Budget 2019-20 news
KARACHI (June 14th, 2019): Sindh chief Minister Syed Murad Ali Shah on Friday presented a Rs1217 billion zero deficit budget budget for the next financial year, 2019-20 in which a 15 percent salary and pension has been increased across the board.
In the budget Peoples Promise Programme, a programme for poverty reduction as pledged by the Chairman PPP in his election campaign has also been unveiled. In the next budget first priority in terms of budgetary allocations has been be given to education and then health and law and order.
Revised estimates: The chief minister said that the Federal government has revised federal transfers from budgetary estimates of Rs665.085 billion to Rs631.543 billion, but, such claims were misleading. He added that the federal government failed to assess its own fiscal position and erroneously communicated two different figures of revised Federal Transfers within a matter of days. “In the last 11 months, Sindh has received only Rs492.135 billion on account of Federal Transfers and it is anticipated that by the end of financial year the shortfall would be Rs117.527 billion,” he said.
The chief minister said that the federal government blamed the Federal Board of Revenue for poor revenue generation, therefore he offered the Federal Government to authorize provincial government to collect sales tax on goods on its behalf. “We believe that once devolved the returns from Sales Tax on Goods can be maximized as it has been done in case of Sales Tax on Services,” he said and added “ the Federal Government has shown no real intent to develop consensus on 9th NFC award and the delay in the announcement of the award is at the expense of rights of provinces. “
Revised Revenue Targets: The revenue targets of the province have been revised from Rs243.082 billion to Rs240.746 billion. As a result, against an estimated budgetary amount of Rs1.123 trillion, the revised receipts for Current Financial Year stand at Rs963.699 billion.
The provincial government, as stated by the chief minister had to cut down it development expenditure which now stands at Rs172.941 billion for current financial year. This has affected development endeavours of the provincial government. Many development schemes that could have been completed have been delayed due to non-availability of funds.
Similarly, on the Current Revenue Side estimates have been revised from Rs773.237 billion to Rs751.751 billion. The reduction on the current revenue side is primarily because of the severe austerity measures and strict financial discipline.
He said that during the financial year 2018-19, he had to cut on the operating expenses. The Repair & Maintenance budget of the departments have been substantially reduced from Rs27 billion to Rs11 billion. Also, the fourth quarter of budget under operating expenses has been partially released.
Mr Shah said that despite all the financial hardships, he have tried to ensure that all health and educational facilities receive substantial budgetary allocations. “We have nurtured initiatives like SIUT, Indus Hospital, HANDS, Aman Foundation, Sindh Education Foundation etc. so that service delivery is not compromised,” the chief minister said.
He said that due to austerity drive we were able to revise our expenditure estimates from Rs1.144 trillion to Rs956.779 billion. As a result, the budget deficit for the current financial year comes to be Rs16 billion against an expected Rs20.457 billion. I must reiterate that we are able to control deficit only because of budgetary cuts as we timely adapted austerity measures.
BUDGET ESTIMATES 2019-20:
The total receipts of the province for the financial year 2019-20 are estimated at Rs1.217 trillion against an estimated expenditure of Rs1.217 trillion. As Federal Transfers, the province is expected to receive Rs835.375 billion. Receipts from Federal Government will account for 74.3 percent of the total receipts. He said that the federal government has failed to achieve its target in yesteryears. We have adapted the figures communicated to us by the Federal Government. We strongly apprehend that Federal Government will not be able achieve its target unless drastic structural changes are introduced. Failure to achieve its targets will create financial problems for the Provincial Government during the next financial year 2019-20. Our own provincial receipts are growing steadily and provincial revenue targets are increased from Rs243.082 billion in 2018-19 billion to Rs355.4 billion for financial year 2019-20.
On the current revenue side, the expenditure budget is estimated at Rs.870.217 billion which shows an increase of 12.5 percent over the current year allocation of Rs.773.237 billion. This increase in expenditure is primarily in the employee related expenses which could not have been avoided. Similarly, the impact of increasing utilities has been absorbed. Our austerity policy shall continue during the next financial year. We have introduced major cuts in operating expenses. However, it would not be done at the cost of social sectors.
ADP: The Development portfolio for next financial year is Rs.283.5 billion which includes Rs.228 billion on account of Provincial and District ADP.
The Chief Minister in his speech said that the injustice meted out to Sindh in the Federal PSDP. He said that overall size of the federal PSDP was Rs.951.0 billion with Rs.127.0 billion of Foreign Project Assistance (FPA). “Out of above portfolio, Sindh specific schemes are 50 both ongoing and new with an allocation of Rs.33.7 billion.,” Mr Shah said and added “ total schemes included in the Federal PSDP 2019-20; which are by the Government of Sindh are 12 having an allocation of Rs.4.89 billion as compared to Rs.15.0 billion in 2018-19 and Rs.27.3 billion in 2017-18.”
Karachi portfolio: The Prime Minister had announced a package of Rs. 162 billion for Karachi on March 30, 2019. There are only 19 Karachi based schemes with a total allocation of Rs.12.1 billion. The new schemes for Karachi are only six with an allocation of Rs.3.9 billion.
