Human Security in Pakistan The financing plan under the new social contract, which is described in Table 13.1, proposed enough additional revenue mobilization and expenditure to generate a significant primary surplus from 2023-24 onwards. This will ensure that 80% or more of defense expenditure will be financed by net revenue receipts after covering debt servicing. Further, the financing plan proposes a big expansion in expenditure on health and education, especially by the Provincial governments. This will significantly improve the balance between the social sector and defense spending. 15.3 Environmental Protection Environmental protection has been accorded high priority in the National Security Policy, as follows: ‘Mainstreaming climate adaptation and strengthening robust disaster preparedness, management, and response mechanisms.’ ‘Developing a cohesive response to looming water scarcity through improved storage capacity, sustainable water management and protecting transboundary water rights.’’ The Environmental Sub-Component of the HSI has revealed a significant fall in forest area, higher incidence, and cost of natural disasters. The Financial Plan implementation under the Charter of the Economy creates enough fiscal space to enable an increase in the combined level of development spending, excluding social services, by the Federal and Provincial Governments from 1.2% of the GDP to 2.2% of the GDP, an increase in absolute terms of Rs 850 billion, based on the GDP of 2022-23. Both Federal and Provincial Governments will need to accord the highest priority to the above type of projects in incremental PSDP allocations. In particular, development and better management of water resources will need to be accorded the highest priority by the Federal Government by faster completion of the Dam projects. The pace of construction is slow if the present low allocations of funds continue on these projects, as shown in Box 15.3. Box 15.3: Cost and Federal PSDP Allocations to Major Dam Projects (Rs in Billion) Project Cost Throw- Allocation in Annual Rate of forward 2022-23 Completion* PSDP(%) 1. Diamer-Bhasha Dam Project 655 757 27 5.7 2. Mohmand Multi-Purpose 310 256 12 4.7 Dam Project The allocation in 2022-23 is too small, and at this rate, the projects will take up to 20 more years to be completed. 122