Daily Times

For the second time this month, a complaint has been made regarding the budget deficit Sindh is facing due to the delayed release of public funds by the centre. Last week Pakistan People’s Party (PPP) Sindh President Nisar Ahmed Khuhro said that the province faces a Rs 106 billion budget deficit and that this had forced the provincial government to borrow from banks to finance the province’s annual development plan (ADP). On February 4, Sindh Chief Minister (CM) Murad Ali Shah had protested that his province faces a Rs 104 billion shortfall due to delayed transfer of funds and that this was taking its toll on development projects.

This is a matter of great concern, considering interior Sindh is one of the underdeveloped parts of our country. The province needs to invest in social sectors, particularly healthcare, education and access to potable water. Agriculture is also in a critical state due to water shortages. Large swathes of the population don’t have access to drinkable water. An inquiry report recently submitted to the Sindh High Court found that over three-quarters of water in 14 of the province’s districts was unsafe for human consumption.

Unfortunately, it seems that this situation has been ignored by the federal government, as even funding for the Nai Gajj Dam, one of the federally-funded projects that could contribute towards amelioration of Sindh’s water issues, has stopped. This is not a recent development either. The Supreme Court has been asking the federal government for its plans on releasing funds for the project since December last year. A week before his tenure had concluded, former Chief Justice of Pakistan Saqib Nisar indicated that this matter would be resolved while he was still CJP.

Furthermore, as Pakistan’s currency continues to plummet due to depleting foreign exchange and continued reliance on loans, implementing delayed ADP projects will only be more expensive in the long run. The loans the provincial government has taken from banks will only compound the problem.

Given the serious economic situation in Sindh, it is unwise that the federal government has not even bothered explain the situation. The federal government must expedite the transfer process so that Sindh can meet its ADP deadlines, and come up with a plan to ensure that such serious and irresponsible financial hold-ups do not occur again.

Sadly, federal ministers have been talking about overthrowing the Sindh government and the arrest of sitting speaker of the provincial assembly and arm-twisting of PPP leadership in the name of accountability does not bode well for a fragile federal structure. *

Published in Daily Times, February 24^th 2019.