching of a mass transit system is inevitable in collaboration with Pakistan Railways. For this purpose the existing track can be used and in the first phase the scheme can be launched between the ring road and Peshawar Cantt. CONDITIONAL GRANT FOR MISSING FACILITIES IN EDUCATION AND HEALTH SECTORS: The UK government provided a grant of 0.2 million for missing facilities in education and health sector in the District Buner and D.I.Khan during 2011-12. Keeping in view the success of the program, the UK Government has expressed its willingness to extend the program, besides that the programme has been extended to six districts and the provincial government has allocated Rs. 1 billion for the purpose in the budget estimates 2012-13.
xv.
xvi.
xvii.
SOCIAL WELFARE SCHEMES
i.
STIPENDS TO UNEMPLOYED POST GRADUATES: Provincial Government has initiated postgraduate stipend scheme from July 2006. The amount of stipend is Rs. 1000/- per student per month. A sum of Rs. 39.600 million has been distributed during 2011-12. The scheme will continue for the financial year 2012-13 with an allocation of Rs. 39.600 million.
ii. SUBSISTENCE ALLOWANCE TO SENIOR CITIZENS: A monthly stipend scheme at the rate of Rs. 500/- per month for senior citizens aged 70 years and above has been initiated since last three years, to support the senior citizens. The scheme has been started in three districts i.e. Shangla, Batagram and Kohistan, which may be

37
extended to other districts. A sum of Rs. 10.000 million has been allocated in the budget 2011-12 and Rs. 12.000 million has been earmarked in the budget 2012-13. iii. CHILD PROTECTION COMMISSION: While meeting obligations of the Convention on the Rights of Children the Provincial Government has established Children Protection Commission, under Khyber Pakhtunkhwa Child Protection Welfare Act 2009. An amount of Rs. 10.000 million has been allocated in the budget for 2011-12 and Rs. 15. Million have been earmarked in the budget of 2012-13 for this purpose. iv. GRANT-IN-AID TO DISABLED PERSONS: By realizing the difficulties of the disable persons, the Provincial Government has launched a program of Grant-in-Aid for disable persons. The grant shall be used for purchase of tri-cycles, wheel chairs etc. A sum of Rs. 20 million has been allocated for the F.Y 2012-13 for this purpose.

38
INTRODUCTION
The 7th NFC award has thrown opportunities and challenges for the province in respect of its growth. Khyber Pakhtunkhwa gets 16.42 % from federal divisible including 1% of the net divisible pool as grant for war on terror. The resilience of our economy has been tested several times by one crisis after another. The economy has witnessed numerous domestic and external shocks during last few years. The sharp rise in oil and food prices the internal security hazards and repeated natural disasters have buffeted which shocks the macroeconomic strategy of Khyber Pakhtunkhwa. An area of around 143619.69 sq km is under exploration for oil and gas throughout the country out of which 18890.66 sq KM i.e. 13.15% of the total is in Khyber Pakhtunkhwa. The KPs southern districts of Karak, Kohat and Hangu, which lag behind from other parts of the province in social infrastructure, are rich in natural resources including huge deposits of oil, gas and minerals. In the coming year, 13,360,825 BBL of oil and 143098.25 MMCF of gas is expected to be produced which would generate Rs.22.1 billion of valued revenue. The Provincial government has decided to transfer 5% share of receipts on account of oil/gas to respected districts. This would lead to the socio economic development of these areas and would open the gateway for further development. The PFC award announced in 2008-09 recommended formula for determination of share of the local governments. The allocated amount has been increased 36.36% from 2011-12 to 2012-13. Rs. 85.5 billion (2012-13) as compared to Rs. 62.7 billion allocated for 2011-12. The contribution in revenue and power generation through hydro electric potential in the province cant be ignored. Currently SHYDO is operating four hydro power stations in the province. The installed capacity of these projects is 105MW with an annual revenue generation of over Rs. 2 billion. Under the ACTION PLAN 2011-2025 SHYDO will construct 8 hydel projects having capacity of 628MW of electricity that would help in socio economic development of the province.
NET PROFIT FROM HYDEL POWER GENERATION

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 31st October 2005, to resolve the dispute on computation of Net Hydel Profits. The Arbitration Tribunal announced its award on 9th October 2006 and gave an Award of Rs. 110.101 billion to the Government of Khyber Pakhtunkhwa. During the proceeding of the 7th NFC Award, there was partial resolution of a long drawn issue of payment of the net profits on account of the Hydel power generation to Khyber Pakhtunkhwa. The Federal government accepted the onus of the profit payment of Rs. 110 billion as per decision of the Arbitration Tribunal. So far Rs. 60 billion has been paid to the province and balance Rs 50 billion would be paid during the next two years with equal instalments of Rs 25 billion each year. The Federal Government played key role in the resolution of the issue. The issue was resolved in a meeting held on 27.10.2009. The principal portion of the past liability was agreed to be
Chapter 5: Net Profit from Hydel Power Generation

36
paid to the Government of Khyber Pakhtunkhwa, up to 2004-05 and for 2005-06 onward a Technical Committee has been constituted for making recommendations on account of arrears and allied issues. The Technical Committee is also working on the issues of Net Hydel Profit (i) up to 2004-05 and mark-up (ii) Net Hydel Profit from 2005-06 to 2009-10 and (iii) Net Hydel Profit from 2010-11 onwards. The stance of Khyber Pakhtunkhwa 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.
The Technical Committee will consider the following outstanding mark up on principal amount till the amount is paid and future size of Net Hydel Profits:(Rs. In Billion) 110.101 10% 0.101 7.993 11.010 11.010 4.159 34.273 6.170 7.500 5.000 2.500
Principal Award Amount (F.Y 1991-92 to 2004-05) Mark-up as per Award of Arbitration Tribunal Left over amount from Principal Mark-up (9.10.06 to 30.6.07) F.Y 2007-08 (1.7.07 to 30.6.08) F.Y 2008-09 (1.7.08 to 30.6.09) F.Y 2009-10 (1.7.09 to 16.11.09) Sub Total Mark-up on Rs. 100. billion (From 17.11.09 to 30.06.2010) Mark-up on Rs. 75. billion (From 1.7.2010 to 30.06.2011) Mark-up on Rs. 50. billion (From 01.7.2010 to 30.06.2012) Mark-up on Rs. 25. billion (From 1.7.2012 to 30.06.2013) Sub Total Total (Future Payable)
21.170 55.443
Year wise Calculation of NHP with mark-up (Post Award period on Compound indexation @ 10% per-annum) is as follows:(Rs. In Billion) I FY 2005-06 a) Provincial Claim 26.302 b) Amount Received 6.000 c) Balance Amount 20.302

37
d) Mark up @ 10% (1.7.2006 to 30.6.2012) Total (c+d) ii FY 2006-07 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2007 to 30.6.2012) Total (c+d) iii FY 2007-08 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2008 to 30.6.2012) Total (c+d) iv FY 2008-09 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2009 to 30.6.2012) Total (c+d) v FY 2009-10 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2010 to 30.6.2012) Total (c+d) vi FY 2010-11 a) Provincial Claim b) Amount Received c) Balance amount d) Mark up @ 10% (1.7.2012 to 30.6.2012) Total (c+d) vii FY 2011-12 a) Provincial Claim b) Amount Received c) Balance amount
12.180 32.482 28.932 6.000 22.932 11.470 34.402 31.825 6.000 25.825 10.330 36.155 35.008 6.000 29.008 8.690 37.698 38.508 6.000 32.508 6.490 38.998 42.358 6.000 36.358 3.650 40.008 46.600 6.000 40.600
Total (c) 40.600 Total (i to vii)= 260.343 Grand Total (55.443+260.343)= 315.786 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

38
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 for the year 1991-92. The most important issue before the Technical Committee is to determine the size of future Net Hydel Profits payable to Khyber Pakhtunkhwa. Several meetings of the Technical Committee have been held and efforts are being made at different fronts for reaching at a logical conclusion. In 1991-92 the Net Hydel Profits receipt of Rs. 6.000 billion constituted 42.64 % of the total revenue receipt of the Province, while in the year 2011-12 the same capped Net Hydel Profits constituted 2.57% of the total revenue budget of the Province which means that Net Hydel Profits receipts has drastically been reduced from 42.64% to 2.57%. Similarly taking the effect of dollar rate, in 1991-92 the dollar rate viz-a-viz Pak: rupee was 1$= Rs. 24 as compared to 1$=Rs 93 during the year 2011-12 which means that Provincial Government received US $ 249.479 million in the year 1991-92 as compared to $ 67.416 million during 2011-12 resultantly decrease of 74.14%. The Provincial Government of Khyber Pakhtunkhwa stance is that for determination of prevailing size of Net Hydel Profits, the AGN Kazi Committee formula or Indexation formula of Arbitration may be followed. Subject stance has been presented before the Technical Committee and decision is yet to be made. 5% SHARE OF THE NHP FOR THE DISTRICTS WHERE THE DAMS ARE LOCATED: The Provincial Government has decided to transfer 5% share of Net Hydel Profits receivable from WAPDA/Federal Govt. to the respective districts where the dams are located. In this regard Report of the Committee headed by the Chief Secretary, for devising a mechanism for utilization of the 5% share has been approved by the Provincial Cabinet, effective from Financial Year 2008-09. The said 5% share will be over and above the Districts and Provincial ADP and will be utilized on Technical Education, Health facilities, Roads, Scholarship for the affectees, water supply schemes, electricity and supply of gas. District Government of the respective Districts where dams are located have been provided Rs. 300 million during each financial year from 2008-09 onward.

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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 and Karak. As of March 2012, an area of around 143619.69 square kilometer is under exploration for oil and gas throughout the country out of which 18890.66 square kilometers i.e. 13.15% 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 throughout the country as well as in the Khyber Pakhtunkhwa is given in the following table:ACTIVE LICENSES IN KHYBER PAKHTUNKHWA
S.No
Name of company working in Khyber Pakhtunkhwa

OGDCL MGCL Tullow MOL PPL OPII China Zhengue Oil Hyear box Total
Country wise total Area held by each (Sq. KM)

63164.24 14316.21 7086.28 6637.28 36728.59 6369.11 2442 6875.98 143619.69
% share with total area of the country held by each company

22.97 5.20 2.57 2.41 13.35 2.31 0.88 2.50 52.1
1 2 3 4 5 6 7 8
Area in % share in Khyber Khyber Pakhtunkhwa Pakhtunkhwa held by each vs total company (Sq. area in KM) column (2) 4712.58 7.46 1497.94 10.46 1229.57 17.35 4365.98 65.78 2015.47 5.49 1792.87 28.15 788.48 32.29 2487.77 36.18 18890.66 203.16
The oil and gas sites in Khyber Pakhtunkhwa fall in Potohar Region, wherein almost all the major oil /gas fields including Chanda, Tul 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. ONGOING DRILLING: Exploration activity is continued at three places in District Kohat & Karak as per detail given below:-
Chapter 6: Revenues from Oil & Gas

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WELLS UNDER DRILLING Tentative date of completion 07-June-2012 17-June-2012 04-May-2012
S.No Well Name 1 2 3 Jabbi-01 Nashpa-03 Makori East-02
Well Type Exploratory Appraisal Appraisal
Operator OGDCL OGDCL MOL
Spude Date 25-May-2011 30-Mar-2011 05-July-2011
Status Under Drilling Under Drilling Under Drilling
Production of oil and gas for the year 2011-12 & 2012-13: 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 2011-12 and 2012-13 are given below :ACTUAL & ESTIMATED OIL AND GAS PRODUCTION FOR THE YEAR 20110-12 & 2012-13 Company Field July 2011-March 2012 Actual Oil (BBL) Manzali 1041204.30 Makori 409926 Makori 313 East Mami 395569.71 Khel Maramzai 466105.99 Tolang Mela Chanda OGDCL Nashpa Sheikhan Total Average per day 1331800 1100141 2143279 971 6889310 25052.04 Gas MMCF 60320.28 6282.98 7347.74 12138.14 200 Estimated AprilJune 2012 Gas Oil (BBLs) MMCF 360360 20748 954532 2093 110110 124670 152880 364 2274.26 3640 200 July 2012 June 2013 (Estimated) Oil (BBL) 1646150 529250 2007500 532900 576700 1825000 1241000 5000500 1825 13360825 36605 Gas MMCF 87600 7300 5475 9125 14600 5475 1825 11680 18.25 143098.25 392.05
MOL
4862.17 546000 1274 2124.91 327600 546 7746.17 728000 2730 419.26 101441.65 3304152 33869.26 368.88 36309.36 372.19

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(Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources)

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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 BBLS) AS ON 31ST DECEMBER, 2011 Operator Field Year of Discovery 2005 2002 Original Recoverable 11 29 Cumulative Production 3.3 4 Balance
Makori 7.7 Manzali 25 MOL Mami 2008 11 0.7 10.3 Khel Maramzai 2009 9 0.4 8.6 Chanda 1999 26.172 11.894 14.278 Mela 2006 22.12 8.734 13.386 OGDCL Nashpa 2009 12.263 3.288 8.975 Shekhan 2010 0.058 0.007 0.051 Sub Total 120.613 32.323 88.29 (Source: Directorate of Petroleum Concessions, Ministry of Petroleum and Natural Resources) B. Company GAS RESERVES (BILLION CUBIC FEET) AS ON 31ST DECEMBER, 2011 Year of Discovery Makori 2005 Manzali 2002 MOL Mami Khel 2008 Maramzai 2009 Chanda 1999 Mela 2006 OGDCL Nashpa 2009 Shekhan 2010 Sub Total Field Original Recoverable 221 1884 148 280 50.579 66.215 53.423 11.68 2714.90 Cumulative Production 43 260 12 11 25.157 25.002 12.087 1.369 389.62 Balance 178 1624 136 269 25.422 41.213 41.336 10.311 2325.28
In accordance with the Pakistan Petroleum (Exploration and Production) Rules 1986, the Provincial Government gets revenues on account of the following: a) Royalty on Oil. b) Royalty on Gas.

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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 18th Amendment, the resources of oil/gas is to be shared between the Federal Government and concerned Provincial Government in the ratio of 50 :50. In wake of this development, the Provincial Government has decided to setup an oil and gas company with the name Khyber Pakhtunkhwa Oil and Gas Company. The establishment of this company is in the final stages which will be under control of Energy & Power Department. 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 7TH NFC AWARD: Payment of net proceeds of royalty on crude oil:- According to the 7th 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. MODE OF PAYMENT OF GDSS UNDER THE 7TH NFC AWARD:

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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 2012-13:
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:ACTUAL AND ESTIMATED RECEIPTS 2004-05 to 2012-13
(Rs.in Millions)
S.No 1 2 3 4 Receipts Head Royalty on crude oil Royalty on natural Gas Excise duty on Gas Gas Dev: Surcharge Total Actual 2004-05 263.793 109.370 44.280 69.828 487.271 2005-06 492.009 351.050 24.591 316.229 1,183.879 2006-07 1,090.718 462.418 123.290 632.717 2,309.143 2007-08 3,027.076 537.988 206.236 418.236 4,189.536 2008-09 3,111.402 733.212 149.130 246.028 4,239.772 2009-10 1,942.240 1,261.458 286.046 1,026.155 4,515.899 2010-11 8341.297 3814.063 1098.413 3315.039 16568.812 Estimated 2011-12 2012-13 (RE) (BE) 9851.607 3950.204 1533.172 2158.795 17493.778 11747.050 4241.290 2468.620 3700.583 22157.543
CHART SHOWING REVENUE FROM PRODUCTION OF OIL & GAS

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Actual and estimated well-head wise production figures of oil from financial year 2004-05 to 2012-13 and production trend of oil is indicated in the following tables and chart respectively:PRODUCTION OF OIL (BARRELS) DURING FINANCIAL YEARS 2004-05 TO 2012-13
S.No Receipts Heads Chanda (Shakardara Kohat) Manzali (Karak) Makori (Karak) Mela (Kohat) Neshpa (Karak) Makori East Maramzai Mami Khel Shekhan Tolang Total Actual 2004-05 989,305 55,135 --------1,044,440 2005-06 960,980 166,445 185,201 -------1,312,626 2006-07 1,887,302 156,978 517,543 298,165 ------2,859,988 2007-08 2,058,926 137,231 771,595 1,721,515 ------4,689,267 2008-09 1,818,588 149,717 676,310 2,125,126 ------4,769,741 2009-10 1691088 1049932 297578 2044641 219472 -----5,302,711 2010-11 1523822 1608099 597641 1630434 1955981 12370 83959 431003 6034 -7,849,343 Estimated 2011-12 2012-13 (RE) (BE) 1427741 1401564 544606 1877800 2871279 110423 618985 520239 971 -9,373,608 1241000 1646150 529250 1825000 5000500 2007500 576700 532900 1825 -13,360,825
1 2 3 4 5 6 7 8 9 10
PRODUCTION TREND OF OIL (BBLS) IN KHYBER PAKHTUNKHWA

46

47
PRODUCTION OF GAS (MILLION CUBIC FEET) DURING FINANCIAL YEARS 2004-05 TO 2012-13
S.No Receipts Heads Chanda (Shakardara Kohat) Manzali (Karak) Makori (Karak) Mela (Kohat) Neshpa (Karak) Mami Khel Maramzai (Hangu) Makori East Shekhan Tolang Total Actual 200708 3032 12552 10314 3809 ------29,707 Estimated 2011201212 (RE) 13 (BE) 2670 81068 8375 6136 10476 9622 15778 364 419 200 135,108 1825 87600 7300 5475 11680 9125 14600 5475 18 0 143,098
2004-05 3495 4940
2005-06 2990 17221 733
200607 3551 16181 6594 43 ------26,370
2008-09 2682 13392 9349 5936 ------31,359
200910 2754 61513 3839 6265 583 -----74,954
2010-11 2612 92991 8593 4804 6504 7657 2047 49 914 -126,173
1 2 3 4 5 6 7 8 9 10
-------8,435
-------20,944
PRODUCTION TREND OF GAS (MCFT) IN KHYBER PAKHTUNKHWA

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PRODUCTION BONUS:
Ministry of Petroleum & Natural Resources has decided to grant production bonus to those districts where oil & gas reserves have been discovered. The funds will be spent through Petroleum Social Development Committees (PSDC) comprising MNA(s) (Chairmen), MPA(s), Tehsil/ Taluka Nazim (s), District Nazim (Members), DCO (Secretary) of the District and two representatives of the Exploration & Production (E&P) Company (Member/Vice Chairman). Secretary of the PSDC (DCO) will open and administer a joint bank account with the title "Petroleum Social Development Fund (PSDF)", to be operated by District Coordination Officer and the Executive District Officer (EDO), Finance and Planning for the purpose of funding projects identified by the PSDC through the production bonus payable by the E&P Company. All those E&P companies who are obligated to pay production bonus to the Government for infrastructure development of the area will deposit the production bonus directly in the bank account of the Secretary (DCO) of the PSDF in consultation with the Director General, Petroleum Concessions (DGPC). The proceeds of production bonus against Tal black of MOL is US $ 1.5 million, which had already been paid on 27th October 2011 to the Districts of Karak, Kohat & Hangu.
TRANSFER OF 5% SHARE OF RECEIPT TO THE CONCERNED DISTRICTS:
The Provincial Government has decided to transfer 5% 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 Chief Secretary, Khyber Pakhtunkhwa regarding utilization of 5% share has already been approved by the Provincial Cabinet. However the Provincial Government has now amended the said policy of 5% share of royalty on oil & gas. The salient features of the amendment are as under. a. Minimum size of a scheme financed out of 5% share of Royalty on Oil & Gas will be Rs. 10,00,000/- (one million). b. 5% 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 5% share is over and above the size of District and Provincial ADP. Utilization of 5% share in the respective districts would certainly supplement the development activities and improve the socio-economic condition of the area. For the Financial Year 2011-12, a sum of Rs. 828.441 million has been released to the concerned Districts i.e. Kohat, Karak & Hangu as 5% share of royalty on oil, gas etc.

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REVENUES TRANSFERRED TO DISTRICT GOVERNMENTS

In Khyber Pakhtunkhwa, District Governments were functioning in 25 Districts for devolved functions under the Local Government Ordinance 2001. The Provincial Finance Commission (PFC) was assigned to recommend formula for determination of share of Local Governments based on which a three years PFC Award was announced in 2008-09. The Award provides for annual review by the PFC. At present PFC does not exist due to expiry of its tenure and completion of other legal requirements. Keeping in view the provision of sub-section 7 of Section 120D of the Local Govt. Ordinance, 2001, the Government has decided to continue with the existing recommendations for further period of one year with amendments on the pattern of Provincial Budget as follows:(a) 5% increase was awarded in Salary Component over Revised Estimates of the current year. This will cover the normal growth. Besides, Rs. 11,811.890 million has been provided as Block Allocation for Salaries to cover the expenditure on a/c of posts transferred to district as a result of 18th Amendment and expected increase in salary. (b) 10% increase has been made over the revised estimates of Non-Salary Allocation like Others to cover the essential need of the District Governments. (c) Electricity Charges has been allocated on the basis of figure provided by the Energy Monitoring Cell, Finance Department. (d) 10% increase has been worked out on Octroi Share. (e) The share of Zilla Tax of current financial year 2011-12 has been repeated for the next financial year 2012-13. (f) Rs. 500 million has been allocated as Grant for weak TMAs and Rs. 500 million has been allocated for Matching Grant for TMAs. This grant will be available for those TMAs who will generate additional resources. (g) A separate allocation of Rs. 100 million has been made as Conditional Grant. (h) Special provision of Rs. 500.000 million each for M&R and Electricity has been made. (i) 10% increase has been worked out on Development Share of Districts. (j) A Grant of Rs. 1.000 million each on account of Octroi Share has been made for newly established 03 TMAs one in District Swabi and 02 in District Tor Ghar. (k) Rs. 500 million has been allocated as Lump sump provision at the disposal of Finance Department under Octroi to cover the unforeseen requirement of the districts.
Chapter 7: Revenues Transferred To District Governments

48

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Funds provided to Local Governments during the last 7 years are tabulated as under:(Rs. in Billion)
S.# 1 2 3 4 Description Salary Non Salary Development O&Z Tax Grant Total
R.Es 2005-06 R.Es 2006-07 R.Es 2007-08 R.Es 2008-09 R.Es 2009-10 R.Es 2010-11 R.Es 2011-12
19.396 1.650 0.963 0.996 23.005
23.204 2.249 0.963 1.081 27.497
24.000 3.408 1.204 1.285 29.897
28.000 3.417 1.246 1.435 34.098
33.193 4.033 1.342 1.679 40.247
45.000 7.805 1.500 1.949 56.254
56.501 7.387 1.520 2.931 68.339
The allocation made for Local Governments for the financial year 2012-13 is tabulated as under:(Rs. in Million) S.# 1. 2. 3. 4. ITEM Salary Non Salary Development O&Z Tax Grant Total ALLOCATION 71,138.443 9,164.714 1,672.330 3,536.107 85,511.594

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7TH 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 7th NFC Award on 18th March 2010 has resolved the long standing issue of distribution of resources between the Federation and Provinces of Pakistan. In the 7th 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 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 NFC Award 2010 (7th NFC). The multiple indicators and their respective weightage as agreed are as under:S.No
Indicator
Population
Poverty/backwardness Revenue Collection/ generation
1
2
3
% weight 82.00
10.30
5.00
Chapter 8: 7th National Finance Commission

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Inverse population density Total
2.70 100%
The subvention/special grant and grant in lieu of Octroi and Zilla Tax (1/6th 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 1/6th of Sales Tax and Special Grant is as under:COMPARATIVE POSITION OF SHARE OF PROVINCES IN THE DIVISIBLE POOL % Share on the basis of previous award 53.20 24.96 14.78 7.05 100.00 % Share on the basis of 7th NFC Award 51.74 24.55 14.62 09.09 100.00 1.80% 0.66% Grant for War on Terror Grant for Compensation on account of OZ&T
Province
Total % Share 51.74 25.21* 16.42** 9.09
Punjab Sindh Khyber Pakhtunkhwa Baluchistan Total
*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.

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% Share in the Previous Award
% Share in the 7th NFC Award

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Comparative position of the total transfers to Provinces under NFC Award for the financial year 2012-13 is as follows:FUNDS TO BE TRANSFERRED TO THE PROVINCES DURING 2012-13 (Rs in million) 1% of total Divisible Budget Province Pool for War on Estimate Total %share Terror grant (1.8% of 2012-13 the provincial pool) Punjab (51.74%) Sindh (24.55%) Khyber Pakhtunkhwa (14.62%) Baluchistan (9.09%) Total 650,058.730 308,444.952 183,684.937 114,206.298 1,256,394.917 22,071.058 22,071.058 650,058.730 308,444.952 205,755.995 114,206.298 1,278,465.975
The Net proceeds of Development Surcharge on Natural Gas shall be distributed amongst the Provinces under Article 161(1) of the Constitution. For this purpose the royalty on Natural Gas and Development Surcharge would be notionally clubbed into one and average rate per unit (MMBTU) would be worked out. The rate of excise duty on natural gas shall be raised to Rs. 10 per MMBTU for giving effect to this new formula. Besides, net amount of royalty on crude oil shall be paid to the provinces according to production in each province as per current practice. The Provinces have been allowed to collect sales tax on services if they so desire. The Provinces shall improve their tax base by effectively taxing the agriculture and real estate sectors and collection system achieving the 15% tax to GDP ratio by 2014-15. The Federal Government will assist the Provinces through specific grants in times of unforeseen calamities.

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HYDRO ELECTRIC POWER POTENTIAL

By the grace of Allah Almighty, SHYDO is operating four Hydropower Stations in Malakand District, Swabi District and Chitral District. The total installed capacity of these Hydropower Projects is 105 MW, which are:S.No i ii iii iv Name of Scheme Malakand-III HPP Pehur HPP Shishi HPP Reshun HPP Total Capacity Location Malakand Swabi Chitral Chitral Capacity in MW 81 18 1.8 4.2 105
These projects are not only contributing to the reduction in load shedding but also generating annual revenue of Rs. 2 to 3 billion for the Province. Besides the above completed Hydropower Projects, Government of Pakistan has signed a loan agreement with the Asian Development Bank (ADB) for the development of Hydropower Potential in Khyber Pakhtunkhwa Province, the total revised cost of which is Rs.6026.41 million. Under this project, SHYDO will construct two new projects having a total installed capacity of 20 MW. These projects are under various stages of implementation and will be completed during next three (3) years. In addition, Daral Khwar HPP with capacity of 36 MW having estimated cost of Rs. 6958.42 million will be funded through Hydel Development Fund and ADP (90:10 ratio). It has been inaugurated by Chief Minister Khyber Pakhtunkhwa on 3004-2012 and will be completed in three years. It will generate annual revenue of Rs. 1 billion for the Province. Matiltan HPP (Swat) with capacity of 84 MW will be launched in May 2012. CONSTRUCTION PROJECTS S.No i ii iii Name of Scheme Daral Khwar HPP Ranolia HPP Machai HPP Total Capacity Location Swat Kohistan Mardan Capacity in MW 36.6 17.0 2.60 56.20
Under the same loan, SHYDO has also conducted feasibility studies of following three projects with total installed capacity of these three Hydro Power Projects is 48 MW. Construction works on these projects will start during Financial Year 2012-13 and will be completed during next Five years. The PC-1s for these sites have been cleared by PDWP and consultants will be appointed during current financial year:-
Chapter 9: Hydro Electric Power Potential

53
FEASIBILITY STUDIES S.No i ii iii Name of Scheme Location Koto HPP Dir Lower Karora New HPP Shangla Jabori HPP Mansehra Total Capacity Capacity in MW 31 10 7 48
SHYDO has also conduted Pre-Feasibility study of 10 raw sites in various districts of Khyber Pakhtunkhwa Province. The Pre-Feasibility study of these 10 sites has been copmleted in Decemeber 2011 and these sites will be offered to private sector for development. The Honorable Chief Minister has issued special directives for the implemntation of ACTION PLAN to address the acute energy crises in the country. Energy and Power Department has prepared and the Provincial Government has got the approval the ACTION PLAN 2011-2025 from the Honorable Chief Minister, Khyber Pakhtunkhwa, under which SHYDO will construct the following Eight (8) Hydel Projects having installed capacity of 628 MW. CONSTRUCTION PROJECTS S.No 1 2 3 4 5 6 7 8 Name of Scheme Location Matiltan HPP Swat Sharmai HPP Dir Koto HPP Dir Karora HPP Kohistan Jabori HPP Mansehra Shushai-Zhendoli HPP Chitral Shogo Sin HPP Chitral Lawi HPP Chitral Total Installed Capacity Capacity in MW 84 115 31 10 8 144 132 69 628
On the request of Provincial Government, WAPDA has handed over the Feasibility study of 69 MW Lawi HPP Chitral, which has been included in the ADP 2011-12. The PC-I for the construction of Lawi HPP has been submitted to ECNEC for approval and work on Lawi HPP will be started in July 2012. The land acquisition process of the Project is in progress. In addition to construction projects, SHYDO has also started feasibility study of the following 13 Hydel Power Projects with potential of 1322 MW installed capacity. The PC-IIs for feasibility studies of these thirteen projects have been approved by PDWP, the selection of Consultant is in process and Insha Allah feasibility study will be completed during the next

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two to three years with total cost of Rupees Five Billion. The construction of these projects will be achieved during the period 2011-2025.

