KARACHI, Sept 14: The Sindh government is saving Rs2 billion annually by clearing a Rs23 billion development loan in advance, which is due for payment in the next 10 to 15 years.

Despite advance payment of the loan, the Sindh government still has Rs32 billion cash in hand, reliable sources revealed.

In reply to a query, the finance department denied a report in a section of the press that said work on ongoing development projects was blocked for lack of release of funds.

“On the contrary, the department was releasing due amounts regularly as there was no problem of cash flow; as a result, the pace of work on various development projects was satisfactory,” the finance department said.

The government had allocated Rs50 billion in the 2007-2008 budget for the ADP against Rs32 billion last year.

The sources said that the government had deposited pension and social security funds of Rs25 billion in banks, which was generating Rs2.5 billion annually, adding that work was stopped on more than 70 per cent of ongoing uplift schemes for lack of funds.