Sindh to spend Rs590b on development projects this year: CM Murad Ali Shah

KARACHI  -  Sindh Chief Minister Syed Murad Ali Shah on Saturday outlined an ambitious fiscal and development agenda for the province while addressing serious financial challenges and federal shortfalls.

Addressing a post-budget press conference at the Chief Minister’s House, he opened the session by strongly condemning Israel’s recent attack on Iran, stating that he had already voiced his disapproval during the budget session and subsequently convened an immediate meeting to pass a resolution against the aggression.

He expressed disappointment over the opposition’s disruptive behaviour during the passage of this resolution, questioning the motives behind their resistance and reaffirming the government’s firm stance against terrorism.

The CM noted that the Pakistan Peoples Party (PPP) has presented its 17th consecutive provincial budget, attributing this milestone to political continuity and effective governance.

Murad said that Sindh has received Rs. 1,478.5 billion from the divisible pool since last year, but Rs. 422.3 billion remains outstanding. Shah expressed hope that the withheld amount would be disbursed by the end of June. Despite being under an IMF programme that demands strict fiscal discipline, the Sindh government will allocate Rs. 590 billion for development projects this year, with a total budget of Rs. 3.451 trillion, Rs. 1 trillion for development and Rs. 2.15 trillion for current expenditures. Notably, Rs. 1.1 trillion is earmarked for salaries and pensions, leading to salary increases of 12 per cent for lower-grade employees and 10 per cent for higher grades.

Sectoral budget increases include an 18 per cent rise in education funding and an 11 per cent increase in health. Funding for agriculture, irrigation, and local government projects has also seen significant boosts. Furthermore, Rs. 236 billion has been allocated for infrastructure projects in Karachi including public-private partnership initiatives.

Shah highlighted Sindh’s social welfare achievements, particularly in housing for flood victims, with 500,000 homes built and another 850,000 under construction, totalling 1.3 million. This rapid response has drawn international recognition, surpassing Nepal’s housing efforts after its earthquake.

To enhance rural living standards, the CM announced a Rs. 600 billion project for rural water and sanitation, benefiting 4.5 million villagers. This community-driven initiative will be completed within the current government’s tenure, with villagers constructing and managing the infrastructure under NGO oversight, aiming to reduce waterborne diseases. PPP Chairman Bilawal Bhutto Zardari endorsed the project as revolutionary.

Regarding taxation, Murad Shah noted that no new taxes were introduced in the budget, with some taxes eliminated or reduced, including the abolition of the entertainment tax and cuts to restaurant taxes. The stamp duty on third-party vehicle insurance has been reduced to Rs. 50, with a drop in the insurance tax from 15 per cent to 5 per cent. A list of tax-exempt items will be published as per the IMF requirements.

To modernise governance, the Sindh government is digitising land records through blockchain for easier access. Free laser levellers will be provided to small farmers, with subsidies for larger ones, alongside the implementation of cluster farming technology.

Significant improvements in education and health include the establishment of 34,000 new caste centres and expanded support for persons with disabilities. Cognitive Remediation Therapy facilities will grow, and youth development centres will be created in each district. The Sindh Institute of Child Health has launched a vast child health network. The Sindh Hari Card program has allocated Rs. 8 billion for farmer support.

The Chief Minister outlined the K-4 water project structure, where the federal government is responsible for sourcing water from Keenjhar Lake, while the Sindh government manages distribution and has allocated necessary funds. A total of Rs. 20 billion is earmarked for the K-4 feeder, alongside plans for a costly five-million-gallon desalination plant. Despite challenges like federal funding shortfalls and IMF constraints, the Sindh government is focused on development, social welfare, and financial prudence.

Murad Shah highlighted critical infrastructure issues, specifically the K-IV water supply project, explaining its components and affirming full funding for the Sindh government’s role. He also noted 20,000 to 25,000 job vacancies in Grades 1 to 4, with plans for recruitment via IBA-administered tests for Grades BPS-5 to 7 and filling higher Grade 16 positions.

The CM said that the federal government had allocated only 18 out of 25 projects to Sindh after transferring PWD schemes to other provinces. Additionally, he mentioned Sindh’s conditions for supporting the federal budget, emphasising equitable distribution of development schemes and the detrimental cut of university funding from Rs. 4 billion to Rs. 2 billion, which has sparked protests.

On the critical Sukkur-Hyderabad Motorway, the Chief Minister expressed concern over the halving of federal funding from Rs. 30 billion to Rs. 15 billion.

Shah emphasised that major projects are not included in the Federal Public Sector Development Programme (PSDP) and termed 18 per cent tax on solar panels as unjust.

Addressing various challenges, he acknowledged delays in operating 150 buses in Karachi due to resource constraints but highlighted ongoing infrastructure and sanitation projects. On digitisation, Shah admitted the Sindh government has not fully digitised land records yet, but is piloting a blockchain project in Matli and Sukkur.

Shah addressed the controversy surrounding a resolution on Israeli aggression, alleging that opposition members exploited the issue for political gain instead of genuine action. He also expressed a commitment to maintaining dialogue with opposition parties, though he criticised their focus on unrelated complaints. Concluding, he asserted that the PPP government will not be blackmailed either by PTI or MQM.

Regarding the Safe City project, Phase I is set for completion by September or October 2026, covering key Karachi areas. Early results show success with cameras already identifying security threats. Funds for Phase II have been allocated for 2026.

Shah asserted that the work of the Sindh government is evident, noting increased votes for the Pakistan Peoples Party. After the August 2022 floods, the World Bank approved emergency financing for Sindh quickly, showcasing trust in its administration.

While Sindh is receiving significant financial support, the PPP is not a formal coalition partner in the federal government. Shah explained that Sindh has made a strong case for historical underfunding, resulting in Rs. 86 billion allocated to bridge the gap with other provinces.

In response to criticism over purchasing a new helicopter and vehicles for the Chief Minister’s Office, Shah stated that the existing helicopter is 36 years old and the vehicles haven’t been updated for years. He mentioned a government ban on vehicle purchases for the next fiscal year to limit non-essential spending. On agricultural policy, he noted a shift towards corporate farming while involving existing farmer networks to ensure fair participation.

During his post-budget briefing, Chief Minister Murad Ali Shah addressed key issues like unchecked population growth, stating that the Sindh government has merged the health and population welfare departments to improve services.

Shah revealed Rs. 25 billion allocated for solar projects and the launch of afforestation programs to combat climate change, admitting more needs to be done. He clarified that the Supreme Court set the upper age limit for government jobs at 35, indicating no provinces have altered this.

Discussing the economic situation, he acknowledged worsening poverty in Sindh, stating economic growth is necessary for poverty alleviation while noting the constraints imposed by the IMF program. On budget transparency, he mentioned efforts to brief the opposition about the budget, despite criticism of ignored proposals.