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FEASIBILITY STUDIES S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 Name of Scheme Location Gahrit-Swir Lasht HPP Chitral Korag Parait HPP Chitral Laspur Marigram HPP Chitral Arkari Gol HPP Chitral Istaru-Buni HPP Chitral Mujigram Shogo HPP Chitral Barikot Patrak HPP Dir Patrak Shringal HPP Dir Shigo Kach HPP Dir Ghor Band HPP Shangla Nandihar HPP Batagram Naram Dam HPP Mansehra Balakot HPP Mansehra Total Installed Capacity Capacity in MW 334 223 133 24 52 51 34 21 26 14 10 210 190 1322
Provincial Government has given top priority to Energy and Power sector to explore hydel resources in Khyber Pakhtunkhwa. In this regards substantial amount of Net Hydel Profit has been transferred to Hydel Development Fund. Beside Hydel resources, the Province of Khyber Pakhtunkhwa has been blessed with large reserves of Oil and Gas. After 18th Amendment Provincial Government has equal share with the Federal Government in all the forth coming production regarding Oil and Gas. Keeping in view the Eighteenth Amendment Provincial Cabinet has given the approval of establishment of Oil and Gas Exploration Company. This Company will be registered soon with the Security Exchange Commission of Pakistan and other relevant institutions. After registration this company will be authorized to take part in the bid with other National and International companies such as OGDCL, MOL, PPL in different Blocks. In compliance with the decision of Peshawar High Court under Article 158 of the Constitution of Islamic Republic of Pakistan, all the commercial undertakings like industries, CNG etc in the Province are exempted from load shedding.

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INTRODUCTION
Public Financial Management is an essential part of the development process. Sound PFM supports aggregate control, prioritization, accountability and efficiency in the management of public resources and delivery of services, which are critical to the achievement of public policy objectives, including achievement of the Millennium Development Goals (MDGs). Public financial management includes all phases of the budget cycle, such as preparation of the budget estimates, internal control and audit, procurement, monitoring and reporting arrangements, and external audit. The broad objectives of public financial management are to achieve overall fiscal discipline, allocation of resources to strategic priorities, and attainment of operational efficiency for improved public service delivery. Provincial government in order to ensure the essential characteristics of the budgeting system of the province has introduced Medium Term Budgetary Framework and Output Based Budgeting. This new budgeting system was initially piloted in three departments during 2010-11, with its roll out to nine more departments during 2011-12. Similarly, the provincial government of Khyber Pakhtunkhwa extended OBB to district level with the introduction of district conditional grants. In the budget 2012-13 all departments are taken as output based budgeting format. Output based budgeting is a process by which government agencies are funded on the basis of delivery of outputs and outcomes. In theory the traditional budgeting process based around a rationing of inputs is reversed. The priority now is as to what will be the quantum of service delivery by each department rather than what should be its expenditure. Moreover, introduction of annual business plan in three departments as part of their annual budget process has been approved. The purpose is to to enable the line departments to translate their strategic plans in to operational/business plan for a period of three years in a more consistent, coherent and uniform manner and to make them accountable for the results.
Similarly, in its effort to stimulate growth in potential growth/priority sectors of the economy through enhanced public investment and complimentary sectoral policies, the government of Khyber Pakhtunkhwa has strategized this intent through Economic Growth Strategy. Moreover, the Planning and Development Department for the first time has carried an Annual Strategy Review (ASR) of the developmental strategies and the budgetary allocation. One of the most important initiatives of the Finance department, this year is the introduction of the internal Audit Control Systems, of which the internal audit is an integral part. Internal audit will contribute to the effective implementation of the policies, programme and actions with economic and efficient utilization of resources. The Government of Khyber Pakhtunkhwa, in order to make budget participatory, transparent, open and responsive, has initiated pre budget consultative workshops having representations from members of Provincial Assembly, civil society, academia, business community and media. These workshops have previously yielded in a number of pro poor initiatives like Bacha Khan Khpal Rozgar Scheme, Pakhtunkhwa Hunermand Rozgar Scheme and Stoori Da Pakhtunkhwa, Youth Technical Education, Benazir Health Support etc. Bank of Khyber has participated in the processing of these initiatives of the provincial government which has 51% share holding in the bank. The government of Khyber Pakhtunkhwa is the custodian of the Pension and Provident funds. Apart from Hydel Development fund and contributory Provident fund. Affairs of these funds are managed by independent and autonomous Management Boards, which are governed by respective Acts. Investment of funds is guided by the objective to maintain financial viability and need to provide profitable investments.
PUBLIC FINANCIAL MANAGEMENT (PFM) REFORMS

IN KHYBER PAKHTUNKHWA INTRODUCTION: The Provincial Government of Khyber Pakhtunkhwa in its quest for improved public service delivery to the masses of the province has initiated a series of governance reforms under its Provincial Reforms Programme. One of the main components of its reforms agenda is improved public financial management in the province aiming to achieve aggregate fiscal discipline, allocative and operational efficiencies. In this regard, the Provincial Government of Khyber Pakhtunkhwa unveiled the first ever Integrated Public Financial Management Reforms Strategy during 2011-12. This strategy builds on the objectives of financial management reforms approved by the Cabinet, and the findings of most recent Public Expenditure Financial Accountability (Fiduciary) Assessment (PEFA) and the Fiduciary Risk Assessment (FRA). It attempts to address the weaknesses identified within the FRA vis-a-vis to budgeting and to audit (based on PEFA indicators). The aim behind the mitigation strategy is to provide greater credibility to the PFM reform programme of Khyber Pakhtunkhwa. The PFM Strategy demonstrates the desire to push forward PFM reforms with impact anticipated in specific areas. The Strategy stresses upon to ensure that all PFM reform initiatives are fully integrated and driven by the GoKP, thus embedding the ownership of the document, including those of other stakeholders such as the Federal Government. This Strategy also notes that there should be coordination and complementarities of other reform activities, avoiding overlaping or duplication (e.g. PCNA ), while it is further noted that all sector reform strategies should also be integrated within the main PFM strategy. On 17th April 2010, the objectives of PFM Reform Strategy were presented before the Cabinet. These objectives are as follows; a. b. c. d. e. Making budget strategic by linking policies and priorities with budgeting Making budget credible and result oriented for better service delivery Improving budget execution and reporting Capacity Building of the workforce of Khyber Pakhtunkhwa Accountability for results
The Integrated Reform Strategy identifies outputs and activities around these five outcomes. a. Making Budget Strategic By Linking Policies And Priorities With Budgeting: Steps are taken to make the budget strategic by linking policies and priorities with budgeting. Medium Term Budgetary Framework has been introduced and approved by
Chapter 10: Public Financial Management (PFM) Reforms

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the cabinet. The Finance Department presented the Budget Strategy Paper (BSP) before the cabinet. The Comprehensive Development Strategy was prepared to better link the budget with strategy while the key service delivery departments, such as Health and Education, have prepared sector strategies and plans. These activities need to be further supported, deepened and replicated across the government. b. Making Budget Credible And Result Oriented: Output Based Budgeting (OBB) was approved by the cabinet and adopted by the Government of Khyber Pakhtunkhwa. During the present year, OBB has been implemented in twelve departments of Khyber Pakhtunkhwa. The Output Based Budget methodology is similar to that of the Federal Government and links financial information to non-financial information such as goals, outcomes, outputs, targets and indicators. This format also makes gender-based budgeting easier. In a province like Khyber Pakhtunkhwa, where there is extreme gender disparity with regard to health and education indicators, gender-sensitive budgeting can make a difference. The new financial systems require credible and timely data. The Education Department has developed an Education Management Information System (EMIS) which can provide data disaggregated by districts and gender while the Health Department is currently implementing a Health Management Information System (HMIS). The Development Project Management System (DPMS) tracks physical and financial progress within the development budget. However more investment is required to enable these and other information systems to produce credible, relevant and timely reports and, in regard to this, the government also plans to revamp the Bureau of Statistics. c. Improving Budget Execution And Reporting: Improved budget execution is vital for service delivery. The Project for Improvement of Financial Reporting and Auditing (PIFRA) has implemented an Integrated Financial Management Information System; this system needs to be embedded and used according to the workflow design. The system gives round the clock real-time information of budget execution and the Government of Khyber Pakhtunkhwa plans to prepare easy to read budget execution reports for providing timely information to the decision makers. The payroll and pension constitute ever- increasing expenditures of the provincial government and consume more than 60% of the budget, thereby leaving little fiscal space for development activities. The Finance Department through its internal audit cell will regularly conduct IT audits of personnel costs like salary and pension. The Government of Khyber Pakhtunkhwa will support PIFRA in the implementation of commitment accounting and a system for the recording of arrears. d. Capacity Building Of The Workforce Of Khyber Pakhtunkhwa:

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Capacity building is a cross-cutting activity and is vital for the seamless implementation of the reform process. This will require training, preparing of job descriptions, using the latter for performance management and improving the capacity of budgeting and planning within the line departments. A detailed assessment of training needs will be carried out and specific training will be offered to the staff of the Government of Khyber Pakhtunkhwa. e. Accountability For Results: Accountability is very important for feedback on reform initiatives and making staff responsible for results. A comprehensive Monitoring and Evaluation Framework has been prepared and approved by the Government of Khyber Pakhtunkhwa. This framework complements the work carried out under the Comprehensive Development Strategy and Output Based Budgeting. Monitoring Guidelines have been prepared and, in future, monitoring will cover results of activities in addition to monitoring of development projects. Last year the Cabinet approved the establishment of an Internal Audit Function in the Department of Finance, which has been endorsed to be extended to three other departments of the province. This activity will generate cost efficiency, improve internal controls and enhance a culture of accountability. The Department of the Auditor General of Pakistan has introduced a risk-based audit methodology and the Government of Khyber Pakhtunkhwa will support the Auditor General in its efforts to embed risk-based audits and performance audits. Based on this Integrated PFM Reforms Strategy, during the year 2011-12, a number of key strategic interventions for the deepening of PFM reforms have been undertaken by the Provincial Government of Khyber Pakhtunkhwa. These initiatives include; 1. 2. 3. 4. 5. 6. 7. Full roll out of MTBF/Output Based Budgeting Districts Output Based Budgeting & Conditional Grants Pre-Budget Consultative Workshops Internal Audit Introduction of Business Plans Economic Growth Strategy Annual Strategy Review
1. MEDIUM TERM BUDGETARY FRAMEWORK & OUTPUT BASED BUDGETING: A good budget process is far more than the preparation of a legal document that appropriates funds for a series of line items. Good budgeting is a broadly defined process that has political, managerial, planning, communication, and financial dimensions. The following definition recognizes the broad scope of the budget process and provides a base for improvement of the budget process.

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The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. A good budget process is characterized by several essential features. A good budget process: Incorporates a long-term perspective Establishes linkages to broad organizational goals Focuses budget decisions on results and outcomes Involves and promotes effective communication with stakeholders Provide incentives to government management and employees These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi- year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. In order to ensure these essential characteristics in the budgeting system of the province, the provincial government resorted to Medium Term Budgetary Framework and Output Based Budgeting. This new budgeting system was initially piloted in three departments during 2010-11 with its roll out to nine more departments during 2011-12. This year, the provincial cabinet has approved full roll out of output based budgeting. Some of the key business processes undertaken for the formulation of Output Based Budget 2012-15 under MTBF included; Formulated the three years forward budget estimates 2012-15 on the basis of macroeconomic indicators. The Medium Term Fiscal Framework 2012-15 to determine the total resource envelop and expenditure pressures thereon. The Budget Strategy Paper 2012-13 approved by the Cabinet. Issued three years Recurrent Budget Ceilings to 12 departments for 2012-15. The Cabinet approved three years Block Development Budget Ceilings. Developed Training Modules on PFM & OBB and imparted comprehensive trainings thereon at DDOs level. Effective steering of the budget preparation processes by the senior management of Administrative Departments through the formation of core teams. Preparation of the budget estimates by Administrative Departments in the light of their strategic priorities/plans with appropriate information on performance indicators and targets. Initiation of pre budget negotiations/meetings with the core groups by Finance Department.

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Development of the log frames of all line departments of the province. 2. DISTRICTS OUTPUT BASED BUDGETING & CONDITIONAL GRANTS:
During the year 2011-12, the Provincial Government of Khyber Pakhtunkhwa extended output based budgeting to districts level with the introduction of districts conditional grants. This instrument of inter government transfers was piloted in the Elementary & Secondary Education and Health Departments of Districts D.I Khan and Buner. These districts were selected from the list of ten least developed districts of the province. The UK Department for International Development provided a sum of Rs. 260 million and the GoKP appropriated Rs. 76 million as counterpart fund in 2011-12 budget. District and Sector wise break-up of the releases is given below: (Rs. In Million) Elementary & Secondary Education Health st nd st District 2 1 2nd 1 Total Total Tranche Tranche Tranche Tranche Buner 45.120 39.286 84.406 15.340 13.355 28.695 D.I Khan 47.295 41.179 88.474 31.232 27.193 58.425 Total 92.415 80.465 172.880 46.572 40.548 87.120 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 objective 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 two districts. Since, it was the first time that business plans were prepared, therefore it consumed most of the time. However, it also facilitated the execution of quality work. These business plans also contained a set of indicators and targets. These indicators and targets for District D I Khan and Buner and the likelihood of their achievement are as given below: CONDITIONAL GRANT SUCCESS INDICATORS FOR DISTRICT D I KHAN:
INDICATOR Increased immunization of children under two years BASE LINE (59)% or 238,363 children below the age of two years immunized TARGET (64)% or258,563 children below the age of two years immunized, this means an increase of 20,200 children REMARKS This target is likely to be achieved. Outreach campaign started, medicines procured, ILRs obtained from UNICEF

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Increase ante-natal care coverage
Decrease in number of girls primary schools with missing facility
(37.8)% of pregnant ladies registered or 152,714 of pregnant ladies registered Total of 398 girls schools in D I Khan have missing facilities.
(43.8)% of pregnant ladies registered or 176,954 of pregnant ladies registered. An increase of 24,240 20% reduction in schools with missing facilities. This means 80 schools will be provided with additional facilities benefiting 7,638 girl children.
Procurement process completed, activities will start with release of second tranche. The second tranche is in the process of release by Finance Department. 155 schools selected. This is 39% of schools with missing facilities. This will benefit approximately 14,000 girls enrolled in these schools.
CONDITIONAL GRANT SUCCESS INDICATORS FOR DISTRICT BUNER:

INDICATOR Increased immunization of children under two years BASE LINE (74)% or 187,230 children under two years of age immunized TARGET (79)% or 199,880 children under two years of age immunized, an increase of 12,651 children (50)% of pregnant ladies registered or 118,005 pregnant ladies registered, an increase of 6,680 20% reduction in schools with missing facilities. This means 31 schools will be provided with additional facilities benefiting 7400 girl children. REMARKS This target is likely to be achieved. Outreach campaign started, medicines procured, ILRs obtained from UNICEF
Increase ante-natal care coverage
(44)% of pregnant ladies registered or 111,326 pregnant ladies registered
Decrease in number of girls primary schools with missing facility
Total of 156 girls schools in Buner have missing facilities.
Procurement process completed, activities will start with release of second tranche. The second tranche is in the process of release by Finance Department. 86 schools selected. This is 55% of schools with missing facilities. This will benefit approximately 20,640 girls enrolled in these schools.
STANDARD OPERATING PROCEDURES (SOPS) FOR EXECUTION OF CONDITIONAL GRANT:

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Approval of the concept of Conditional Grants from Cabinet. Development of Business Plans through greater stakeholders participation, wherein interventions are identified with detailed costing, key performance indicators and targets are set for effective performance measurement. Proper monitoring and evaluation both at district and provincial level. Approval of Business Plans from districts and provincial authorities. Timely transfer of funds to District A/C-IV by PFC. Identification of core groups in both sectors for ensuring the most efficient and effective execution of work. Effective feedback mechanism whereby any issue/problem identified gets resolved in an instant manner. Continuous independent audit from an international audit firm of high ranking, in this case Deloitte. Selection of the audit firm made through competitive bidding process under the rules. Third party validation from high rated firm/CSO, in this case Grant Thornton, whose selection was made through competitive bidding process under the rules. Keeping in view the effectiveness of progress till date, the concept of conditional grants is being extended to other districts as well. In this regard, a sum of Rs. 1 Billion as counterpart fund has been proposed in the budget 2012-13 for this purpose. 3. VOICE OF THE PEOPLE IN BUDGET MAKING: Making the budget preparation process more transparent, open, participative and responsive has remained one of the key reforms agenda of the Provincial Government. In this pursuit, the Provincial Government initiated holding pre budget consultative workshops for greater stakeholders participation, so that to make the citizens voices heard in the budget formulation process. To engage the stakeholders of Khyber Pakhtunkhwa and seek their guidance in preparation of a business and people friendly budget for FY 2012-13, the Finance Department in collaboration with the Planning & Development Department and with the technical assistance of Provincial Reforms Programme, organized a number of pre budget consultative workshops both at provincial and districts level, so that; To orient the key stakeholders on the salient features of the reforms taking place in

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Government of Khyber Pukhtunkhwa; To disseminate key CDS policies and priorities and identify CDS/additional priorities for inclusion in Budget Strategy Paper BSP 2012-13; To seek inputs from key stakeholders representing elected representatives, business community, media, academia, civil society etc for inputs into the budget for the year 2012-13.
PRE-BUDGET CONSULTATIVE WORKSHOPS: 1. "CITIZENS' VOICE FOR DEVELOPMENT" - DISTRICT MARDAN: The first consultative pre-budget seminar on "Citizens' Voice for Development" was held under auspices of the Finance and Planning & Development Departments of KhyberPakhtunkhwa in collaboration with the Department for International Development (DFID) UKaid in District Mardan on Tuesday 13th Mar, 2012. The participants representing elected representatives, members of civil society, academia, business community and media highlighted the need for economic development working on the strengths of the districts. The participants said that education, health and water and sanitation are priority sectors for development and stressed the need for provision of additional funds for bringing improvement in existing performance and quality of services. During the seminar women participants highlighted the specific needs of women particularly in the areas of violence to women, vocational training and the need to raise awareness of their legal rights to afford them better protection. The Secretary-General, Mardan Chamber of Commerce and Industry demanded for development funds in the marble industry to introduce new technology in the quarries mining for marble and granite. He pointed out that 72 percent of marble is lost in the blasting process thereby only 28 percent used productively which is a tremendous loss of valuable asset for the province. There is a need to develop roads and transport infrastructure linking the quarries to the market place, he added. A representative of the women chamber of commerce Mardan recommended that there should be women specific schemes for employment and economic development. She appreciated the Bacha Khan Khpal Rozgar Scheme and recommended that there should be more communication from the government, so that women could benefit from such schemes. There was unanimity by the participants on welcoming this initiative of involving the various stakeholders as part of the future budget preparations. They particularly thanked and appreciated efforts made by the provincial and district authorities to meet and discuss issues to improve the quality of life of the citizens. They thanked the Secretary Finance who chaired the meeting along with Chief Economist, the Commissioner, DCO and the Provincial Finance Controller who attended the meeting. 2. PRE BUDGET JIRGA - DISTRICT PESHAWAR: A pre-budget jirga was organized with the support of Department for International Development UKaid for members of the Provincial Assembly in Peshawar on Thursday, 12th

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April, 2012 under the auspices of the Department of Finance. The pre-budget jirga was part of a series of such meetings initiated by the Provincial Government to take the elected representatives of the province into confidence regarding the budget-making process. It was presided over by Speaker of the Khyber-Pakhtunkhwa Assembly Kiramatullah Khan Chugharmati. This consultative session was well attended by the Provincial Ministers, members of the Provincial Assembly and the Administrative Secretaries of the province. The Secretary Finance brought attention toward the budget priorities and the fiscal constraints faced by the Government of Khyber Pakhtunkhwa. He referred to the last year Prebudget consultations that resulted in various interventions such as the pro-poor initiatives that include; Bacha Khan Khpal Rozgar Programme, Benazir Health Initiatives, Storie da Pakhtunkhwa Programme, technical education initiatives etc. The Secretary Planning & Development Department also presented the new development model that focuses on consolidation rather than expansion. Syed Aqil Shah, Minister Sports & Culture came up with a very strong stance on the way the Federal Ministry of tourism is planned to be devolved arguing on it he said that the PTDC is multibillion property and if devolved to the province would be sufficient enough to run the Ministry from its own revenues. It was reiterated that the tourism industry needs to be developed through enhanced public private partnerships. A female parliamentarian Ms Syeda Batool Nasir greatly appreciated this effort of holding pre budget workshops and recommended to focus on rehabilitation of existing infrastructure rather than expansion. Mr. Iqbal Fana, Member of Provincial Assembly stressed revenue generation through hydel power projects and also suggested the development of the province owned refinery and fertilizers industry. A number of other MPAs belonging to different regions of Khyber Pakhtunkhwa also made their suggestions/inputs for the Budget 2012-13. Minister for Finance, Engr. Muhammad Humayun Khan assured the public representatives that keeping in view the resource position of the province, all their viable suggestions and proposals would be given due weight in the next budget and priority would be given to the education, health and other social welfare sectors. 3. LINKING POLICIES & PRIORITIES WITH BUDGETING - DISTRICT PESHAWAR: This workshop was organized by the Planning and Development Department with the technical assistance of UKAIDs funded Provincial Reforms Programme on Thursday 26th Apr, 2012 in Peshawar. Mr. Rahim Dad Khan, Senior Minister P&D chaired the session. The workshop had representation from the academia, respective fields of specialty and civil society. There is an unprecedented need to link the policy initiatives with the budgetary processes and this Pre-budget consultative Workshop was a step in this direction. The workshop was opened with the presentation of Reforms Coordinator, Reform Management Unit of Finance Department, who briefed the participants on the Priorities of the Government

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and also elaborated the fiscal challenges faced by the government in present times. It was stressed that such workshops help in bringing higher standards of service delivery. The Secretary, Planning and Development highlighted the salient features of the Economic Growth Strategy recently approved that sets a path towards the economic development of the province. He informed the participants about the potential of the province in the areas of industries, Oil and Gas and Minerals etc and the ardent need of development that is required to tap the potential for the uplift of the province. The participants were later divided into groups according to the priority sectors of the Economic Growth Strategy. The groups were requested to register their comments regarding building strengths of their particular sectors and cope with the threats faced by the respective sector. The groups also identified new initiatives to improve service delivery keeping in view the limited fiscal envelop. The most important activity was the identification of performance indicators to better assess and report the standards of service delivery. The participants of the workshop greatly appreciated this initiative of involving the various stakeholders as part of the future budget preparations. They particularly thanked and appreciated efforts made by the provincial government to meet and discuss issues to improve the quality of life of the citizens. 4. "CITIZENS' VOICE FOR DEVELOPMENT" - DISTRICT ABBOTTABAD: A pre-budget workshop was held in Abbotabad on Friday, 18th May, 2012 titled Citizens voice for development, which was organized by the Khyber Pakhtunkhwa Finance and Planning and development departments in collaboration with the United Kingdoms Department for International Development (UK Aid). Main focus was the allocation of funds in the next budget on need basis instead of political grounds. Government officials, representatives of nongovernmental organizations, civil society activists and journalists showed up in large numbers. Noted among speakers were Local MPAs Javed Abbasi and Qalandar Lodhi, provincial finance secretary Sahibzada Saeed Ahmad, Chief Planning Officer Usman Gul and former Additional Chief Secretary Khalid Aziz. They spoke about long and short term fiscal policies for better economic growth in the province and emphasized that the peoples needs should be kept in view before making fiscal policies and allocation of funds in the budget. Participants from Battagram , Kohistan , Haripur and other areas floated the budget proposals, especially about removal of disparity in the funds allocation for power , gas and oil sectors. Some of the MPAs praised the Honorable Provincial Chief Minister Ameer Haider Khan Hoti over massive development in the Province and said that he should ensure that the finance department approves the schemes proposed by districts. Civil society activists presented statistics about previous budgetary allocations to districts and said poor districts like Kohistan were often ignored during the budget. Later, participants called for fair distribution of funds to districts, saying it would help reduce the sense of deprivation among the least developed districts.

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Sahibzada Saeed Ahmad, Secretary Finance highlighted that the delicate security situation is a major barrier to better revenue generation. But the 7th NFC Award helped the Provincial Government to revise its economic growth strategy for improving productivity, socioeconomic development and social sector. He said a fool proof system of check and balance would be developed for use of development funds and sought the civil societys support to keep a vigilant eye on their spending. Foreign donors are more than satisfied with our system. The European Union is going to provide us with 40 billion euro development funding in the wake of the successful completion of the education projects, said by the Finance Secretary. It was deliberated that the revenue base would be increased in the next fiscal year.
LAST YEAR, THESE CONSULTATIVE PRE BUDGET WORKSHOPS HELPED THE PROVINCIAL GOVERNMENT IN INITIATION OF A NUMBER OF INNOVATIVE PRO POOR PROGRAMMES AS BRIEFED BELOW;
(Rs. In Million)
Youth Technical Education Hunarmand Rozgar Scheme Nursing Training Programme Benazir Health Support Programme Bacha Khan Khpal Rozgar IT Call Centers Stori da Pakthunkhwa Programme Rokhana Pakhtunkhwa Programme Riwaiti Hunarmand Rozgar Scheme Farm Mechanization in KP Nusrat Bhutto Oncology Service Scholarship scheme for promotion of gilrs education in district Tor Ghar/Kohistan Naway Sahar Laptop Scheme Long Term financing facilities for development of industries in KP Deepening and Replication of Conditional Grants Total 4. INTERNAL AUDIT:
2011-12 300.000 1300.000 500.000 500.000 1000.000 200.000 50.000 500.000 150.000 -----70.000 4.570
2012-13 0.000 0.000 0.000 0.000 1000.000 600.000 100.000 500.000 300.000 500.000 500.000 242.000 1000.000 1000.000 1000.000 6742.000
Internal Audit being an integral component of the Internal Control System contributes significantly to the effective implementation of the policies, programmes and actions and to the most economic and efficient utilization of resources. The Internal Audit Service audits the management and control systems that exist within the Government and provides continuous

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independent and objective assurance on their adequacy and effectiveness. On the request of management, it also offers consulting services. Realizing the significance of this functionality, the Provincial Cabinet last year approved the concept of Internal Audit. Consequently, an Internal Audit Charter in the light of International Standards for the Professional Practice of Internal Auditing (ISPPIA) and best practices in public sector internal auditing was successfully prepared and approved. Initially, it was piloted in Finance Department and an Internal Audit Unit was notified for the purpose. This unit carried out internal audit of payroll and pension which resulted in the identification of cost efficiency of Rs 74 million in pension. Similarly, for the first time computer based audit of the payroll of the provincial government was carried out. The methodology adopted by the internal audit wing of Finance Department for undertaking the internal audit of payroll and pension is as briefed below; Payroll Audit: The Government of Khyber Pakhtunkhwa spends a large portion of its budget on government staff salaries (PKR 86 billion in 2011-12) and wants to introduce efficiency and economy in its personnel expenditure. PRP provided support through an IT Audit of the GoKP Payroll System, covering: Collection of payroll data from the SAP system; Audit checks on the payroll data; and, Physical verification of a sample of employees.
This was the first time that payroll data for Khyber Pakhtunkhwa was analysed using IT auditing tools. The Staff from the Financial Management Information Unit were trained in Audit Command Language (ACL), which is the preferred software for performing IT audit of databases on SAP platform. The Audit Report was submitted to the Secretary Finance. From the initial findings it is estimated that the GoKP will identify efficiency gains as promised in the Log frame of PRP. Pension Audit: There are more than 130,000 pensioners who are paid by the Provincial Government from provincial exchequer. Realizing the significance of instilling a continuous review of the payments made under pension head, Finance Department with the support of UK Department for International Development UK Aid hired the services of one Deputy Secretary with a team of two officials from the Treasury Establishment. This team audited the record of a few selected months of some districts and detected million of rupees erroneously booked against the Government of Khyber Pakhtunkhwa actually pertaining to the pension liabilities of other governments. All these discrepancies were

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reported to the concerned District Accounts Offices, which after rechecking of their record confirmed the wrong payments and recovered the amounts from the concerned governments. Till-date, more than 74 million stands recovered and more than 4 million are in the process of recovery in A.Gs Office Peshawar. It is expected that by the end of the current financial year the total recovery would reach Rs. 100 millions. For enhanced value addition to the public money, it has been endorsed by the provincial cabinet to extend this functionality to four other departments of the province during the FY 2012-13. 5. INTRODUCTION OF BUSINESS PLANS: The Government of Khyber Pakhtunkhwa in its quest for improved public financial management in the province initiated a series of reforms. One of such initiatives was the introduction of output based budgeting. This new budgeting system has been successfully introduced in twelve line departments of the province and is being rolled out to rest of the departments this year. The very essence of output based budgeting is to link the strategic priorities of the government with its spending plans. In this context, it revolves around the outcomes/outputs framework and answers the questions of: what does government wants to achieve (outcomes); how does it want to reach those achievements (outputs); and how does it know if it is succeeding (indicators)? Line Departments are now required to specify and cost their outputs against planned outcomes and identify performance indicators and targets. Importantly, appropriations are now made at the outputs level. Outcomes, and the departmental outputs, therefore form the basis of a department's operating budget and external reporting framework. The framework focuses on the outputs the public sector is producing and their contribution to the outcomes, and is aimed at assisting the tracking of results and progress towards targets. The output component of the framework also facilitates tracking and benchmarking of process, and hence is an important aid to improved efficiency. In order to enable the line departments to translate their Strategic Plans into Operational/Business Plans for a period of three years in a more consistent, coherent and uniform manner and accordingly to make them accountable for the results, the introduction of annual business plans in three departments as part of their annual budget process has been approved. The Medium Term Budgetary Framework (MTBF) already provides an important base for such operational/business plans. Presently, the budget estimates submitted by line departments are not prepared scientifically by giving due consideration to their priorities/needs for the coming financial year i.e. human resource requirements, procurements etc. This eventually leads to approaching Finance Department for additional funds mid of the year, and having no other way out their demands

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are fulfilled through summary releases, supplementary grants and re-appropriations. Such a state of affair puts at stake the overall credibility of the budgeting system of the province. A business plan makes it much easier to translate a strategic plan into a budget. When the translation is smoother and more precise, it will simplify the process of identifying and removing spending from the budget that is not aligned with the strategic plan. Also, elected representatives will have more confidence that the budget is aligned with their priorities, and will be more supportive of the integrity of the spending plan throughout the year. Besides, it will help the provincial government achieve aggregate fiscal discipline, allocative efficiency and operational efficiency by reducing in year adjustments i.e. re-appropriations, supplementary/excess grants and surrenders and will help in further reducing the budget outturn variations.
6. ECONOMIC GROWTH STRATEGY: The Provincial Government of Khyber Pakhtunkhwa in its efforts to stimulate growth in potential growth/priority sectors of the economy through enhanced public investments and complementary sectoral policies has strategized this intent through Economic Growth Strategy. The Economic Growth Strategy envisions that acceleration of growth will be realized by concentrating on natural resource endowments of the province whether in Hydel Power, Mining and Minerals or Oil & Gas. At the same time, GoKP will develop the supporting sectors i.e. Utilities (energy and water), telecommunication, Infrastructure and Irrigation to remove the impediments hindering growth in priority sectors. The strategy marks a paradigm shift in Public investments and advocates improvement in Service Delivery instead of archaic Brick and Mortar development policy. In line with the broad parameters, ADP will reflect the strategic priorities of:

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Consolidation rather than Expansion which characterizes improvement in existing facilities. Reduction in throw forward by allocating more resources to ongoing project i.e. 70% of ADP. Rapid increase in development allocations to the sectors where there is higher return on investment i.e. Hydro electricity, Oil and Gas and the sectors which rely on indigenous natural resources/raw materials i.e. Minerals Improvement in management of Public Finances through Output based Budgeting extended to Development budget. ECONOMIC GROWTH FRAMEWORK Socio- Economic 1. 2. 3. 4. 5. 6. 7. Agriculture Food Roads Environment (all sub sectors) Building R&D Urban Development 1. 2. 3. 4. 5. 6. 7.
Productive Sectors Energy & Power 1. (all sub sectors) 2. Water 3. Minerals Industries 4. (all sub sectors) 5. Labor 6. ST&IT 7. 8. 9. Transport
Social Sectors Education Health DWSS Sports Aqua Information Social Protection Initiatives
Housing Tourism Areas Open for investment from: 1. ADP (Inc. 70%) 2. PSDP (50%) 3. Donors (grants/may even opt for commercial loans
Areas open for investment from: 1. ADP (inc. 30 %) 2. PSDP (30%) 3. Donors (grants)
Areas open for investment from: 1. ADP (capped) 2. PSDP (20%) 3. Donors (grants)
7. ANNUAL STRATEGY REVIEW: The Annual Strategy Review (ASR) is the review of the developmental strategies and the budgetary allocation process, which has been carried out by the Planning and Development Department for the first time in the history of Khyber Pakhtunkhwa. The provincial government developed strategies to lift its GDP highlighting sectors of the highest potential. The different strategies developed are as follows;

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Comprehensive Development Strategy (CDS) Post Crisis Need Assessment (PCNA) Economic Growth Strategy (EGS)
The main purpose of the ASR is to make sure that development allocations are in line with the above strategies and check the reasons for any deviation from the path defined. The detailed analysis of the ADP 2010-11 and 2011-12 was carried out comparing sectoral allocations of ADP to the short term allocations to different sectors in CDS. An amount of 126.678 billion out of the total ADP for 2010-12 was allocated against the CDS allocations of 201.114 billion showing a compliance of more than 67%. This analysis was carried out for the thirteen key sectors namely Health, Education, Social Protection, Governance, Security, Roads, WATSAN, Housing, Higher Education, Irrigation, Energy & Power, Agriculture and Urban Development. A graphical representation of comparison in terms of Actual allocation and as percentage of the total desired allocation to each sector as per the CDS & EGS is given below:-
The Annual Strategy Review provides an important part of the evidence guiding the Budget Strategy Paper and showing the extent to which recent trends in expenditure match the intentions contained in the Comprehensive Development Strategy and the Economic Growth Strategy. ASR is going to be carried out by the Planning and Development Department annually for better alignment with the sectoral strategies. 8. MEDIUM TERM FISCAL FRAMEWORK (MTFF) The MTFF is composed of fiscal projections of income and expenditure of Provincial Government over the medium term. The MTFF enhances predictability of resource commitment to different sectors, promoting greater confidence, continuity and sustainability in economic and social polices by the Government.

