KARACHI, May 21: The Sindh government has questioned the sincerity of the federal government in honouring the directives of the President and the Prime Minister while preparing the tentative public sector development programme (PSDP) of Rs180 billion for the next fiscal year.

An official document mentions various directives issued by the President and the Prime Minister for implementation of projects in Sindh. The federal planning and development division informed that these projects could be co-financed by the federal and provincial governments in equal ratios.

Sindh government was asked to prioritize these projects that could be taken up in 2004-05. "No amount is allocated for the projects," the document observes while implying that the federation is not sincere in honouring the directives.

Karachi has been a scene of water riots for last many years. It will continue to suffer water shortages during next fiscal year also because the federal government is not providing required amount of funds for K-111 project, which would remain incomplete by December next year also.

Opening of Munabao border with India depends on funds allocation for nine water supply schemes costing about Rs1.31 billion in addition to the cost for opening of JJC-Munabao road. These water schemes have been prepared by the army.

Sindh government has given high priority to directives of the President and Prime Minister on development of infrastructure in Thar, construction of bridge over River Indus to connect Larkana with Khairpur. The federal government has not paid any heed to the requests of Sindh government.

There are specific instances of the directives given by the President and the Prime Minister which are special packages for Karachi and Hyderabad, a Rs 400 million urban water supply scheme for Mirpurkhas which was approved by ECNEC also on the basis of co-financing, financing of Lyari Expressway Settlement, revitalisation of Karachi Circular Railway, Sindh Coastal Highway, Keenjhar Lake System and many other projects.

The Sindh team at the Annual Plan Coordination Committee (APCC) meeting on Saturday at Islamabad will demand the balance of un-released development funds amounting to Rs1.99 billion for the current fiscal year be retained over and above the allocations in the next fiscal year's public sector development programme (PSDP).

Sindh planners quote a decision of the mid-term meeting of the National Economic Council (NEC) held on March 15 with Prime Minister Jamali in the chair. The NEC decided to extend the period for lapse of development funds from the existing one financial year to three years. This decision was announced by the Prime Minister himself at a press conference the same day.

By implication, the planners argue that funds allocated for specific projects in Sindh in 2003-04 public sector development programme would not lapse and the same projects would receive funds in 2004-05 PSDP in addition to un-released and unutilised funds of 2003-04.

But hardly any planner or any official of the Sindh government appears confident of convincing the APCC or the federal ministries of planning and development, finance and economic affairs.

"Islamabad has never been sympathetic to Sindh," an official remarked. The Planning and Development Minister Shoaib Bokhari agrees that there had been a slow down in release of funds for the projects of his province. "I will speak on this issue after I attend the APCC meeting," he said.

A study shows that the utilization of Rs160bn PSDP in 2003-04 has hardly been 58 per cent during first nine months. Slow utilization has been on two counts. First the cumbersome procedure of the federal government to release funds particularly when these pertain to projects in Sindh and Balochistan.

The second reason is the unending conflict between the provincial governments with the district governments. For last two years, the provincial planning and development departments have been reduced to post offices and funds either go directly to district government or through finance departments.

Utilization of Rs120bn PSDP in 2002-03 has also remained as unimpressive as is the case during the current fiscal year and planners say that in terms of fund utilization the development effort hardly amounts to Rs100bn a year.

And if squandering and leakages are taken into account the worth of assets that come on ground are worth hardly Rs70 or 80bn. Planners are convinced that the PSDP of Rs180bn for the next fiscal year is actually of the same size as of 2003-04 because it includes un-released and un-utilized funds of the current fiscal year and utilization during 2004-05 is bound to remain as dismal as it has been in previous years.

Sources in Sindh government say that the current fiscal year's PSDP provided Rs3.14bn for five projects. These were Sindh coastal highway, lining of channels and distributaries of the irrigation system, revamping and rehabilitation of Sindh irrigation system, RBOD and cadet college Ghotki. Out of this allocation, the federal government released only Rs1.15bn leaving a balance on held up funds amounting to Rs1.99bn.

The next fiscal year's PSDP provides Rs2.10bn for the same projects. Planners in Sindh government demand that Rs1.99bn be added to Rs2.15bn to speed up the pace of projects.

The 2003-04 PSDP provided Rs1bn for Sindh Coastal Highway but no fund was released. An amount of Rs100m was given for lining of Sindh channels. But no funds were released. A sum of Rs1bn was sanctioned for revamping of Sindh irrigation system. But only Rs450m was released leaving a balance of Rs550m. For RBOD the federal government released only Rs750m as against a provision of Rs1bn.