Revision in ADP 2018-19: The Sindh government has made adjustments in the Budget 2018-19 by reducing the size of the provincial ADP from Rs.252 billion to Rs.223 billion in the background of fiscal tightening and low transfers in the first quarter of the year.
The Finance Department was able to release only Rs.137.29 billion (till June 3, 2019) against Provincial & District ADP. The release against the Provincial ADP wasRs.125.18 billion by this time. As against this total release, the total expenditure expected till end June 2019 is approximately Rs.110 billion. “We acknowledge that the spending is even lower than releases and this is on account of delay and uncertainty which remained throughout the year, despite this situation, the provincial departments are expected to complete 453 schemes by June 2019,” he said.
Education: The allocation for school education has been increased from Rs170.832 billion to Rs178.618 billion in the next financial year, 2019-20. Whereas, on development side, Rs15.15 billion have been allocated in ADP 2019-20.
The chief minister said that his government has developed a Sindh Education Sector Plan & Roadmap (2019-23) through a consultative process. The civil society, intelligentsia and academia were taken on board considering them equal stakeholder in development of the society.
He disclosed that the new sector plan focuses on providing additional classrooms to accommodate fresh entrants to the schools and ensuring a conducive environment in schools in terms of provision of clean drinking water facilities, toilets and compound walls to ensure retention of students especially girl students. Girls’ education has been given a significant preference and sufficient funds have been proposed for girls’ transportation in the rural areas in order to address the issue of low female participation in the schools.
He said that his government has also taken steps to bring the ‘Out of School Children’ into the educational system. The Directorate of Literacy & Non-formal Education has been given significant allocation to partner with community-based organizations (CBOs) who would arrange for tutors, while the Government would provide school building in evening hours. The (CBOs) will be given management cost on ‘per child basis’.
Public Private Partnership Node of School Education & Literacy Department has been strengthened to work in collaboration with Education Management Organizations (EMOs) to impart quality education to the students.
The chief minister said that Sindh has taken lead over other provinces, and has approved early childhood care and education policy. The government has already established 1500 ECE classes in our government schools, while another 1500 ECE classes would be established in the coming financial year 2019-20.
Under the School Education; major emphasis during year 2018-19 remained on the “Rehabilitation & Expansion of High Priority 4560 Schools”; The schools which had high enrolment and required adequate facilities of classrooms; washrooms; water; electricity and adequate teaching faculty to encourage better learning environment and create space for additional enrolment. The School Education Department would complete 1437 units by end June 2019. Further, 1973 Government Schools have been provided with Clean & Safe Drinking Water facilities and another 367 schools will be provided with clean & Safe Drinking Water through a new development scheme.
The School Education portfolio has been allocated Rs.15.15 billion for 279 schemes (188 on-going and 91 new schemes). Further the major initiatives incorporated for next year are:
Construction of ‘06’ Room Building for 20 Shelter-less Primary Schools
Rehabilitation of 113 Dangerous Primary Schools having high enrolment (with Additional Class Rooms and Provision of Missing Facilities)
Establishment of 35 Model School Complexes by converting Existing High Schools alongwith their Feeder Primary Schools into better Learning Centers
From the “High Priority4,560 schools” 42schemes both primary and secondary having 1,772 schools would be completed in 2019-20.
Education Foundation: The Sindh Education Foundation (SEF) was earlier able to make a major breakthrough on the side of access; when it increased the enrolment from 256,000 to 550,000 (100%) in a record period of three years. The government has allocated Rs9.597 billion budget for Sindh Education Foundation for next financial year, 2019-20.
College education: The allocation for college education has been increased in non-development budget from Rs15.777 billion to Rs18.094 billion in the next financial year, 2019-20 and on development side Rs4 billion have been allocated in ADP 2019-20.
Major development initiatives in College Education Department for ADP 2019-20 are:
17 new degree colleges are planned to be established in Karachi (Korangi, Malir, West), Hyderabad,Umerkot, Sukkur, Jamshoro, Shikarpur, Jacobabad and in Sanghar.
Construction / rehabilitation and provision of furniture is planned for existing colleges in different districts through different schemes
Provision of missing facilities for Gadap and Pano Akil Cadet Colleges has been proposed in 2019-20.
Universities & Boards: The allocation for Universities & Boards Department is increased in non-development budget from Rs9.529 billion in 2018-19 to Rs10.585 billion in next financial years.
For the Universities and Boards; the government has earmarked Rs.3 billion for 2019-20, through which various initiatives relating to higher education will be financed; such as:
Establishment of Center of Robotics, Artificial Intelligence and Blockchain - at Sukkur IBA University.
Establishment of Thar Institute of Technology, NED Campus of Tharparkar.
Establishment of Sindh University Campus at Badin; and Mirpurkhas
HEALTH: Health is a high priority with the Government of Sindh. Many major health institutions/ hospitals, including SIUT, Indus Hospital, JIMS, JPMC, NICH, NICVD with its 8 Satellite Units and 9 Mobile Chest Pain Units in Karachi have been provided funds both through grants as well as development financing such as the.
The current revenue expenditure of Health Department, excluding medical education has been significantly increased by 19 percent from Rs.96.8 billion in 2018-19 to Rs.114.4 billion in FY 2019-20.
