November 19, 2006	Sunday	Shawwal 26, 1427

KARACHI, Nov 18: The administrative department of Sindh has bluntly held federal government responsible for being “a major constraint” in provincial development--be it social, economic or even political.”

The Works and Services Department of Sindh has not minced words to declare that the federal government, institutions and power brokers have exercised more control, direct or indirect, over its (Sindh) provincial sovereignty, which in itself becomes a major constraint in development.

This rejoinder is on a recent World Bank report on Sindh economy entitled Pakistan:”Securing Sindh Future--prospects and challenges ahead.”

This more than 100-page document is an indictment on Sindh government performance in economy. It is a story of Sindh’s fast pauperisation, growing unemployment, widening gender differences in education and health, depletion of resources, bad governance, corruption, lawlessness, mal-administration in land management, imperfect public service delivery and what not.

“There is a need to look deeper into real factors causing low provincial performance,” the Works and Services department of Sindh government suggests. Senior bureaucrats in Sindh government are deeply hurt on the World Bank report and have offered a spirited reply to the bank in a rejoinder, which is likely to be despatched after it gets approval from the political leadership, the Sindh cabinet.

But when it comes to governance issue, imperfect delivery of service and the political stalemate, the burden being carried by an uncomfortable political alliance in Sindh, the bureaucrats prefer an indiscreet silence and their excuse is that “it is not our domain.”

None of the ministers or advisers, including adviser on finance was available to offer comments on the said report.

The Sindh government rejoinder expects the World Bank to plead for transfer of “at least one of the potentially buoyant tax like GST (provincial GST or single retail tax) or personal income tax to provinces.”

It appreciates World Bank raising the NFC issue but complains that it does not adequately reflect Sindh government’s position on GST on services.

The World Bank report, the Sindh government contends, should also recommend air travel and other services tax to the provinces. “Greater fiscal power and assignment of new taxes to provinces is a better way to reduce federal dependence and make the provinces more self-reliant besides, enhanced public expenditure management.

The Sindh government is not happy with the World Bank report for failing to appreciate its debt retirement of Rs11.4 billion and establishment of a pension fund of Rs5.8 billion.

A rejoinder from the Education department is conspicuously missing from Sindh government document. The World Bank has been pretty harsh on Sindh’s education where it found investment going waste, enrolment of children abysmally low, dropout alarmingly high, teachers’ appointment questionable.

“The development process has been put back on track,” claims the document, which reveals that in last five years a sum of more than Rs133 billion has been invested by the provincial and federal governments. Of this amount the provincial government provided Rs65.75 billion from its budget and the federal government gave Rs67.55 billion.

“The Sindh’s Annual Development Programme (ADP) has been enlarged by more than four times from Rs5.75 billion in 2001-02 to Rs24 billion in 2005-06,” a senior official said. In addition to Rs133.30 billion in last five years from 2001-02 to 2005-06 another amount of Rs50 billion is being invested in the current fiscal year.

“Fund leakages are nor ruled out but the implementation of projects is much better than what it was in the past,” he claimed and suggested that a team of media persons should go on their own to see the work on on-going mega projects.

Right now, there are mega projects involving a total outlay of Rs97.88 billion under various stages of implementation. A sum of Rs16.73 billion has already been invested in these projects. This includes the second phase of revised Right Bank Outfall Drain (RBOD) with an outlay of Rs31 billion. Only a sum of Rs3 billion was invested till March 2006.Planned on an assumed scant rain fall, the RBOD failed to withstand recent heavy rains and quite a big part of Sindh, including the second big city Hyderabad, was literally submerged in recent rains and agriculture suffered huge losses.

The irrigation and drainage systems in Sindh are being thoroughly revamped at a total cost of Rs12.96 billion, for which, so far, only Rs1.68 billion have been provided.

Another big project is 100 million gallon daily water supply project to Karachi, now in advance stage of completion, after an investment of Rs5.24 billion out of a total of Rs8.56 billion. There is a promise of Rs5 billion for Tameer Karachi programme for which only Rs300 million have been provided. Hyderabad is more unfortunate because not a single paisa has been provided of the promised Rs5 billion package. The lining of 33,000 water courses will need Rs27.44 billion but only Rs1.82 billion have been given so far.