PAKISTAN DEVLOPMENT FORUMPAKISTAN DEVLOPMENT FORUMISLAMABADISLAMABAD1313thth May 2003May 2003

THE PUNJAB PERSPECTIVETHE PUNJAB PERSPECTIVE

VISION OF THE PUNJAB VISION OF THE PUNJAB GOVERNMENTGOVERNMENT

To make a quantum difference to the To make a quantum difference to the quality of life of the common people of quality of life of the common people of Punjab by increasing spending on social Punjab by increasing spending on social sectors and by resectors and by re--engineering the delivery engineering the delivery of social services to ensure that budgeted of social services to ensure that budgeted resources do in fact reach the targeted resources do in fact reach the targeted population in a sustainable manner.population in a sustainable manner.

VISION VISION (cont’d)(cont’d)

To arrest and reverse the increasing poverty To arrest and reverse the increasing poverty trend of the last decade by increasing rural trend of the last decade by increasing rural incomes through raising agriculture productivity, incomes through raising agriculture productivity, maximizing private sector job creation by maximizing private sector job creation by building on existing industrial and agricultural building on existing industrial and agricultural strengths of each region, by developing a strengths of each region, by developing a globally competitive work force and by liberating globally competitive work force and by liberating entrepreneurs from unnecessary rules and entrepreneurs from unnecessary rules and regulations.regulations.

SOCIAL SECTORSOCIAL SECTOREDUCATION:EDUCATION:!!Chief Minster’s Education Reform Programme.Chief Minster’s Education Reform Programme.

""Unacceptable state of affairsUnacceptable state of affairs""Massive Rural /Urban and Gender GapMassive Rural /Urban and Gender Gap""Education is our No 1 priority as it is the essential Education is our No 1 priority as it is the essential

building block for Poverty Alleviation, for better building block for Poverty Alleviation, for better health care, for economic growth and indeed for health care, for economic growth and indeed for Good GovernanceGood Governance

""We are committed in our effort to make a quantum We are committed in our effort to make a quantum difference in the number and quality of children we difference in the number and quality of children we educate at all levels, elementary, secondary and educate at all levels, elementary, secondary and collegecollege

SOCIAL SECTORSOCIAL SECTOREDUCATION EDUCATION (cont’d)(cont’d)::!!RsRs. 40 Billion required to complete missing . 40 Billion required to complete missing

facilities and to raise quality of education.facilities and to raise quality of education.!!Immediate increase in Education Budget by Immediate increase in Education Budget by

RsRs. 7 Billion (from . 7 Billion (from RsRs. 31 billion to . 31 billion to RsRs. 38 . 38 billion) billion) ""Missing Facilities, rationalization of schools, free Missing Facilities, rationalization of schools, free

textbooks for primary education, etc.textbooks for primary education, etc.!!Budget increase to be sustained in subsequent Budget increase to be sustained in subsequent

years.years.

SOCIAL SECTORSOCIAL SECTOREDUCATION EDUCATION (cont’d)(cont’d)::!!Quality issue has to be addressed through third Quality issue has to be addressed through third

party evaluationparty evaluation!!Partnership between the Provincial and District Partnership between the Provincial and District

Governments through Terms of Partnership Governments through Terms of Partnership (TOP) agreement(TOP) agreement""Funding to District only after TOP signed.Funding to District only after TOP signed.

!!School Councils an essential ingredient of School Councils an essential ingredient of sustainability.sustainability.

SOCIAL SECTORSOCIAL SECTORHEALTH:HEALTH:!!Policy of autonomous teaching hospitals to Policy of autonomous teaching hospitals to

continue with further refinement.continue with further refinement.!!Pilot project with rePilot project with re--engineered management of engineered management of

Basic Health Units (Basic Health Units (BHUsBHUs) launched in ) launched in RahimRahimYarYar KhanKhan""Partnership between Provincial Government, Partnership between Provincial Government,

Punjab Rural Support Programme (PRSP) and Punjab Rural Support Programme (PRSP) and District Government.District Government.