For FY year 2018-19, Rs.13.5 billion was allocated for 170 schemes and by June 3, 2019, Rs.4.61 billion were expended against a release of Rs.8.01 billion. 12 schemes are likely to be completed by June2019,. They are as under a 50 bedded Medical & Surgical ICU; Casualty & OPD Departments at the Liaquat University Hospital and Ghulam Muhammad Mahar Medical College Hospital, Sukkur. Monitoring & Surveillance of Health Systems has been strengthened. Several multi-disciplinary services, like pediatrics cardiology, have been added to SIUT; Vaccinators’ strength enhanced to 2,768. Recruitment of additional 1733 vaccinators is in process; TB Control Program established 350TB DOTS Clinics; installed 110 machines for rapid diagnosis of TB and drug resistance within two hours, in public sector facilities.
Health ADP 2019-20: For ADP 2019-20, the sector is being provided similar allocation as the out-going year of Rs.13.50 billion. Few of the major targets envisaged are:
Procurement of Machinery /Equipment for different departments at the CMC Hospital Larkana at an estimated cost of Rs.600 million.
Community Mental Health Services Program in Sindh with an estimated cost of Rs. 275.00 million to improve the mental health services.
Maternal and Child Health Care Center at Jamshoro with grant assistance of JICA.
A 200- bedded Hospital has been planned for Sukkur either through PPP framework or through development financing.
The chief minister in his budget speech said that with completion of 43 schemes during 2019-20, service delivery would be further strengthened at all tiers. The effort would be reinforced through more effective implementation of preventive programmes, including Immunization, AIDS, Hepatitis, Malaria, TB Control, Blindness Control etc. for which a provision of Rs. 4.08 billion has been earmarked.
Murad Ali Shah said that the Sindh government with its hard work and dedication have made JMPC, NICVD and NICH state of the art Institutions with huge budgetary allocation directed for their improvement and expansion. He added when Federal Government had handed over NICVD to Sindh government its allocation was Rs.355 Million in the year 2011-12 and his government has gradually increased its allocation to Rs.8.876 billion in 2018-19.
NICVD is providing timely and accessible cardiac services to the people of Sindh at their doorstep totally free of cost. I will just mention few of its services:
Earlier there were six chest pain units functional in Karachi. This year three more units have been added in Karachi.
NICVD satellite centers have been established at Tando Muhammad Khan, Larkano, Hyderabad and Sehwan in collaboration with the Government of Sindh.
Four new NICVD satellite centers at Khairpur, Sukkur, Mithi and Nawabshah have been established.
We have also improved infrastructure and service delivery at JPMC considerably. The emergency department in JMPC and its Cyber Knife Project have already begun functioning.
Significant Initiatives under PPP:
To provide better facilities with experienced and professional management, our Government handed over various Health Facilities of remote areas through PPP Node to reputable Partners likewise HANDS, Integrated Health Services(IHS), Medical Emergency Resilience Foundation (MERF) and INDUS Hospital for better treatment to the people of Sindh.
The Sindh government is providing Rs.5.6 billion to SIUT as a grant in next financial year (2019-20).
Considering the quality services of liver transplantation provided at Pir Abdul Qadir Shah Jeelani Institute of Medical Sciences, Gambat, District Khairpur, the Government has increased the grant by 60 percent from Rs.2billion to Rs.3.6 billion during financial year 2019-20.
Considering the need of Blood Diseases treatment to the poor masses of the Province, the Sindh Government has allocated Rs.500 million for the financial year 2019-20.
An allocation of Rs.1 billion is earmarked for endowment fund for the welfare HIV/AIDS infected persons during financial year 2019-20
LAW AND ORDER: Sindh Government has been providing adequate resources to Police Department as well as other law enforcing agencies to ensure that they develop their capacity in the wake of challenges of law and order and terrorism.
The allocation for law and order sector has been increased in non-development budget from Rs100.483 billion in 2018-19 to Rs109.788 billion in 2019-20.
In the current financial year, numerous milestone were achieved which include, establishment of I.T. Labs and Reporting Rooms at Offices and Police Stations throughout Sindh; disbursement compensation to Shaheed and injured personnel of security forces from the allocated Rs.1000 million; training to the newly recruited Police Constables at Pak Army Training Centers with the cost of Rs.661 million; establishment of five Facilitation centers at Divisional level wherein common man will come for the redress of their grievances like issuance of character verification, report of loss of valuable things, complaint of the crime on the spot, missing child, domestic violence, vehicle theft etc, This is the landmark project of Sindh Police. 3690 Police Personnel have been recruited through NTS and recruitment of 4507 Police Personnel is under process. Bomb Disposal Squads equipment has been enhanced with latest and modern technology.
News Schemes: The new schemes proposed for 2019-20 are:
Revamping of Counter Terrorism Department (CTD) and creating a professional & dedicated force styled as Counter Terrorism Force (CTF).
Sindh Police will establish additional 259 Reporting Rooms under an ADP scheme in the next financial year 2019-20 to streamline the processes and have easy access to the public.
The compensation package for Shaheed and Injured has been doubled from Rs.5 Million to Rs.10 Million. AccordinglyRs.2Billion have been proposed in the budget2019-20.
