KARACHI, June 20: Sindh Minister for Finance, Planning and development, Dr. Abdul Hafeez Shaikh, in his budget speech for the fiscal 2002-03 announced that the overdraft with the State Bank which was over Rs10 billion in mid-1999 was entirely eliminated this year.

“Your province had positive cash flow after more than a decade of overdraft with the State Bank,” he said.

The Minister said that the expensive cash development loans of the Federal Government at interest rates of up to 17.7 per cent are being paid off.

He stated that as a first step Rs2.1 billion is being retired to save interest of about Rs400 million every year.

Dr. Shaikh said that efforts have been made to secure debt relief on the expensive cash development loans from the Federal Government. The rate has been brought from 17.7 to 12 per cent for one year. More relief is being worked out, he added.

Dr Shaikh pointed out that all unnecessary expenses were curtailed and limits were imposed for everyone on expenditures of utilities, POL, travel, procurement, etc.

The minister said during the last two years over Rs20 billion of unpaid bills left by previous governments were paid by this government. If these bills had not been inherited the money could have been used for the welfare of people.

The cleared liabilities included those of Wapda, Minfal, PTCL, sugar cane cess, contractors and others.

The blocked account with the SBP, which was another consequence of past overspending, was reduced from Rs6bn in year 2000 to Rs2.9 billion in 2001-02.

Dr. Shaikh proudly reported that this debt to the State bank has been entirely paid off during the year and that Sindh enters the new year free of this burden.

The interest on this loan alone which was at its peak was Rs100 million per month, will now be available for the benefit of the people.—APP