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It is worth mention, here that on the basis of projections of MTFF in the Budget Strategy Paper-I, the indicative budgetary ceilings were prepared and communicated to 12 departments during the financial year 2011-12 for the preparation of Output Base Budget over the medium term. The MTFF will minimize the need for re-appropriations and requests for supplementary grants during a financial year. Figures of Budget Estimates of receipts and expenditure 2012-13 have been taken as, base year, for the projections of Receipts & Expenditure for FY 2013-14 and 2014-15. The fiscal projections of receipts and expenditure over the medium term period is given as under: MTFF of the Government of Khyber Paktunkhwa for financial year 2012-13 to 2014-15 (Rs. in million) Projections Revised Budget Rs. In million (unless otherwise Estimates Estimates 2014stated) 2013-14 2011-12 2012-13 15 REVENUE Total Revenue Receipts 238,499 279,015 318,433 341,708 Federal Tax Assignment 152,736 183,685 213,075 249,297 1% for War on Terror 18,352 22,071 25,602 29,955 GST on services 8,923 9,886 10,875 11,962 Provincial Own Revenues 9,994 10,215 11,292 12,586 Straight Transfers 17,494 22,158 26,590 31,908 Net Hydel Profit 31,000 31,000 31,000 6,000 Transfers to District Governments Wages Non-Salary Octroi and Zila Tax Annual Development Program (Distts.) Net Revenue after Transfers EXPENDITURE Current Expenditure Wages Pension Non-Wage O&M and Contingency Subsidy Committed Contribution Development Expenditure Annual Development Program 68,338 56,501 7,387 2,930 1,520 170,161 85,512 71,138 9,165 3,537 1,672 193,503 101,177 119,647 85,366 102,439 10,082 11,090 3,891 4,280 1,839 1,839
217,256 222,061
84,535 37,723 15,954 21,358 2,000 7,500 82,954 70,062
98,197 44,299 21,582 20,816 2,500 9,000 95,786 72,528
114,487 134,158 53,159 63,791 25,898 31,078 23,730 27,290 2,700 3,000 9,000 9,000 103,574 77,990 91,343 63,201

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(Provl.) Special Programme (PSDP) Foreign Project Assistance PRIMARY BALANCE GRANTS AND INTEREST PAYMENTS Federal & Foreign grants Federal Dev. Grants Foreign Dev. Grants Others Interest Payments OVERALL BALANCE BUDGET FINANCING Net Domestic Debt Net Federal Debt Net Foreign debt Net Capital Cash Balance Total Financing
5,377 7,515 2,672
23,258 (480)
25,584 (806)
28,142 (3,441)
15,023 3,073 11,473 477 9,647 8,048
20,040 19,563 477 9,563 9,997
21,996 21,519 477 10,519 10,671
24,148 23,671 477 11,571 9,136
(1,201) (4,729) (2,470) (4,911) 5,263 (8,048)
(1,200) (3,039) (5) (5,753) -
(1,200) (3,343) (376) (5,753) -
(3,677) (857) (4,602) (9,136)
(9,997) (10,671)
On the basis of projections of MTFF for FY 2013-14 and 2014-15, the indicative budgetary ceilings have been prepared and added at Annexure-V for providing guidance to the departments for preparation of Output Base Budget over the medium term.

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BANK OF KHYBER
Custodian of Rich Values Established in 1991 through Act XVI of the Provincial Assembly of Khyber Pakhtunkhwa main purpose was to cater to the growing banking requirements of Khyber Pakhtunkhwa (formally N.W.F.P). Commenced commercial operations in November 1991, and was designated as a scheduled bank by the State Bank of Pakistan in 1994. The bank is listed on the Karachi Stock Exchange (KSE). Established in 1991, the bank has completed 20 years in banking Industry. What makes them celebrates this unique moment is not only owing to the journey of 20 years they have travelled as a bank but it is much more than that. Just like the name of bank is synonymous with the name of Khyber Pakhtunkhwa; it represents and reflects the aspirations of the peoples of our province. What fascinates the most is the virtual beginning of a new journey of the bank from a bank confined just to one province to a bank that is now growing to each province of Pakistan and beyond. The fact that today the bank is expanding at a breath taking pace adds another feather to the cap. The bank was able to establish less than 30 branches in the first 18 years, however in brief span of last two years the management of the bank has almost doubled this tally. This renewed vigor comes from their past experience that is helping them charter a new course for the bank in the days to come. They ask their patrons as well as customers to hold their breath to be part of our journey of rising to newer heights and newer destinations. At present i.e. on 31.03.2012, the bank operates a network of 62 branches and 4 sub branches in cities across the country with main concentration in Khyber Pakhtunkhwa. Offers full commercial banking services to its corporate and retail clients. As a mainstream bank now, they have the unique distinction of offering the best of Islamic as well as Conventional banking at entire network of branches. The bank has established network of 325 correspondent international banks in 74 countries. The Board of Directors of BOK comprises of eminent professionals from the Government of Khyber Pakhtunkhwa and also from the private sector. The management of the bank comprises of professional personnel from the leading and well renowned local as well as foreign institutions. Capable enough to meet the challenges and goal set for this year and years to come. MAJOR PRODUCTS OF BANK OF KHYBER ARE: Commercial Lending Islamic Finance Consumer Finance Car Finance Housing Loans Salary Loan Schemes Micro Finance business development programmes Agricultural Finance
Chapter 11: Bank of Khyber

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THE BANK OF KHYBER IN LIGHT OF PRECEDING YEAR PERFORMANCE AND EXPECTED PERFORMANCE IN THE YEAR 2012: The Bank of Khyber is mainly operating in Khyber Pakhtunkhawa, substantially owned by the Government of Khyber Pakhtunkhawa. Achievements During 2011: The Bank has showed remarkable growth in total assets, deposits, advances and profit over last year figures. The total assets increased by 36% i.e. from Rs 50 billion to Rs. 68 billion, advances increased by 22% i.e. from Rs 18 billion to 22 billion and deposits by 25% i.e. from Rs.36 billion to Rs.45 billion. The bank booked a profit of Rs 872 million after tax for the year 2011 showing an increase of 55 % over last year. Total imports, exports and home remittance during the year 2011 has increased by 57% i.e. from Rs. 8.17 billion to Rs.12.83 billion, 49% i.e. from Rs. 7.01 billion to Rs.10.43 billion, 27% i.e. from Rs. 10.51 billion to Rs. 13.31 billion, respectively, over the year ended 31.12.2011. The banks minimum capital requirements for the year ending December 31, 2011 has been met by issuing right shares amounting to Rs 3.224 billion. Major portion of the right issue has been subscribed by government of Khyber Pakhtunkhwa. Credit rating of the bank has been improved to A-(Single A minus) and A2 (A two) from BBB+ (Tripled B plus) and A3 (A three) for long term and short term, respectively and now the bank is enjoying the status of A rated bank. Branch network has increased by 24% i.e. from 50 branches to 62 branches.
EXPECTED PERFORMANCE DURING 2012: Minimum Capital Requirements: As per statutory requirement of the State Bank of Pakistan, the Bank is going to increase its paid up capital to Rs.9.00 billion by issuing right/bonus shares during the year 2012. . Advances, Deposits and Profits: The bank is expected to increase its total assets to Rs.70 billion, deposits by 11%, i.e. from Rs.45 billion to Rs.50 billion, advances by 50% i.e. from Rs. 22 billion to Rs.33 billion and profit before tax to 1.312 billion. Import, Export and Home Remittances: Total imports, exports and home remittance for the year 2012 has been set to Rs, 14.47 billion (2011: Rs, 12.83 billion), Rs 13.48 billion (2011; Rs 10.43 billion) and Rs 15.50 billion (2011; Rs13.31 billion), respectively.

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Non-Performing Loans: Since majority of NPLs have already been provided for, so it is expected that year 2012 will show better results. Further it is expected that reversals/cash recovery will be having a positive impact on profit in 2012. Branch Network: Issuance of licenses by State Bank of Pakistan for additional 16 branches for the year 2012 makes the total net work to 78 branches i.e. a rise of 25%.
1. BACHA KHAN ROZGAR SCHEME: With organizational and technical assistance from The Bank of Khyber, the Government of Khyber Pakhtunkhwa has launched Bacha Khan Rozgar Scheme for income and employment generation opportunities in the province which is badly affected by war on terror and devastating floods. The main objective of the scheme is promoting entrepreneurship and generating economic activities particularly in the terror and flood affected communities affected families, small traders, low income entrepreneurs, and unemployed skilled men and women. This scheme is free of markup with 3 years maturity, 30% quota for women and 2% quota for disable persons. It shall facilitate and promote entrepreneurship in the province to ultimately help in poverty reduction. The government has so far earmarked Rs. 2 Billion for the scheme. BOK has approved a total of 14,500 applications amounting to Rs. 1,300 Million. The Bank of Khyber has been providing managerial and organizational support to ensure transparent use of the funds. 2. PAKHTUNKHWA HUNERMAND ROZGAR SCHEME: The Government has also launched Pakhtunkhwa Hunermand Rozgar Scheme to provide income and employment opportunities to skilled men and women. The scheme has been perceived as a poverty alleviations strategy for the indigenous skilled people by promoting their income and generating activities potential. The Government has allocated Rs. 1,300 Million for the scheme to be executed through The Bank of Khyber. The scheme is based on soft terms and shall cater to the financial needs of poor and low income entrepreneurs, specially qualified / skilled men and women trained in various arts, crafts and other vocational skills. The Bank of Khyber has so far approved a total of 98 applications amounting to nearly Rs. 18 Million and has disbursed 17 loans amounting to Rs. 3.4 Million. 3. SME DEVELOPMENT: Contributing significantly to income and employment generation, the Government of Khyber Pakhtunkhwa considers the promotion of Small and Medium Enterprises as one of the

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economic development strategies for the province. Through organizational and technical facilitation of the Bank of Khyber, the government has taken a number of initiatives for the assistance and rehabilitation of the business community in the province. To promote entrepreneurship through subsidized financing to SMEs in the province, the government has earmarked an initial funding of Rs. 200 Million for the purpose of subsidized financing to SMEs which will help overcome massive unemployment and retarded growth for industries and manufacturing sector in the war on terror and flood affected province. The funds shall be utilized for the propose of purchasing raw material, machinery / equipment and balancing, modernization & replacement. 4. RIWAITI HUNERMAND ROZGAR SCHEME: Being famous for a variety of fabulous art and craft by skilled artisans in region, this indigenous traditions has been dying due to lack of focus and patronage. The Government Khyber Pakhtunkhwa realized that indigenous skills and workmanship has been neglected since long and initiated efforts for its revival. With initial allocation of Rs. 150 Million, the government started Riwaiti Hunermand Rozgar Scheme for the revival of traditional skills in the province. Soft term loans shall be provided through the Bank of Khyber to help traditional art and craft workers and skilled person for expanding and upgrading their business. The scheme we hope shall also helpful in income and employment generation besides the revival of traditional skills. CONCLUSION: In conclusion, we can say that management of the Bank of Khyber during last two years, is performing well and showed historic growth in all sectors i.e. deposits, advances, profit, imports, exports and home remittances etc and it is expected to achieve better results during the year 2012, provided the economy continue to grow with the same pace and Government policies continue to encourage foreign and local investments in the country.

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FUNDS MANAGEMENT
INTRODUCTION: The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. The provision of 'investment management services' includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of billions of Rupees. Investment management also known as portfolio management is not a simple activity as it involves many complex steps like specification of investment objectives & constraints, choice of the asset mix, formulation of portfolio strategy, selection of securities, portfolio execution, portfolio revision, and performance evaluation. The Government regulates its funds and investment in a cautious manner and aims to benefit the subscribers of the funds, during and after, their services. 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 mark up paid to account holders is also a heavy toll on the Provincial exchequer. If both these revenue expenditures are put together, it exceeds the Provincial own receipts. Foreseeing this adverse and unfavourable 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. ESTABLISHMENT OF FUNDS: The Khyber Pakhtunkhwa Govt. established the following Funds: 1. General Provident Investment Fund 2. Pension Fund 3. Hydel Development Fund 4. Contributory Provident (CP) Fund KHYBER PAKHTUNKHWA GENERAL PROVIDENT FUND: General Provident Investment Fund was established in the year 1991-92 with initial allocation of Rs. 200 million as equity. The prime purpose for establishment of the GP fund was to invest its reserves in safe and well protected instruments for maximum profits and
Chapter 12: Funds Management

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benefits. To oversee the affairs of the fund, a Fund Management Board, under the Chairmanship of the Chief Secretary, Khyber Pakhtunkhwa has been established. The composition of the board is diversified with 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. An Investment Committee, headed by the Finance Secretary, was constituted to carry out the day to day functions of the Fund. It has a total size of Rs 18,498.840 million (Government contribution Rs. 6,750.000 million + Profit Rs. 11,748.840 million) upto 30th June, 2012. (Rs. in million) Cumulative Total (end of the year) 7,090.90 8,175.78 9,259.64 10,531.16 12,226.94 14,591.35 18,498.84
Year Till 30.06.06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Grand Total
Opening Balance 7,090.90 8,175.78 9,259.64 10,531.16 12,226.94 14,591.35
Released During The Year 2,750.00 300 300 300 300 800 2000 6,750.000
Profit During The Year 4,340.90 784.874 783.859 971.527 1,395.78 1,564.41 1,907.49 11,748.840
KHYBER PAKHTUNKHWA PENSION FUND: The Pension Fund was established in 1997-98 with initial allocation of Rs. 150 million as seed money. The Fund was created to meet the ever increasing pension liabilities of the retired Government employees. This fund too has a Management Board headed by the Chief Secretary, Khyber Pakhtunkhwa. It has a total size of Rs 12,440.900 million (Government contribution Rs. 6,850.000 million + Profit Rs. 5,590.900 million) upto 30th June, 2012. (Rs. in million) Cumulative Total (end of the year) 4,068.60 4,925.51 5,714.55 6,678.60 7,806.55 9,396.28 12,440.90
Opening Released During Profit During Balance The Year The Year Till 30.6.06 2,650.00 1,418.60 2006-07 4,068.60 400 456.911 2007-08 4,925.51 400 389.037 2008-09 5,714.55 400 564.046 2009-10 6,678.60 400 727.95 2010-11 7,806.55 600 989.73 2011-12 9,396.28 2000 1044.621 Grand Total 6,850.00 5,590.90 Year

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KHYBER PAKHTUNKHWA HYDEL DEVELOPMENT FUND: The Hydel Development Fund was created in 1992 with an initial allocation of Rs 50 million. The Fund was given legal cover through enactment namely Khyber Pakhtunkhwa, Hydel Development Fund Ordinance 2001. The objective of this Fund is to develop Hydel potential of Khyber Pakhtunkhwa. The Provincial Govt. has up-to 30th June, 2012 contributed Rs. 15,809.710 million as equity in the Fund; whereas, un-appropriated profit upto 30th June, 2012 is Rs. 7,721.150 million. This Fund is managed by a Management Board under the Chairmanship of Chief Minister, Khyber Pakhtunkhwa, with Minister for Finance, Minister for Irrigation & Power, Chief Secretary, Additional Chief Secretary, Secretary Finance, Secretary Energy & Power as its members. For carrying out 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 Fund has contributed Rs. 2,551.490 million in development of Malakand III HPP, Rs. 425.500 million in Pehur HPP, Rs. 696.800 million for construction of Daral Khwar HPP and Rs. 324 million for feasibilities studies of raw sites in Khyber Pakhtunkhwa for construction of Hydro Projects. (Rs. In million) Cumulative Total (end of the year) 3,781.87 3,903.43 4,236.66 4,955.404 16,586.036 19,908.404 24,237.123
Year Till 30.6.06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Grand Total
Opening Balance 3,781.87 3,903.43 4,236.764 4,955.404 16,586.036 19,908.404
Released During The Year 1,810.00 0 200 500 10,599.71 1,500 2,000 16,609.71
Profit During The Year 1,971.87 121.56 133.23 218.640 1,030.925 1,822.021 2,329.066 7,627.312
KHYBER PAKHTUNKHWA CONTRIBUTORY PROVIDENT FUND (CPF): The Contributory Provident Fund (CPF) was established in 2006 with starting allocation of Rs. 50 million. The Fund was given legal cover through enactment namely Khyber Pakhtunkhwa CP Fund Rules, 2006. For the Management of this Fund there is a Management Board under the Chairmanship of Chief Secretary, Khyber Pakhtunkhwa, with Secretary Finance, Secretary Administration, Accountant General, Khyber Pakhtunkhwa, Chief Manager, State Bank of Pakistan and representative of the subscribers to the Fund as members. It has a total size of

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Rs 2,859.589 million (Government contribution Rs. 2,410.010 million + Profit Rs. 449.579 million) upto 30th June, 2012. (Rs. In million) Opening Released During Profit During Cumulative Total Year Balance The Year The Year (end of the year) 2008-09 0 50 7.493 57.493 2009-10 57.493 659.321 64.504 781.318 2010-11 781.318 717.457 38.712 1537.487 2011-12 1537.49 983.234 338.87 2859.589 Grand Total 2,410.01 449.579 FUND CELL: The Finance Department works as secretariat for these funds and a Fund Cell has been created to manage the affairs of the Funds. The Cell is responsible for overall affairs, maintenance of accounts, conduction of audit of accounts and convene meetings of the Investment Committees / Boards. AUDITORS OF THE GPI & PENSION FUNDS: As per Law of the Funds, Director General (Commercial) Audit, Lahore is responsible to carryout audit of the accounts of the Fund. Besides, financial audits are conducted through Kabani & Co., Islamabad and Rafaqat Babar & Co. Peshawar Chartered Accountants on yearly basis. PERFORMANCE REVIEW: There has been a steady growth in funds due to better management. Funds are being managed professionally, diligently and with extreme caution. Diversified portfolios have been developed to align the investment system and draw maximum advantage by mitigating risks factor with best-recognized financial practices. PLACEMENT IN BANKS: The management placed over Rs. 11.473 billion of the Funds in Commercial Banks. Chief Manager, State Bank of Pakistan and Managing Director, The Bank of Khyber guide the Investment Committee. While placing funds with banks mainly two variables come under consideration i.e. Credit Ratings and Interest Rate. INVESTMENTS The management has invested funds in various investment portfolios, so as to secure maximum returns. These investments avenues are:

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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. 34.103 billion in T-Bills, and around Rs 1.6 billion in PIBs.

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b) Term Finance Certificates: These certificates can have fixed or floating-rate coupons and can have special features, such as calls, caps and floors. These are amortizing securities which make periodic principal and interest payments. The management has invested over Rs. 139 million in TFCs. c) Mutual Funds: The management has invested over Rs. 230 million in various Mutual Funds. d) Trading: The management has maintained a trading account for active trading in stocks and for financing against shares (CFS). The management allowed trading in blue-chip stocks only. The Government of Khyber Pakhtunkhwa is looking for ways and means to modernize these funds and bring them in line with innovative concepts of investments, while keeping safety of the Funds its top most priority. Regular third party audits are carried out to ensure this objective.

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ANNUAL DEVELOPMENT PROGRAMME 2012-13

1. 2. 3. 4. Brief Economic/Development Outlook of the Province. Review of Annual Development Programme 2011-12. Salient Features of Annual Development Programme 2012-13. Recommendations for the Cabinet.
LIVING STANDARDS IN THE PROVINCE: The Federal government has recently published the results of Pakistan Standard Living Measurement Survey. The survey, conducted in 2010-11 is designed to provide Social & Economic indicators in the alternate years at provincial and district levels. An important objective of the PSLM Survey is to determine the distributional impact of development programs; whether or not the poor have benefited from the program or the increased government expenditure on the social sectors has been captured by the well off. The survey assembled data pertaining to Education, Health, Household Assets/Amenities, Immunization, Pre and Post Natal care of females and Household satisfaction by facilities and services in the overall context of Millennium Development Goals. The outcome of the survey relevant to province is as under: The Adult literacy Rate in the province for above 15 years age group is 46% with male literacy ratio being 65% and female 28%. The literacy rate at the national level is 55% wherein male dominate with 67% and female 42%. The districts of Haripur, Abbottabad and Chitral emerged on the top of the list in this age group with ratio of 66%, 65% & 55% while Kohistan, Buner and D.I.Khan districts fall into the lowest quintile with ratio of 23%, 26% & 31% respectively. The literacy Rate for above 10 years age group is 50% with male having 68% and female 33%. The overall ratio in this group at the country level is 58%; with 69% for male and 46% for female. In this category the districts of Haripur, Abbottabad and Chitral ranks top with ratio of 70%, 69% & 62% whereas; Kohistan, Buner and D.I.Khan districts again plummet in the lowest rung with ratio of 26%, 32% & 34 % respectively. The Net Enrollment Ratio in the province at the primary level is 58% as compared to 61% at the country level. The ratio for male & female enrollment is 64% & 51% and 65% & 57% at the provincial and national levels respectively. Haripur, Abbottabad & Swabi districts lead the rankings with 80%, 73% & 71% while Kohistan, D.I.Khan &Shangla districts are at the bottom with ratio of 24%, 36% & 37% respectively. In the Health sector, the Ratio of Immunization for the children below two years age is 98 %, whereas, at the national level this proportion is 97%. In Haripur, Mansehra, Chitral, D.I Khan, Lower Dir, Charsadda, Kohat, Hangu & Bannu districts all the population within the same age group have at least immunized once whereas in the Battagram, Lakki Marwat and Kohistan this ratio is 91%,94% & 95% respectively.
Chapter 13: Annual Development Programme 2012-13

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In the Pre-natal Consultations 46% pregnant women consult public sector health facilities, 35% private hospitals/clinics while 19% are treated at home by personal doctors, LHWs, LHVs and traditional birth attendants while country wide share is 30%, 51% and 19% correspondingly. The ratio of pre-natal consultations is higher in the districts of Haripur, Mardan & Peshawar with 76%, 69%, & 68% whereas Kohistan, Karak & Battagram are at the lower side with19%, 29% & 32%. Similarly, in the Post-Natal Consultations 38% women seek advice from public sector health facilities, 41% private hospitals/clinics while 21% are treated at home by personal Doctors, LHWs, LHVs and Traditional Birth Attendants. At the national level this ratio is 22%, 54% and 24%. The women in the districts of Lower Dir with 47%, D.I.Khan 36% & Upper Dir 35% stand prominent amongst other districts in this category whereas; in the districts of Buner 6%, Kohistan 7% & Shangla 9% are at the lower side. In the Drinking Water & Sanitation sector, 45% population of the province use tap water, 13% hand pumps, 11% motor pumps, 10% dug wells & 20% from other sources. At the national level, these percentages are, 32%, 28%, 27%, 4% & 9% respectively. The inhabitants of the districts of Battagram with 81%, Bannu 78% & Abbottabad 72% use tap water as drinking source while 92%, 82% & 62 % population of the Kohistan, Upper Dir & Chitral districts derive their source from lakes & rivers. Moreover, 18% population in the province does not have proper toilet facilities, 62% use flush systems and 20% use non-flush toilets. At the national level, this proportion is 19%, 66% & 15%. The districts of Chitral with 86%, Peshawar 81% & Haripur 80% have highest proportion of flush toilets but in the districts of Kohistan, Karak & Buner 66%, 41% & 30% households do not have toilet facilities at all. In the Housing Sector, 87 % population of the province own their houses, 7% live in rented accommodations & 2 % on subsidized rented accommodations. At the country level this ratio is 86%, 7% and 1% respectively. The highest ownership of houses in the province is in Chitral with 99%, Tank 97% & Karak 96%. The lowest number of house ownership is in the districts of Peshawar with 72%, Buner 75% & Hangu 79%. 19% households in the province occupy 1 room for living, 73% in 2-4 rooms & 8 % in 5 or more rooms. National averages in this context are 25%, 69% & 6%.30% of the households in Nowshera, 27% in Kohistan & 26% live in 1 room whereas; 20% in Chitral, 14% in Karak & 13% in Lakki Marwat occupy 5 or more rooms for their living. The housing units using electricity for lighting is 93%, gas/oil 5% and 1% from other sources. This share is 91%, 7% & 1% at the country level. 100% households in Battagram, Haripur & Bannu districts use electricity whilst 57%, 76% & 79% units have this facility in Kohistan, Karak & Mansehra districts. Similarly, 0.04% households use electricity for cooking, 22% gas/oil and 76% charcoal in the province while at the national level, the corresponding ratio is 0.03%, 35%, 47% and 17%. The top three districts where housing units use oil/gas for cooking are Peshawar 70%, Nowshera 42% & Haripur 36% but less than 1% households have this facility in Battagram, Kohistan & Tank districts.

