ISLAMABAD: The Ministry of Finance on Wednesday was directed to promptly release funds for federal projects in provinces to avoid friction.

The Senate Standing Committee on Finance noted the delay in funds disbursement for projects in Balochistan and Sindh.

The committee, chaired by Senator Saleem Mandviwalla, was briefed on the status of funds utilisation by the finance ministry officials.

“We have noticed that the release of funds for several projects is negligible. If not addressed, the issue could assume political dimension,” Senator Saud Majeed of PML-N said.

“When such complaints are raised by the governments of Sindh and Balochistan it lend credence to the perception of Islamabad’s hegemony on resources and its lack of interest in development of provinces,” he added.

Senator Mohsin Legahri expressed disappointment with the conduct of the ministry that ignored Senate’s recommendations for timely release of funds.

Mr Mandviwalla cited the criticism of Chief Minister Sindh Murad Ali Shah over delays in the federal share for water and sewerage projects in Karachi.

The committee directed the finance ministry to provide the details of releases made for federal government funded projects in the provinces.

The committee was informed the subsidies for power sector and fertiliser manufacturers were on track as per their allocations in the Federal Budget 2016-17.

The committee was informed that Rs180 billion was allocated for subsidies in the current fiscal year. So far Rs118bn has been utilised including Rs86bn for power sector and Rs13bn for the fertiliser sector.

The committee also held hearings over complaints against the banking sector. Senior bankers briefed about the steps taken to check frauds, money laundering and inconvenience faced by customers. Officials acknowledged the losses incurred to banks because of frauds and unauthorised money transfers.

They said since the centralization of the data of all bank account holders the possibility of bank frauds has shrunk. The committee also reviewed several clauses of the Companies Bill, 2017 which has been passed by the National Assembly.

The meeting decided that after completing the review of the bill, a committee meeting would also be held in Lahore to discuss budget proposals of Gujranwala, Sialkot, Faisalabad and Lahore chambers of commerce and industry.

Published in Dawn, April 13th, 2017