KARACHI: Prime Minister Shehbaz Sharif, on Wednesday chaired a meeting with Sindh Chief Minister Murad Ali Shah, and his team to discuss financial and developmental issues yet to be resolved between the federal and provincial governments.

During the meeting, the Prime Minister instructed Planning Minister Ahsan Iqbal, Finance Minister Mohammad Aurangzeb, and the Secretary of Communication to hold meetings with the Sindh Chief Minister or his team to resolve all the pending issues on priority basis.

He further stated that he was here [in the Sindh CM House] to resolve all the lingering issues, so that developmental projects could move forward, and financial issues could be resolved. To show his commitment, he announced that the provincial government would receive 150 buses to add to its fleet.

The meeting was held at CM House and was attended by federal and provincial ministers, as well as concerned federal and provincial secretaries and heads of different organizations. The meeting aimed to resolve outstanding issues as soon as possible through discussion.

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Sindh Chief Minister Syed Murad Ali Shah through a detailed presentation apprised the issues to the prime minister.

Arrears & shortfall in federal transfers: The Sindh Chief Minister told the prime minister that during 2022-23 the provincial government’s share in the budget estimates was Rs1,078.187 billion against which Sindh received Rs1,050.167 billion showing a shortfall of Rs28.030 billion.

He added that in July 2023 Rs4.383 billion and Rs3.801 billion in April 2024 were received but still, the federal government has to release Rs19.846 billion to Sindh.

According to Shah, during the current financial year, 2023-24 (July 2023 to April 2024) the Sindh government’s share as per budget estimates is Rs1,092.416 billion. The Sindh government has received Rs1,009.559 billion showing a shortfall of Rs82.857 billion.

At this, Prime Minister Shahbaz Sharif directed federal finance minister Aurangzeb to discuss [shortfall] issues with the Sindh government and resolve them amicably.

Federal Govt Share: Murad Shah said that for the construction of houses for flood-affected people the World Bank funded $ 500 million and the remaining amount was required to be shared by the federal and the provincial governments on a 50:50 basis for two years, Murad Shah said and added that the provincial government has released its share of Rs25 billion and the Federal Government has yet to release during the current financial year.

The reconstruction of Schools in flood-hit areas costs Rs11,917 million, the CM said and added the federal government had assured to bear 50 per cent cost. During the current financial year, the federal government had to fulfill its commitment of Rs2000 million but nothing has been released so far.

Murad Shah said that the Sindh government has negotiated $200 million – IsDB and ADB 400 million with a $40 million Sindh govt share, he requested the prime minister to commit 50 per cent financial burden. Sindh’s share in federal PSDP-2023-24: The Chief minister told the prime minister that presently only 19 Schemes of Rs144.743 billion were included in PSDP.

This year the federal government has allocated Rs53.124 billion against which only Rs12.079 billion has been utilised, the CM said and added 11 out of 19 schemes have zero releases to date. The Federal government asked for schemes to be included in PSDP 2023-24. The Sindh government submitted 55 Schemes but only four were approved and included in the PSDP but not a single penny has been released by the federal government to start the schemes, Murad Shah said.

Shah told the PM that his government has submitted 50 New Schemes of Rs426.759 billion for inclusion in PSDP 2024-25. He requested the prime minister to allocate Rs108.557 billion for 2024-25 so that appropriate work could be executed on them next year.

The lining of the KB Feeder: The CM said that the lining of the KB Feeder project was Rs39,942 million. It has an allocation of Rs3000 million in the federal PSDP but nothing has been released so far.

Hyderabad-Sukkur Motorway (M-6): The PM was told that the construction of 306 km long, 6-lane, access-controlled fenced motorway project/Hyderabad-Sukkur Motorway was originally included in CPEC but deleted without assigning any reason.

The project was approved by ECNEC in July 2020 for Rs165.67 billion revised in May 2021 at the cost of Rs191.47 billion. Lastly, the project work was awarded by NHA for Rs308.194 billion under the PPP mode.

“Lately reported that the project has again been scrapped because Concessionaires failed to do Financial Close,” the CM said and requested the prime minister to direct the NHA to undertake the project in the next financial year.

The Minister said that he would discuss the matter with the Communication Ministry and get the matter resolved on priority basis.

Jamshoro-Sehwan Road (N-55): The N-55 project was approved in 2017 for Rs.14 billion. The CM said that the Sindh government was forced to pay 50 per cent cost of the project- which means Rs7 billion which we paid in 2017.

“The project however continues to suffer delays as the release of the federal government funds is not sufficient to complete the project,” the CM said.

Copyright Business Recorder, 2024