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One of the significant aspects of this survey is that the households were asked to compare their economic being with the last year.15% households described it much worse,25% worse,39% same, 20 better & 2% much better. The matching national level ratio is 10%, 33%, 40%, 15% and 2%. 35% households in Swat, 32% in Kohistan & 31% in Battagram described their condition as worse while 5%, 4% & 3% units in Swabi, Mardan and Kohat & Bannu portrayed their perception as much better. The households were asked to give their opinion about their satisfaction of the services/facilities provided by the government.35% households in the province expressed satisfaction on the provision of Health Services,22% on Population Welfare 65% on Schools, 13% on Veterinary,9%on Agriculture & 14% on Police. The corresponding proportion at the country level is 31%, 12%, 61%, 15%, 15% and 10%. The district level figures in the province depict a realistic picture on the provision of services. The 55% households in district of Nowshera, 59% in Battagram & 58% in Haripur were happy over health services; on the contrary 17% residents of Upper Dir 7% Kohistan & 23% of Lakki Marwat were dissatisfied. In the Family Planning sector, 40% households in Peshawar & Charsadda & 36% in Haripur districts expressed their satisfaction over the Services but, 1% in Kohistan, 3% in Karak & 4% in Bannu were discontented. 89% households in Upper Dir, 83% in Lower Dir & 76% in Malakand districts were satisfied with school education whereas; in Kohistan 21% Tank 44% & Swat 48% units uttered dissatisfaction. In the Agriculture sector 30% housing units in Buner, 23% in Bannu & 18% in Charsadda showed contentment on the quality of services but in Swat, Dir Upper & Dir Lower districts there was total dissatisfaction amongst the households. On the facilitation by Police Department the 33% housing units in Mardan, 25% in Peshawar & 24% in Malakand expressed satisfaction while 3% in Swat & Dir Lower and 2 % in Kohistan showed displeasure. SALIENT FEATURES OF ADP 2010-11: GoKPK report on Millennium Development Goals: In September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at United Nations Headquarters in New York to adopt the United Nations Millennium Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a series of time-bound targets ranging from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, by 2015. The Millennium Development Goals are also considered as the international agenda for Sustainable Development. The MDGs comprise of 8 Goals, 18 global targets and 48 indicators, however, the Government of Pakistan has translated MDGs into 16 national targets and 37 indicators keeping in view its specific conditions, priorities, data availability and institutional capacity. The Planning & Development Department has

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conducted a study so as to track its progress towards achievement of Millennium Development Goals. The findings of the report relevant to the selected goals are as under: MDG 1: Eradication of extreme Hunger and Poverty: The province is far from eradicating poverty by 2015, and is unlikely to be able to effect a reduction in poverty incidence to 20%, as articulated in the Comprehensive Development Strategy. MDG 2: Achieving Universal Primary Education: The key indicator for attainment of the goal is the Net Enrolment Ratio Khyber Pakhtunkhwa has in fact experienced stagnation in NER growth rates in the last decade and is unlikely to meet the ambitious target to 80 percent by 2015. The province is doing better in terms of Gross Enrolment Rate, reflecting that many children do find their way into schools in the longer term, even if they do not constitute the standard age cohort. A major issue in education in Khyber Pakhtunkhwa is the significant gender and regional disparity in literacy and enrolment levels, rural females faring extremely poorly in educational attainment at all levels. MDG 3: Promoting Gender Equality and Women Empowerment: Gender disparity is endemic in Khyber Pakhtunkhwa, and is evident in the health and education sectors, in employment and political representation. There are very serious problems of gender discrimination in the province, and little evidence that these are likely to improve in the short-term. MDG 4: Reducing Child Mortality: The province seems to have done reasonably well in enhancing immunization coverage, and is working steadily towards providing primary health care facilities at the community level through its LHW program, its performance on the Infant Mortality Rate indicator and on under-5 mortality rate is not strong enough to be able to meet the MDG target. MDG 5: Improving Maternal Health: Indications are that the total fertility rate has declined, and ante-natal health care coverage increased over the last decade or so. The maternal mortality rate for Khyber Pakhtunkhwa was 275 deaths per 100,000 live births for that year. This remains an exceptionally high rate. MDG 6: Combating HIV/ AIDS, Malaria and other Diseases: No definite statement was made due to absence of credible data. MDG 7: Ensuring Environmental Sustainability: The province fares poorly with regard to water and sanitation indicators, but does very well on the indicators related to wildlife management and preservation. In terms of forest area, the province is naturally endowed and needs to continue working to preserve its forest over. Gender Analysis of Provincial Development Budget 2010-11:

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Gender-based budget initiatives are envisaged to analyze the budget and its impact on women, men and family. They are a tool to get a fair distribution of wealth for the poor and excluded, particularly women. Gender-based budget analysis is proving a useful tool to get increased budget allocations for education, health and social services. Keeping in view its significance, the Planning & Development Department with the assistance of United Nation Development Programs initiated a study to analyze pro-poor and pro-women factors in the budget 2010-11; primarily from the point of view of MDGs. It involved the analysis of planning, reporting and execution of schemes as well as of allocations to various schemes and initiatives for pro-women and pro-poor sectors. The study recommended that in order to make budgetary process pro-poor and pro-women it would require changes at the level of policy, operations, administration and management. Firstly, the government needs to take serious notice of rising pension and debt servicing in current revenue expenditure. The government also needs to strike a balance between the pernicious problem of poor law and order situation and the pro-women sectors. The Budget Call Circular, the Planning Commission forms and White Paper need a sizeable modification in gender-sensitive terms. A gender-sensitive addition should be made in the PC-I form and as such adopted by the provincial government. However, the rest of these documents need revision. Specific instructions, terms of reference and glossary should be included in Budget Call Circular. The white paper should be more elaborate in shedding light not only on impact of previous years spending but also gender-disaggregate data in the light of MDGs progress in the province. There is also a need for an intensive training and sensitisation. These should include full-scale modules and handbooks on the preparation of Objective Based Budgeting in gender-sensitive terms. Moreover, the concerned officials should also be trained and sensitised to strike a balance in the preparation of budget estimates for both females and males and between different classes of females and males. Lastly, there is also a need to allocate resources evenly between the districts and between the rural and urban areas of Khyber Pakhtunkhwa. Indices of Multiple Deprivations and Human Development: The Human Development Index is a popular and widely used composite index of human development. HDI measures the average achievements in a country, geographical area or region in three basic dimensions: health, education and income. HDI is scaled to vary from a minimum of zero to a maximum of 1; 1 representing the maximum level of development. The Planning and Development Department in association with United Nation Development Programs evolved Indices of Multiple Deprivations and Human Development for planning and resource allocation purposes. This study made an attempt to develop two composite welfare indices using Khyber Pakhtunkhwa Multiple Indicator Cluster Surveys for the year 2008 and 2001 and covered education, health, housing (including water and sanitation), and economic dimensions. Each sector was made up of a number of indicators, which cover aspects of this deprivation as comprehensively as possible.

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The study revealed that there is low level of human development in the province. The estimated provincial magnitude of 0.544 is slightly above the UNDP classification of low level of development. Similarly education (0.476) and income (0.526) components also reflect low level of human development. Huge intra-province variations are observed in the estimated HDI values, from district Abbottabad with the HDI value of 0.625 to district Kohistan with the value of 0.388. The index of multiple deprivations indicates that 44.6 percent of province population is deprived or multi-dimensionally poor in terms of selected indicators and dimensions. Highest deprivation is estimated for education sectors where about 52 percent population of KPK is deprived with respect to illiteracy and out-of-school children. The estimated population which is poor in terms of health and housing facilities is estimated at 48 and 43 percent respectively. The relatively lowest (29.3 percent) deprivation is observed in the area of economic deprivation. In terms of divisional IMDs, Peshawar, Mardan, Hazara, Kohat, Malakand, Bannu and D.I.Khan divisions are ranked from low to high deprivation magnitudes. The findings are useful for profiling and benchmarking district positions and growth in terms of economic, social and human development. Khyber Pakhtunkhwa M& E Report 2010-11: Monitoring and Evaluation is an integral part of development project cycle management and occupies a strategic role in informing policy making processes. The aim is to improve relevance, efficiency and effectiveness of project implementation. The Directorate of M&E in the Planning & Development Department has been entrusted with the responsibility to monitor the developmental projects in the province. It has recently published a report which provides an overview of the progress achieved under the Comprehensive Development Strategy, Objective Based Budgeting, Annual Development Program and sector strategies. For the report 64 indicators were measured pertaining to Education (16), Health (28) and Social Welfare (20) departments. It was revealed that these departments met 37 targets (58%); the highest achievement being recorded by Education Department 69% followed by the Social Welfare 65% and Health 46%. Out of 16 OBB indicators, the E&SE, Department exceeded or met 11 targets. The targets for primary enrolment (actual 5 % as against targeted 2 %), enrolment in secondary level education (4.7 % achieved against a target of 2 %)as well as; the target for New/upgraded/renovated higher secondary schools (16% against 6%) were exceeded by a significant margin, while 8 other key OBB targets were met or exceeded including schools provided with free text books in primary, boys dropout at the primary and secondary levels, girls' students dropout at primary and secondary, higher secondary students provided with free text books, and the students- teacher ratio in primary and secondary education. Against a total of 28 OBB indicators, the Health Department met 13 targets, overachieving with respect to the daily OPD attendance in primary health care facilities, number of indoor patients in case of tertiary health care facilities, reduction in T.B through the expansion of

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DOTS strategy, the roll back Malaria Programme, control of Hepatitis B &C and the immunization coverage of children. However, 12 OBB targets were not met, against which the Department needs to work hard during the next implementation period. These include: the daily OPD attendance under the secondary and tertiary health care services, number of indoor patients for secondary health care services, the health safety net for the poor, a reduction in morbidity/mortality, protecting vulnerable segments from HIV/AIDS, staff development, drug control, and institutional monitoring and registration system. Data for three OBB indicators was not available -this needs to be incorporated in the regular information management and reporting system of the Health Department. The Social welfare & Women Department was able to meet or exceed targets in 13 out of the total 20 indicators used in the OBB, including the number of men and women with disability registered, special education schools established, men and women unemployed post graduates registered, social welfare organizations receiving support, beggars receiving shelter and skills training, persons benefitted from the Social Welfare Centres, approval of Child Protection Bill, Welfare Homes and Industrial Training Centres established, number of Women Crisis Centres functional etc . However, four OBB targets were not met, against which the Department needs to work hard during the next implementation period. These include: boys enrolled at especial education schools, senior citizens registered for financial support, women receiving training at ITCs, and women benefitting from the Working Women's Hostels. Progress data for two OBB indicators was not available which needs to be incorporated in the regular information and recording system of the SW&WD Department. The report concluded with specific sector wise recommendations in order to improve their performances and also carry out detailed assessment of genuine requirements of these departments. Approval of Development Projects in 2011-12: Every year certain number of new projects form part of Annual Development Plan alongwith on-going projects in various sectors. These projects are approved by project approving fora working at various levels. These include the District Development Committee, Departmental Development Working Party, Provincial Departmental Development Working Party, Central Departmental Development Working Party and Executive Committee of National Economic Council. In the current financial year, the PDWP held 15 meetings and approved 448 Projects pertaining to different sectors. 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. Size of Revised Size of Special Development Year A.D.P A.D.P Programme 1970-71 150.570 124.872 .. 1971-72 124.000 87.404 .. 1972-73 212.543 217.887 ..

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1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
300.000 285.133 .. 400.000 500.000 .. 576.700 601.366 .. 546.800 640.928 .. 617.000 687.642 .. 669.000 720.581 .. 767.000 702.850 .. 818.000 838.350 .. 980.850 1002.323 .. 1228.000 1174.275 .. 1176.500 1191.500 .. 1244.700 1245.424 .. 1697.000 1912.787 .. 2131.250 2131.250 .. 2472.250 2471.050 .. 2164.235 2164.235 289.228 2197.625 2198.649 410.000 2506.171 2851.434 529.862 4813.715 4881.569 .. 6575.385 5002.873 .. 4959.000 4764.638 .. 6963.974 7349.212 .. 7665.634 8081.917 .. 8711.517 5659.089 .. 4884.740 5498.215 .. 6072.386 7771.653 .. 5745.220 8057.541 .. 9212.509 7272.140 .. 7986.220 8710.147 13673.261 11289.186 .. 14696.006 12882.982 16195.025 15365.249 21000.000 24397.398 26630.432 26542.103 39462.131 31919.642 41544.935 39000.603 51156.956 46330.547 69283.682 61103.166 85141.000 84473.628* 97458.000 * Include PSDP of Rs. 5376.555 million

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REVIEW OF ADP 2011-12: The original size of the ADP 2011-12 was Rs.85141.000 millions, which included foreign aid component of Rs.16112.700 millions. The provincial governments contribution in the ADP was Rs.69028.300 millions. The provincial program comprised of 1035 projects included 632 ongoing and 403 new projects out of which, 296 projects were completed. Sources of Funding of ADP 2011-12:
(Rs. in million)
S. No. 1. 2. i. ii.
Source of funding Allocation %age Provincial Budget 69028.300 81 Total Foreign Assistance 16112.700 19 Grants 12794.480 79 Loans 3318.220 21 Total (1+2) 85141.000 100.0

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FOREIGN ASSISTANCE: For the year 2011-12, the size of foreign assistance was Rs. 16112.700 million for 39 projects. The counterpart funds were envisaged as Rs.1043.000 million. Of the total foreign assistance, the grant portion comprised Rs. 12794.480 million whereas loan component was Rs. 3318.220 million. The foreign assistance pertained to roads, drinking water supply & sanitation, education, health and regional development sectors. The revised estimates of foreign assisted projects were Rs. 7514.514 million, thus utilization ratio was 47 % against the allocated amount. The sector wise allocation of foreign assistance is tabulated as under: (Rs. In million) % S.No Sectors Projects Foreign Assistance age 1 Agriculture 1 0.001 0.0 2 DWSS 1 1250.000 7.8 3 E&SE 6 3064.646 19.0 4 Energy & Power 1 868.220 5.4 5 Forestry 1 31.507 0.2 6 Health 5 1358.110 8.4 7 Home 3 1250.000 7.8 8 Industries 2 375.000 2.3 9 Regional Dev. 6 1783.940 11.1 10 Research & Dev. 4 406.175 2.5 11 Roads 5 3800.000 23.6 12 Social Welfare 2 0.101 0.0 13 Urban Development 1 1500.000 9.3 14 Water 1 425.000 2.6 Total: 39 16112.700 100.00 SECTOR-WISE ALLOCATIONS: The original sectoral allocations of local resources in ADP 2011-12 and revised allocation after re-appropriation are given as under: (Rs. In million)
S# 1 2 Sector E&SE Higher Education Budget Estimates %age Allocation 7115.000 8.4 3027.000 3.6 Revised Estimates/ Utilization %age Allocation 7988.996 10.1 4077.850 5.1 %age Utilization (against B.E) 112.3 134.7

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Health DWSS Social Welfare Auqaf, Hajj Roads Building Housing Urban 10 Development 11 Water 12 Agriculture 13 Forestry 14 Environment 15 Sports, Tourism 16 Energy & Power 17 Industries Regional 18 Development 19 R&D Population 20 Welfare 21 District's ADP 22 Tameer-i-KPK 23 ST&IT 24 Transport 25 Food 26 Labour 27 Mines & Mineral 28 Information 29 Law & Justice 30 PSDP Devolved 31 Finance 32 Home Sub-Total Foreign Assistance Grand Total 3 4 5 6 7 8 9
6467.000 2392.000 440.000 78.000 8770.000 800.000 1740.000 1541.000 3006.000 1355.000 792.000 74.000 1225.000 1320.000 2382.000 5063.000 313.000 165.000 1520.300 2480.000 356.000 65.000 540.000 96.000 661.000 112.000 273.000 4500.000 7164.000 3196.000 69028.300 16112.700 85141.000
7.6 2.8 0.5 0.1 10.3 0.9 2.0 1.8 3.5 1.6 0.9 0.1 1.4 1.6 2.8 5.9 0.4 0.2 1.8 2.9 0.4 0.1 0.6 0.1 0.8 0.1 0.3 5.3 8.4 3.8 81.1 18.9 100.0
6752.798 3661.428 409.516 67.950 12720.141 570.895 825.614 1724.186 5088.198 1197.272 470.732 48.544 1391.698 793.776 2383.760 3952.116 225.024 119.492 1520.300 2739.480 256.809 41.478 429.605 14.060 226.874 83.646 189.353 0.000 8302.781 3308.187 71582.559 7514.514 79097.073
8.5 4.6 0.5 0.1 16.1 0.7 1.0 2.2 6.4 1.5 0.6 0.1 1.8 1.0 3.0 5.0 0.3 0.2 1.9 3.5 0.3 0.1 0.5 0.0 0.3 0.1 0.2 0.0 10.5 4.2 90.4 9.6 100.0
104.4 153.1 93.1 87.1 145.0 71.4 47.4 111.9 169.3 88.4 59.4 65.6 113.6 60.1 100.1 78.1 71.9 72.4 100.0 110.5 72.1 63.8 79.6 14.6 34.3 74.7 69.4 0.0 115.9 103.5 103.7 47.4 93.0
SECTORAL HIGHLIGHTS: Education: Education is an essential tool for human resource development, and a necessary ingredient for sustainable socio-economic growth. Investment in education contributes to accumulation

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of human capital, which is essential for higher income and sustained economic growth. In this sector, various initiatives were taken by the department i.e. upgrading primary, middle and secondary schools, provision of basic facilities, furniture & equipments, individual & institutional capacity building, revamping of science and education facilities and to advance gender equality in the province, particularly girls at the primary level and benefit packages were provided for teachers in remote and difficult areas. Similarly, in the Higher Education sector, emphasis was laid on the provision of essential facilities in the Degree Colleges throughout the province such as, construction of additional class rooms & blocks, examination halls, hostels & residential facilities, provision of basic facilities and establishment of language & digital laboratories, transport & day care centre facilities for Girls Colleges, capacity building of faculty members and acquisition of land for establishing universities. An amount of Rs.12066.846 million was allocated for 96 projects, out of which 34 projects were completed and the following targets were achieved: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. Health: The provincial health strategy is a blend of curative, preventive and promotive programs. The preventive and promotive programs were undertaken to address the various health problems and reduce burden of diseases such as malaria, tuberculoses, HIV/AIDS, peri-natal health care, nutrition, immunizations and thalassemia. Focus was laid to construct and rehabilitate the physical infrastructure as well as provide requisite equipment to the health facilities such as District Headquarters Hospitals, Rural Health Centers & Basic Health Units, and completion of residential blocks/hostels for doctors & nurses and multi-purpose additional wards in tertiary hospitals. Besides, special preventive care projects were implemented to provide medicines & vaccines to cancer & Hepatitis-B&C patients. An amount of Rs.6752.798 million was allocated for 122 projects out of which 37 projects were completed. The following achievements were made in this sector: i. 3 District Headquarters hospitals in Charsadda, D.I.Khan & Tank were completed. 130 Primary schools were established. 10 High schools were up-graded to Higher Secondary level. 70 Middle schools were up-graded to High level. 30 Secondary schools were reconstructed. 350 schools were provided basic facilities. 700 additional class rooms were constructed in Primary, Middle & Secondary schools. 30 Mosque schools were converted to regular Primary schools. 4.500 million Students were provided free text books. 0.361 million Girl students were provided stipends. 5 male Government Colleges were established. 7 female Government Colleges were established. Bachelors of Science program was started in 53 government colleges.

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ii. iii. iv. v.
3 Category-C hospitals in Chakdarra, Takht Bhai & Shabqaddar were completed. 5 BHUs were upgraded to RHCs. 7767 vaccines were procured for the treatment of Hepatitis-B&C patients. 487 cancer patients were provided free treatment.

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Drinking Water Supply and Sanitation: The quality of drinking-water is a powerful environmental determinant of health. Assurance of clean drinking water safety is a foundation for the prevention and control of waterborne diseases. Similarly, inadequate sanitation is a major cause of disease and improving sanitation is known to have a significant beneficial impact on health; both in households and across communities. The department implemented various projects to provide access to safe drinking water in un-served or underserved areas. It rehabilitated the existing non-functional water supply schemes as well as old village based water supply schemes to ensure sustainability, and improved maintenance and reliability of existing supplies. For sanitary measures, the department substituted dilapidated pipelines and administered all the water supply schemes being managed by communities throughout the province. An amount of Rs.3661.428 million was allocated for 16 projects, out of which 7 were completed and the following achievements were made: i. 197 water supply schemes under the umbrella project were completed. ii.717 water supply schemes in flood hit areas were restored /rehabilitated. iii. 1 major sanitation projects was completed in Nowshera District. iv. 3 regional Laboratories were established for water quality monitoring. Social Welfare & Women Development: The main strategy of Social Welfare & Women Development Department was the well being and uplift of the community in general and vulnerable groups in particular. It motivated voluntary efforts on the basis of self help and mobilization of both human and material resources to supplement government's efforts and accelerated development process in a twofold approach i.e. public sector development and welfare activities. The department initiated various projects for male, female and child beggars, orphans, destitute women and disabled children in the province. Senior citizens and unemployed graduates were provided stipends and monthly allowances. Various vocational training centres were established to facilitate the women. Similarly, with the assistance of UNICEF, help lines for the welfare & protection of children were established in 8 districts and initial work on 2 drug addicts rehabilitation & detoxification centres in Malakand & Swabi was commenced. The Lissail-e-Wal Mahroom project also undertook various activities pertaining to health, education and social welfare will be carried out for the vulnerable groups in the province. An amount of Rs. 409.516 million was allocated for 38 projects of which 15 were completed and the achievements made are as under: i. ii. iii. 48 dastkari centers were established. 80 disabled children were given special education. 52 orphans were provided with shelter and skills.

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iv. v. vi. vii. viii. ix. x.
1685 poor women were provided with vocational training & shelter. 120 male beggars were provided skills. 3040 disabled people were provided rehabilitation aids. Children protection helpline was established in 8 districts. Under the Lissail-e-Wal Mahroom project free treatment was provided to 204 Cancer patients, 2285 Cataract and 83900 patients through 329 medical camps. 2020 widows & orphans were trained in different skills. 4900 orphans were given stipends to pursue education at Primary& Secondary levels.
Auqaf, Hajj and Minority Affairs: The Constitution of Pakistan guarantees the rights of the minorities. Considering this aspect, the provincial government initiated certain interventions, which were aimed to address basic requirements of minorities in the province. These included provision of basic services for welfare of the minorities, promotion of Islamic activities, rehabilitation of worship places of minorities, provision of computer equipments to the schools and improvement of Deeni Madaris. This sector was allocated Rs.67.950 million for 11 projects, out of which 9 projects were completed. Roads: Construction of roads is an essential part of the developmental program of a country. The road network can, in a way, be compared to the arteries of a human body. The provision of roads facilitates access and movement between terminal points i.e. amongst cities and towns and other trading and industrial centres of the province. Under the development program efforts were made to construct, rehabilitate, widen and extend the roads network to the remote and less developed areas in the province. Besides, construction of bridges on important provincial highways and feasibility studies were also conducted to design and expand the existing infrastructure in the province. This sector was allocated Rs.12720.141 million for 134 projects out of which 50 were completed. The achievements made are as under: i. ii. 419 kms roads were constructed & dualized. 14 bridges were completed.
Building: This department has been mandated to carry out maintenance & construction works of the government buildings throughout the province. This includes official buildings, Tehsil buildings and construction of Judicial Complex in the Province. An amount of Rs.570.895 million was allocated for 36 projects, out of which 9 projects were completed. Urban Development:

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Urban areas are important from the economic point of view, because they serve as hub of trade, commerce and government administration. The department persisted upon execution of ongoing portfolios and the infrastructural requirements of Peshawar. It expedited construction work on the southern bypass project and intensified construction work of Arbab Sikandar Khan Khalil flyover so as to reduce the traffic congestion in the city. An amount of Rs. 1724.186 million was earmarked for 10 projects in this sector, of which 1 projects were completed. Water: Irrigation serves as a lifeline for the agriculture, a main source of livelihoods in rural areas therefore; a sustainable irrigation system is an essential requirement of the Province. Keeping in view the value of this sector, the Provincial Government, initiated various projects in order to tap water resources and improvement of the agriculture produce of the province. In this perspective, construction & rehabilitation works on Gomal Zam dam, Munda & Amandarra headworks and Tangi Lift Irrigation scheme was accelerated. Besides, department also actively pursued restoration of flood damaged structures in the province. An allocation of Rs.5088.198 million was made for the implementation of 104 schemes, out of which 20 were completed and the following targets were achieved: i. ii. iii. iv. v. vi. Balambat irrigation scheme was completed; it will irrigate 11363 acres of land. 6 small dams will be completed & 12310 acres of land will be brought under cultivation. 80 tube wells & lift irrigation schemes were installed which will irrigate 10000 acres of land. 60 kms canal patrol roads were constructed /reconditioned. Feasibility studies of 8 small dams were completed. Detail designing of 6 small dams was completed.
Agriculture: The Khyber Pakhtunkhwa Province has an agrarian economy and more than 80% of the rural population depends for their survival on Agriculture, out of which 70% are directly or indirectly engaged in agriculture. The primary goal of this sector is to ensure food security, alleviate poverty and generate employment opportunities inducing higher growth rate in this vital economic sector. The provincial government initiated certain steps for the promotion of this sector, prominent being implementation of advanced technology for accurate levelling of farms for sustainable use of water & increased crop production, establishment of Farm centres both at District & Tehsil levels, provision of improved varieties of seeds, agricultural machinery, capacity building of farmers and livestock breeding, projects for backyard gardening and poverty alleviation through improved rural poultry production.

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An allocation of Rs.1197.272 million was made for 71 projects out of which 36 were completed; as a result achievements made are as under: i. 1941 acres land was planted with fruit orchards. ii. 1423 demonstration plots of crops, vegetables & fruit were laid. iii. 668 acres of land was levelled through laser technology. iv. 101 dug wells were installed. v. 412 watercourses were improved. vi. 263 soil conservation structures were developed. vii. 25 water storage tanks were constructed. viii. 8141 farmers were trained. ix. 101 livestock associations were formed. Forestry: The forests in the province are its potential source of wealth. It has forest cover of 17% and it accounts for about 40% of the total forest area of the country. In addition to this the department also manages 48% range lands of the province which are important sources of livelihood for the local communities besides generating revenue for the state and providing watershed, ecological, recreational and eco-tourism related services for the nation. The important projects implemented in this sector pertained to afforestation, conservation, promotion & demarcation of forests, improvement & development of range & waste lands and maintenance of game reserves. These activities were implemented in different areas of the province. This sector was allocated Rs.470.732 million for 61 projects out of which 18 projects were completed and the achievements made are as under: i. ii. iii. iv. v. vi. Nurseries were raised on 21 acres. Afforestation was made on 6240 acres. Sowing was carried out on 855 acres. Linear plantation was carried out on 1083 Kms. 485 acres area was brought under rangeland management. 375 farmers were trained in Apiculture, propagation of medicinal plants & mushroom cultivation.
Environment: Environment protection and conservation of natural resources is vital for sustainable development. The department was provided adequate resources for monitoring ambient air, water, solid waste collection & disposal practices across the provinces, promotion of environmental education, mass awareness through campaigns & media and urban environmental improvements for creating safe & healthy environment for the local populace. In ADP 2011-12, an allocation of Rs.48.544 million was made for this sector for implementing of 16 projects out of which 5 were completed.

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Tourism, Sports, Culture and Museums: The province possesses not only beautiful landscapes but, also unique cultural heritage. It has a complete cultural profile from stone-age to the Islamic period. This was a significant year for the Tourism Department wherein, it initiated various activities such as, development of Tourism resorts, promotion of local fairs, festivals & cultural activities for image building, conduct of sports competitions especially traditional games and establishment of play grounds in the rural areas. For this purpose an amount of Rs.1391.698 million was allocated for 38 projects, out of which 11 projects were completed.
Energy & Power: The province has vast potential of generating hydro-power and in this respect various projects were identified. The provincial government in order to earn more revenues took certain initiatives which encouraged private sector for investing in this promising sector. Under the provincial governments Hydel Development Action Plan, 2100 MW electricity will be generated in the province up-till 2025. Besides, implementing the on-going portfolio and conducting feasibility & pre-feasibility studies, the department also took initiatives to explore opportunities for power generation through alternate energy source. Efforts were also made to fully capitalize on the available sources in Kohat-Potohar sub-basins. An allocation of Rs.793.776 million was made for the implementation of 20 schemes, and 3 projects were completed. The following achievements were made: i. Construction work on 36 MW Daral Khawar was started. ii. Pre-feasibility studies of 10 raw sites were completed. iii. Feasibility studies of 13 Hydel Power Projects were initiated. Industries: Industrial sector has the potential to foster real economic growth in the province. With a proper strategic framework, this sector can play an important role in addressing poverty by harnessing indigenous resources, creating employment opportunities and generating revenues for the provincial government. The department initiated a project on economic revitalization so as to rehabilitate and support small & Medium Enterprises whereas Sarhad Development Authority implemented interventions for acquisition of land for establishing new industrial estates and modernization & rehabilitation of existing industrial estates. The SIDB also initiated various projects for establishing new small industrial estates in various districts. The Technical Education & Manpower department carried out projects for establishing polytechnic institutes, commerce colleges, Technical& Vocational Institutes and Government Colleges for Management Sciences for boys & girls. Besides, it also procured books, furniture & equipment for newly created institutions. This sector was allocated Rs.2383.760 million for

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74 projects out of which 11 projects were completed and the achievements made are as under: i. Rs.1231.387 million investments were attracted. ii. 1325 female students were provided skill training. iii. 21613 skilled & unskilled persons were provided employment opportunities. iv. 436 bio-gas plants were installed in Peshawar, Charsadda, Nowshera, Mansehra, Abbottabad & Haripur districts. v. 2 Commerce colleges were established in Bannu & Peshawar districts. vi. Polytechnic institute was established in Chitral District. Commercial training institute was established in Hangu District. vii. viii. Polytechnic institutes in Swat & Bannu districts were upgraded to College of Technology level. ix. 1000 students were enrolled free technical education. Regional Development: The area developments projects are based on the concept of integrated development through the community driven approach. They play a significant role in enhancing the agricultural productivity, natural resource management and rural development. In the multi-sectoral development sub sector, major projects namely, Kala Dhaka and Kohistan Area Development Projects contributed through developmental works to, natural resource management, rural roads, provision of potable water & sanitation, pavement of streets etc. Similarly, under the Refugee Affected & Hosting Area project, interventions were implemented to improve livelihoods, rehabilitation of environment and enhancing social cohesion in the affected areas. In the Local Development sub-sector, major ongoing projects namely, Clean Drinking Water for All, Renewal of Urban centres in major cities, and new projects such as, foreign assisted Municipal Services Delivery Project and Strengthening of TMAs through Assets Creation collectively executed developmental works on strengthening of systems, resource mobilization, provision of potable water and sanitation etc. In the poverty alleviation sub sector, the Bacha Khan Poverty Alleviation Programme was implemented in 4 districts of the province for strengthening of livelihoods and improvement in living standards of the people. In the Law & Order sub sector, impetus was laid upon construction and rehabilitation of police stations, police posts and police lines throughout the province. An amount of 3952.116 million was allocated for 41 projects, out of which 14 were completed and following achievements were made: i. ii. iii. iv. v. 866 Community based infrastructure schemes were completed. 15200 persons were trained in different trades 4775 persons were imparted Vocational trainings. 12163 persons were provided Micro credits/grants/loans. 164400 persons were provided micro health insurance coverage.

