Investor Presentaiton

Chapter III - Estimates of Expenditure aims to develop indicators that can assess value of policing - a legitimate demand generated by the current financial crisis. Spending on judicial and policing services is expected to safeguard economic affairs and social sector public investments and hence the expectation for a sizeable return on security investment grows. PKR 115.6 bn BE FY 2019-20 Police +3% PKR 119.1 bn BE FY 2020-21 (PKR Billion) Public Order and Safety Affairs BE 2019-20 RE 2019-20 BE 2020-21 Law Courts (High Court & Lower Judiciary) 28.570 26.683 27.738 Police 115.633 129.480 119.122 Fire Protection (Civil Defence) 0.804 0.758 0.710 Prison Administration and Operations (Jails) 10.662 8.317 9.850 Administration of Public Order (including Rescue & Emergency Services) 21.034 13.065 13.623 Total 176.703 178.303 171.043 Economic Affairs Amid controversies among economic scholars regarding positive, mildly positive or negative effects of Government Expenditure on economic growth, Government of Punjab increases spending on Production Sectors through procurement of goods and administration of Developmental projects aimed at fostering growth and increase in investment in production sectors by the private enterprises. During Financial Year 2020-21, calibrated expenditures on support of Small and Medium Enterprises, skills development programs, development of Industrial estates and gender inclusion programs are expected to drive economic growth. A whopping amount of PKR9.500 billion is earmarked for Punjab Rozgar Program for increase employment opportunities. This could be a game changer if the multiplier effect is attained during its implementation. Economy of Pakistan, particularly that of the Province of Punjab, is predominantly agrarian and Punjab remains the food basket for the entire country. Government Expenditure on Agriculture sector in Pakistan has shown to have medium to long run positive relationship with economic growth. The Agriculture sector provides Food Security, raw inputs to Agri-based industry fetching sizeable exports revenue and provides livelihood to a large segment of population. In addition to the Current Non-Development Expenditure in FY 2020-21; Government of Punjab has committed resources for several initiatives that aim at strengthening the Agriculture sector and providing necessary support to struggling agriculturists. An amount of PKR1.350 billion is allocated for Crop Insurance Program, farmers shall be provided subsidy on agricultural inputs to the tune of PKR4.000 billion and an amount of PKR1.860 billion is earmarked for Interest Free Loan Schemes for farmers. Additionally, initiatives like construction of modern silos through Public-Private Partnerships, development of high value agricultural outputs through sprinkler and drip irrigation systems and establishment and improvement of food testing laboratories can potentially revolutionize the Agriculture sector, which still remains the backbone of the Province's economy. Budgetary allocations for agriculture during FY 2021-20 are expected to help in improving research, extension and field services to farmers. Irrigation sector acts as a necessary complement to Agriculture as well as Fisheries sectors. The sector requires high maintenance costs and in spite of the financial constraints, Punjab Government has allocated PKR15.410 billion for Current Expenditure in the sector. Resource constraints have dictated slight decrease in Current Expenditure on production sectors, however, an effort has been made to ensure that the allocations remain at the last financial year's level; this is depicted below: Page 24

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