Sindh Govt starts talks with WB for soft loans

Recently in a joint meeting of finance ministers of four provinces which was hosted by Punjab government in Lahore, were also made the same demand and sought the waive write-off of most expensive Cash Development Loan (CDL) which was given by federal government on the higher mark up rates of 17 per cent. Replying to a question, he said the Sindh government had sent the names of its representatives for NFC as federal government already announced the reconstitution of NFC Award but he decline to disclose the names. He hinted that major development occurred for change in the formula of resource distribution and new award would be enforced in upcoming fiscal 2008-09. After the enforcement of new NFC Award, the Provincial Finance Commission Award would also be revised, he maintained.

Shah admitted that Sindh has been receiving lesser amounts than its share from federal government. More than Rs 2 billion less amounts received on account of straight transfers in terms of royalty on crude oil, surcharge on gas and other grants in outgoing fiscal 2007-08. While billions of rupees in terms of dues still remaining with Islamabad in terms of Sindh's 2.5 percent GST. He pointed out that Rs 78 billion has been earmarked for the grants and subventions which is 43 per cent of total revenue budget.