""Concept of BHU clusters, mobility of Doctor, Concept of BHU clusters, mobility of Doctor, medicines also available on payment and medicines also available on payment and motivating management.motivating management.

SOCIAL SECTORSOCIAL SECTORHEALTH HEALTH (cont’d)(cont’d)::!!6 months to refine pilot6 months to refine pilot!!Rolling launch in all district of Punjab within 24 Rolling launch in all district of Punjab within 24

months.months.!!Creating platform of health care service delivery to Creating platform of health care service delivery to

rural poor.rural poor.""Population welfare will be dovetailed.Population welfare will be dovetailed.""Upward linkages from BHU to RHU to THQ and DHQ will Upward linkages from BHU to RHU to THQ and DHQ will

also be realso be re--engineered. engineered. !!The goal is to reduce the load on large urban The goal is to reduce the load on large urban

Hospitals by taking care of patients closer to home.Hospitals by taking care of patients closer to home.

JOB CREATIONJOB CREATIONLIBERATING ENTREPRENEURS:LIBERATING ENTREPRENEURS:!!Labour Inspection regime to be changed dramatically Labour Inspection regime to be changed dramatically

and brought up to date with modern practices.and brought up to date with modern practices.""Self Assessment with small percentage of Randomly Self Assessment with small percentage of Randomly

determined inspectionsdetermined inspections""SME inspection proforma separated from large industry.SME inspection proforma separated from large industry.

!!Social Security Collection regime to be changed in a Social Security Collection regime to be changed in a similar fashion with special emphasis on being similar fashion with special emphasis on being SME SME Friendly.Friendly.

!!Electric inspections and boiler inspections privatized.Electric inspections and boiler inspections privatized.

JOB CREATIONJOB CREATIONFACILITIES FOR RAPID INDUSTRIALIZATION:FACILITIES FOR RAPID INDUSTRIALIZATION:!!Creation of private sector led “SME Industrial Estate Creation of private sector led “SME Industrial Estate

Managing Agency.”Managing Agency.”"" Locate new estates near existing industry clustersLocate new estates near existing industry clusters""Build and manage with local entrepreneur helpBuild and manage with local entrepreneur help""Provide all Infrastructure facilitiesProvide all Infrastructure facilities"" Involve utilities in choosing location to facilitateInvolve utilities in choosing location to facilitate

!!Fix existing estates before developing new ones.Fix existing estates before developing new ones.""Decision already taken to fix the SME Estates in Lahore and Decision already taken to fix the SME Estates in Lahore and

MultanMultan..""Funds already allocatedFunds already allocated

JOB CREATIONJOB CREATIONTECHNICAL EDUCATION:TECHNICAL EDUCATION:!!Technical and Vocational Training Authority (TEVTA) Technical and Vocational Training Authority (TEVTA)

created in 1999 with private sector leadership.created in 1999 with private sector leadership.""All 400 institutes under various departments centralized in All 400 institutes under various departments centralized in

TEVTA.TEVTA.

!!Excellent example of Public Private PartnershipExcellent example of Public Private Partnership""Over 275 entrepreneurs contributing time and expertise in Over 275 entrepreneurs contributing time and expertise in

28 Districts of Punjab.28 Districts of Punjab.

!!TEVTA private sector management board remained TEVTA private sector management board remained emasculated by existing laws from 1999 to 2003.emasculated by existing laws from 1999 to 2003.

JOB CREATIONJOB CREATIONTEVTA TEVTA (cont’d)(cont’d)::!!New government has taken a proactive approach New government has taken a proactive approach

""Close to resolution within the next two weeks with Close to resolution within the next two weeks with consensus between the private Sector Board and the consensus between the private Sector Board and the BureaucracyBureaucracy

!!All 400 institutes will be modernized and managed All 400 institutes will be modernized and managed through private sector board in each district.through private sector board in each district.

