KARACHI, June 17: All the provinces including Sindh are asking the federal government to allow them to seek loan from market at relatively low rate of interest for a swap with high interest loans secured from Islamabad.

"We obtained Rs37 billion capital development loans from Islamabad and has paid back more than Rs30 billion and still well over Rs30 billion outstanding," Syed Sardar Ahmad, the Sindh Finance Minister informed a post-budget press conference on Thursday.

Syed Sardar was assisted by the Additional Chief Secretary Planning and Development Ghulam Sarwar Khero and the finance secretary Israr Malik. The minister said that finalization of a provincial finance award in Sindh was the best achievement his government could claim.

Under this award a formula to distribute revenue and development fund between the provincial and districts and down to union council level had been worked out. "Let's hope this PFC award bring an end to the unfortunate friction between the provincial and the local governments in Sindh," he said.

He announced that a Committee had been formed to consider among other matters whether the tubewells could be handed over to private operators as Sindh government was not recovering the amount being spent on maintenance of these wells.

He said the committee would see how the allocated funds in budget were being spent on the operation of tubewells. He said that a sum of Rs2.6 billion had been kept for reclaiming irrigated land and revival of tube wells.

Responding to a question the minister said that development funds were allocated according to the requirements of the areas while pointing out that the Rs18 billion ADP incorporates Rs1 billion package each for Karachi, Hyderabad and the rural areas of the province.

He expressed the hope that mass transit programme might start from the next fiscal year as funds had been provided for this purpose. The finance minister was asked to explain on the availability of funds for financing the ambitious Rs18 billion ADP for the next fiscal year.

"Where are the fund for Rs18 billion ADP?" he was repeatedly asked. The minister said that even the multinational corporations draw up development programmes when they have no funds. "Funds are mobilised after the plan has been formed," he replied.

Sardar took notice of a newspaper report that implies that inflated allocations were made in the revenue budget to squeeze out funds for the development effort. "We provide many vacancies which when remain unfulfilled and provide us with the funds for development", he said.

"Our claim for Rs10 billion in respect of provincial land acquired by the defence and other federal government agencies lie with Islamabad," he said while expressing the determination to again pursue this case vigorously.

He also explained Sindh government's position during the National Finance Commission deliberations and reiterated that it was based on principles. "We lost only a little over Rs1 billion because of the NFC stalemate," he remarked while expressing the confidence that renewed efforts would be made to restart deliberations and seek an amicable settlement.

Syed Sardar gave broad outlines of the budget to point out that quite a big chunk of money goes for law and order and debt servicing.