In order to fill in the gaps of actual requirement of police force, we plan to create 3000 new Posts in different grades in budget 2019-20.
SOCIAL PROTECTION AND POVERTY REDUCTION PROGRAM: The Sindh government has allocated Rs.12.3 billion for Social Protection and Poverty Reduction program in the development budget of 2019-20. Under this, focus has been given on three; major interventions such as Peoples Poverty Reduction Programme (PPRP), Poverty Reduction Strategy (PRS) and Social Protection. The ongoing umbrella program of Accelerated Action Plan (AAP) for improving Nutrition and containing malnourishment and stunting will be a cross cutting intervention across the three major interventions.
The PPRP formerly the UC-based Poverty Reduction Programme (UCBPRP) was initially started as a pilot project in Shikarpur & Kashmore-Kandhkot and was then expanded to Tharparkar and Jacobabad. Since last year; it was taken to six more districts i.e. Khairpur, Sanghar, Badin, Thatta, Umerkot and Mirpurkhas. Further eight more districts were added through EU funded SUCCESS program with grant assistance of 62.0 million Euro. Under this program, more than 400,000 households have been mobilized; these households are provided with either interest free loans; skill development opportunities. We have added component of housing and micro enterprise to these interventions.
For 2019-20, PPRP will be expanded to six remaining districts - Ghotki, Sukkur, Naushero Froze, ShaheedBenazirabad and Rural UCs of Hyderabad & Karachi.
Poverty Reduction Strategy (PRS): The government has prepared a Poverty Reduction Strategy (PRS) with technical assistance of the European Union (EU). The strategy has been developed for poverty alleviation in the rural and urban areas of the Province. The PRS will capitalize on the social capital created by PPRP and it will go further step towards poverty reduction through “development of Rural Growth Centers” for stimulating economic activities. It plans to address Urban Poverty through income generation activities.
AAP: The Accelerated Action Plan (AAP) for Reduction of Stunting and Malnutrition. The Government is highly sensitive to the issue and is working actively to address this seriously.
A 1- -year multi-sectoral Accelerated Action Plan (AAP) for Reduction of Stunting and Malnutrition stands approved. AAP aims at achieving the goal of reducing stunting from 48 percent to 30 percent by 2021 and then 15 percent by 2026. It is under implementation through the relevant Departments such as Health, Population Welfare, Local Government, Agriculture, Livestock& Fisheries etc.
During 2018-19; milestones attained are as follows:
1,401,133 children (5-59 months) screened and 77,648 malnourished children have been registered at Outpatient Therapeutic Program (OTP) sites. (167 OTP sites established)
467,876 women (Pregnant Lactating Women (PLWs)) received TT2 vaccination
338,432 Antenatal Care (ANC4) visits conducted by the Lady Health Workers (LHWs) Community Midwives (CMWs) for counseling at community level and 157,649 ANC4 visits conducted at the facility level.
Ready to use Therapeutic Food (RUTF), Iron folic acid, deworming tablets, safe delivery kits etc. were provided at OTP sites.
7995 Household received 5 goats and 10 hens; 55 Fish Ponds have been constructed; 200 farmer field schools set-up for on- job training related to agriculture and 555 kitchen garden demonstrations undertaken.
For 2019-20, we stand committed to larger and bigger gains in terms of improving nutrition; health care for containing malnutrition.
Water Supply& Sewerage and Solid Waste Management: Sindh Chief Minister Syed Murad Ali Shah said that Sindh was the most urbanized province of the country having 34 percent of the country’s urban population. The urbanization put pressure on water supply, waste water treatment and disposal and solid waste management services.
Given Sindh’s population of 47.886 million; the estimated demand for drinking water comes to 1,538 MGD. The waste water generation is estimated at 1,076.6 MGD. Against the present demand of drinking water, there is a shortfall of 30 percent to 40 percent of water largely due to less availability, system losses and inadequate infrastructure.
In fiscal year of 2018-19, the government provided Rs.37.73 billion for 267 water supply & sanitation schemes of Public Health Engineering and Local Government, of which 27 schemes have been completed. Overall releases and the expenditures remained low due to recent fiscal crunch. Rs. 15.90 billion was released and Rs. 7.87 billion could be spent by June 2019.
In 2019-20 ADP, the government has allocated Rs. 35.90 billion. It is slightly lower than last year but it constitutes sizeable share of ADP. It is planned that of the 372 schemes, at least 218 would be completed.
PHED has included 13 schemes of Rs. 22.95 billion with allocation of Rs. 6.25 billion in ADP 2019-20 relating to containing contamination of fresh water bodies. This includes “Elimination of Urban Sewerage Discharging in Irrigation Canals and Lakes” in Sindh Costing Rs. 3.57 billion (Phase II). Non- functional water supply and drainage schemes Phase- II of Rs. 4.01 billion have been rehabilitated.
Women, Minorities & Disabled persons: The Chief Minister said that the PPP government in following the footsteps of his leaders have introduced a number of interventions to materialize the goals of women, minorities and disabled persons empowerment. The important legal measures, taken by the government, includes legislation on women harassment, early child marriages, domestic violence etc.