!!GOP has pledged to provide an additional GOP has pledged to provide an additional RsRs. 1.5 . 1.5 billion for this programme.billion for this programme.

!!Output will reach 100,000 trained manpower each Output will reach 100,000 trained manpower each year.year.

PUBLIC PRIVATE PARTNERSHIP.PUBLIC PRIVATE PARTNERSHIP.!!New government is pioneering the method of New government is pioneering the method of

first creating consensus on each new initiative first creating consensus on each new initiative and concept between Bureaucracy and Private and concept between Bureaucracy and Private Sector under Political leadership.Sector under Political leadership.""Helps successful implementation.Helps successful implementation.

!!New government is also pioneering concept of New government is also pioneering concept of using “champions of change” from within the using “champions of change” from within the elite service to implement new initiatives.elite service to implement new initiatives.

POVERTY ALLEVIATIONPOVERTY ALLEVIATIONZAKAT BASED PUNJAB VOCATIONAL TRAINING ZAKAT BASED PUNJAB VOCATIONAL TRAINING COUNCIL: (PVTC)COUNCIL: (PVTC)!!PVTC created in 1998PVTC created in 1998

"" Creative use of Creative use of ZakatZakat FundsFunds

!!Only Only MustahqeenMustahqeen (those deserving of (those deserving of ZakatZakat) admitted ) admitted "" Direct targeted Poverty AlleviationDirect targeted Poverty Alleviation

!!19981998--1999: 1999: 20 institutes created with output of 5,000 per 20 institutes created with output of 5,000 per annum.annum.

!!25 new institutes will be opened within three months.25 new institutes will be opened within three months."" 10,000 10,000 –– 12,000 12,000 mustahqeenmustahqeen will graduate annually with skills that will will graduate annually with skills that will

help them climb out of poverty.help them climb out of poverty."" Each institute managed by industrialists of that particular areaEach institute managed by industrialists of that particular area..

POVERTY ALLEVIATIONPOVERTY ALLEVIATIONACCESS TO ASSETSACCESS TO ASSETS!Distribution of state land -- 100,000 acres.!Low income housing schemes.!Proprietary rights to residents of slums.!Access to residential sites in rural areas -- 150,000

plots.SOCIAL SAFETY NETSSOCIAL SAFETY NETS!Targeted interventions through Zakat funds and Bait-

ul-maal!Targeted Food subsidy!Enhanced provisions for disaster relief

URBAN PROGRAMMESURBAN PROGRAMMESFOR CITIES BELOW 1 MILLIONFOR CITIES BELOW 1 MILLIONPOPULATION:POPULATION:!! Punjab Municipal Development Fund Punjab Municipal Development Fund

Company (PMDFC) reactivated.Company (PMDFC) reactivated."" Civil Society led with provincial government Civil Society led with provincial government

participation.participation."" Professional private sector management.Professional private sector management.

!! To fund infrastructure and capacity building To fund infrastructure and capacity building projects on a matching grant basis.projects on a matching grant basis.

URBAN PROGRAMMESURBAN PROGRAMMESFOR CITIES ABOVE 1 MILLIONFOR CITIES ABOVE 1 MILLIONPOPULATION:POPULATION:!!These 5 cities of Punjab are the real “engines These 5 cities of Punjab are the real “engines

of growth” of the Punjab economy.of growth” of the Punjab economy.!!They provide a unique challenge which has to They provide a unique challenge which has to

be managed in a unique manner.be managed in a unique manner.!!Developing concept of a dedicated agency Developing concept of a dedicated agency

(PUDA) to help (PUDA) to help TMAsTMAs develop master plans, develop master plans, build implementation capacity, etc.build implementation capacity, etc.

AGRICULTURE PRODUCTIVITYAGRICULTURE PRODUCTIVITY!!Project to increase area under cotton by Project to increase area under cotton by

1 million acres in three years by replacing high 1 million acres in three years by replacing high water use crops like sugarcane & rice.water use crops like sugarcane & rice.""Conceived in January 2003.Conceived in January 2003.""Launched on 1Launched on 1stst May 2003.May 2003.