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Research and Development: An amount of Rs. 225.024 million was allocated for projects. District Development Fund: The Provincial Government allocated an amount of Rs.1520.300 million for the District Development, under the Provincial Finance Commission Award. In this respect, the District Governments were provided Rs.912.496 million, Tehsil Municipal Administrations share was Rs.382.504 million Rs.150.200 million were provided for Chief Ministers directives, and Rs.75.100 million for Finance Ministers directives. Tameer-e-Khyber Pakhtunkhwa Program: The Government launched the program with an objective to initiate development projects, thereby creating employment opportunities in the length and breadth of the Province. In order to ensure public participation, Members of Provincial Assembly recommend projects for uplift in their respective constituencies. An amount of Rs.2739.480 million was allocated for this program. Science and Information Technology: The importance of science and information technology cannot be negated in this computer age. In this context, the ST&IT department implemented several programs to explore new avenues in respective fields and promotion of e-governance. These included Promotion & Development of Science & Technology, Financial Assistance for R&D, Trainings and Establishing Model Science Laboratories in all the districts. An allocation of Rs.256.809 million for 22 schemes. Transport: The Provincial government attached high priority for the freight sector so as to, provide safe reliable, affordable and environment friendly transport system for greater mobility of people and goods. The department undertook key reforms in transport development and regulatory frameworks such as, strengthening of transport regulatory authorities, setting up a transport complex in Peshawar, and initiated requisite work on setting up automotive procedures for vehicle fitness certifications. The purpose of these reforms is to facilitate the stakeholders engaged in this business. This sector was allocated Rs.41.478 million for 7 schemes.. Housing: Adequate housing is a pre-requisite to human welfare. Housing is recognized as a productive economic activity because it contributes through a high multiplier effect with a host of

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beneficial forward and backward streams in the economy. The department being mandated to provide adequate housing facilities for the general public as well as, the government servants initiated; various efforts under its development portfolio. These include launching of housing schemes in Jerma located in District Kohat, Havelian in Abbottabad District and Mulazai in Peshawar District. The detail designing & planning of high rise flats in Hayatabad was accomplished and construction of balance works of flats for government servants on Charsadda road was started. This sector was allocated Rs.825.614 million for 13 schemes and 2 schemes were completed. Food: Food safety and quality are interrelated because food borne diseases cause human sufferings and have economic costs. It is therefore important that requisite infrastructure be provided in the vicinity of the fruit markets so as to preserve the local produce to meet the sanitary and phytosanitary protection requirements. In view of this, the department embarked upon construction of food grain godowns in various districts of the province. An amount of Rs.429.605 million was allocated for 8 schemes in this sector and 3 schemes were completed.

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Labour: The Labour Department was a new addition in the provincial administrative setup. As employment is central to reducing poverty, it has an important role in maintaining the supervisory and regulatory standards for employees of both the formal and informal sector. The departments portfolio included projects for institutional strengthening and establishment of child and bonded labour unit. An allocation of Rs.14.060 was made for 4 schemes in this sector. Mines & Minerals: The province has vast potential of minerals, metallic and non-metallic, as well as dimensional stones. The government in the past introduced regulatory mechanisms for exploring the maximum benefits and productivity in this sector. The department under its development program undertook feasibilities & geological exploration of minerals in potential areas of province. This sector was allocated Rs.226.874 million for 14 schemes, out of which 1 were completed. Information: One of the pre-requisites of the information age is to manipulate information and transfer it freely and to have instant access to knowledge that would have been difficult to find previously. Keeping in view these factors, the Information Department processed multiple interventions pertaining to development of this important sector such as establishment of F.M radio stations and conducting feasibility studies for establishment of a TV station with the objectives to promote local culture and languages. An allocation of Rs.83.646 million was made for 1 schemes. Finance: In this sector, schemes pertaining to Finance, Excise & Taxation and Board of Revenue Departments were integrated. The proposed projects relate to special & royalty based packages, establishment of Tax facilitation centres, computerization of land records in 7 districts, construction of 100 Patwar khanas and Tehsil revenue complexes in 4 districts. An amount of Rs.8302.781 million was allocated for 15 schemes; out of which 1 was completed. Law & Justice: In this sector, schemes pertaining to construction of judicial complexes, bar council building, judicial lodges were incorporated. An allocation of Rs.189.353 million was made for 10 schemes; out of which 2 were completed.

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Home: In this new sector, projects pertaining to Police, Prisons, and Prosecution Departments and Rescue 1122 were included. In the Police Departments related schemes, main emphasis was on completion of ongoing programs. Massive allocations were envisaged under the second phase of Police Support Development Program, with the aim to strengthen Police department, construction of Police infrastructure in the province i.e. Police stations/posts/lines and procure requisite equipment in order to improve security and safeguard against terrorism. The portfolio of Prisons Department incorporated projects for the construction, renovation & conducting feasibilities of Prisons as well as Bakshi Khanas, establishment of high security zones in jails etc. The establishment of a Directorate of Human Rights was also approved. An amount of Rs.3308.187 million was made for 29 schemes, out of which 5 were completed and the following achievements were made: 29 police stations/posts/lines were completed.
Population Welfare: Population Welfare is a vital program of national importance. The program is providing Family Planning & Reproductive Health Services in the province to reduce high fertility rate in the province. It emphasized upon birth spacing and mother & child health care through its interventions. The departments strategy was to build & strengthen its infrastructure, enhance capacity of its staff and related stakeholders, improve service delivery and create awareness amongst the masses in the province. An amount of Rs.119.492 million was allocated to this sector and the following targets were achieved: 110 Family Welfare Centres were established in province.
Main Features of Annual Development Program, 2012-13: The outlay of ADP, 2012-13 is Rs.74200.000 million, which is an increase of 7% over the local share of last years development program. The ADP comprises of 940 projects, with -667 ongoing & 273 new. Formulated on the basis of priorities of the development departments solicited under the Comprehensive Development Strategy & Economic Growth Strategy, the ADP envisages substantial allocations for all the development sectors. The details of source of funding are tabulated below: S. No. A B i. Source of funding Allocation %age Provincial Budget 74200.000 76% Total Foreign Assistance 23258.000 24 % Grants 19562.646 84 %

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ii.
Loans Total (A+B )
3695.354 97458.000
16 %
Formulation of ADP 2012-13: The ADP-2012-13 has been formulated after an intensive consultative process. The process included a series of sessions with all the development departments, Finance Department, Senior Minister for Planning and Development Department and the Chief Minister, in order to seek their guidance. Priorities of Funding: In view of the allocated resources, the following order of priority has generally been observed: i. ii. iii. iv. v. Maximum funding for ongoing portfolio. Emphasis on productive & Socio- economic sectors. Arrangement of counterpart funds for foreign aided projects. Projects dealing with emergencies. Projects intended to improve service delivery.
Sector-wise allocation: The size of ADP, 2012-13 is Rs.97458.000 million which includes foreign assistance of Rs.23258.000 million. There are 940 projects in the ADP, of which 667 are ongoing and 273 are new. The sector-wise allocation for ongoing and new schemes is as under: (Rs. in million) Sector Elementary & Secondary Education Higher Education Health Drinking Water Supply & Sanitation Social Welfare Auqaf, Hajj, Religious & Minority Affairs Roads Building Housing Schemes (On Going) No Allocation 44 21 73 13 23 2 85 25 9 5965.930 4438.000 6378.000 1873.483 439.537 19.000 7560.190 621.953 1853.990 Schemes (New) No Allocation 13 12 16 4 4 9 9 16 1 1150.070 626.000 1197.100 1321.000 53.268 81.000 2176.151 414.447 0.010 Total No 57 33 89 17 27 11 94 41 10 Allocation 7116.000 5064.000 7575.100 3194.483 492.805 100.000 9736.341 1036.400 1854.000

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Urban Development Water Agriculture Forestry Environment Sports, Culture, Tourism, Archaeology Energy and Power Industries Regional Development Research and Development Population Welfare Districts ADP Tameer-i-Khyber Pakhtunkhwa Programme ST&IT Transport Food Labour Mines & Mineral Information Law & Justice Finance Home Relief & Rehab. Sub-Total
7 68 36 46 11 27 15 46 22 10 1
1816.850 1760.616 1028.346 383.586 38.151 425.471 1137.396 1618.936 3401.223 258.234 130.000
7 23 13 20 4 12 35 13 5 3 1 1
1589.150 1097.673 424.154 186.412 18.849 259.529 896.602 1303.051 455.001 53.000 1672.330 2480.000
14 91 49 66 15 39 15 81 35 15 4 1 1
3406.000 2858.289 1452.500 569.998 57.000 685.000 1137.396 2515.538 4704.274 713.235 183.000 1672.330 2480.000
10 279.000 29 593.792 3 78.550 10 199.750 3 50.002 8 437.503 2 58.000 3 72.290 2 60.000 9 517.147 5 56.802 10 210.578 5 110.001 16 465.000 7 7400.894 17 8159.772 13 1073.350 31 3725.000 2 1215.479 2 1215.479 667 46363.125 273 27836.875 940 74200.000 Foreign Assistance 23258.000 Grand Total 97458.000
19 7 5 1 7 5 11 10 18
314.792 121.200 387.501 14.290 457.147 153.776 354.999 758.878 2651.650
Foreign Assistance: For the year 2012-13, the size of foreign assistance is Rs.23258.000 million for 52 projects. The counterpart funds have been envisaged as Rs.7484.164 million. Of the total foreign assistance, the grant portion comprises Rs.19562.646 million whereas, loan component is Rs.3695.354 million. The sector wise allocation of foreign assistance is tabulated as under: (Rs. In millions) Foreign %age Assistance 17.800 0.1 1142.159 4.9
S.No 1 2
Sectors Agriculture DWSS
Projects 1 1

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3 4 5 6 7 8 9 10 11 12 13 14
Elementary & Secondary Education Energy & Power Forestry Health Home Industries Regional Dev. Research & Dev. Roads Social Welfare Water Law Total:
11 1 1 9 3 3 5 5 5 3 2 2 52
9972.889 695.354 150.000 2358.177 1040.183 296.500 1200.000 895.660 4933.328 149.200 187.000 219.750 23258.000
42.9 3.0 0.6 10.1 4.5 1.3 5.2 3.9 21.2 0.6 0.8 0.9 100
THE INDIVIDUAL CONTRIBUTIONS OF PROVINCIAL GOVERNMENTS DEVELOPMENT PARTNERS ARE AS UNDER: S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Donor Grant Loan Total
7465.879 0.00 7465.879 DFID JICA 1255.744 3000.000 4255.744 EU 3256.000 0.00 3256.000 NAS 2492.183 0.00 2492.183 1209.498 0.00 1209.498 MDTF 1025.533 0.00 1025.533 KfW 749.700 0.00 749.700 WFP 0.00 695.354 695.354 ADB USAID 634.500 0.00 634.500 UNDP 528.000 0.00 528.000 251.000 0.00 251.000 NORAD Italian Debt Swap 233.500 0.00 233.500 150.000 0.00 150.000 GIZ 146.200 0.00 146.200 CVF Japan 95.000 0.00 95.000 UNICEF 69.850 0.00 69.850 World Bank Total 19562.646 3695.354 23258.000
SECTOR-WISE INVESTMENT PROGRAM:

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A brief description of the Provincial, Special and Districts Programmes is as follows: Education: Education is the harmonious development of all faculties of human beings viz-a-viz intellectual, physical, social, moral, aesthetic, spiritual and economical. It is considered the backbone in progress of any country. Due to these elements, this sector has become the top priority of the Provincial Government. During the year, the Elementary & Secondary Education Department will focus upon promoting education at all tiers, maintaining gender balance, constructing & upgrading the infrastructure, provision of basic facilities, procurement of equipment & furniture and capacity building of teachers. It will continue its programs for providing free text books up to higher secondary levels, stipends to the girl students and incentives for female teachers in remote and difficult areas. The significant projects in this sector are establishment of Model schools in Haripur, Hangu, Charsadda, Mardan & Battagram districts, establishment of a Cadet College and major supportive reforms programs with the assistance of DFID and European Union.The Higher Education sector will primarily focus upon its ongoing program and its new portfolio includes plans for provision of additional facilities in Government Colleges, strengthening of existing public libraries, capacity building & establishment of pre-service academy for teachers, connecting its Colleges with Pakistan Education & Research Network and procurement of science equipment, machinery, sports gear, furniture & books for Government Colleges. An amount of Rs.12180.000 million is allocated for funding of 90 projects, out of which 65 are ongoing and 25 are new projects, the following targets will be achieved during the year: i. 100 new Primary schools will be established on need basis. ii. 50 new Primary schools will be established in rented buildings in urban areas. iii. 50 Primary schools will be upgraded to Middle level in deficient Union Councils. iv. 50 new Middle schools will be established in rented buildings in urban areas. v. 50 Middle schools will be upgraded to High level in deficient Union Councils. vi. 25 High schools will be upgraded to Higher Secondary level in deficient Union Councils. vii. 245 I.T. Labs. will be established in High & Higher Secondary Schools. viii. 50 Science Labs. will be established in High & Higher Secondary Schools. ix. 500 additional classrooms will be constructed. x. 500 Primary schools will be provided with basic facilities. xi. 5 Model schools will be established in Haripur, Hangu, Charsadda, Mardan & Battagram districts, xii. 6 male & 8 female Government Colleges will be completed. xiii. Bachelors of Science program will be initiated in 39 male & 16 female Government Colleges. xiv. Transport facilities will be provided in 10 Government Colleges. xv. 154 Government Colleges will be provided with furniture, library books & sports equipment.

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xvi. 12 male & 8 female Government Colleges will be connected with Pakistan Education & Research Network. Health: Health is the co-efficient of development, and improvement in the health status of the people is generally preceded by the overall development of the area. Development to a great extent is contingent on the social and economic security of the people. Being a high priority sector, the government has committed to provide modern and vibrant health care system to its people. The new development portfolio is designed in consonance with the global indicators of the Millennium Development Goals and aims to provide better health delivery system to all segments of the population. The preventive programs for EPI, T.B., AIDS, Rollback malaria, Hepatitis, Thalassemia and Blood transfusion services will persist to reduce the risks of communicable diseases. Emphasis will be made upon completion of the ongoing and initiating new physical infrastructure projects, provisions of medicines and equipment to the completed & deficient health outlets, procurement of Ambulances, establishment of Accident & Emergency departments and a new Medical College. The Department with the assistance of German government (KFW) will implement a massive program on Social Health Protection in the Chitral, Malakand, Kohat & Mardan districts to provide health insurance cover to the marginalized segments of society in these areas. Moreover, the department will also take initiatives for strengthening of Immunization services with the assistance of Japan International Cooperation Agency and Promoting Safe Motherhood program with the cooperation of World Food Program. An amount of Rs. 7575.100 million is allocated for 89 projects out of which 73 are ongoing and 16 are new projects. The following targets will be achieved in this sector: i. ii. iii. iv. v. vi. vii. viii. ix. 3 Category-C hospitals will be completed. 9 Category-D hospitals will be completed. Machinery & Equipment will be purchased for 4 Category-C & 4 Category-D hospitals. 228 bed Women & Children hospital will be completed in Peshawar. 7 ambulances will be procured for teaching hospitals. 14000 vaccines will be provided for free treatment of Hepatitis-B&C patients. 800 poor cancer patients will be provided with free treatment. Project for prevention & control of Dengue virus will be launched. Zulfiqar Ali Bhutto Medical College will be established.
Social Welfare and Women Development: In Social Welfare and Women Development sector, focus is 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 well being and safeguarding of destitute women, orphans, children, beggars, drug addicts and special persons. The prominent proposals in the new portfolio are establishment

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of artificial limbs workshop at Mardan and vocational centers in the province, capacity building of public sector officials for promotion of Social Participation of persons with disability in Haripur. Under the Lissail-e-Wal Mahroom project various activities pertaining to health, education and social welfare will be carried out for the vulnerable groups in the province. An amount of Rs. 492.805 million has been earmarked for 27 Projects of which 23 are ongoing and 4 are new. The following targets have been envisaged for the year: i. ii. iii. iv. v. 10 Vocational centers will be established in the province. 90 disabled children will be given special education. 2500 destitute women will be trained in different skills. 60 destitute women will be provided with shelter & skills. 50 orphans will be provided with shelter & skills.
Tourism, Sports, Culture and Museums: Like other sectors, the performance of Tourism sector to a larger extent, is linked with the Law & Order situation, better infrastructure and performance of other sectors. Considering, these factors, the government is committed promoting this sector vigorously. The development mandate of this sector signifies the efforts of the government to provide respite to the people of the province who have suffered enormously due to the menace of terrorism. In this milieu, multi-dimensional projects will be initiated entailing activities such as cultural & tourism promotion through festivals, heritage & conservation of archaeological sites, protection of cultural sites, rehabilitation & improvement of existing sports facilities in the rural & urban areas, development of tourist facilities through public-private partnerships and other similar activities. An amount of Rs. 685.000 million has been allocated for 39 projects, out of which 27 are ongoing and 12 are new. Auqaf, Hajj & Minority Affairs: This sector has been provided with an allocation of Rs. 100.000 million for 11 projects, out of which 2 are ongoing and 9 new. The sectors new portfolio will majorly focus upon the welfare of minorities and proposals have been framed for improvement of their residential colonies, educational institutions & worship places. Besides, programs for skill enhancement program, scholarships for needy students and mass awareness campaigns for the rights of minorities have also been incorporated. In addition to this, the department will also implement projects pertaining to promotion of religious activities and improvement of Deeni Madaris in the province. Roads: The governments vision for economic growth and poverty reduction requires ambitious targets, needing handsome investment in quality and affordable infrastructure to sustain high rates of private sector led growth, enhance economic competitiveness and optimize provinces

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locational advantage.The total length of roads in the province is about 25,000 kms. It comprises of 2,173 kms national roads, 1,450kms of provincial roads, 18,711kms of district roads and 2,624 kms other roads. About 44% of the roads maintained by the province are in deplorable condition and 78% of the roads maintained by the districts are even worse. Keeping in view the fact that roads account for over 91% of passenger transport and 96% of freight transport in the province it becomes imperative to envisage substantial allocations for the construction and maintenance of its roads. It is widely understood that no other sector of the economy can be developed without the provision of viable road network. Keeping the aforementioned premise in context, the department has incorporated projects in the new program through which the roads network in the province will be further extended and new bridges will be constructed. The department with the assistance of JICA will execute a mega project wherein it will construct 519 kms of roads and 32 bridges in the province by 2015. The sector has been allocated Rs.9736.341 million for 85 on going and 9 new projects. The following targets have been envisaged for the year: i. ii. 524 km roads would be constructed/ dualized. 26 R.C.C bridges would be constructed.
Drinking Water Supply and Sanitation: Clean and fresh water is essence of life, and its provision is the constitutional right of the citizens of the province. Though supply of water is finite but demand is rising rapidly with increase in population and per capita consumption. Similarly, sanitation is the main feature with respect to health & hygiene promotion services and is regarded as the basis of development. 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. Besides three mega gravity water supply schemes will be accomplished in Abbottabad & Chitral districts. Similarly feasibility of greater water supply scheme for Peshawar will be completed. The sector has been allocated Rs.3194.483 million for 13 ongoing and 4 new projects. The following targets have been envisaged: i. ii. iii. iv. 140 water supply schemes will be completed. 384 old village based water supply schemes will be rehabilitated. 3 mega water supply projects will be completed. Construction work on 150 new water supply & 486 schemes of replacing old pipes will be initiated.
Building:

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In this sector various projects will be initiated for the construction of governance buildings, circuit & rest houses, residential accommodation for public servants etc. in the province. The sector has been allocated Rs.1036.400 million for 25 ongoing and 16 new projects. Housing: The 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 program, the department besides pursuing the ongoing interventions will launch new housing scheme in Nowshera district on self finance basis and also will initiate project for construction of residences & bachelors hostel in all the district headquarters of the province. Overall, funds of Rs. 1854.000 million have been earmarked for 10 projects, out of which 9 are ongoing and 1 are new. Urban Development: Urban areas are important to the national economy as these are considered the focal points for trade, commerce and governance. In the new development plan, the department will mainly concentrate upon execution of ongoing portfolios and advance the infrastructural requirements of Peshawar. An amount of Rs.3406.000 million has been earmarked for 14 projects, which 7 are ongoing and 7 new projects. Water: 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 timely completion of on-going projects including Bazai Irrigation scheme in Malakand& Mardan districts, Khandan Jonali Koch irrigation scheme in Chitral district, Hero Shah minor and remodelling of link channel in upper Swat canal. These projects upon completion will irrigate 26840 acres of land. Besides, the department will also execute diverse projects pertaining to construction of small & medium dams, improvement of irrigation channels, construction of new flood protection works and installation of tube wells and raising of Baran dam in district Bannu. An allocation of Rs.2858.289 million has been made for the implementation of 91 schemes, out of which, 68 are ongoing and 23 are new. The following targets will be achieved in this sector. i. ii. iii. Bazai, irrigation scheme will be completed & 25000 acres of land will be brought under cultivation. Khandan Jonali Koch irrigation scheme will be completed & 1200 acres of land will be irrigated. Hero Shah minor in upper Swat canal will be completed & 2140 acres of land will be irrigated.

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iv. v. vi. vii.
Remodelling of link channel in upper Swat canal will be completed & 1500 acres of land will be brought under cultivation. 1 small dam will be started in Abbottabad district. 50 tube wells will be installed & 8000 acres of land will be brought under cultivation. 75 kms canal patrol roads will be constructed /reconditioned.
Energy & Power: Ensuring energy security and efficiency will be amongst the governments top priorities in order to tackle the current energy crisis and enable sufficient supply of energy for domestic as well as, commercial use. The province is blessed with a hydel potential of around 50,000 megawatts but, unfortunately majority of this potential remains untapped. The provincial government recently approved an action plan whereunder 2100 megawatts will be generated. In this plan, 7 projects have been included as a short term measure, and upon completion these will generate 509 MW. In the new financial year department besides pursuing its ongoing portfolio will commence construction work on 31.17 MW Koto, 9.3 MW Karora, 6.5 MW Jabori, and 69 MW Lawi projects. Moreover, it will also plan to fully capitalize the oil and gas reserves for investment and formation of a provincial oil and gas company. In ADP 201213, an amount of Rs.1137.396 million has been allocated for 15 ongoing schemes. The following targets have been set forth: Detailed designing and construction work on 5 projects will be started which upon completion will generate 200 MW electricity including Matiltan (84 MW), Lawi (69 MW), Koto (31.17 MW), Karora (9.3 MW) and Jabori (6.5 MW).
Agriculture: Agriculture sector being the linchpin of the provinces economy continues to be the single largest sector and a dominant driving force for economic growth and development. The importance of Agriculture to the economy is seen in three dimensions; first it provides food to consumers for food security & fibre for domestic industry; second it is a source of foreign exchange earnings and third it provides input & output markets for industrial goods. In the new development year, the provincial government will largely be drawing impetus on its ongoing programs where under, certain measures will be adopted for promotion of agriculture, by providing requisite technical information & inputs to the farmers increasing the agricultural productivity and exploiting the provincial comparative advantage in production, export of high value added crops and horticultural products. Besides, it will also ensure to improve water courses and irrigation channels to enhance the productivity and efficacy in this sector. The new portfolio of projects in agriculture sector will focus upon improve livelihoods of rural women through livestock interventions, sustainable development initiatives for Fisheries, Aquaculture & integrated approach for food security, poultry production, processing & marketing through public-private partnerships, conservation of native livestock breeds, on farm Water management activities and establishment of campuses

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of Agriculture University. The department has also proposed a project on installation of high efficiency Irrigation system in the province. An allocation of Rs.1452.500 million has been made for 49 projects, out of which 36 are ongoing and 13 new. The following major targets have been envisaged in this sector: i. Fruit orchards will be laid on 1100 acres. ii. 4565 demonstration plots of crops, vegetables & fruit will be laid. iii. 3000 acres of land will be developed through laser technology. iv. 25 Bulldozers will be purchased. v. 60 tube wells will be installed. vi. Sprinkler & drip irrigation system will be installed on 2000 acres. vii. 354 watercourses will be improved. viii. 315 water storage tanks will be constructed. ix. 110 solar pumps will be installed. x. 7970 farmers will be trained. xi. 30 veterinary dispensaries will be established. xii. 75 fish farms will be established. Forestry: Khyber Pakhtunkhwa has rich forest resources and it is imperative for the Provincial Government to protect its natural wealth. For the management of provinces rich flora & fauna the department has given preference to those areas which were neglected in past hence, majority of new projects have been proposed for afforestation of indigenous as well as fruit bearing species in Malakand & Hazara districts, promotion of urban forestry, integrated watershed management for uplands, sustainable management of bio-diversity in Swat & Chitral districts with the assistance of GIZ, carbon stock assessments of forests, promotion of apiculture in flood affected areas. Besides it will also undertake programs for conservation & propagation of Wildlife in Mardan, Chitral, Swat & Dir districts, enhancement, protection & management of game reserves & management of aquatic resources etc. The sector has been allocated Rs.569.998 million for 66 projects of which 46 are ongoing and 20 are new. The achievements to be made are as under: i. ii. iii. iv. v. vi. Nurseries will be established over 163 acres. Afforestation will be made over 19055 acres. Direct sowing will be carried out over 4900 acres. Linear plantation will be carried out over of 2550 Kms. 3400 acres area will be brought under rangeland management. 855 farmers will be trained in Apiculture, propagation of medicinal plants & mushroom cultivation.
Environment:

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The province has always been conspicuous in the environmental arena of the country. It led the other provinces in preparation of environmental legislation as well as, planning and implementation of Sarhad Provincial Conservation Strategy in 1995. 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. In their new plans, considerable allocations have been earmarked for promotion of green buildings through solar energy, environmental trainings of departments both at provincial & district levels and operationalization of EPA laboratory. In ADP 2012-13 an allocation of Rs.57.000 million has been proposed for this sector for implementing of 15 projects out of which 11 are ongoing and 4 are new. Industries: The provincial economy has significant potential for enhancing industrial productivity and exports and the government realizes the need to improve the general business environment for efficient economic activity. There are immense opportunities and market access for various goods to be exported to new markets especially in the Central Asian region. The main focus of the sector is to produce skilled manpower which is essential for the industrialization of the province. While preparing future plans emphases have been laid to bring remote areas of the province in the ambit of new interventions to eliminate poverty and expedite the process of development. Under the new program of the Industries sector impetus will be laid on to establish new and improve services in the existing industrial estates. The functioning of new industrial estates in Karak & Mardan districts will create about 20,000 employment opportunities for skilled & unskilled persons. The SIDB will establish Carpet Nagar in Peshawar. It will also install bio-gas plants in Peshawar, Charsadda, Nowshera, Mansehra, Abbottabad & Haripur districts of the province. The Technical Education & Manpower department will mainly concentrate on establishing Polytechnic institutes, Commerce colleges, Technical& Vocational Institutes, Government Colleges for Management Sciences through its ongoing and new portfolio. An allocation of Rs.2515.538 million has been made for 81 projects, out of which 46 are ongoing and 35 are new. The following targets have been set forth: i. Carpet Nagar will be established in Peshawar. ii. 436 bio-gas plants will be installed in 6 districts of the province. Transport: The mandate of the department is to strongly focus on formulation & delivering the Government's transport strategy. The role of the department is to set strategy and policy context, and to establish and manage relationships with the organizations that are responsible for delivery. Besides, the implementation of ongoing interventions the department has included new projects for purchase of land for establishing a general truck stand at

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Peshawar and setting up of a pilot project for establishing vehicles fitness testing station at Peshawar. It will also undertake a comprehensive study for viable solutions of traffic problems in Peshawar. This sector has been allocated Rs199.750 million, for 7 ongoing and 3 new schemes. Regional Development: The area development projects play a significant role in enhancing the agricultural productivity, natural resource management and rural development. Their goal is to contribute to poverty reduction in the target areas through increased incomes and access to productive assets. These multi-sectoral projects are aimed at reducing poverty by investing in social services, rural infrastructure, support services and also strengthening of institutions for better resource management. The mega projects in this sector such as, Kala Dhaka & Kohistan Area Development Projects, Bacha Khan Poverty Alleviation Program and Refugees Affected & Hosting Area Project will execute multiple interventions pertaining to rural roads, provision of potable water, natural resource management, micro-finance services, micro health insurance, skills development etc. within their respective ambits. In the Local Development sub-sector, major share has been earmarked for the ongoing projects and new portfolio include projects for construction of District Secretariats in Swat & Kohistan, Southern Area development project, Local Development Initiatives in Dir Lower & Upper, replacement of chair lifts in Ayubia, feasibility & designing of bus terminals in Mardan on public-private partnerships. An amount of Rs.4704.274 million has been allocated for 35 projects out of which 22 are ongoing and 13 are new. The following targets will be achieved in this sector: i. ii. iii. iv. v. 22 kms black topped roads will be completed. 23 kms shingle roads will be completed. 463 Community based infrastructure schemes will be completed. 2087 demonstration plots will be completed. 7600 persons will be trained in different fields.
Research and Development: An amount of Rs. 713.235 million has been allocated for 15 projects out of which 10 are ongoing, and 5 are new.

