Developing Backward Areas 25.10. Achieving balanced Regional Development Development of Annual Gross Regional Product Estimates: Following the passage of the 18 th Amendment and the 7 th NFC Award which gave greater autonomy and resources to the Provincial Governments, they should have embarked on planning with an appropriate growth strategy. Unfortunately, there are no official estimates of the size, growth, and composition of each Provincial Economy. The Pakistan Bureau of Statistics and the Provincial Bureaus of Statistics must be assigned the task of preparing for the respective Province the annual estimates of GRP by sector. The required information system can first be identified and developed. At a later stage, the GRP estimates by expenditure can also begin to be prepared. The annual estimates of the GRP must be made available on nine months data to facilitate the process of budget making for the next fiscal year. This will enable the identification of appropriate interventions in the Provincial Budget. India has had a long tradition of making annual GRP estimates at the level of States. The methodology used for making these estimates should be examined to determine its replicability in the Pakistani context. Replacement of‘Top-Down’ Planning by‘Bottom-Up’ Planning: In the true spirit of the Federation the annual exercise must first be completed by the Provincial Governments. The required macroeconomic envelope to support the regional plans can then be prepared by the Federal Planning Commission. The overall Macroeconomic Plan with the regional dimensions can then be presented to the National Economic Council. The NEC has the Prime Minister as the Chairman. At the Provincial level, the Planning and Development Department must undertake assessment of the growth potential at the Division level within the Province and the identify constraints which need to be removed for realization of this potential. Provincial Development Strategy and Priorities must be aligned with locational and comparative advantages of the Province: The Section 25.2 has already identified sectors and sub-sectors where a particular Province has a comparative and locational advantage. As an illustration the development priorities for Baluchistan, the relatively backward Province, are derived. Balochistan has comparative advantage in some sub-sectors within agriculture. These are minor crops(especially vegetables and fruits), fishing and forestry. The ADP should focus on identification of projects, possibly in partnership with the Federal Government or the private sector, which will provide appropriate policies and inputs for faster development of these sub-sectors. Further, mining and quarrying and, electricity and gas are other subsectors where Balochistan has substantial development potential and should be focused on. 259
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Charter of the economy : agenda for economic reforms in Pakistan
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