!!Community Agriculture Worker concept.Community Agriculture Worker concept.""Phased launch over a three year period.Phased launch over a three year period.""Phase I:Phase I: All 6,500 cotton area villages to be All 6,500 cotton area villages to be

covered by 15covered by 15thth June 2003.June 2003.!!Developing methodology of involving farmers in Developing methodology of involving farmers in

managing irrigation systems.managing irrigation systems.

AGRICULTURE MARKETINGAGRICULTURE MARKETINGWHEAT PROCUREMENT POLICY.WHEAT PROCUREMENT POLICY.!!Most subsidies eliminated.Most subsidies eliminated.

""Price cascadingPrice cascading""Private Sector encouragementPrivate Sector encouragement""Procure & Store for Public Sector Procurement.Procure & Store for Public Sector Procurement.""Abandoning policy of uniform price all over provinceAbandoning policy of uniform price all over province""Direct negotiation with banks to reduce interest rate.Direct negotiation with banks to reduce interest rate.

!!Role of Public Sector procurement changed Role of Public Sector procurement changed from buying the entire market surplus to buying from buying the entire market surplus to buying just enough to maintain support price.just enough to maintain support price.

IMPLEMENTATIONIMPLEMENTATIONWe realize that our vision will only We realize that our vision will only remain a vision unless backed by remain a vision unless backed by Good Governance leading to reforms Good Governance leading to reforms in the planning function, in fiscal and in the planning function, in fiscal and financial management and real financial management and real ownership of devolution and ownership of devolution and administrative decentralization by the administrative decentralization by the Provincial Government.Provincial Government.

DEVOLUTIONDEVOLUTION!!Fiscal decentralization lies at the heart of devolutionFiscal decentralization lies at the heart of devolution!!Devolving provincial taxes to Local Governments is Devolving provincial taxes to Local Governments is

the ultimate vision of the Punjab Government the ultimate vision of the Punjab Government Administrative measures for managing transition.Administrative measures for managing transition.

""Undertaking consequential legislation, framing of rules & Undertaking consequential legislation, framing of rules & providing procedural guidelines.providing procedural guidelines.

""Establishment of single fundEstablishment of single fund""Discharging liabilities of local fundDischarging liabilities of local fund""Prescribing a system of closing auditPrescribing a system of closing audit""Prescribing an interim system of tax collection and its Prescribing an interim system of tax collection and its

deposit in district funddeposit in district fund""Prescribing a system of undertaking deposit worksPrescribing a system of undertaking deposit works

PUBLIC ACCOUNTABILITY AND PUBLIC ACCOUNTABILITY AND TRANSPARENCYTRANSPARENCY

Ensuring TransparencyEnsuring Transparency

""Improved access to governmental records.Improved access to governmental records.""ReRe--vamping of purchase manual.vamping of purchase manual.""Regular monitoring of fiscal data.Regular monitoring of fiscal data.""Commitment to adoption of Pakistan Commitment to adoption of Pakistan

Integrated Financial Reporting and Integrated Financial Reporting and Accounting System (PIFRA).Accounting System (PIFRA).

REFORMING THE PLANNING REFORMING THE PLANNING FUNCTIONFUNCTION

## Creation of overall development vision with a Creation of overall development vision with a perspective plan up to FY 2011.perspective plan up to FY 2011.

## Preparation of poverty reduction strategy paper.Preparation of poverty reduction strategy paper.## Creation of Punjab Development Forum with Creation of Punjab Development Forum with

participation of civil society and local participation of civil society and local governments.governments.

## Rationalizing portfolio of schemes reducing Rationalizing portfolio of schemes reducing throwthrow--forward to three years forward to three years –– From From RsRs. 38 . 38 Billion in 1999 to Billion in 1999 to RsRs. 20 Billion in 2003.. 20 Billion in 2003.

## Improved systems of appraisal, monitoring, Improved systems of appraisal, monitoring, feed back and evaluation.feed back and evaluation.

