Punjab Economic Report

1
Punjab Economic Report

• Presentation to the Second Punjab Development
  Forum
• 18th April 2005

2
Introduction

• The Report is a collaborative work of the World
  Bank, the Asian Development Bank, Department of
  International Development and the Government of
  the Punjab
• The Report an outcome of an extensive and
  intensive consultative process
• The Report represents the first endeavor to
  define and lay down an indicative development
  policy framework for the provincial economy over
  the medium term
• The Report presents a viable strategy for growth
  in the Province that is in line with Chief
  Ministers Punjab Vision 2020.

3
Five Pillars of Punjabs Economic Strategy

• Improving governance
• Reforming the fiscal and financial management
  system
• Creating a more supportive environment for
  private sector-led growth
• Improving the delivery of public services
• Addressing the provincial economys vulnerability
  to shocks

4
Short to Medium Term Focus on

• Increasing incomes
• Job creation in the non-farm sector (one million
  new jobs annually)
• Provincial GDP growth of 7 annually (real
  terms).
• Improving service delivery
• Attention to better health and education
  outcomes, not just better internal processes
• Improving accountability of public sector service
  providers
• Public-private partnerships

5
Proposed Interventions

• JOB CREATION IN THE NON-FARM SECTOR
• Improving the business environment for firms
• Stimulating job-creation in the construction
  sector
• Improving the system of land titling
• Promoting the development of cities as growth
  engines
• PROMOTING GROWTH IN AGRICULTURE
• Raising the level and efficacy of public
  expenditures in agriculture
• Rationalizing the wheat procurement and storage
  policy
• Modernizing wholesale markets
• Improving functioning of land and water markets
• Modernizing the agricultural innovation system

6
Improving Provincial Finances for Development

• Rationalizing structure and administration of
  agricultural income tax
• Improving Urban Immovable Property Tax Structure
• Improvements in financial accounting and
  reporting
• Modernization of the tax administration
  machinery.
• Expanding the Medium Term Budgetary Framework.

7
ESTIMATION OF PROVINCIAL GDP 1990/912002/03

• No official attempt has been made to-date in
  Pakistan to estimate GDP at the provincial level.
• This has hampered economic monitoring and
  regional planning in the country.
• The Report estimates GDP for the Punjab for the
  period 1990/912001/02 based on an approximate
  methodology given the data constraints
• The derived provincial GDP estimates useful as
  broad indications of trends rather than as
  precise estimates for a given year
• Bureau of Statistics has been given the task to
  update and refine these estimates every year. The
  requisite capacity building of the Bureau for
  this purpose is in progress.