ISLAMABAD- Announcing a major paradigm shift in economic outlook from the previous government's consumption led to pro-poor development strategy, the National Economic Council (NEC) Monday approved economic framework and Rs 541 billion, the estimated size of Public Sector Development Programme for next financial year 2008-09 with a 11.2 percent increase against this year. The NEC has set a GDP target of 5.5 percent which is realistic and achievable and it could even grow higher depending upon the economic situation of the country. For the next fiscal year, the NEC has set 4.4 percent growth target for the agriculture sector, 6.6 percent for the large-scale-manufacturing and 7.3 percent for services sector. Prime Minister Syed Yousuf Raza Gilani chaired the meeting of the council here on Monday and was attended by Chief Ministers of the four provinces, Pakistan Occupied Kashmir Prime Minister Sardar Ateeq Ahmad Khan, Northern Areas Chief Executive, Governor NWFP Awais Ahmad Ghani, Finance Minister Syed Naveed Qamar, Deputy Chairman Planning Commission Salman Farooqi, Chairman Federal Board of Revenue (FBR), senior officials of the various federal and provincial ministries and departments. According to the available documents, presented in the meeting, the PSDP size will be Rs 541 billion with estimated Rs 45 billion operational shortfall, outside PSDP Rs 27 billion will be spent on the earthquake-hit regions of AJK and NWFP, the federal ministries may be provided Rs 371 billion with Rs 25 billion and provinces with Rs 170 billion with Rs 20 billion projected operational shortfalls respectively. The PSDP, the papers reflect, will be driven by five major priorities. These included firstly providing comprehensive Safety Net against severe hardships faced by the poor and vulnerable groups of the country, secondly, overcoming the Energy and Water crisis in a planned and systematic manner, thirdly, highest priority to the development and uplift of Balochistan and NWFP and Special Areas (FATA, AJK and Northern Areas), fourthly, reviving growth in agriculture and in manufacturing so as to overcome food shortages and generate vitally needed incomes and employment, and finally, building up our human resources at all levels of education. Addressing the meeting, the Prime Minister said that this would also signal a paradigm shift from the earlier consumption-led development strategy to pro-poor development strategy to ensure that the gains of economic growth are invested on the welfare of people. After the meeting, Deputy Chairman PC briefed the media about the decision of the government. He regretted that in the past including the outgoing financial year the Public Sector Development Programmes were not properly implemented against the allocations announced in the Budgets but also did not release them. "We fear the prices especially the prices of oil and food are increasing worldwide while an international economist has termed it a 'Silent Tsunami' while another has written it as 'Inflation is back.' He further said that this increase in the prices can also impact our economy badly, and added that government is providing Rs 380 billion annually only in terms of subsidy for our people. Farooqi said that it means the government is providing subsidy of Rs 150 million on daily basis. He said Shaheed Mohtarma Benazir Bhutto had cherished desire in her life for socio-economic empowerment of women and that they be given equal rights being enjoyed by men in the country. In this regard, female in the country would get equal rights to men in the form of subsidies and privileges, he added. About the economic performance in the outgoing fiscal, the previous government initially set 7.2 percent for the GDP growth in the outgoing fiscal year, ending on June 30, but revised it later to below 6 percent citing poor growth in farm and manufacturing sectors. In the 2007-08 fiscal year, agriculture sector growth turned out to be 1.5 percent against the target of 4.8 percent, while manufacturing sector grew by 5.4 percent against the target of 10.9 percent. In the outgoing year, the services sector performed well with 8.2 percent growth, exceeding the target of 7.1 percent. Total investment as a ratio to GDP declined from 22.9 percent in 2006-07 to 21.6 percent in 2007-08. Foreign private investment in the first ten months to April amounted to $3.6 billion against $5.3 billion during the same period last year. For the next year, total investment as a ratio to GDP is projected to be 22.4 per cent, out of which 71 per cent would be financed through domestic resources and remaining 29 percent from external resources. Sources privy to the meeting told TheNation, the PPP-led coalition government economic team was attacking the economic policies of the Shaukat Aziz-led government economic management and holding the predecessors as wholly responsible for the prevailing mess at the economic front.      Quoting the economic team, these sources said the previous government economic policies were consumption led and growth sustainable ones, which ignored the people's problems. "Their (previous government) policies resulted into availability of air-conditioners, mobile phones and other such consumers' related goods, while our focus is on the people, by creating more jobs, providing food, housing, social safety net for the poorest of the poor and development led production to make balance in the economy." The meeting was told the electorate clearly voted for economic change and rejected the past economic policies, which they felt had not benefited the ordinary people, and indeed in many cases made them worse off. The documents revealed the government had estimated Rs 188 billion for the social sectors which is 51 per cent of the total proposed Federal PSDP. The government has also allocated Rs 166 billion in PSDP for 2008-09. The meeting was also informed that Rs 34 billion has been allocated under the Prime Minister's Income Support Programme to help the inflation-ridden poorest segment of the society. However, it assured the government was also working on a comprehensive strategy to protect and empower the poorest segment. In the PSDP, an estimated amount of Rs 75 billion has been allocated for water sector that is 20 per cent of the total proposed PSDP. The government will spend Rs 18 billion on Raising Mangla Dam, Rs 9.8 billion on watercourses, Rs 16.2 billion on Canals and their linings, and Rs 2 billion on Clean Drinking Water in the next fiscal. The allocation for Special Areas including AJK, Northern Areas and FATA is proposed to be increased to Rs 23.3 billion in the PSDP for next year. Reconstruction Opportunities Zones (ROZs), Industrial estates in NWFP, Export Processing Zones and Gawadar area development in Balochistan are the focused areas of the government in the PSDP. To overcome the energy crisis, the government is working on a long-term energy strategy, focusing to put an end to loadshedding by December 2009 but is claiming to overcome the loadshedding even before August 2009. The government has also allocated Rs 10 billion for small dams. Agriculture, the government has proposed allocation of Rs 20 billion for the agriculture sector, reflecting an increase of 24 percent over the last year. For health sector, Rs 21 billion is being proposed that is 32 percent higher than the previous year. The government also announced to devise the next 5-year development plan 2010-15 and adjust the existing 2005-10 plan according to the new government's priorities and the aspirations of the people. The meeting was informed that Planning Commission would be changed from "Project Commission" to Knowledge Commission by making it paperless and a knowledge based entity.