REFORMING THE PLANNING REFORMING THE PLANNING FUNCTIONFUNCTION

## Developing an interDeveloping an inter--governmental consultative governmental consultative mechanism between provincial and local mechanism between provincial and local governments for undertaking agreed sector governments for undertaking agreed sector specific strategies.specific strategies.

## ReRe--organization of the Planning & Development organization of the Planning & Development BoardBoard""reduction of tiers from 5 to 3reduction of tiers from 5 to 3""Creation of functional units for targeted Creation of functional units for targeted

responsibility.responsibility.""Introduction of professional members on the Board.Introduction of professional members on the Board.

## Enhancing planning capacity at local Enhancing planning capacity at local government level.government level.

FISCAL MANAGEMENT FISCAL MANAGEMENT

## Preparation of Medium Term Budgetary Preparation of Medium Term Budgetary Framework (MTBF).Framework (MTBF).

## Predictability and accountability of financial Predictability and accountability of financial managementmanagement""Preparing transparent, accessible and user friendly Preparing transparent, accessible and user friendly

budgets.budgets.""Establishing transparent, rule based system of interEstablishing transparent, rule based system of inter--

government financinggovernment financing

FISCAL MANAGEMENTFISCAL MANAGEMENTCREATING FISCAL SPACE:CREATING FISCAL SPACE:## Strengthening Provincial Revenues.Strengthening Provincial Revenues.

""Broaden tax baseBroaden tax base"" restructure provincial taxes and duties.restructure provincial taxes and duties.""Rationalize nonRationalize non--tax revenues and user charges.tax revenues and user charges."" Improved tax/revenue administration.Improved tax/revenue administration.

## Rationalizing provincial expendituresRationalizing provincial expenditures""Preparation of debt management strategy.Preparation of debt management strategy.""Ongoing discussion with Federal Government to rationalize Ongoing discussion with Federal Government to rationalize

interest paid on Federal Loans.interest paid on Federal Loans.""Containing and reducing contingent liabilities.Containing and reducing contingent liabilities.""Phasing out subsidies that do not explicitly target the poor.Phasing out subsidies that do not explicitly target the poor.""Curtailing establishment costs and civil service expenditures.Curtailing establishment costs and civil service expenditures.

CIVIL SERVICE REFORMSCIVIL SERVICE REFORMS## Moving towards the creation of Punjab Moving towards the creation of Punjab

Management Service.Management Service.## Formulation of career management policy.Formulation of career management policy.

""Open recruitment processes.Open recruitment processes.""Effective placement policies.Effective placement policies.""MeritMerit--based promotions.based promotions.""Performance based evaluation.Performance based evaluation.""Rotation against line and staff positions.Rotation against line and staff positions.

CIVIL SERVICE REFORMSCIVIL SERVICE REFORMS## Enhancing the role of Public Service Enhancing the role of Public Service

Commission.Commission.""Empowering the Commission to recommend Empowering the Commission to recommend

recruitments for positions above BSrecruitments for positions above BS--1111""Declining requests for recruitments without Declining requests for recruitments without

recourse to the Commission.recourse to the Commission.""High quality staffing of the CommissionHigh quality staffing of the Commission

CONCLUSIONCONCLUSION

$$We believe that all so called We believe that all so called “intractable” problems and issues can “intractable” problems and issues can be solved as long as we realize that be solved as long as we realize that the solution lies in a bottom up the solution lies in a bottom up approach as opposed to the approach as opposed to the traditional top down “I know better traditional top down “I know better than you” approach.than you” approach.

CONCLUSIONCONCLUSION$$We realize that solutions and We realize that solutions and

implementation mechanisms are to be implementation mechanisms are to be found in urban slums, in villages of rural found in urban slums, in villages of rural Punjab and in the hard work of patriotic Punjab and in the hard work of patriotic Pakistanis who are dissatisfied with the Pakistanis who are dissatisfied with the status quo and who think and believe in status quo and who think and believe in the potential of Pakistan to turn things the potential of Pakistan to turn things around, educate its people, provide them around, educate its people, provide them health care, clean drinking water, health care, clean drinking water, sanitation and all that is their basic right.sanitation and all that is their basic right.