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Science and Information Technology: The scientific & informative technologies have played a critical role in the progress of nations. In order to respond to major challenges like globalization and emergence of knowledge based economies, the department had undertaken number of initiatives in making the shift to knowledge economy. The department under their new program will specifically focus upon promotion & development of bio-technology, increasing financial assistance for R&D, research studies and design facilitation, e-governance in the public sector departments, establishment of Information Technology parks, establishment of Earth Resource centre etc. An allocation of Rs.593.792 million has been made for 29projects out of which, 19 are ongoing and 10 are new. Mines & Minerals: Khyber Pakhtunkhwa, being a mountainous region, 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 government in the past introduced regulatory mechanisms for exploring the maximum benefits and productivity in this sector. The department besides focusing upon the ongoing portfolio will undertake projects for establishment of model Marble quarries in Buner district and will upgrade the mineral exploration data for optimum utilization of these resources and also to attract and facilitate the investors. This sector has been allocated Rs.517.147 million for 7 ongoing and 2 new schemes. Labour: The department plays a significant role in reducing unemployment, poverty and inequality through implementation of wide-ranging programs. It has an important role in maintaining the supervisory and regulatory standards for employees of both the formal and informal sectors. The departments development portfolio focuses upon establishment of child and bonded labour unit and construction of building for its Directorate. An allocation of Rs.72.290 million has been made for 3 schemes in this sector. Food: In wake of global climatic happenings, rising population and nutrition intake values it is of paramount important for the government to initiate efforts not only to increase production of staple crops but, also ensure food safety and quality by providing requisite infrastructure in the vicinity of the cropping areas. In view of this, the department besides pursuing its ongoing portfolios will construct food grain godowns in Kohistan & Shangla districts of the province.

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An amount of Rs.437.503 million has been made for 5 ongoing and 3 new schemes in this sector.

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Information: Living the information age, it is vital for every individual in the society to have access to every kind of information. In this perspective, the information department has proposed interventions wherein, F.M radio stations and a T.V station will be established in province in order to promote local culture and languages. An allocation of Rs.210.578 million has been made for 10 Schemes and following targets have been set forth: i. 3 new F.M channels will be started on trial basis. ii.Local T.V channel will be launched. Finance: This sector incorporates 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 Patwar khanas and Tehsil revenue complexes in different districts of the province. An amount of Rs.8159.772 million has been made for 17 schemes. Law & Justice: In this sector, schemes pertaining to acquisition of lands & construction of judicial complexes, detail designing and master planning for provincial Judicial Academy have been incorporated. An amount of Rs.465.000 million has been made for 16 schemes. Home: In this new sector, projects pertaining to Police, Prisons, and Prosecution Departments and Rescue 1122 have been integrated. In the Police Departments related schemes, main emphasis will be on completion of ongoing programs. Massive allocations have been envisaged under the third phase of 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. A mega project on strengthening rule of law will also be implemented with the assistance of UNDP. 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 amount of Rs.3725.000 million has been made for 31 schemes. i. 31 police stations/posts/lines would be completed.

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Tameer-e-Khyber Pakhtunkhwa Program: The objectives of the program are to initiate development projects thereby, creating employment opportunities in the Province. In order to ensure public participation, Members of Provincial Assembly recommend projects in their respective constituencies. An amount of Rs. 2480.000 million has been allocated for this program. District Development Fund: The provincial government has allocated an amount of Rs.1672.330 million to the districts for development under the Provincial Finance Commission Award. In this respect, the District Governments will be provided Rs.1001.743 million, Tehsil Municipal Administrations Rs.422.757 million. Besides, Rs.165.220 million has been envisaged for Chief Ministers whereas, Rs.82.610 million for Finance Ministers, respectively. Under the PFC formula Abbottabad district will be allocated Rs.62.724 millions, Bannu Rs.54.326 million, Battagram Rs.35.281 million, Buner Rs.44.384 million, Charsadda Rs.72.526 million, Chitral Rs.32.903 million, D.I.Khan Rs.65.385 million, Dir Lower Rs.57.547 million, Dir Upper Rs.53.345 million, Hangu Rs.32.761 million, Haripur Rs.51.243 million, Karak Rs.40.045 million, Kohat Rs.45.644 million, Kohistan Rs.59.225 million, Lakki Marwat Rs.45.786 million, Malakand Rs.38.084 million, Mansehra Rs.79.106 million, Mardan Rs.95.767 million, Nowshera Rs.63.284 million, Peshawar Rs.134.412 million, Shangla Rs.47.185 million, Swabi Rs.72.526 million, Swat Rs.87.227 million, Tank Rs.31.784 million and Tor Ghar Rs.22.000 million. Population Welfare: Poverty 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 urbanisation, which characterized provinces population all exacerbate rising levels of poverty. In this sector, the department besides implementing ongoing program will construct Reproductive Health Centres in Mardan & Buner districts to provide qualitative service delivery in these areas. An amount of Rs.183.000 million has been earmarked for 1 ongoing & 3 new projects in this sector. Relief & Rehabilitation: The provincial governments endeavours in creating Relief, Rehabilitation & Settlement department infact 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

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sector wherein it is intended to undertake multitude activities in the province. These include establishment of ware houses, preparation of Monsoon contingency plan, district & community based Disaster Management Strategies, Capacity building of related stakeholders throughout the province etc. An amount of Rs.1215.479 million has been earmarked for 2 new projects in this sector.

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ANNEXURES
Annex-I
CDL LIABILITIES AS ON 01-07-2012

(Rs. in million) Discription (a) Cash Development Loans 1993-94 1994-95 1997-98 1999-2000 (b) SAP Tied Loans. 1992-93 1993-94 1994-95 1999-2000 15.24% 15.94% 15.59% 11.21% 74.239 703.998 270.531 1125.329 15.94% 15.59% 8.50% 11.21% SUB-TOTAL (A) 950.328 453.274 1733.353 277.557 3414.512 Rate of mark up Outstanding Balances
SUB-TOTAL (B) 2174.097 (C) Cash Development Loans For SCARP Tube well Projects handed over by WAPDA to the Government of Khyber Pakhtunkhwa. Discription Rate of mark up Outstanding Balances 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2005-06 2007-08 2008-09 17.71% 11.21% 11.70% 10.72% 7.42% 7.20% 9.79% 10.14% 13.80% SUB-TOTAL (C) GRAND TOTAL (A+B+C) 2.646 1019.600 782.661 445.548 220.548 12.513 328.902 660.786 100.000 3573.204 9161.813
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Annex-II
DETAIL OF PREMATURE DEBT RETIREMENT

(Rs. In Million) Financial Year S.No i ii iii iv v vi vii Name of Loans Rateof Markup Amount Retired Premature 195.917 1,375.200 540.944 809.000 1,148.305 420.299 1,197.126 5,686.791 1,866.387 125.447 1,991.834 1,160.866 649.213 249.335 230.964 167.094 2,457.472 13.707 148.105 237.824 466.135 661.222 637.413 3.154 35.718 129.564 92.863 180.402 12.174 130.504 2,748.785 1,922.752 359.661 249.115 421.081 2,952.609 1,319.117 1,378.172 367.338 381.541 591.059 4,037.227 19,874.718 Saving Per Annum
2002-03
2003-04
2004-05
2006-07
2007-08
2010-11
SAP Tied 1995-96 15.94% SAP Tied 1998-99 17.71% Scarp 1996-97 16.31% Scarp 1997-98 18.03% Scarp 1998-99 17.71% CDL 1996-97 16.31% CDL 1998-99 71.71% Total (A) i CDL 1989-90 15.93% ii SAP Tied 1995-96 15.94% Total (B) i CDL 1986-87 14.66% ii CDL 1987-88 15.28% iii Scarp 1989-90 15.93% iv Scarp 1987-88 15.28% v Scarp 1986-87 15% Total (C) i CDL 1981-82 13% ii CDL 1982-83 13% iii CDL 1983-84 13% iv CDL 1984-85 15% v CDL 1985-86 15% vi CDL 1988-89 14.84% vii Scarp 1981-82 13% viii Scarp 1982-83 13% ix Scarp 1983-84 15% x Scarp 1984-85 15% xi Scarp 1985-86 15% xii Scarp 1986-87 14.66% xiii Scarp 1988-89 14.84% Total (D) i CDL 1990-91 15.93% ii Scarp 1990-91 15.93% iii Scarp 1991-92 14.51% iv Scarp 1992-93 15.24% Total (E) i CDL 1991-92 14.51% ii CDL 1992-93 15.24% iii Scarp 1993-94 15.94% iv Scarp 1994-95 15.59% v Scarp 1995-96 16% Total (F) Grand Total (A+B+C+D+E+F)
1,074.817
384.084
449.246
872.101
626.720
1,027.552 4,434.520
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Annex-III
FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2012

(Figures in million) S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Name of Loans IDA-54-Pak (Highway Project) IDA-678-Pak (3rd Education Project) IDA-683-Pak (Flood Damages Restoration Project) IDA-755-Pak (Hazara Forestry Project) IDA-877-Pak (Salinity Control & Reclamation Project Mardan) IDA-892-Pak (4th Primary Education Project) IDA-1113-Pak (Bannu Leather Goods Services Control Project) IDA-1163-Pak (On-Farm Water Management Project) IDA-1239-Pak (Irrigation System Rehab: Project) IDA-1487-Pak Command Water Mangt Project IDA-1499-Pak (Small Industries Dev. Board Project) IDA-1602-Pak (2nd Primary Education Project) IDA-1603-Pak (On-Farm Water Mangt. Project) IDA-1888-Pak (2nd Irrigation System and Rehabilitation Project) IDA-2003-Pak (1988 Flood Damages Restoration Project) IDA-2154-Pak (2ndAgriculture Research Project) IDA-2240-Pak (Family Health Project) IDA-2593-Pak (Social Action Program Project) IDA-2999-Pak (National Drainage Programme) IDA-3050-Pak (Social Action Programme Project-II) IDA-3687-Pak NWFP Structural Adjustment Credit (SAC I) IDA-3906-Pak (Second NWFP Community Infrastructure Project) IDA-3932-Pak NWPF Structural Adjustment Credit (SAC II) IDA-3932-I Pak NWFP Structural Adjustment Credit (SAC II) IDA-4177-Pak (Developmental Policy Credit-I) IDA-4316-Pak (Developmental Policy Credit-II) ADB-433-Pak (Aquaculture Dev: Project) ADB-495-Pak (On Farm Water Mangt. Project) ADB-723-Pak (Chashma Command Area Development Project) ADB-758-Pak (Farm to Market Roads Project) ADB-759 Pak (Science Education for Secondary School Project) ADB-838-Pak (Chitral Area Dev. Project) ADB-850-Pak (3rd Health Project) ADB-851-Pak (Fruit and Vegetable Marketing Project) Rate of Interest 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 1% 1% 1% 1% 1% 1% 1% No. of Installments 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50half yearly 50 half yearly 50 half yearly 50 half yearly 60 half yearly 60 half yearly 60 half yearly 50 half yearly 60 half yearly 60 half yearly 50 half yearly 50 half yearly First Installment Due from 15-10-1974 15-2-1987 15-5-1987 1-4-1998 1-4-1989 1-9-1989 1-8-1991 1-12-1991 1-10-1992 15-6-1994 15-1-1995 1-11-1995 1-11-1995 1-8-1998 15-9-1999 1-11-2000 1-11-2001 1-8-2004 15-11-2007 15-9-2008 15-12-2012 15-9-2014 15-9-2014 15-9-2014 15-9-2006 29-9-2007 1-5-1990 15-5-1991 15-12-1994 1-4-1996 15-5-1996 15-12-1997 1-3-1998 15-4-1998 Balance as on 1.7.2012 *0.007 *0.294 *1.117 *0.182 *10.982 *0.616 *0.496 *1.167 *1.623 *2.170 *0.101 *8.626 *2.063 *2.653 *1.787 *2.682 *9.956 *4.080 *1.507 *6.463 **5711.164 *38.486 *90.000 *50.000 *93.039 *129.359 *0.111 *1.091 *18.635 *1.325 *0.926 *12.939 *5.640 *0.621 118
Annex-III
FOREIGN EXCHANGE LOAN LIABILITIES AS ON 01-07-2012

(Figures in million) S.No Name of Loans ADB-874-Pak (Chashma Right Bank Irrigation Project Stage-II) ADB-916-Pak (2nd Aquaculture Dev: Project) ADB-917-Pak (2nd Farm to Market Road Project) ADB-957-Pak (1988-Flood Damages Restoration Project) ADB-973-Pak (Livestock Development Project. ADB-976-Pak (Swabi Salinity Control and Reclamation Project) ADB-977-Pak (Primary Education Girls Project) ADB-1004-Pak (2nd Urban Dev: Project ) ADB-1146-Pak (Chashma Right Bank Irr: Project Stage-III) ADB-1179-Pak (Barani Area Dev. Project) ADB-1185-Pak (Provincial Highway Project) ADB-1200-Pak (Health Care Dev. Project) ADB-1209-Pak (Flood Damages Restor-ation Sectors Project) ADB-1210-Pak (Teacher Training Project) ADB-1278-Pak (Middle School Project) ADB-1294-Pak (Pehur High Level Canal Project) ADB-1301-Pak Social Action Program Project-I ADB-1493-Pak Social Action Program Project-II ADB-1373-Pak (Technical Edu: Project) ADB-1401-Pak (Rural Access Road Project) ADB-1403-Pak (Forestry Sector Project) ADB-1454-Pak (Primary Education Girls Project-II) IFAD-18-Pak (4th Agriculture Dev. Project) IFAD-83-Pak (On-Farm Water Mangt. Project) West German No.8267528 (Hospital Equipment in Khyber Pakhtunkhwa) West German No. 8267585 (Drinking Water Supply in Refugees Camps in Khyber Pakhtunkhwa). Rate of Interest 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0.75% 0.75% No. of Installments 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 80 half yearly 80 half yearly 80 half yearly 80 half yearly First Installment Due from 15-4-1998 15-1-1999 1-2-1999 1-10-1999 15-2-2000 15-12-1999 15-6-2000 15-6-2000 15-3-2002 15-3-2003 15-3-2003 15-3-2003 15-3-2003 15-2-2003 15-01-2004 15-05-2004 15-9-2004 15-03-2007 15-11-2005 1-2-2006 15-5-2006 1-1-2007 1-9-1989 1-6-1992 30-6-1994 30-6-1994 Balance as on 1.7.2012 *4.113 *1.748 *10.149 *2.009 *1.486 *14.428 *3.513 *41.250 *51.588 *17.758 *7.423 *2.343 *11.543 *4.571 *12.285 *100.485 *10.947 *21.636 *3.317 *21.890 *35.678 *3.126 *0.403 *0.272 ***2.903 ***4.136
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
Name of Currency U.S. Dollar Pak-Rupees DM (German Marks) *US Dollar ** Pak-Rupees *** DM (German mark)
(Figures in million) Conversion rate Foreign for Pak Currency Currency 2012-13 884.705 1US$=Rs.93 82277.565 5711.164 7.039 1DM=Rs.62.9432 443.057 Total 88431.786
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Annex-IV
DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE AS ON 01-07-2012

(Figures in million)
S.No
Name of Loans IDA-2245-Pak (On-Farm Water Management Project) IDA-2383-Pak (Environmental Protection and Resource Conservation Project) IDA-2468-Pak (1992 Flood Damages Restoration Project) IDA-2687-Pak (Primary Education Project) IDA-2829-Pak (NWFP Community Infrastructure Project) IDA 3516-Pak NWFP Emergency Rehabilitation Project IDA-3516-1 Pak (Investment Programme Projec-I) ADB 1534 Pak Secondary Education Project ADB 1671 Pak Women Health Project ADB-1672 Pak- Malakand Rural Dev:Project ADB-1787 Pak- Barani Area Development Project Phase-II ADB-1854Pak NWFP Urban Dev. Project ADB-1878-Pak Agriculture Sector Programme ADB-1877 Pak- Agriculture Sector Programme(ASPL-II) ADB-1900 Pak- Reproductive Health Project ADB-2103 Pak- WFP Road Dev. Project ADB-2104-Pak Road Dev: Sector ADB-2135 Pak Restructuring and Vocational Training System Project ADP-2286-Pak Renewable Energy Development Sector ADP-2287-Pak Renewable Energy Development Sector IBRD-3327-Pak (On-Farm Water Mangt. Project Phase-III) IFAD-319-Pak (Mansehra Village Support Project)
Rate of Interest 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 1% 1% 1.50% 1% 1.50% 1.50% Libor + 0.60% 1.50% 1.5% Libor + 0.60% 1.50% 1.50% Libor + 0.60% 1.50% 0.75% 4%
No. of Installments 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 50 half yearly 48 half yearly 32 half yearly 48 half yearly 40 half yearly 48 half yearly 48 half yearly 40 half yearly 48 half yearly 50 half yearly 30 half yearly
First Installments due from 15-9-2001 15-11-2002 15-3-2003 15-8-2005 1/7/2006 15-6-2011 15-12-2015 1/2/2008 15-10-2005 1.9.2008 15-05-2009 15-10-2008 1/3/2005 1/3/2010 15-05-2010 1/2/2010 1/2/2013 15-05-2013 15-12-2011 15-12-2014 15-9-2001 1/5/1998
Allocated Share *4.590 SDR 2.196 *3.107 *2.500 *88.890 *16.662 SDR 10.617 SDR 16.600 --SDR 6.175 *8.197 *7.117 SDR 30.852 *41.808 SDR 40.065 *52.000 SDR 3.038 *15.588 *9.477 SDR 3.812 **17750.229 SDR 3.404 SDR 7.339 **12508.650 SDR 6.793 *2.300 SDR10.350 *14.557
Outstanding Balance/ Amount disbursed upto 30-6-2012 *3.211 *2.330 *1.908 *73.333 *14.162 *20.029 *10.256 *7.274 *5.486 *37.628 *44.417 *4.178 *8.028 *7.996 *0.300 **8353.805 *2.315 *1.938 **254.303 *0.409 *1.610 *0.485
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Name of Currency U.S. Dollar Japanese Yen
Foreign Currency 247.294 8608.108 Total
Conversion rate for 2012-13 1 US $=Rs. 93 1 =Rs. 1.1550
(Figures in million) Pak Currency 22998.342 9942.365 32940.707
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Annex-IV
DISBURSEMENT OF LOANS IN R/O ONGOING FOREIGN PROJECTS SHARE AS ON 01-07-2012

(Figures in million)
S.No
Name of Loans * US Dollar
Rate of Interest ** Japanese Yen
No. of Installments
First Installments due from
Allocated Share
Outstanding Balance/ Amount disbursed upto 30-6-2012
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Annex-V
INDICATIVE BUDGETARY CEILINGS (2013 - 15) RECURRENT BUDGET

D.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DEPARTMENTS PROVINCIAL ASSEMBLY GENERAL ADMINISTRATION FINANCE, TREASURIES AND LOCAL FUND AUDIT PLANNING & DEVELOPMENT AND BUREAU OF STATISTICS INFORMATION TECHNOLOGY REVENUE & ESTATE EXCISE & TAXATION HOME AND CIVIL DEFENCE JAILS & CONVICTS SETTLEMENT POLICE ADMIISTRATION OF JUSTICE HIGHER EDUCATION, ARCHIVES & LIBRARIES HEALTH COMMUNICATION & WORKS ROADS HIGHWAYS & BRIDGES (REPAIR) AND BUILDINGS & STRUCTURES (REPAIR) PUBLIC HEALTH ENGINEERING LOCAL GOVERNMENT AGRICULTURE ANIMAL HUSBANDRY CO-OPERATION ENVIRONMENT & FORESTRY FORESTRY (WILDLIFE) FISHERIES IRRIGATION INDUSTRIES MINERAL DEVELOPMENT AND INSPECTORATE OF MINES STATIONERY AND PRINTING POPULATION WELFARE TECHNICAL EDUCATION AND MANPOWER LABOUR INFORMATION, CULTURE & PUBLIC RELATIONS SOCIAL WELFARE, SPECIAL EDUCATION & WOMEN EMPOWERMENT ZAKAT & USHER PENSION SUBSIDIES GOVERNMENT INVESTMENT & COMMITTED CONTRIBUTION AUQAF, RELIGIOUS, MINORITY & HAJJ AFFAIRS SPORTS, TOURISM & MUSEUMS DISTRICT NON SALARY GRANT IN LIEU OF OCTROI AND ZILA TAX HOUSING DEPARTMENT DISTRICT SALARY BUDGET ESTIMATES 2012-13 NON SALARY TOTAL SALARY 433 285 148 1,584 787 796 426 159 34 315 64 401 619 19,226 2,389 4,629 7,067 345 219 53 15 519 52 1,007 294 4,130 553 761 3,263 92 2,020 645 212 49 834 116 1,408 913 23,356 2,942 5,391 10,330 437 2,020 Projection 2013-14 NON SALARY TOTAL SALARY 511 342 169 1,853 945 908 511 191 41 378 76 481 742 23,071 2,867 5,555 8,480 414 250 60 17 592 59 1,148 336 4,711 631 869 3,723 105 2,304 760 252 58 970 136 1,629 1,078 27,782 3,498 6,424 12,203 519 2,304 Projection 2014-15 NON SALARY TOTAL SALARY 593 411 183 2,116 1,134 982 613 230 49 454 92 577 891 27,685 3,440 6,666 10,176 496 270 65 19 640 64 1,242 363 5,096 682 940 4,027 114 2,492 883 295 68 1,094 156 1,819 1,254 32,781 4,122 7,606 14,203 610 2,492
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
123 37 995 280 17 982 199 56 1,637 66 180 50 104 1,621 62 129 68 94 17 109 16 71,138
44 21 244 158 6 135 54 10 1,163 15 157 29 104 112 34 137 122 23 21,582 2,500 9,000 85 78 9,165 3,536 7 -
167 58 1,239 438 23 1,117 253 66 2,800 81 337 79 208 1,733 95 266 189 117 21,582 2,500 9,000 102 187 9,165 3,536 22 71,138
148 45 1,194 336 21 1,178 239 67 1,964 79 216 60 124 1,945 74 155 81 113 20 130 19 85,366
50 24 278 180 6 154 62 11 796 17 179 33 119 127 38 156 139 26 25,898 2,700 9,000 97 89 10,454 4,034 7 -
198 69 1,472 516 27 1,333 301 78 2,760 96 395 93 243 2,073 112 311 220 139 25,898 2,700 9,000 117 220 10,454 4,034 26 85,366
177 54 1,433 404 25 1,414 287 81 2,357 94 260 72 149 2,334 89 186 98 136 25 157 23 102,439
54 26 301 195 7 167 67 12 2,469 19 193 35 128 138 41 169 150 28 31,078 3,000 9,000 105 97 11,500 4,437 8 -
231 80 1,733 598 32 1,581 354 93 4,826 113 453 108 278 2,472 130 355 248 164 31,078 3,000 9,000 129 253 11,500 4,437 31 102,439
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INDICATIVE BUDGETARY CEILINGS (2013 - 15) RECURRENT BUDGET

D.No 43 44 45 46 47 --DEPARTMENTS BUDGET ESTIMATES 2012-13 NON SALARY TOTAL SALARY 18 58 63 462 109 115,437 6 14 12 219 3,909 6,263 3,300 76,163 24 72 75 681 4,019 6,263 3,300 191,600 Projection 2013-14 NON SALARY TOTAL SALARY 22 70 75 554 131 138,524 7 16 14 250 4,459 6,889 3,630 85,821 28 86 89 804 4,591 6,889 3,630 224,345 Projection 2014-15 NON SALARY TOTAL SALARY 26 84 91 665 157 166,229 7 17 15 271 4,824 7,578 3,993 97,308 33 101 106 936 4,981 7,578 3,993 263,537
INTER PROVINCIAL COORDINATION ENERGY AND POWER TRANSPORT ELEMENTARY & SECONDARY EDUCATION RELIEF REHABILITATION AND SETTLEMENT DEBT SERVICING ( INTEREST PAYMENT ) DEBT SER. ( APPRO. FOR REDUCTION OR AVOIDANCE OF DEBT) TOTAL (REVENUE BUDGET)
Indicative Budgetary Ceilings (2013 - 15) Development Budget BUDGET ESTIMATES 2012-13 72528 1672 23258 Projection 2013-14 77290 1839 25584 Projection 2014-15 62131 1839 28142
Description ADP (Provinical) ADP (District) Foreign Project Assistance
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Annex-VI
GENERAL REVENUE RECEIPTS

Description I-PROVINCAL TAX RECEIPTS GST on Services Agriculture Income Tax Urban Immoveable Property Tax (net) Registration (Transfer of Property) Land Revenue Tax on Professions Provincial Excise Stamp Duties Receipts under Motor Vehicles Acts Entertainment Tax Cess on Tobacco and Goods KDF Electricity Duty Others Hotel Tax Urban Capital Value Tax II- NON-TAX RECEIPTS Civil Administration Receipts Income from Property & Enterprise Interest Dividends Return on Assets Transferred to WAPDA RECEIPTS FROM GENERAL ADMINISTRATION Fees from Public Service Commission Receipt in aid of Superannuation Weights and Measures Local Fund Audit 5,854.100 136.356 116.356 16.569 3.431 127.600 18.000 50.000 15.600 44.000 6,345.732 136.356 116.356 16.569 3.431 127.950 18.000 50.000 15.950 44.000 6,238.565 136.356 116.356 16.569 3.431 132.700 18.000 50.000 16.700 48.000 Budget Estimates 2011-12 13,640.022 10,030.027 21.000 141.700 70.000 758.000 150.000 30.000 550.000 898.890 1.000 342.000 450.405 25.000 12.000 160.000 Revised Estimates 2011-12 (Rupees in Million) Budget Estimates 2012-13 13,862.494 9,886.394 22.000 98.100 72.000 920.000 150.000 30.000 600.000 957.000 0.000 337.000 550.000 25.000 15.000 200.000
12,571.457 8,922.767 21.000 92.650 70.000 915.000 120.000 25.000 550.000 900.340 0 268.700 470.000 19.000 12.000 185.000
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Annex-VI

Description Receipts from Law and Order Administration of Justice Jails and Convict Settlement Police,Arm Licence and others fees Receipts from Social Services Higher Education Archives & Libraries Elementary & Secondary Education Technical Education Health Manpower Management Museums and Tourist Deptt. Receipts from Community Services Buildings and Communications PBMC Public Health Engineering Receipts from Economic Services Agriculture Fisheries Wildlife Animal Husbandry Forestry Irrigation Industries Stationery and Printing Industrial Safety Explosives Registration's Renewel Fee of Ptg Presses Budget Estimates 2011-12 606.263 100.000 6.500 499.763 295.816 66.115 45.000 19.000 164.901 0.450 0.350 430.000 230.000 40.000 160.000 1,993.806 106.650 14.000 10.000 45.200 700.000 405.926 2.550 50.000 658.280 1.200 Revised Estimates 2011-12 (Rupees in Million) Budget Estimates 2012-13 688.762 101.230 7.000 580.532 255.874 105.125 3.000 21.000 114.449 0.500 11.800 630.000 400.000 0.000 230.000 1,759.307 125.250 20.000 12.000 51.500 408.000 402.677 3.100 55.000 680.280 1.500
652.535 100.600 6.500 545.435 282.333 103.120 45.000 20.000 102.988 0.475 10.750 595.000 370.000 0.000 225.000 2,207.006 100.250 16.000 11.000 49.500 800.000 524.926 2.850 52.000 649.280 1.200
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Annex-VI

Description Miscellaneous Receipts Profit from Hydel Power Generation Provincial Receipts (I + II) III-FEDERAL TAX ASSIGNMENT Taxes on Income Custom Duties Sales Tax Central Excise IV-Straight Transfers Royalty on Crude Oil Royalty on Natural Gas Gas Dev: Surcharge Excise Duty on Natural Gas V-Net Hydel Profit VI-Arrears of Net Hydel Profit VII-1% Divisible Pool for War on Terror VIII-Population Welfare Programme Total Revenue Receipts ( I to VIII) Budget Estimates 2011-12 149.242 2,115.017 19,494.122 149,988.109 58,608.918 16,181.810 62,844.497 12,352.884 13,806.524 5,424.417 3,828.736 3,046.131 1,507.240 6,000.000 25,000.000 18,022.142 477.403 232,788.300 Revised Estimates 2011-12 (Rupees in Million) Budget Estimates 2012-13 233.122 2,402.444 20,101.059 183,684.937 72,914.518 19,650.517 82,011.867 9,108.035 22,157.543 11,747.050 4,241.290 3,700.583 2,468.620 6,000.000 25,000.000 22,071.058 477.403 279,492.000
229.552 2,115.000 18,917.189 152,735.048 59,538.700 17,137.558 65,719.569 10,339.221 17,493.778 9,851.607 3,950.204 2,158.795 1,533.172 6,000.000 25,000.000 18,352.207 477.403 238,975.625
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Annex-VII
CURRENT REVENUE BUDGET

Classification General Public Service Executive and Legislative Organs, Financial and Fiscal Affairs, External Affairs (Voted) (Charged) Transfers (Inter Governmental) To District Govt (Non Salary) To District Govt (Salary) TMAs Zila Tax, other and Investments General Services General Public Services not elsewhere defined Public Order and Safety Affairs Law Courts (Voted) (Charged) Police Civil Defined Related Services Prison Administration and Operation Administration of Public Order Economic Affairs General Economic, Commercial and Labour Affairs Agriculture, Food, Irrigation, Forestry and Fishing Fuel and Energy Mining and Manufacturing Construction and Transport (Voted) (Charged) Other Industries Budget Estimates 2011-12 99,364.149 17,433.334 11,532.728 69,213.265 7,386.723 50,825.278 10,430.801 1,167.539 17.283 23,160.460 1,752.225 487.474 19,005.936 9.426 818.942 1,086.457 10,003.845 223.508 7,049.734 122.193 208.127 2,387.042 4.015 9.226 (Rupees in Million) Revised Budget Estimates Estimates 2011-12 2012-13 103,359.017 17,366.833 10,293.537 74,514.979 7,386.723 56,501.479 10,430.801 1,165.898 17.770 26,946.727 1,723.775 685.135 22,474.598 9.767 955.718 1,097.734 10,467.242 212.560 6,990.906 120.413 197.176 2,915.326 22.151 8.710 127,836.146 23,348.095 10,562.996 92,619.490 9,164.714 71,138.443 12,036.107 1,286.699 18.866 28,783.827 2,094.911 661.499 23,576.926 10.835 913.010 1,526.646 11,376.305 237.728 8,160.972 172.069 263.657 2,527.630 4.015 10.234
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Annex-VII
CURRENT REVENUE BUDGET