Disabled persons are another section of the society, as a social responsibility, peoples government has taken extra measures for their welfare and in order to sooth their pains and sufferings.
The important interventions, which the peoples government has introduced include, survey and Data collection of Persons including Children with Disabilities in the Province is under way which will be completed by June, 2019. It will help identify the number of disabled persons and will also improve planning and decision making. Establishment of Audio Visual Library at Govt. Special Education & Rehabilitation Complex at Gulistan-e-Jauhar is also under process of procurement will be completed by June, 2019. Stipend to all the enrolled Special Children have been granted at Rs.2000/- per child per month. Books are being transcribed to Braille System. Promoting the extra- curricular activities amongst the special children. Training program in different courses i.e. sign & Advance Sign Language, Braille Language, Montessori Teaching Method is under way at the Special Education Teachers Academy Sindh (SETAS), at Hyderabad, Department of empowerment of Person with Disabilities.
ROAD SECTOR : Chief Minister Syed Murad Ali Shah said that as per international standards the required road density for developed countries is one km per 1 sq. km and for developing countries it is 0.5 km per sq. km. The road density in Sindh till 2017-18 was 0.41 km per sq. km which is less than the international standards. Therefore, more efforts are required to improve the road density.
There were 559 schemes included in the ADP 2018-19, including 210 Road Sector schemes under Local Government Department. Total expenditure incurred by Local Govt. and Works & Services (W&S) departments was Rs.28 billion and 182schemes are expected to complete in June 2019. The major milestones attained are construction of Thatta Pir Patho to Ghorabari road (40.62 kms). Construction of New Bridges in Sindh (Shikarpur, Larkana, Khairpur, Sukkur, S.B.A, Jamshoro and Dadu). Bilawal Bhutto Zardari Flyover Bridge Jail Phatak (Railway Crossing) Jacobabad. Construction of Road along Kirthar Canal from Garhi Yaseen District Shikarpur to GarhiKheero District Jacobabad (23.33 kms). Construction and Improvement of Road Tando Muhammad Khan District (22 kms). Construction of Flyover at Jamshoro Railway Crossing.
For the FY 2019-20, the total allocation for the W&S and LG Department is Rs. 26. 86 billion and they have 431 schemes in hand. It is estimated that these departments will be able to complete 192 schemes.
Sindh Provincial Road Improvement Project ADB Assisted (328 kms @ cost of Rs.22.75 billion) this includes 44 km Thull to Kandhkot road, 36 km Sheranpur to Ratodero, 63 km Sanghar to Mirpurkhas via Sindhri, 66 km Tando Muhammad Khan to Badin, 55 km Digri to Naukot, 64 km Khyber to Sanghar via Tando Adam (64 kms) and Rehabilitation of Dual Carriageway from Steel Mill to GhagharPhatak 13.00 kms.
ENERGY: Thar coal mining and power projects has added 660 megawatts of electricity to the national grid this year. Thar coal initiative will not only start a new era of social development of Sindh and Pakistan but also alleviate the long-standing current account deficit of the country.
The allocation for Enregy Sector has been increased in non-development budget from Rs23.883 billion in 2018-19 to Rs24.920 billion in 2019-20.
Mr Shah said that conventional energy from Thar coal and renewable energy from Jhimpir wind corridor would improve the energy mix profile and also fulfill the growing energy requirement.
Energy Department has facilitated in provision of electricity and gas to numerous villages. Different projects relating to provision of renewable energy to villages and schools were completed in the year 2018-19. Reconciliation of electric connections of Sindh Government and its entities with Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO) and K-electric caused saving of billions of rupees.
An allocation of Rs. 590 million has been earmarked for Electrification to achieve following major milestones. 570 villages to be provided electricity by June 2020.248 Primary Health facilities to be given electricity through Solar PV technology. Sindh Solar Energy project with World Bank support to provide 420 MW on-grid and rooftop solar installations. 200,000 households in rural areas would be provided solar home systems.
Irrigation : The chief minister said that the the country was faced with water shortages and Sindh being a lower riparian faced severe water shortages as almost over 73 percent of Sindh’s region has brackish ground water.
Sindh’s irrigation system comprising of three barrages and fourteen major canals ¬with total command area of 13.2 million acres and designed water carrying capacity of 134,000 cusecs. A large part of the infrastructure is over 5 decades old; requiring continuous maintenance spending.
The allocation for Irrigation Sector has been increased in non-development budget from Rs22.744 billion in 2018-19 to Rs23.070 billion for 2019-20.
With a view to conserve water, the government plans to develop high efficiency irrigation systems; revive the freshwater bodies, build small dams and undertake lining for greater water availability. Due to limited surface water resources, it is believed that lining of main canals and minors will reduce conveyance losses from 15 percent to 30 percent. It is estimated that 285,371 acres of new land will be brought under cultivation with saving of 950 cusecs of water through lining of main canals and distributaries.
