KARACHI, June 28: Of all the four provinces, that have taken up total development programme of over Rs68 billion in their respective budgets during next fiscal year, Punjab is the only province that is comfortably positioned, resource wise, to finance its ambitious development outlay of Rs30.50 billion.
Punjab’s Rs180 billion plus budget for 2003-04 shows a revenue surplus of Rs20.15 billion and another surplus of Rs1.86 billion on the capital side. With Rs22 billion already in the kitty, Punjab’s finance minister Sardar Hasnain Dareshak does not have much problems in exploring Rs8 billion from foreign agencies to finance his Rs30.50 billion development programme next fiscal year. Reports suggest that a substantial amount of foreign funds have already been lined up for development programme. In relative terms, Punjab is the only province that has successfully implemented Rs20.75 billion development programme in the current fiscal year.
The NWFP has proposed a development outlay of Rs14.69 billion and it banks on Rs17 billion hydel profits from Islamabad. It has threatened to take a legal recourse against Islamabad if federal government fails to remit this amount. In addition, the NWFP has been promised structural adjustment credit by the World Bank from which the government wants to set aside Rs3.8 billion for development financing. As it looks, the NWFP despite being on a warpath with Islamabad will somehow manage to mobilise resources for financing of the development programme.
Balochistan’s finance minister Syed Ehsan Shah has offered a total development outlay of Rs9.30 billion for his province during 2003-04. This include Rs1.30 billion federal funded assistance for drought affected areas and Rs1 billion special package promised by Prime Minister Zafarullah Jamali. The Rs7 billion ADP funding remains a big question mark.
As indicated, Balochistan has been able to squeeze out some surplus from revenue budget and plans to invest Rs1.80 billion from an Asian Development Bank (ADB) loan of 100 million dollars or Rs5.80 billion. In the changing global scenario, when Afghanistan has become important, Gwadar port development is being taken up as a priority project and neighbouring Iran is receiving added attention of big power the federal government has now a lot at stakes in Balochistan. No wonder Syed Ahsan Shah expects a total development investment of Rs27 billion in the coming fiscal year bulk of which will come from Islamabad and foreign sources.
Sindh remains at the receiving end. Sindh is paying price for opposing Kalabagh Dam. The angry demonstrations against construction of Thal Canal in cities and villages of Sindh do not amuse power wielders in Islamabad. Thal Canal is designed to feed lands of the army officers in Punjab areas that are near to border of Sindh. Sindh assembly took initiative in passing a unanimous resolution against the 1997 NFC award. All these sins cannot be forgiven.
When Sindh’s finance minister Syed Sardar Ahmad offered Rs14.48 billion development programme for next fiscal year it did not take too long to realise that he has simply built up castles in the air. The budget document exposed the financial worthiness of the government. The first volume of the budget announced loudly “provincial contribution and funding of oversized PSDP will be subject to availability of resources.”
Where will the resources come from to bill Rs5 billion impact of 15 per cent increase in salaries and pensions of more than half a million serving and retired employees of Sindh government. How will Sindh government finance Rs7 billion ADP even if other components will get funds from Islamabad.
In his post-budget press conference Syed Sardar Ahmad said that he expects Rs5 billion assistance to meet increase in wage bills from Islamabad. He also expects Rs6 billion ADB loan. But in a television channel Syed Sardar Said that he hopes to get some funds from provincial privatization proceeds. He has also made a claim on federal government against land acquisition by the federal agencies. All these replies sound unconvincing if these are not simple lies.
In last three years President Pervez Musharraf and in six months or so Prime Minister Zafarullah Jamali made many promises for special packages. Officials say that if all these commitments and promises are added together Sindh should get about Rs25 billion at least. The Governor is reported to have written DO letters and reminders. The Chief Minister is also reported to have written letters to Islamabad. Have these letters been responded, the Sindh government would have given some indications.
Then there is yet another aspect of this development budgets. The federal PSDP indicates a total size of Rs160 billion in the coming fiscal year. Of this Rs113 billion would be invested by federal government and its agencies. It proposes Rs47 billion for the provinces.
But all the four provinces have contemptuously disregarded the indications of federal PSDP. The federal government has stopped providing any special grant or cash development loan for the development programmes of the provinces for last three years. “Why should then Islamabad design development programmes for provinces when it does not give us loans or grants,” a young engineer in Sindh government remarked.