Classification Environment Protection Housing and Community Amenities Housing Development Community Development Water Supply Health Medical Product, Appliances & Equipment Hospital Services Public Health Services Health Administration Recreation, Culture and Religion Recreation and Sporting Services Cultural services Broad Casting and Publishing Religious Affairs Administration of Information, Recreation and Culture Education Affairs and Services Pre-primary and Primary Education Affairs and Services Secondary education affairs and services Tertiary Education Affairs and Services Subsidiary Services to Education Administration Social Protection Administration Other Total Current Revenue Expenditure Budget Estimates 2011-12 22.471 157.166 18.788 4.000 134.378 5,431.310 3.548 4,955.744 20.349 451.669 500.538 74.189 102.246 128.876 179.301 15.926 8,994.713 164.000 89.902 8,088.035 110.751 542.025 1,365.348 1,137.617 227.731 149,000.000 (Rupees in Million) Revised Budget Estimates Estimates 2011-12 2012-13 18.340 138.734 18.788 0.370 119.576 6,035.604 4.086 5,545.739 17.875 467.904 522.515 80.903 111.680 138.809 175.480 15.643 8,779.617 165.202 95.471 7,471.434 108.640 938.870 4,732.204 4,552.274 179.930 161,000.000 22.479 193.326 22.294 4.000 167.032 7,236.251 4.252 6,671.540 18.323 542.136 604.753 71.212 136.725 162.829 218.723 15.264 10,972.648 197.160 124.353 9,668.838 119.386 862.911 4,574.265 4,273.132 301.133 191,600.000
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Annex-VIII
DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2011-12 & 2012-13

(Rs. in million) 2011-12 DEVELOPMENT PROGRAMME Budget Estimates Revised Estimates Budget Estimates 2012-13 Annual Dev: Program Foreign Project Assistance Total
ANNUAL DEVELOPMENT PROGRAMME Agriculture Building and Housing Drinking Water & Sanitatioin Education Environment Forestry Health Industries Auqaf, Hajj & Minority Affairs Energy and Power Regional Development Research and Development Road & Communication Social Welfare Sports, Tourism, Archaeology & Youth Affairs Urban Development Water ST & IT Tameer-e-Khyber Pakhtunkhwa Programme Transport Housing Food Labour Mines and Mineral Information 1355.001 800.000 3642.000 13206.646 74.000 823.507 7825.110 2757.000 78.000 2188.220 6846.940 719.175 12570.000 440.101 1225.000 3041.000 3431.000 356.000 2480.000 65.000 1740.000 540.000 96.000 661.000 112.000 1203.472 2436.375 3661.428 13037.492 48.544 491.482 6812.856 2585.685 67.950 1386.956 4614.643 307.579 14174.061 409.516 1391.698 2424.186 5361.098 256.809 2739.480 41.478 825.614 429.605 14.060 226.874 83.646 1452.500 1036.400 3194.483 12180.000 57.000 569.998 7575.100 2515.538 100.000 1137.396 4704.274 713.235 9736.341 492.805 685.000 3406.000 2858.289 593.792 2480.000 199.750 1854.000 437.503 72.290 517.147 210.578 187.000 695.354 1200.000 895.660 150.000 2358.177 296.500 1142.159 17.800 1470.300 1036.400 4336.642
9972.889 22152.889 57.000 719.998 9933.277 2812.038 100.000 1832.750 5904.274 1608.895
4933.328 14669.669 149.200 642.005 685.000 3406.000 3045.289 593.792 2480.000 199.750 1854.000 437.503 72.290 517.147 210.578
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Annex-VIII
DEVELOPMENT BUDGET BY SECTOR FOR THE YEAR 2011-12 & 2012-13

(Rs. in million) 2011-12 DEVELOPMENT PROGRAMME Budget Estimates 3196.000 1250.000 7164.000 4500.000 273.000 165.000 189.353 119.492 465.000 183.000 1215.479 83620.700 1520.300 85141.000 77576.773 1520.300 79097.073 72527.670 1672.330 74200.000 219.750 3932.560 8302.781 3725.000 8159.772 1040.183 Revised Estimates Budget Estimates 2012-13 Annual Dev: Program Foreign Project Assistance Total 0.000 4765.183 8159.772 0.000 684.750 183.000 1215.479 23258.000 95785.670 1672.330 23258.000 97458.000
Board of Revenue Home Finance PSDP Devolved Law & Justice Population Welfare Programme Relief & Rehabilitation Total ADP (I) DISTRICT ADP (II) Total (I+II) SPECIAL PROGRAMME (PSDP) Prime Minister Directives (PWP-II) Access to Justice Programme (AJP) DERA - II Programme Education Agriculture Drinking Water & Sanitatioin Swat Development Package Health Water Regional Development Population Welfare Programme Urban Development Sports, Tourism, Archaeology & Youth Affairs Total PSDP (III) Total Development Programme (I+II+III)
57.229 32.984 7.000 317.542 143.066 21.530 35.615 2085.839 1686.585 823.550 52.726 111.389 1.500 0.000 85141.000 5376.555 84473.628 0.000 74200.000 0.000 0.000
23258.000 97458.000
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DEVELOPMENT BUDGET
(Rs. in million) PARTICULARS A-EXTERNAL RESOURCES I-FOREIGN LOANS ADB LOANS Development of Renewable Energy in Khyber Pakhtunkhwa JAPANESE / JICA LOAN Emergency Rural Road Rehabilitation Project Sub Total (I) Loans II-FOREIGN GRANTS UNDP Strengthening of Rule of Law in Malakand Refugee affected & hosting Area Programme. Strengthening of Poverty Reduction Strategy Monitoring Project SDC INRM (Joint Forestry Management) Regional Hundukush Programme (2012-14) Livelihoods Programme NAS Kohistan Area Development Project Kala Dhaka Area Development Project Construction of three Police Stations & one Police Line in Swat Upgradation / Rehabilitation of Road from Chakdara to Madian Kanjo to Dhamana Village Construction & Remodeling of Southern Bypass detouring Hayatabad. Construction of Joint Police Training Centre at Nowshera 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 WFP Promoting Safe Motherhood Project Livelihoods through backward Dev. For Food Security in Khyber Pakhtunkhwa JICA / JAPAN ASSISTED. Gravity Flow Water Supply Scheme, Abbottabad. Development Partners Coordination Cell P&D Establishment of Working Women Hostel at Hayatabad Peshawar
Establishmnt of Model Fish Farm in Private Sector in Peshawar, Nowshera and Mardan Reconstruction/Rehabilitation of health facilities
868.220 2450.000 3318.220
593.180 500.000 1093.180
695.354 3000.000 3695.354
0.000 625.990 33.300 31.507 100.000 270.000 98.840 189.110 500.000 750.000 1500.000 400.000
0.000
0.000 249.327 16.180 20.750 0.000 197.000 110.000 106.200 418.873 106.920 700.000 205.500
0.000
268.000 250.000 10.000 0.000 0.000 0.000 150.000 120.000 203.841 500.000 800.000 568.342
150.000
0.000 0.001 0.000
749.700 0.000
1250.000 22.875 0.100

0.000 0.000
1865.480 0.000 0.000 6.200

0.000
1142.159 0.000 96.200 17.800

70.844
130
Annex-VIII
DEVELOPMENT BUDGET
(Rs. in million) PARTICULARS Budget Estimates 2011-12
0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000

12.000 10.000 50.000 3.000
Project for Strengthening Routine Immuinization in Khyber Pakhtunkhwa Capicity Building of Technical Teachers and TVC in Malakand Establishment of Drug Addicts Capicity Building of Government Officers for Social Participation of Persons
NORAD Khyber Pakhtunkhwa Basic Education Improvement Project. Assistance to Basic Education Improvement Project for Repair/ Rehabilitation of Flood Affected Schools in Khyber Pakhtunkhwa UK/DFID Water and Sanitation Programme. DFID Assisted Steel Bridge in Affected Area of Malakand Reconstruction / Rehabilitation of building in Govt. Schools in Khyber Pakhtunkhwa
Strenghthening of Planning Cell E&SE Department Provision of Stipends to Secondary Schools Girls Support to Khyber Pakhtunkhwa education Sector (2nd Traunch) Support to Khyber Pakhtunkhwa Education Sector (1st Traunch) National Governance Programm in Khyber Pakhtunkhwa
1.000 450.000
0.000 200.000
1.000 250.000
300.000 500.000
0.000 0.000 0.000 0.000 0.000
300.000 230.000
0.000 0.000 0.000 0.000 0.000
500.000 291.082
36.312 1000.000 4026.512 1111.973 500.000
MDTF Southern Area Development Project Strengthening of Health Services in Khyber Pakhtunkhwa Economic Revatalization in Khyber Pakhtunkhwa Governance Support Programme - Establihsment of PCNA Support Unit in Khyber Pakhtunkhwa Upgradation / Rehabilitation of Road from Chakdara to Madian Sharif Abad to Kanjo Swat USAID 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 Establishment of Urban Policy Unit Municipal Service Delivery Project
Reconstruction/Rehabilitation of 1173 Government Schools
0.000 500.000 350.000 150.000 300.000
0.000
180.000
500.000 198.425 66.375 547.000 240.000 156.170 133.328
350.000 200.000 500.000

0.000
0.000 0.000 0.000

0.000
0.000 134.490 500.000

0.010
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Annex-VIII
DEVELOPMENT BUDGET
(Rs. in million) PARTICULARS Italian Debt Swap Development of Model Bio-Gas for Domestic Purpose (Peshawar, Charsadda, Nowshera, Abbottabad and Haripur Reconstruction of Flood Structures along Kiali (Swat)River in Charsadda Reconstruction of Flood Protection works alongwith Hajizai-River Kabul in District Charsadda & Peshawar World Bank Integration of Health Services Local Justice Support Programme UNICEF Provision for Multiple Indicators Cluster Survey in Khyber Pakhtunkhwa GTZ Establishment of Blood Transfusion Centers in Khyber Pakhtunkhwa Strengthining of Tuberculosis Control Programme
Sustainable Management of Bio-Diversity in Malakand (Swat & Chitral)
25.000
3.500
46.500 96.000
425.000
272.900
91.000
0.000 0.000
0.000 0.000
0.100 69.750
0.000
0.000
95.000
111.110 125.000
0.000
0.000 0.000
0.000
0.000 0.000
150.000
KFW Equipment for Basic Health in Khyber Pakhtunkhwa Establishment of Drugs Addicts Detoxification & Rehabilitation Center at Swabi Strengthening of TB Control Programme Social Health Protection Initiative for Khyber Pakhtunkhwa EUROPEAN UNION Provision of Supplementary Reading Materials (SRMs) in Govt. Schools in Khyber Pakhtunkhwa Construction of 400 Additional Classrooms in Existing Government Schools in Khyber Pakhtunkhwa Education Sector Reforms Programme
Education Sector Reforms (3rd and 4th tranches)
400.000 0.001 0.000 222.000
60.058 0.000 0.000 0.000
523.533 0.000 280.000 222.000
200.646 460.000 1453.000

0.000
200.646 240.000 100.000

0.000
0.000
220.000 516.000
2520.000
Sub-Total (II) Grant A-Total External Resources (I + II) B-Provincial Contribution
12794.480 16112.700
6421.334 19562.646 7514.514 23258.000
69028.300 68818.997 74200.000
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Annex-IX
ANNUAL DEVELOPMENT PROGRAMME

SINCE 1971-72 ON WARD
Year 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Size of A.D.P 124.000 212.543 300.000 400.000 576.700 546.800 617.000 669.000 767.000 818.000 980.850 1,228.000 1,176.500 1,244.700 1,697.000 2,131.250 2,472.250 2,164.235 2,197.625 2,506.171 4,813.715 6,575.385 4,959.000 6,963.974 7,665.634 8,711.517 4,884.740 6,072.386 5,745.220 9,212.509 7,986.220 13,673.261 14,696.006 16,195.025 21,000.000 26,630.432 39,462.372 41,544.935 51,156.956 69,283.682 85,141.000 97458.000 Revised Size of A.D.P 87.404 217.887 285.133 500.000 601.366 640.928 687.642 720.581 702.850 838.350 1,002.323 1,174.275 1,191.500 1,245.424 1,912.787 2,131.250 2,471.050 2,164.235 2,198.649 2,851.434 4,881.569 5,002.873 4,764.638 7,349.212 8,081.917 5,659.089 5,498.215 7,771.653 8,057.541 7,272.140 8,710.147 11,289.186 12,882.982 15,365.249 24,397.398 26,542.103 32,913.949 39,000.603 46,330.546 64,977.526 84473.628*
(*Includes PSDP of Rs. 5376.555 million)
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GROWTH IN CURRENT REVENUE BUDGET & REVENUE RECEIPTS SINCE 1974-75 ON WARD
(Rupees in million) Year
74-75 B.E R.E 75-76 B.E R.E 76-77 B.E R.E 77-78 B.E R.E 78-79 B.E R.E 79-80 B.E R.E 80-81 B.E R.E 81-82 B.E R.E 82-83 B.E R.E 83-84 B.E R.E 84-85 B.E R.E 85-86 B.E R.E 86-87 B.E R.E 87-88 B.E R.E 88-89 B.E R.E 89-90 B.E R.E 90-91 B.E R.E 91-92 B.E R.E 92-93 B.E R.E 93-94 B.E R.E Provincial Tax Receipts 55.0 51.4 51.6 72.2 74.5 83.7 88.7 93.4 96.8 96.6 101.3 123.0 127.4 143.2 154.4 174.7 188.7 212.0 212.0 238.3 257.5 264.3 288.9 284.1 307.2 303.6 309.3 338.6 369.2 374.7 369.3 405.6 391.6 430.5 440.3 435.7 527.2 688.8 639.0 634.2 Provincial Others Receipts 85.6 102.4 104.9 113.1 120.1 93.1 127.2 119.4 135.5 201.3 162.8 209.9 250.0 260.7 276.6 282.6 296.2 308.0 340.2 374.6 375.4 395.9 412.3 414.1 430.2 434.5 466.1 619.5 531.1 556.3 581.8 714.5 691.6 759.8 799.7 864.3 972.8 958.8 1031.0 1040.8 Total Provincial Own Receipts 140.6 153.8 156.5 185.3 194.6 176.8 215.9 212.8 232.3 297.9 264.1 332.9 377.4 403.9 431.0 457.3 484.9 520.0 552.2 612.9 632.9 660.2 701.2 698.2 737.4 738.1 775.4 958.1 900.3 931.0 951.1 1120.1 1083.2 1190.3 1240.0 1300.0 1500.0 1647.6 1670.0 1675.0 Net Capital Receipts (-) 6.0 (-)19.2 7.1 7.9 6.9 2.2 (-) 6.8 14.8 12.7 (-)10.8 11.2 14.8 12.3 13.2 12.3 37.0 16.6 24.8 16.0 50.7 66.8 70.1 75.0 51.8 52.8 34.6 34.6 72.5 74.6 174.8 159.6 197.4 202.4 72.8 25.4 20.7 19.6 19.7 9.3 9.3 Federal Tax Assignment 194.5 211.3 305.3 329.3 367.7 373.6 401.1 426.9 461.8 512.3 562.8 736.9 881.3 1060.4 1203.1 1132.6 1223.6 1223.6 1364.3 1374.6 1537.4 1457.0 1622.0 1622.0 1622.0 1615.6 1831.3 1988.6 2204.5 3030.5 3330.2 3934.0 4356.0 4301.6 6582.4 6444.1 7304.0 7366.0 8277.2 9392.1 Net Profits --------------------------------------------------------------------5987.5 5999.9 6800.0 5680.0 7500.0 5482.0 Grants from Federal Govt. 22.0 88.8 110.7 151.3 104.8 123.3 104.8 107.6 104.8 108.5 104.8 104.8 104.8 107.3 104.7 106.4 104.8 105.4 104.8 116.6 104.8 119.3 104.7 130.7 104.8 130.3 104.7 111.4 104.8 136.9 104.8 134.8 104.8 132.0 204.8 402.5 204.8 205.2 204.8 209.5 Total Provincial Receipts 351.1 434.7 579.6 673.8 674.0 675.9 715.0 762.1 811.6 907.9 942.9 1189.4 1375.8 1584.8 1751.1 1733.3 1829.9 1873.8 2037.3 2154.8 2341.9 2306.6 2502.9 2502.7 2517.0 2518.6 2746.0 3130.6 3284.2 4273.2 4545.7 5386.3 5746.4 5696.7 14040.1 14154.8 15828.4 16038.5 17661.3 17785.9 Current Revenue Expenditure 432.6 551.8 699.5 705.4 862.2 955.9 1149.1 1137.0 1314.3 1391.2 1557.1 1674.8 1877.6 2031.8 2292.9 2538.9 2714.7 2989.7 3454.3 3705.2 4334.7 4512.1 5201.0 5453.7 6466.3 6811.8 7382.9 7997.1 8685.1 8607.4 9291.2 9385.6 10558.7 10281.7 12732.3 12737.3 14370.8 14579.0 16511.3 16635.9 Deficit/Surplus Revenue Account (-) 81.5 (-) 117.1 (-) 119.9 (-) 31.6 (-) 188.2 (-) 280.0 (-) 434.1 (-) 374.9 (-) 502.7 (-) 483.3 (-) 614.2 (- ) 485.4 (-) 501.8 (-) 447.0 (-)541.8 (-) 805.6 (-) 884.8 (-) 1115.9 (-) 1417.0 (-) 1550.4 (-)1992.8 (-) 2205.5 (-) 2698.1 (-) 2951.0 (-) 3949.3 (-) 4293.2 (-) 4636.9 (-) 4866.5 (-) 5400.9 (-) 4334.2 (-) 4745.5 (-) 3999.3 (-) 4812.3 (-) 4585.0 (+) 1307.8 (+) 1417.5 (+) 1457.6 (+) 1459.5 (+) 1150.0 (+) 1150.0 NonObligatory Grant --96.9 --31.6 138.2 223.6 398.7 352.6 456.8 468.4 566.9 475.0 445.8 447.0 531.6 805.6 874.8 1115.9 1396.0 1550.4 1992.8 2205.5 2698.1 2951.0 3949.3 4293.2 4636.9 4866.5 5400.9 4022.6 3735.8 3574.7 3475.6 4029.7 ------------Receivable as per Arbitration Award 81.5 20.2 119.9 --50.0 56.4 35.4 22.3 45.9 14.9 47.3 10.4 56.0 --10.2 --10.0 --21.0 --------------------311.6 1009.7 424.6 1336.7 555.3 --926.4 --1938.9 --2898.8
134
Annex-X
Year
94-95 B.E R.E 95-96 B.E R.E 96-97 B.E R.E 97-98 B.E R.E 98-99 B.E R.E 99-2000 B.E R.E 2000-01 B.E R.E 2001-02 B.E R.E. 2002-03 B.E R.E 2003-04 B.E R.E 2004-05 B.E R.E 2005-06 B.E R.E 2006-07 B.E R.E 2007-08 B.E R.E 2008-09 B.E R.E 2009-10 B.E R.E 2010-11 B.E R.E 2011-12 B.E R.E 2012-13 B.E Provincial Tax Receipts 686.4 724.3 875.8 810.2 803.3 1006.7 1407.9 1167.7 1472.8 1389.3 1705.4 1592.7 1740.9 1381.8 1862.3 2020.1 1987.9 2140.4 2148.5 2019.1 2278.7 2339.8 2528.5 2633.9 3053.6 3049.5 3809.1 3904.6 4737.3 3749.2 5991.9 3497.0 15559.5 4135.6 4529.2 12571.5 13862.5 Provincial Others Receipts 1128.0 1272.7 1236.0 1487.3 1596.3 1754.1 1867.1 1714.1 2124.9 2262.8 2336.5 2336.0 2509.1 2207.7 2096.1 1943.4 2089.9 2103.4 2009.8 1999.8 2149.4 2210.7 2365.5 2555.2 2741.4 2682.3 3172.7 3075.2 3473.4 3425.5 3655.7 4711.8 3155.2 5583.2 6014.4 6345.7 6238.5 Total Provincial Own Receipts 1814.4 1997.0 2111.8 2297.5 2399.6 2760.8 3275.0 2881.8 3597.7 3652.1 4041.9 3928.7 4250.0 3589.5 3958.4 3963.5 4077.9 4243.8 4158.3 4018.9 4428.1 4550.5 4894.0 5189.1 5795.0 5731.8 6981.8 6979.8 8210.7 7174.7 9647.6 8208.8 19556.7 9718.8 10543.6 18917.2 20101.0 Net Capital Receipts 11.7 17.6 12.8 13.9 15.2 629.1 (-) 775.0 (-)381.8 (-) 752.3 (-)646.6 (-)830.2 (-)827.9 (-) 955.0 (-) 648.2 (-) 776.2 (-)953.5 (-)1262.9 1047.9 1788.5 3125.2 3132.0 --3132.0 ----------------182294.2 ------Federal Tax Assignment 11139.0 11454.7 13873.1 14345.1 16226.7 16134.5 15064.0 14086.4 16018.6 14579.5 16867.7 16613.6 21227.5 19217.8 21552.2 19411.8 22728.3 22872.2 25750.4 25660.3 29344.1 30215.0 35458.2 36805.1 44034.5 44645.1 55690.1 55954.2 71445.8 69965.7 83218.5 93998.7 173033.6 155939.5 191245.0 189058.4 228391.0 Net Profits 7800.0 6500.0 7970.0 6000.0 8500.0 6000.0 9423.0 6000.0 10466.0 6000.0 11624.0 6000.0 12899.0 6000.0 14328.0 6000.0 15904.0 6000.0 17653.0 6000.0 8000.0 6000.0 8000.0 6000.0 8000.0 6000.0 6000.0 6000.0 6000.0 6000.0 6000.0 16000.0 31000.0 31000.0 31000.0 31000.0 31000.0 4047.0 --2264.3 --Grants from Federal Govt. 4.8 10.0 4.7 4.8 4.8 4.8 3310.0 3327.6 3674.0 3675.3 4078.0 4057.3 4310.7 3827.6 4258.6 3898.0 3898.0 3898.0 3898.0 3898.0 4500.0 45000.0 10000.0 5000.0 9712.5 9765.3 11907.8 11349.1 14432.2 13183.3 14822.5 15207.4 Total Provincial Receipts 20769.9 21279.3 23972.4 24631.3 27146.3 28029.1 30297.0 29337.0 33004.0 31726.3 35781.4 35395.7 41732.2 31986.7 44067.3 32323.2 46767.1 37039.3 51459.7 39577.2 46272.2 45265.5 58352.2 65462.8 67542.0 66142.2 80579.7 80283.1 100088.7 96323.7 113688.6 133414.9 198590.3 200705.3 232788.3 241239.9 279492.0 Current Revenue Expenditure 19189.9 19404.5 21972.4 23564.0 26862.0 25800.0 30058.5 29451.0 33004.0 32004.0 35493.0 35263.5 39132.2 33673.3 45040.4 34623.0 48564.0 36171.6 47114.7 38400.0 42650.0 42650.0 51062.0 60693.0 54500.0 55173.6 61000.0 61450.0 67300.0 75600.0 80000.0 109000.0 127958.0 139500.0 149000.0 161000.0 191600.0 Deficit/Surplus Revenue Account (+) 1580.0 (+) 1874.8 (+) 2000.0 (+) 1067.3 (+) 284.3 (+) 2229.1 (+) 238.5 (-) 114.0 --(-) 277.7 (+) 288.4 (+) 132.2 (+) 2600.0 (-) 1038.4 (-) 973.13 (-) 559.845 (-) 1796.9 867.7 4345.1 1177.2 3622.2 2615.5 7290.2 (-) 8799.6 (+) 13042.0 (+) 10968.5 (+) 19579.7 (+) 18833.1 (+) 32788.7 (+) 20723.7 (+) 33688.6 (+) 24414.9 (+) 70632.3 (+) 61205.3 (+) 83788.3 (+) 80239.9 (+) 87892.0 11506.6 --------32509.0 --------1682.0 29008.8 0.450 25826.2 22932.9 ------12473.2 20302.6 15737.7 17911.5 --398.5 159.0 221.0 13761.6 10331.9 1195.1 NonObligatory Grant ------------------------Receivable as per Arbitration Award --2718.9 --4140.8 --5154.9 --6270.4 --7497.4 --8847.2
135
Annex-XI
ESTIMATED RESOURCES TO BE TRANSFERRED TO DISTRICT GOVERNMENTS FOR THE YEAR 2012-13