In the out-going year 2018-19, the Irrigation Sector was allocated Rs. 33.0 billion and as against this Rs. 22.1 billion were released on account of fiscal constraints. The Department was able to incur Rs. 18.6 billion expenditure by 3rd June 2019.This expenditure facilitated in completing 56 schemes. They are Rs911.924 million drainage Scheme for District Badin; Rs1.37 billion Rehabilitation of Regulator on B S Feeder in Kashmore, Rs1.2 billion Lining of PuranDistry in District Mirpurkhas. Rs2.28 billion Protection Works to F P Bund in Hyderabad. Rs695.4 million Lining of Nabisar Branch Canal in Mirpurkhas. Rs926.8 million Flood Protection Works in Kashmore. Rs519.6 million Lining of Sattah Branch in District Sujawal. Rs1.03 billion Lining of Minors in District Dadu; Rs877 million construction of Re-charge Dams in Central Kohistan at the cost of Rs. 877.0million and Rs294.2 million construction of Two Dams in District Karachi.
Irrigation sector has been allocated Rs.22 billion in the ADP 2019-20 for 200 on-going schemes and 65 new schemes. The Irrigation Department plans to undertake following major initiatives:
163 schemes with allocation of Rs.11.5 billion are expected to be completed.
Rehabilitation Work on Guddu Barrage is under progress.
Rehabilitation & Replacement Works of Sukkur Barrage would be initiated with World Bank financing.
Lining of Naukot Branch System in Mirpurkhas with allocation of Rs. 1.53 billion;
Installation of Solar Tube wells in District Khairpur at the cost of Rs. 1 billion;
Drinking Water Scheme for Thar Region in Umerkot Rs. 800 million;
Flood Protection Works Rs. 834.213 Million.
Investment Sector: Sindh Government is working to develop and promote and investment friendly environment that boosts economic activity, brings value addition to all sectors of Economy and encourages Public Private Partnership for Socio-Economic development of Sindh. The Sindh government has intervened to improve the business climate & regulatory atmosphere for Ease of doing Business in Sindh. Doing business 2019 report ranked Pakistan at 136 out of 190 countries which is an improvement of 11 positions from 147 in 2018. Following activities will be initiated through Investment Department for the FY 2019-20.
Education City: Sindh Education City, spreading over 8900 acres, is one of the top most priority projects of the government. 20 local and foreign institutions have been allocated land to develop their academic campuses and some have completed their detailed design to commence construction of their campuses. The master plan of Education City has been completed and Government will start work on the first phase of infrastructure in the next year. This will be completed in five years at cost of Rs.13.9 billion.
Marble City: Marble city is planned over 300 acres of land along Northern bypass, Karachi. The work on first phase of this project will be initiated in the next year and will be completed in five years at cost of Rs.2400 million.
Special Economic Zones: Keeping in view the great success of Special Economic Zones around the world, the government of Pakistan has passed Special Economic Zone Act, 2012. Sindh Investment Department is the supervisory authority for special Economic Zones in Sindh. It is pertinent to mention that first three zones have been granted with status of Special Economic Zone by federal government and all of them belong to Sindh . They are Khairpur Special Economic Zone, Bin Qasim Industrial Park, Korangi Creek Industrial Park. Another Special Economic Zone has also been approved which has been mentioned below
Dhabeji Special Economic Zone: The Sindh government has allocated 1530 acres of land to be developed as Dhabeji Special Economic Zone (DSEZ) in Thatta, a Priority Project under China-Pakistan Economic Corridor (CPEC), which will facilitate the potential investors of china and other countries either start new enterprises or transfer their facilities to Pakistan.
Enterprise Development Fund: Sindh Enterprise Development Fund (SEDF) has been created by the Sindh government to encourage investments in agri-business sector, inculcate entrepreneurial ability and to provide a major push to the wider agri-economy. SEDF has been able to mobilize private sector agri-business investments worth over Rs.9 billion, out of which projects worth Rs.4 billion have been implemented and remaining projects worth Rs.5 billion are in pipeline.
This year government has placed Rs.442 Million for Financial Support for Doubling Rice Export from Sindh,Rs.55 Million for financial Support for Women entrepreneurship, Artisans and Farmers and Rs.240 million for Cotton Sector Value Addition Estate to increase production in agriculture and bring more Agri technology through private investors.
Sindh Investment Department is fully committed and dedicated in gathering support of foreign donor agencies. Presently, the concept of Technology Park is under consideration to be built in Karachi. This will be the first project of Information Technology which will attract foreign companies to invest in the field of Information Technology.
URBAN DEVELOPMENT: The chief minister said that the Sindh government was cognizant of fact that for balanced growth of Sindh, urban development should address the infrastructure gaps for Karachi and simultaneously address the urban and municipal infrastructure needs of other major cities of Sindh. With this approach, the government conducted Karachi Diagnostic Study, leading to Karachi Transformation Strategy for improving Karachi’s liveability and enabling it to play its due role for provincial and national growth. The strategy resulted in various projects relating to Municipal Service Delivery, Urban Transport, Improved Urban Spaces, and Conducive Business Environment.
On the other hand; Urban Development Strategies for Hyderabad, Sukkur, and Larkana have been developed focusing on physical and economic development as well and environmental management of these cities and their hinterland.
Alongside, Development of Master Plans of 14 District Headquarter Towns have been undertaken. These focus on GIS database and mapping; long term strategic development with strategies for land use, zoning and economic development; short term priority infrastructure development; with a proposed implementation framework.