The Government of Punjab The Government of Punjab under the leadership of the under the leadership of the

Chief Minister Chief Minister strives to provestrives to prove

that in South Asia that in South Asia Good Governance can be Good Governance can be

Good PoliticsGood PoliticsTHANK YOUTHANK YOU

STIMULATING ECONOMIC STIMULATING ECONOMIC GROWTHGROWTH

!Promoting housing industry!Promoting Agriculture!Promoting livestock and dairy!Stimulating Small and Medium Enterprises!Improved access to Agricultural credit!Provision of Micro credit!Improved Irrigation

Literacy Rates in PunjabLiteracy Rates in Punjab(Urban and Rural)(Urban and Rural)

Literacy Ratios (10 years & above)

46.755.2

36.7

64.570.9

57.2

01020304050607080

Both Male Female

Urban Area

19811998

Literacy Ratios (10 years & above)

2029.6

9.4

38

50.4

24.8

0102030405060

Both Male Female

Rural Areas

19811998

Ranking of Punjab D

istricts byLitercy R

atio for Population of A

ge 10 Years and A

bove

62.2%

58.9%

56.7%56.6%

52.7%51.9%

50.5%

37.8%37.1%

36.8%

36.2%35.1%

35.0%34.7%

34.2%

33.1%30.6%

29.9%

28.5%20.7%

47.4%

49.3%

63.9%

64.7%70.5%

38.7%

39.9%40.5%

40.7%

42.8%

43.4%43.8%

43.9%

46.3%

2223

2425

2627

2829

3031

3233

34

21

1615

1413

12

34

56

78

910

1112

2019

1817

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

RAWALPINDILAHORE

JHELUM

GUJRATSIALKOT

CHAKWAL

GUJRANWALANAROWAL

FAISALABAD

T.T.SINGH

ATTOCKMANDI BAHUDDIN

SARGODHA

SAHIWALSHEIKHUPURA

MULTANMIANWALI

HAFIZABADKHUSHAB

KHANEWALLEYYAH

OKARA

JHANGVEHARI

KASUR

BAHAWALNAGARBAHAWALPUR

PAKPATTAN

BHAKKAR

RAHIMYARKHAND.G.KHAN

LODHRAN

MUZAFFARGARHRAJANPUR

0510152025303540

Literacy ratioR

anks

Ranking of Punjab D

istrictsR

anking of Punjab Districts

Literacy Ratio (Age 10 yrs & above)

Literacy Ratio (Age 10 yrs & above)

OUT OF SCHOOL CHILDRENOUT OF SCHOOL CHILDREN

2,359,482

561,856

2,156,825

542,177

0

5 00 ,0 0 0

1,0 00 ,0 00

1,5 00 ,0 00

2 ,0 00 ,0 00

2 ,5 00 ,0 00

Female Male

Age Group 5-9 Years (Out of School)

RuralUrban

1,619,336

349,630

1,224,007

341,774

0

5 0 0 , 0 00

1, 0 0 0 , 0 00

1, 5 0 0 , 0 00

2 , 0 0 0 , 0 00

Female Male

Age Group 10-14 Years (Out of School)

RuralUrban

Total Population (5-9 years) 11.2 million

Out of school: 5.6 million

Total budget Per BHU(Rs in million)

Pay of Officers 14.976 144,000 Pay of Establishment 26.046 250,442 Other allowances 5.502 52,904

Establishment cost 46.524 447,346 Repair of D/goods 2.860 27,500 Medical store depot 12.000 115,385 Local purchase 1.500 14,423 Commodities & Services 12.949 124,510 Repair & Maintenance 1.600 15,384

Grand Total 77.433 744,548

RYK BHU Budget 2001-2002