Sindh Govt starts talks with WB for soft loans

KARACHI - Chief Minister Sindh Syed Qaim Ali Shah said that the provincial government was negotiating with the World Bank (WB) to obtain soft-term loans for education reforms.

He pointed out that the World Bank had withheld the payment of this loan due to non-acceptance of conditions of bank by previous government, CM said, hoping that around Rs 9 billion of this loan would be approved very soon. The CM disclosed this in his post-budget press conference on Tuesday.

He said that the Sindh government had conveyed its demand to federal government of immediately transferring General Sales Tax on services to provinces as this tax is property of provinces and provinces are capable to collect this tax on their own.

The Sindh government has also hoped that new National Finance Commission Award would be finalised during next fiscal 2008-09 as federal authorities and Punjab government hinted to accept the demand of smaller provinces regarding distribution of resources which should be based on multiple criteria under NFC Award among the provinces.