The Sindh government under an MoU with Thar Foundation is also preparing Master Plan of Islamkot Town to facilitate it as the first SDGs complaint taluka of Pakistan.
Karachi : In the context of Karachi, the Sindh government has unfolded a very robust implementation on ground, which is being augmented and speeded-up every year. For next financial year, the government has announced to foucus on the schemes as follows:
S-III: S-III is a mega sewerage project costing Rs.36.11 billion and it is under implementation since last over a decade. It was 50 percent financed by the federal government. Unfortunately, the Federal The government has deleted this project from PSDP 2019-20 after the decision of ECNEC that Federal Government would only finance 50 percent cost of the original cost of Rs. 7,900 million. Hence it has taken responsibility only for Rs. 3.9 billion only.
The Sindh government announced to stand fully committed to S-III his project. Work is in full swing in Lyari River Basin area. The treatment plant at Mauripur (TP-III) has been rehabilitated to treat 77 MGD waste water and is operational. Work on Treatment Plant at Haroonabad (TP-I) having capacity of 100 MGD is planned to be completed by December 2019 enhancing the treatment capacity up to 177 MGD. In addition, out of 33.32 Kms of conduit /trunk sewers of Lyari basin, 28 Kms would be completed by July 2019. Similarly work on the Malir trunk sewers and treatment plant at Korangi (TP-IV) having capacity of 180 MGD would start during 2019-20. Sindh Government has kept an allocation of Rs.5.0billion in ADP 2019-20.
K-IV: Implementation with 33 percent of financing by Federal for another mega project; the K-IV with cost of Rs. 25.55 billion is under implementation. Its 50 percent financed by federal government and it has provided Rs. 6.99 billion. The Sindh government has released Rs 7.96 billion and utilized the amount. The project is presently under review by NESPAK for its design and cost.
The Combined Effluent Treatment Plant of Rs. 11.8 billion is under process. By June, 2019, Rs. 582.4 million was incurred on this project. The Federal Government has allocated Rs. 500 million and the Government of Sindh has allocated Rs. 2 billion for FY 2019-20.
The Sindh government under the Mega Projects for Karachi City has invested Rs. 29 billion during last three years (2016-17 to 2018-19) which has helped in completing 19 major projects of Karachi city.
For the coming FY, the Sindh government has earmarked Rs.40.59 billion under ADP 2019-20; in addition it has signed big investments worth US$ 1.5 billion (Rs.226 billion) over a period of five years with International Development Partners for high priority sectors. The projects are:
Karachi Neighbourhood Improvement Project; a US$98 million project aims at enhancing public spaces in targeted neighbourhoods; improve urban roads infrastructure and improve Ease of Doing Business. The project is already under execution.
Competitive and Liveable City of Karachi (CLICK) is a US$ 240 million intervention envisaging institutional strengthening & infrastructure financing of Local Councils in Karachi; overhaul of Urban Immoveable Property tax and improving Ease of Doing Business.
KWSSIP is a US$ 105 million World Bank Assisted project, which focuses on long term strengthening of the KW&SB through multiple reforms.
BRT Yellow Line; US$ 438 million project is yet another mega transport intervention for the city.
BRT RED Line: US$ 561 million (ADB funded) has been approved and would soon be put into execution as one of the main transport corridor in the city.
AGRICULTURE: Agriculture plays a significant role in the country’s economy and generates employment opportunities to more than 42.3 percent of the total work force and contributes 18.9 percent to the country’s GDP. Sindh province’s contribution in national production is 36 percent in rice, 29 percent in sugarcane, 34 percent in cotton and 15 percent in wheat.
For FY 2018-19, the Department incurred an expenditure of Rs 893.4 million by June 2019 as against releases of Rs.1.74 billion. The Department’s allocation for ADP 2019-20 is pitched at Rs. 8.4 billion, which includes Rs.4.7 billion of Foreign Assistance. It is expected that the department will attain following targets in the coming year:
Lining of 1850 watercourses through the Sindh Irrigated Agriculture Productivity Enhancement Project (SIAPEP).
Subsidy for provision of 400 Thrashers, 400 Rotavators, 400 Zero tillage, 500 Auto loaders, 20,000 Power sprayers, 500 Tractor trollies to the farmers;
200,000 meters On -Farm Drainage structures will be provided, 125,000 hectares land levelling will be made through precision land levelling equipment,
High Tunnel Farming for 150 acres; 870 farmers to be provided Drip Irrigation;
LIVESTOCK & FISHERIES: Livestock has an important role in promoting socio-economic development in rural areas. It contributed to 11.1 percent to national GDP and provided 58.9 percent of value addition in agriculture sector during 2017-18 in Pakistan. It is highly labour intensive and involves a large segment of rural work force. It is a source of cash income, providing a vital and often the only source of income for the rural household and playing an important role in poverty alleviation and foreign exchange earnings.