S# 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Name of District 2 Abbottabad Bannu. Battagram. Buner Charsadda. Chitral. D.I.Khan. Dir(Lower) Dir(Upper). Haripur. Hangu Karak. Kohat. Kohistan. Lakki Marwat Malakand Mansehra. Mardan. Nowshera Peshawar Shangla. Swabi Swat. Tank. Tor Ghar Total (A):Salary Salary 3 3505.504 2404.350 1139.908 1603.445 3068.827 1845.134 3436.869 3098.666 1494.372 2674.371 723.543 2194.238 2125.758 1137.044 2108.423 1994.032 3876.964 4258.083 2531.359 5003.014 1178.497 3096.345 3754.825 885.839 187.143 59326.553 11,811.890 Others. 4 139.752 66.609 79.606 80.265 119.479 107.919 175.831 126.627 128.094 118.515 53.272 82.597 94.914 146.578 98.403 107.506 144.808 128.887 88.673 218.066 123.398 93.359 153.900 56.852 49.910 2783.820 100.000 548.761 1,000.000 0.001 Death Comp: Grant. 5 13.287 9.196 3.875 5.316 11.160 6.206 12.110 11.311 6.147 9.624 2.894 8.053 8.219 3.907 7.574 6.790 15.068 16.047 9.720 18.810 4.280 11.282 14.176 3.352 2.894 221.298 M&R (Road) 6 20.576 20.576 12.346 12.346 20.576 12.346 20.576 20.576 12.346 20.576 12.346 12.346 20.576 12.346 12.346 20.576 20.576 20.576 20.576 20.576 12.346 20.576 20.576 12.346 12.346 423.870 Non-Salary Electricity 7 86.000 120.000 3.500 27.500 39.700 3.300 120.000 35.000 16.500 110.000 18.700 98.000 65.000 0.600 140.000 38.300 31.000 86.350 67.500 60.100 4.000 57.600 32.600 40.000 7.000 1308.250 Petty Repair (Edu:) 8 34.776 24.781 11.495 15.694 29.578 14.859 32.694 28.036 16.026 28.090 9.408 21.078 21.792 12.427 20.691 17.079 38.605 44.304 26.287 45.363 12.161 32.531 36.566 9.087 9.408 592.816 Development CRC Total N/Salary District TMA's Total (Edu:) (Col:4:9) Share Share (Col: 11+12) 9 10 11 12 13 12.209 306.600 43.906 18.818 62.724 8.716 249.878 38.027 16.299 54.326 4.279 115.101 24.697 10.584 35.281 5.660 146.781 31.068 13.316 44.384 10.871 231.364 50.768 21.758 72.526 4.780 149.410 23.032 9.871 32.903 11.209 372.420 45.769 19.616 65.385 10.072 231.622 40.281 17.266 57.547 5.677 184.790 37.342 16.003 53.345 9.878 296.683 35.872 15.371 51.243 3.274 99.894 22.932 9.829 32.761 7.514 229.588 28.031 12.014 40.045 7.846 218.347 31.951 13.693 45.644 4.586 180.444 41.457 17.768 59.225 7.219 286.233 32.050 13.736 45.786 5.885 196.136 26.659 11.425 38.084 13.274 263.331 55.373 23.733 79.106 16.103 312.267 67.038 28.729 95.767 9.288 222.044 44.298 18.986 63.284 16.020 378.935 94.088 40.324 134.412 4.475 160.660 33.030 14.155 47.185 11.880 227.228 50.768 21.758 72.526 12.717 270.535 61.058 26.169 87.227 3.042 124.679 22.248 9.536 31.784 3.274 84.832 20.000 2.000 22.000 209.748 5539.802 1001.743 422.757 1424.500 Lump Sum Provisions at the Disposal of Finance Department 165.220 165.220 82.610 82.610 100.000 548.761 1,000.000 0.001 TMA's Share 14 34.442 35.791 4.466 6.667 33.773 12.824 62.308 12.267 8.251 46.951 28.886 10.478 57.446 6.697 15.535 9.585 29.529 96.044 62.393 318.689 4.466 30.717 71.799 21.867 0.000 1021.871 (Rs. in million) Grand Total Grant in lieu of Octroi & Zilla Tax (Col:3+10+ Provision for Total Octroi Total OZT C.Bs Share. Zilla Tax 13+19) New TMAs (Col:14:16) (Col 17+18) 15 16 17 18 19 20 10.565 45.007 12.211 57.218 3932.046 4.526 40.317 37.223 77.540 2786.094 4.466 1.420 5.886 1296.176 6.667 20.113 26.780 1821.390 33.773 42.334 76.107 3448.824 12.824 39.689 52.513 2079.960 0.889 63.197 26.406 89.603 3964.277 12.267 33.838 46.105 3433.940 8.251 14.644 22.895 1755.402 46.951 120.039 166.990 3189.287 28.886 20.962 49.848 906.046 10.478 13.003 23.481 2487.352 12.555 70.001 28.442 98.443 2488.192 6.697 8.609 15.306 1392.019 15.535 14.375 29.910 2470.352 9.585 26.606 36.191 2264.443 29.529 13.235 42.764 4262.165 6.734 102.778 48.016 150.794 4816.911 20.642 83.035 110.702 193.737 3010.424 47.604 366.293 152.668 518.961 6035.322 4.466 1.623 6.089 1392.431 1.000 31.717 66.747 98.464 3494.563 71.799 46.863 118.662 4231.249 21.867 7.953 29.820 1072.122 2.000 2.000 0.000 2.000 295.975 3.000 103.515 1128.386 907.721 2036.107 68326.962 165.220 82.610 11,811.890 100.000 548.761 1,000.000 0.001
CM's Directives FM's Directives Block allocation for Salaries Block allocaton for Shuhada Package. Grant on need basis Conditional Grant DFID Grant in support of Out Put Based Budgeting Matching Grant (Districts) Grant for special repair/ furniture/JuteTats Grant for Emergency Medicine (DHQHs) Grant for Medicine BHUs. Advertisement charges M&R Grant for Electricity Grant for Weak TMAs Matching Grant L.S. provision at the disposal of F.D. Total (B):Grand Total
200.000 133.000
200.000 133.000
200.000 133.000
200.000
200.000
200.000
11,811.890 71,138.443
425.000 18.150 500.000 500.000 3,624.912 6,408.732
221.298
423.870
1,308.250
592.816
209.748
425.000 18.150 500.000 500.000 3,624.912 9,164.714
247.830 1,249.573
247.830 1,672.330
500.000 500.000 500.000 1,500.000 2,521.871
3.000
103.515
500.000 500.000 500.000 1,500.000 2,628.386
907.721
500.000 500.000 500.000 1,500.000 3,536.107
425.000 18.150 500.000 500.000 500.000 500.000 500.000 17,184.632 85,511.594
422.757
136
Annex-XII
GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2012-13
D.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Department PROVINCIAL ASSEMBLY GENERAL ADMINISTRATION FINANCE, TREASURIES AND LOCAL FUND AUDIT PLANNING & DEVELOPMENT AND BUREAU OF STATISTICS INFORMATION TECHNOLOGY REVENUE & ESTATE EXCISE & TAXATION HOME AND CIVIL DEFENCE JAILS & CONVICTS SETTLEMENT POLICE ADMIISTRATION OF JUSTICE HIGHER EDUCATION, ARCHIVES & LIBRARIES HEALTH COMMUNICATION & WORKS ROADS HIGHWAYS & BRIDGES (REPAIR) AND BUILDINGS & STRUCTURES (REPAIR) PUBLIC HEALTH ENGINEERING LOCAL GOVERNMENT AGRICULTURE ANIMAL HUSBANDRY CO-OPERATION ENVIRONMENT & FORESTRY FORESTRY (WILDLIFE) FISHERIES IRRIGATION INDUSTRIES MINERAL DEVELOPMENT AND INSPECTORATE OF MINES STATIONERY AND PRINTING POPULATION WELFARE TECHNICAL EDUCATION AND MANPOWER LABOUR INFORMATION & PUBLIC RELATIONS SOCIAL WELFARE & SPECIAL EDUCATION ZAKAT & USHER PENSION SUBSIDIES Budget Estimates 2011-12 325,045,000 1,463,976,000 1,328,530,000 171,272,000 39,167,000 709,914,000 101,793,000 960,112,000 818,942,000 18,810,003,000 2,416,871,000 4,739,891,000 7,837,251,000 376,871,000 1,950,000,000 134,378,000 61,749,000 965,842,000 316,996,000 19,178,000 913,979,000 210,942,000 55,460,000 2,340,793,000 60,299,000 295,552,000 68,463,000 170,688,000 1,235,354,000 84,958,000 144,802,000 125,613,000 91,606,000 16,000,000,000 2,500,000,000 Revised Estimates 2011-12 395,091,000 1,568,320,000 657,953,000 156,595,000 38,621,000 551,774,000 99,015,000 1,054,686,000 955,718,000 22,245,432,000 2,513,000,000 4,234,269,000 8,633,839,000 376,871,000 2,507,768,000 119,576,000 62,103,000 922,574,000 328,569,000 18,539,000 1,051,944,000 231,308,000 52,002,000 2,654,567,000 65,661,000 274,383,000 75,507,000 127,964,000 1,310,013,000 83,876,000 154,452,000 123,005,000 100,734,000 15,953,940,000 2,000,000,000 Budget Estimates 2012-13 Posts 530 2,321 1,074 320 96 1,252 209 1,124 2,587 70,402 6,065 9,939 17,964 1,235 359 91 3,026 937 50 3,855 902 203 7,124 171 564 186 238 4,513 154 376 193 296 Salary 285,170,000 787,329,000 425,710,000 159,375,000 33,928,000 315,297,000 63,618,000 400,787,000 618,594,000 19,226,011,000 2,388,875,000 4,629,154,000 7,066,965,000 344,713,000 123,105,000 37,366,000 994,805,000 280,277,000 17,227,000 982,066,000 199,217,000 56,049,000 1,636,887,000 65,585,000 180,378,000 50,130,000 103,694,000 1,621,098,000 61,748,000 129,216,000 67,878,000 94,148,000 Non Salary 148,085,000 796,178,000 218,823,000 52,893,000 15,170,000 518,932,000 52,151,000 1,006,792,000 294,416,000 4,129,602,000 553,050,000 761,461,000 3,263,409,000 91,990,000 2,019,780,000 43,927,000 20,963,000 243,861,000 157,740,000 5,581,000 135,217,000 54,238,000 9,778,000 1,163,026,000 15,163,000 156,572,000 28,660,000 103,985,000 111,594,000 33,518,000 136,680,000 121,591,000 22,846,000 21,581,796,000 2,500,000,000 Total 433,255,000 1,583,507,000 644,533,000 212,268,000 49,098,000 834,229,000 115,769,000 1,407,579,000 913,010,000 23,355,613,000 2,941,925,000 5,390,615,000 10,330,374,000 436,703,000 2,019,780,000 167,032,000 58,329,000 1,238,666,000 438,017,000 22,808,000 1,117,283,000 253,455,000 65,827,000 2,799,913,000 80,748,000 336,950,000 78,790,000 207,679,000 1,732,692,000 95,266,000 265,896,000 189,469,000 116,994,000 21,581,796,000 2,500,000,000
137
Annex-XII
GRANT WISE GENERAL ABSTRACT OF CURRENT BUDGET FOR THE YEAR 2012-13
D.No 36 37 38 39 40 41 42 43 44 45 46 47 --Department GOVERNMENT INVESTMENT & COMMITTED CONTRIBUTION AUQAF, RELIGIOUS, MINORITY & HAJJ AFFAIRS SPORTS, CULTURE, TOURISM & MUSEUMS DISTRICT NON SALARY GRANT IN LIEU OF OCTROI AND ZILA TAX HOUSING DEPARTMENT DISTRICT SALARY INTER PROVINCIAL COORDINATION ENERGY AND POWER TRANSPORT ELEMENTARY & SECONDARY EDUCATION RELIEF REHABILITATION AND SETTLEMENT DEBT SERVICING ( INTEREST PAYMENT ) DEBT SER. ( APPRO. FOR REDUCTION OR AVOIDANCE OF DEBT) TOTAL (REVENUE BUDGET) Budget Estimates 2011-12 7,500,000,000 87,695,000 238,741,000 7,386,723,000 2,930,801,000 18,788,000 50,825,278,000 20,365,000 41,193,000 64,186,000 545,203,000 897,929,000 7,060,977,000 3,535,831,000 149,000,000,000 Revised Estimates 2011-12 7,500,000,000 74,746,000 255,942,000 7,386,723,000 2,930,801,000 18,788,000 56,501,479,000 20,555,000 42,635,000 52,838,000 564,315,000 4,303,909,000 6,111,769,000 3,535,831,000 161,000,000,000 Budget Estimates 2012-13 Posts 44 478 39 244,954 56 131 245 1,034 181 385,518 Salary 17,030,000 108,738,000 15,759,000 71,138,443,000 18,201,000 58,410,000 62,893,000 461,808,000 109,305,000 115,436,987,000 Non Salary 9,000,000,000 84,699,000 78,272,000 9,164,714,000 3,536,107,000 6,535,000 5,713,000 13,659,000 12,269,000 219,260,000 3,909,317,000 6,263,000,000 3,300,000,000 76,163,013,000 Total 9,000,000,000 101,729,000 187,010,000 9,164,714,000 3,536,107,000 22,294,000 71,138,443,000 23,914,000 72,069,000 75,162,000 681,068,000 4,018,622,000 6,263,000,000 3,300,000,000 191,600,000,000
CAPITAL EXPENDITURE 48 -LOANS AND ADVANCES DEBT SERVICING (LOAN FROM FEDERAL GOVT.DISCHARGED) TOTAL (Capital Buget) GRAND TOTAL (Revenue + Capital) 5,161,000,000 9,849,000,000 15,010,000,000 164,010,000,000 5,161,000,000 9,508,000,000 14,669,000,000 175,669,000,000 385,518 115,436,987,000 6,003,000,000 7,939,000,000 13,942,000,000 90,105,013,000 6,003,000,000 7,939,000,000 13,942,000,000 205,542,000,000
C A P I T A L E X P E N D I T U R E - FOOD (ACCOUNT-II) 49 -STATE TRADING IN FOOD GRAINS AND SUGAR DEBT SERVICING (FLOATING DEBT ) 78,206,833,000 9,500,000,000 87,706,833,000 12,420,229,000 9,500,000,000 21,920,229,000 1,112 1,112 274,401,000 274,401,000 78,011,971,000 9,500,000,000 87,511,971,000 78,286,372,000 9,500,000,000 87,786,372,000
TOTAL Capital Budget (Account-II)
138
Annex-XIII
DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (Provincial + District)
S.No. DEPARTMENT 1 PROVINCIAL ASSEMBLY GENERAL 2 ADMINISTRATION 3 FINANCE DEPARTMENT 4 TREASURIES 5 LOCAL FUND AUDIT PLANNING & 6 DEVELOPMENT 7 BUREAU OF STATISTICS INFORMATION 8 TECHNOLOGY REVENUE & ESTATE 9 10 EXCISE AND TAXATION 11 HOME DEPARTMENT 12 CIVIL DEFENCE JAILS & CONVICTS 13 SETTLEMENT 14 POLICE ADMINISTRATION OF 15 JUSTICE HIGHER EDUCATION, 16 ARCHIVES & LIBRARIES 17 HEALTH COMMUNICATION AND 18 WORKS PUBLIC HEALTH 19 ENGINEERING 20 LOCAL GOVERNMENT 21 AGRICULTURE 22 ANIMAL HUSBANDRY 23 CO-OPERATION ENVIRONMENT AND 24 FORESTRY 25 FORESTRY (WILDLIFE) 26 FISHERIES 27 IRRIGATION 28 INDUSTRIES MINERAL DEVELOPMENT 29 AND INSPECTORATE OF MINES STATIONERY AND 30 PRINTING 31 POPULATION WELFARE TECHNICAL EDUCATION 32 AND MANPOWER 33 LABOUR INFORMATION, CULTURE & 34 PUBLIC RELATIONS SOCIAL WELFARE, SPECIAL 35 EDUCATION & SPECIAL EDUCATION ZAKAT & USHER 36 DEPARTMENT AUQAF, RELIGIOUS, 37 MINORITY & HAJJ SPORTS, TOURISM & 38 MUSEUMS 39 HOUSING DEPARTMENT INTER PROVINCIAL 40 COORDINATION 41 ENERGY AND POWER 42 43 TRANSPORT DEPARTMENT BPS-01 130 862 256 109 17 124 15 23 1,269 107 209 58 221 1,285 1,556 2,814 9,156 4,182 6,776 1,062 2,194 1,572 74 698 125 77 2,356 78 200 15 1,059 1,446 85 85 707 93 12 329 9 14 27 61 41,365 51 82,963 621 83,584 4 2 15 3 1 2 56 1 2 1 1 30 2 10,378 4 10,382 1,013 1,013 11 3 2 BPS-02 12 93 4 24 4 6 1 2 192 1 5 1 93 119 18 7,064 916 99 2 26 4 2 224 1,270 5 9 62 96 35 1 34 18 3 3 553 12 190 6 2 15 BPS-03 11 18 BPS-04 23 361 35 16 1 38 2 5 168 60 17 4 16 6 291 115 732 616 1,833 31 273 90 4 130 25 31 936 7 27 2 121 29 31 27 83 28 1 15 3 3 10 11 181 22 6,460 36 6,496 18 237 61,354 2 61,356 3,147 43 3,190 8 14 2 1,788 397 250 21 1,665 51,442 4 3 336 315 44 423 18 102 1,629 81 166 1,170 10 11 855 62 3 5 45 1 370 1 4 111 1 1 76 2 1 16 15 28 3 6 9 208 567 1 50 791 760 36 3 BPS-05 19 211 1 8 6 5 1 BPS-06 5 50 10 BPS-07 66 357 163 13 7 73 4 10 460 183 85 15 243 8,725 1,279 1,045 793 301 267 940 441 146 51 595 457 108 357 51 57 22 122 172 29 31 119 33 7 65 6 10 13 56 88,018 7 106,002 159 106,161 609 609 1 1 26 1 112 2 1 5 10 32,077 48,873 60 48,933 8 90 1 478 478 6 282 9 5 1 20 1 1 5 96 2 10 16 4 1 BPS-08 1 6 BPS-09 27 83 8 1 1 2 1 2 514 32 12 37 140 3,019 379 276 10,318 257 161 27 351 296 2 128 38 30 170 21 29 9 16 95 70 16 168 36 1 5 21 13 1 2,431 51 2,482 20 107 1 3 96 1 1 236 82 9 30 125 1 15 11 33 2 1 1 5 52 1 206 10 3 3 11 5 190 355 186 1 159 135 54 40 97 24 183 9 32 BPS-10 16 40 BPS-11 36 107 39 3 BPS-12 14 205 138 2 5 35 4 14 130 81 101 1 41 121 593 40 1,674 63 65 37 87 26 5 67 16 6 47 20 29 5 63 57 15 37 64 29 5 22 6 5 20 12 82 27 4,116 11 4,127 81 81 4 3 1 17 2 BPS-13 3 2 43 6 BPS-14 31 326 181 182 115 69 4 10 436 195 35 5 57 2,432 325 185 634 89 51 41 133 92 22 81 18 13 139 34 46 4 25 632 24 30 58 34 5 42 3 5 17 23 288 20 7,191 60 7,251 9 5 607 2 609 14 5 9 5 21 4 2 6 2 3 2 BPS-15 24 99 12 1 1 6 1 2 17 4 8 1 1 32 161 7 39 19 16 3 18 5 1 18 2 1 11 5 5 BPS-16 52 176 41 68 39 6 11 5 153 36 142 11 78 578 64 65 4,441 73 70 29 57 11 26 156 27 12 45 16 32 2 65 176 28 27 48 3 2 41 2 2 3 14 13,938 4 20,875 38 20,913 BPS-17 38 175 113 42 22 80 10 14 131 38 92 2 54 235 84 3,195 4,338 151 73 35 455 277 4 170 21 20 103 26 52 1 119 717 18 49 231 30 4 24 4 5 15 13 5,739 25 17,044 18 17,062 BPS-18 27 58 37 20 7 33 1 4 29 14 51 1 17 75 389 1,467 2,553 50 34 4 197 66 3 80 16 4 33 8 25 1 40 339 8 6 32 2 1 8 1 2 2 2 711 11 6,469 5 6,474 15 190 5 3 3 1 1 3 1 1 5 1 236 3 2,301 1 2,302 1 1 1 1 3 1 18 2 665 1 666 BPS-19 7 12 29 8 1 12 1 3 9 2 46 1 5 29 48 635 789 19 12 2 91 29 1 19 2 1 9 4 7 2 21 1 1 1 4 2 2 1 9 2 3 1 18 113 41 331 5 3 1 7 4 6 1 52 52 3 6 1 5 42 3 BPS-20 1 49 1 1 BPS-21 1 1 1 1 1 70 70 2,336 2,336 2 BPS-22 1 1 34 Special 2 33 Fixed 8 2,300 11 1 14 TOTAL 530 3,299 1,069 487 220 536 72 96 5,522 1,154 1,094 176 2,587 70,402 6,065 9,939 43,901 8,081 9,698 2,265 5,761 3,564 351 4,133 934 496 7,124 288 564 186 3,035 4,513 341 376 1,932 296 44 669 39 56 131 245 183,066 181 385,518 1,112 386,630
ELEMENTARY AND SECONDARY EDUCATION RELIEF REHABILITATION 44 AND SETTLEMENT TOTAL (REVENUE) CAPITAL STATE TRADING IN FOOD 45 GRAINS AND SUGAR GRAND TOTAL
139
Annex-XIII
DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (Provincial)

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 DEPARTMENT PROVINCIAL ASSEMBLY GENERAL ADMINISTRATION FINANCE DEPARTMENT TREASURIES LOCAL FUND AUDIT PLANNING & DEVELOPMENT BUREAU OF STATISTICS INFORMATION TECHNOLOGY REVENUE & ESTATE EXCISE AND TAXATION HOME DEPARTMENT CIVIL DEFENCE JAILS & CONVICTS SETTLEMENT POLICE ADMINISTRATION OF JUSTICE HIGHER EDUCATION, ARCHIVES & LIBRARIES HEALTH COMMUNICATION AND WORKS PUBLIC HEALTH ENGINEERING LOCAL GOVERNMENT AGRICULTURE ANIMAL HUSBANDRY CO-OPERATION ENVIRONMENT AND FORESTRY FORESTRY (WILDLIFE) FISHERIES IRRIGATION INDUSTRIES BPS-01 130 617 85 109 17 60 15 23 435 28 209 9 221 1,285 1,556 2,814 3,636 336 80 27 1,125 389 15 657 125 43 2,356 40 224 1,270 5 9 62 4 2 15 3 1 2 56 1 2 1 1 5 2 4,345 882 9 3 2 35 1 96 2 12 4 3 3 1 93 119 18 2,208 72 31 16 553 12 80 6 BPS-02 12 87 4 24 4 6 1 2 5 1 5 15 BPS-03 11 6 BPS-04 23 282 10 16 1 14 2 5 68 21 17 4 16 6 291 115 298 189 19 5 120 66 4 129 25 19 936 7 27 2 21 29 12 27 12 28 1 14 3 3 10 11 34 22 2,964 57,137 18 3 1,005 6 11 2 1 1 1 1,498 61 6 1,170 10 11 7 62 3 5 370 1 4 3 76 2 1 16 291 16 10 3 25 61 250 1,665 51,442 4 3 240 67 20 28 3 6 9 105 76 1 1 168 34 15 8 BPS-05 19 159 1 6 5 1 BPS-06 5 36 10 BPS-07 66 248 41 13 7 25 4 10 112 22 85 4 243 8,725 1,279 1,045 492 100 40 5 282 41 6 550 451 78 357 27 57 22 22 172 15 31 21 33 7 40 6 10 13 56 65 7 14,935 176 1 1 25 7,962 2 1 5 10 87 8 5 1 298 1 8 9 6 19 1 1 1 1 5 73 4 10 1 BPS-08 1 6 BPS-09 27 62 8 1 1 2 1 2 198 5 12 3 140 3,019 379 276 2,770 56 33 1 221 98 2 101 32 10 170 9 29 9 8 95 11 16 8 36 107 1 5 21 12 1 1,099 20 1 1 17 82 4 30 11 1 3 96 33 2 11 40 97 9 183 32 99 26 1 1 4 15 3 11 5 172 50 9 10 1 67 BPS-10 16 3 BPS-11 36 42 BPS-12 14 105 58 2 5 34 4 14 68 16 101 1 41 121 593 40 656 35 20 12 56 24 5 67 16 6 47 20 29 5 14 57 9 37 22 29 5 22 6 5 20 12 44 27 2,524 49 2 17 1 4 3 14 3 2 BPS-13 3 BPS-14 31 177 60 182 115 21 4 10 142 19 35 2 57 2,432 325 185 250 57 32 15 92 28 3 79 18 7 139 23 46 4 17 632 16 30 21 34 5 17 3 5 17 23 61 20 5,491 9 5 582 6 5 9 5 6 4 2 6 2 3 2 BPS-15 24 97 12 1 1 6 1 2 17 4 8 1 1 32 161 7 39 19 16 3 18 5 1 18 2 1 11 5 5 BPS-16 52 151 16 68 39 6 11 5 55 9 142 2 78 578 64 65 2,562 44 39 3 41 11 6 156 27 9 45 4 32 2 11 176 5 27 9 3 2 23 2 2 3 14 44 4 4,647 BPS-17 38 126 44 42 22 32 10 14 29 7 92 1 54 235 84 3,195 2,176 56 21 10 260 104 4 166 21 7 103 15 52 1 19 717 10 49 23 30 4 17 4 5 15 13 160 25 8,112 BPS-18 27 33 12 20 7 17 1 4 4 12 51 1 17 75 389 1,467 1,387 19 11 4 132 36 3 80 16 4 33 8 25 1 16 339 5 6 8 2 1 8 1 2 2 2 124 11 4,423 7 190 5 3 2 1 1 3 1 1 5 1 14 3 1,704 1 1 1 1 3 1 18 2 628 BPS-19 7 12 5 8 1 12 1 3 9 2 46 1 5 29 48 635 483 19 12 2 64 20 1 19 2 1 9 4 7 2 21 1 1 1 4 2 2 6 1 1 18 113 41 319 5 3 1 7 4 52 1 9 2 3 5 42 3 6 1 BPS-20 1 24 1 1 BPS-21 1 1 1 1 1 70 2,336 2 34 BPS-22 1 1 2,300 11 1 14 Special 2 33 Fixed 8 TOTAL 530 2,321 367 487 220 248 72 96 1,252 209 1,094 30 2,587 70,402 6,065 9,939 17,964 1,235 359 91 3,026 937 50 3,855 902 203 7,124 171 564 186 238 4,513 154 376 193 296 44 478 39 56 131 245 1,034 181 140,564
MINERAL DEVELOPMENT AND INSPECTORATE OF 200 MINES STATIONERY AND PRINTING POPULATION WELFARE TECHNICAL EDUCATION AND MANPOWER LABOUR INFORMATION, CULTURE & PUBLIC RELATIONS SOCIAL WELFARE & SPECIAL EDUCATION ZAKAT & USHER DEPARTMENT AUQAF, RELIGIOUS, MINORITY & HAJJ SPORTS, TOURISM & MUSEUMS HOUSING DEPARTMENT INTER PROVINCIAL COORDINATION ENERGY AND POWER TRANSPORT DEPARTMENT ELEMENTARY AND SECONDARY EDUCATION RELIEF REHABILITATION AND SETTLEMENT TOTAL (REVENUE) 15 62 1,446 43 85 43 93 12 219 9 14 27 61 318 51 19,140
CAPITAL 45 STATE TRADING IN FOOD GRAINS AND SUGAR GRAND TOTAL 621 19,761 4 4,349 882 36 3,000 2 57,139 43 1,048 159 15,094 176 60 8,022 298 51 1,150 11 2,535 49 60 5,551 2 584 38 4,685 18 8,130 5 4,428 1 1,705 1 629 52 3 70 2,336 1,112 141,676
140
Annex-XIII
DEPARTMENT AND BPS WISE SANCTIONED STRENGTH FOR 2012-13 (District)

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 DEPARTMENT GENERAL ADMINISTRATION FINANCE DEPARTMENT PLANNING & DEVELOPMENT REVENUE & ESTATE EXCISE & TAXATION CIVIL DEFENCE ELEMENTARY & SECONDARY EDUCATION HEALTH COMMUNICATION AND WORKS PUBLIC HEALTH ENGINEERING LOCAL GOVERNMENT AGRICULTURE ANIMAL HUSBANDRY CO-OPERATION ENVIRONMENT & FOREST FORESTRY (WILDLIFE) FISHERIES INDUSTRIES POPULATION WELFARE LABOUR SOCIAL WELFARE & SPECIAL EDUCATION SPORTS, CULTURE, TOURISM & MUSEUMS TOTAL 34 38 997 42 664 110 63,825 BPS - 1 245 171 64 834 79 49 41,047 5,520 3,846 6,696 1,035 1,071 1,183 59 41 6,033 2 2 131 100 19 71 1 3,496 12 14 187 25 4,856 844 99 110 3 2 1 BPS - 2 6 2 147 434 427 1,814 26 153 24 132 2 102 131 20 160 848 45 3 4,217 108 2,142 BPS - 3 12 BPS - 4 79 25 24 100 39 1,763 336 21 234 96 248 24 BPS - 5 52 2 103 491 49 623 726 26 BPS - 6 14 BPS - 7 109 122 48 348 161 11 87,953 301 201 227 935 159 105 45 45 6 30 24 100 14 98 25 91,067 274 112 433 1 4 BPS - 8 16 1 23 2 316 27 34 31,990 7,548 201 128 26 130 198 27 6 20 12 8 59 160 40,911 180 1 15 9 219 5 114 1,330 1,592 13 85 1 37 1 2 BPS - 9 21 BPS - 10 40 39 139 2 1 18 305 177 1 58 109 54 49 6 42 38 1,018 28 45 25 31 2 32 6 11 8 8 37 25 1,700 25 15 BPS - 11 65 BPS - 12 100 80 1 62 65 BPS - 13 29 3 BPS - 14 149 121 48 294 176 3 227 384 32 19 26 41 64 19 2 8 3 12 54 23 39 18 16,228 13 11 100 8 208 7 8,932 2,046 20 98 27 9 13,894 1,879 29 31 26 16 BPS - 15 2 BPS - 16 25 25 BPS - 17 49 69 48 102 31 1 5,579 2,162 95 52 25 195 173 4 24 3 24 597 1 65 30 8 587 1,166 31 23 BPS - 18 25 25 16 25 2 222 306 27 9 37 BPS - 19 24 12 BPS - 20 25 TOTAL 978 702 288 4,270 945 146 182,032 25,937 6,846 9,339 2,174 2,735 2,627 301 278 32 293 117 2,797 187 1,739 191 244,954
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WHITE PAPER 2012-2013

Government of Khyber Pakhtunkhwa Finance Department

GROWTH AND DEVELOPMENT

PUBLIC FINANCIAL MANAGEMENT

GENERAL ABSTRACT OF REVENUE AND EXPENDITURE 2012-13

The Rupees Comes From

Budget Estimates 2012-2013

The Rupees Goes To

Budget Estimates 2012-2013

A-General Revenue Receipts

A-Current Revenue Expenditure

B-General Capital Receipts

B-Current Capital Expenditure

Budget Estimates 2011-12 A - GENERAL REVENUE BUDGET

Revised Estimates 2011-12

Budget Estimates 2012-13

232,788.300 149,000.000 83,788.300 B - CURRENT CAPITAL BUDGET

238,975.625 161,000.000 77,975.625

279,492.000 191,600.000 87,892.000

250.000 15,010.000 -14,760.000 C - DEVELOPMENT BUDGET

250.000 14,669.000 -14,419.000

250.000 13,942.000 -13,692.000

16,112.700 85,141.000 -69,028.300 249,151.000 249,151.000 0.000 87,706.833 (87,706.833) -

15,654.631 84,473.628 -68,818.997 254,880.256 260,142.628 -5,262.372 21,920.229 (21,920.229) -

23,258.000 97,458.000 -74,200.000 303,000.000 303,000.000 0.000 87,786.372 (87,786.372) -

SUMMARY POSITION OF REVENUES FOR THE YEAR 2011-12 & 2012-13

Recoveries of Loans & Advances Total General Capital Receipts (B)

250.000 250.000 C-Development Receipts

16,112.700 16,112.700 249,151.000

3,087.993 3,073.118 14.875 5,052.124 7,514.514 15,654.631 254,880.256

23,258.000 23,258.000 303,000.000

SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2011-12 & 2012-13

9,849.000 6,228.889 3,620.111 5,161.000 15,010.000 C-Development Expenditure

9,508.000 5,929.625 3,578.375 5,161.000 14,669.000

7,939.000 4,239.008 3,699.992 6,003.000 13,942.000

67,508.000 1,520.300 0.000

70,062.259 1,520.300 5,376.555 5,336.571 39.984

72,527.670 1,672.330 0.000

16,112.700 85,141.000 249,151.000 87,706.833 (87,706.833) -

7,514.514 84,473.628 260,142.628 21,920.229 (21,920.229) -

23,258.000 97,458.000 303,000.000 87,786.372 (87,786.372) -

CURRENT REVENUE EXPENDITURE

Chapter 1: Current Revenue Expenditure

Debt servicing Funding of deferred liabilities/Public Account

Budget Estimate 2011-12 86,000.000 35,174.722 50,825.278 24,453.192

Revised Estimate 2011-12 94,226.072 37,724.593 56,501.479 29,164.620

Chapter 1: Current Revenue Expenditure

(*Includes District Non-Salary & Octroi Zilla Tax)

Chapter 1: Current Revenue Expenditure

ELEMENTARY AND SECONDARY EDUCATION

Chapter 2: Sectoral Expenditure

2009-10 2654285 207921 538874 196000 3597080

Chapter 2: Sectoral Expenditure

Function Secretariat General Colleges Archives & Libraries Total

Budget Estimates 2011-12 145.320 4540.199 54.372

4739.891 4629.154 761.461

Chapter 2: Sectoral Expenditure

Chapter 2: Sectoral Expenditure

182.523 212.233 19.958 4761.175 5,715.283

Chapter 2: Sectoral Expenditure

200.000 40.000 20.000 2.000 20.000 20.000 30.000 61.000

200.000 40.000 20.000 5.000 40.000 20.000 15.000 61.000

Chapter 2: Sectoral Expenditure