KARACHI, Sept 6: Almost all development projects, particularly the upgradation of water and sewerage systems, would be affected badly owing to a 20 per cent economy cut imposed by the Sindh government.

A letter, issued by the provincial finance secretary on Sept 1 and sent to senior KWSB officials, states: “20 per cent economy cut is imposed on all contingent and repair / maintenance expenditures / allocations made under different budget heads except utility bills and POL.”

The letter which was communicated to KWSB’s deputy managing director (finance) by the city government’s executive district officer (finance and planning, also states: ”the department may not incur any expenditure for their development budgets during the current financial year except far ongoing schemes provided these have been approved and funded as ongoing schemes.”

All heads of departments of the KWSB have been asked to ensure austerity in expenditure, or else they would be held responsible for any excess expenditure over and above the budget allocations or any commitment causing liability against the department. Besides, they have also been urged to make strenuous efforts in achieving their revenue targets, as failure on their part in this regard would be viewed seriously.

Terming the 20 per cent cut on expenditures as ‘uncalled for’ and ‘unrealistic’, senior officials of the KWSB said such restrictions would affect the ugradation of water and sewerage systems and would also hamper pace of progress on various other schemes which are supposed to be undertaken on emergency basis.

In addition to the up-gradation plans, the other works which would either be delayed or put into cold storage pertain to repair of pipelines, cleaning of sewerage lines, etc., the sources said, adding in such a situation complaints relating to leaking pipelines and overflowing gutters are bound to increase.

Asked if the cut would also be applied to the ongoing K-III project whereby the city would get an additional 100 mgd water and which is expected to be completed by June 2006, the source replied in the negative, saying the economic cut will not have any baring on the project as it was being funded by the federal government.