A conflict has arisen between the Sindh provincial government and the federal government concerning the allocation of development funds. According to sources, the Ministry of Finance has communicated to the Sindh government that a total of Rs 9.97 billion has been distributed among all provinces for development purposes this year. Sindh has been allocated the largest share of Rs 5.58 billion, while Khyber Pakhtunkhwa has received the smallest amount, just Rs 39 crore.
Balochistan’s allocation stands at over Rs 3 billion, and Punjab has been given Rs 90 crore. Despite receiving the highest allocation, the Sindh government has expressed dissatisfaction with the distribution of funds. Chief Minister Syed Murad Ali Shah has formally addressed his concerns to Prime Minister Shehbaz Sharif regarding the delayed release of these funds.
Prime Minister Sharif had earlier instructed the Ministry of Finance and the Ministry of Planning to ensure timely disbursement of development funds. In response to Sindh’s concerns, the Ministry of Finance has assured that the funds will be released according to the Annual Development Plan.
However, due to revenue shortfalls, only 15% of the development funds are expected to be disbursed in the first quarter of the financial year, with the remaining 40% slated for the last quarter. For the current financial year, the federal government has allocated Rs 78 billion for various development projects in Sindh under the Public Sector Development Programme (PSDP).
According to the PSDP document, Rs 1.14 billion has already been released in the first two months of the financial year. Specific allocations include Rs 1 billion for the Sindh Coastal Highway and Rs 1.6 billion for the Stone Pitching Northern Dadu Canal project. Despite these allocations, the Sindh government continues to voice concerns over the adequacy and timeliness of the fund distribution.
