KARACHI, May 30: The federal government is giving a fresh look to the Rs144 billion Public Sector Development Programme (PSDP) for the next fiscal year to find room for inclusion of quite a few important mega projects of Sindh including the reactivation of Karachi Circular Railway.

Well placed sources in Karachi expressed confidence that the National Economic Council meeting, to be chaired by President General Musharraf next month in Islamabad, will approve a revised PSDP for 02-03 that would include many more Sindh based projects.

The PSDP for 2002-03 indicate Rs11.56 billion for 74 projects in Sindh which however do not include or are given less than demanded funds. Water resources development projects in Sindh have received highest allocation of Rs4.53 billion but sources in Sindh say that priorities are not correct. There is a demand to include projects which are more important.

Transport and Communication project has been given Rs2.82 billion, physical planning and housing Rs2.43 billion, science and technology Rs824 million, education and training Rs243.44 million, culture, tourism and youth Rs40.37 million, agriculture Rs71 million and industry that include rehabilitation of Peoples Steel Mill Rs285 million.

The sources say that the federal planners ignored all those Sindh-based projects of vital economic and social importance proposed by Karachi. All these projects are missing in the PSDP presented before the Annual Plan Coordination Committee headed by the federal finance minister which met last Friday (May 24) in Islamabad.

Sindh Finance Minister Dr Abdul Hafeez Sheikh is reported to have made strong exception to keeping out of the PSDP important development projects. The deputy chairman of the Planning Commission is reported to have given a firm assurance to the representatives of Sindh of providing fund allocation for many of these projects in 02-03 budget and onwards also.

The sources are confident that the Left Outfall Drainage (LBOD) will continue to receive funds even beyond 2002-03. Budget document shows total indicated cost of LBOD at Rs3.34 billion out of which Rs2.31 billion were spent till end of current fiscal year and a sum of Rs850 million has been provided in next fiscal year.

The federal planners also assured of providing enhanced funds for flood protection programme in Sindh. Sindh has asked for Rs154 million, which was not acceded to. Located at the tail end of Indus system, Sindh suffers from both shortage and excess of water.

An allocation of Rs2 billion has also been assured during 2002-03 budget for the Rs30 billion Revamping and Rehabilitation of Irrigation and Drainage system in Sindh.

Token amount of Rs10 million is being sought for feasibility of rail link from Badin to Islamkot and also Rs10 million for feasibility study to link SITE Nooriabad with Jungshahi and Jhampir.

Sindh is seeking Rs224 million next year for Rs2.3 billion cost ‘Assured water supply for Karachi’ project. This project will upgrade Keenjhar lake system and has been submitted to the federal government.

Inundation of over 1.2 million acres of land because of sea intrusion in the Sindh delta has been the cause of concern. The Sindh government has prepared a plan to reclaim the inundated land and has asked for Rs50 million in 02-03 budget to carry out a study.

An abrupt discontinuation of Drought Emergency Relief Assistance also caused disappointment in Sindh. Initiated during this fiscal year, the federal government indicated allocation of Rs10 billion spread over two years. Sindh was expected to receive Rs3 billion assistance. The assistance was spread over 13 districts out of 16 in Sindh. The federal government released about Rs725 million so far out of which Sindh has provided Rs531 million to 13 districts and remaining Rs176 million is being disbursed. The Sindh government has submitted 624 schemes with an indicated outlay of Rs3.39 billion to the federal government. There are indications that this assistance will now continue in some form.

Also expected to be included in federal funded programmes are the projects of Karachi-Hyderabad Expressway, Dualisation of Karachi, Thatta and Hyderabad highway, Jacobabad bypass, construction of a bridge over river Indus at Ranipur-Dokri, Indus Highway to link Sehwan with Ratodero, Karachi Circular Railway and Sukkur Water Supply and Drainage.