Under ADP 2018-19, 46 schemes including two new initiatives were taken-up. The amount released for this component was Rs.652.5 million; against which Rs.310.8 million were spent. Major achievements in 2018-19 are: 23 veterinary centers established for providing basic veterinary services to farmers; three artificial Insemination mobile units established; preparation of Contiguous Plero pneumonia (CPP) vaccines at Vaccine Production Unit Tandojam resulting in adequate vaccine production & disease control; two new Fish hatcheries established at Shikarpur and NausheroFeroz; eight million fish seed stocked in public waters to replenish the diminishing fish stocks;
The ADP 2019-20 allocation for Livestock & Fisheries is Rs.2 billion. It is expected that the Department would complete 20 schemes through this financing.
Climate Change & Forest: The Forest & Wildlife Department was given Rs.750 million in 2018-19 and as against releases of Rs.381.2 million; Rs.316.4 million expenditure was incurred by June, 2019.The Department was able to achieve major milestones when they succeeded in planting Mangroves over 50,000 acres at coastal belt of Sindh.
For 2019-20, an allocation of Rs.1 billion has been earmarked. Tree plantation and enhancing green cover will be the major focus in the coming year. Irrigated Plantation will be done over 20,000 acres, reforestation in riverine forest on 80,000 acres, Road side and Canal side plantation on 600 kms, raising of 40 million nursery plants.
During next financial year; two major projects have been included in the Forest sector:
Plantation of Rs1 Billion trees under the, “Green Pakistan Program” with 50 percent funding by federal government and 50 percent by Government of Sindh, over a period of 5 years.
A “Sarsabz Sindh” project for making Sindh Green and Environment friendly with the target of 100 million tree plantation in next five years. The department will attain a target of 200,000 tree plantation in FY 2019-20.
Welfare Measures: 100 percent Pensioners on Direct Credit System has been developed. The Finance Department has achieved a milestone of converting all manual pensioners to DCS (Direct Credit System) leaving the Government of Punjab, KPK and Baluchistan behind. Now onwards, all the pensioners i.e 200,667 in Sindh shall receive their monthly pension payments directly in their bank accounts at their door step with honour and dignity and without any trouble.
Cash Transfers to the masses: Benazir Income Support Program was vision of PPP leadership. The Sindh government has launched cash transfer scheme to mitigate the effects of increasing prices of essential commodities and economic shocks. During the current financial year, Rs.4.2 billion are being disbursed as cash transfer amongst chronically poor that have been identified by Benazir Income Support Program. For the next fiscal an amount of Rs.4.2 billion will be disbursed. Under this measure, Rs.2,000cash grant is distributed among the most as a Ramzan / Eid/ miscellaneous relief to the most needy persons registered under Benazir Income Support Programme, in a very transparent and efficient manner. An allocation of Rs.4.2 billion has been kept for this initiative.
Universal Accidental Insurance Scheme: Life is precious, therefore the Sindh government has launched Universal Accident Insurance Scheme. Under the scheme Rs.100,000/- are provided to relatives in case of accidental death. Rupees one billion are allocated for this initiative. Scholarships to A-Grader: Scholarships to all Students Securing A-1 Grade in Matriculation and Intermediate: This scholarship shall be provided as an incentive to students for their efforts in securing higher grades, regardless of the family income in include motivation in them. The scholarship amount has been fixed at Rs.100,000 per student for all educational boards of Sindh. A large number of deserving students will benefit from this schemes.
Abolishment of Registration and Examination Fee: Abolishment of Registration and Examination fee for all Matric and Intermediate Boards in Sindh. Under this scheme both fee for all matric and intermediate boards has been abolished to benefit our students. This scheme will continue in year 2019-20.
Relief Measures: Now I would describe some of relief measures provided by Provincial Government from time to time to different sections of society, including Sindh Government Employees and Pensioners during current financialyear2017-18.
INCREASE IN SALARY OF GOVT OF EMPLOYEES: For next financial year, the chief minister announced an increase of 15 percent in pay as Adhoc Relief Allowance for all the employees of BPS-01 to BPS-22. The pensioners will also be entitled to get 15 raise in their pensions.
Minimum Wage: The chief minister also announced a Rs17000 minimum wage.
PUBLIC PRIVATE PARTNERSHIP UNIT: The chief minister said that internationally renowned the Economist magazine’s - Economist Intelligence Unit (EIU) in its report “Infrascope 2018” has ranked government of Sindh’s (GoS) PPP Unit as 6th best in all the Asian countries PPP Programs. The report evaluated the environment of PPPs across 17 countries and as an exception, only two regions Gujrat (India) and Sindh (Pakistan), based on their outstanding performance in PPPs were included. Sindh has also outperformed Federal PPP Programme, which is three ranks lower at nine. This is a polite response to those who question the governance of Sindh Government. Apart from the recognition at the international level, the governance in Sindh can be witnessed in the outsourcing of more than hundred health facilities which are functioning extraordinarily under PPP Mode.
In education, more than 60,000 students in Sindh are getting decent education under PPP projects in addition to schools already outsourced to reputed organisations on competitive basis by the SEF. It shows private participation has brought about better environment and efficiency in the education sector in Sindh.
The chief minister said the construction of “Ghotki – Kandhkot bridge with for Rs14 billion would start under PPP mode. He added that the delay in starting the work was observed due to tough selection of the site which took months and now finally the design has been fixed at the original place. This Landmark project would immensely benefit the commuters and cargo movement between province of Baluchistan, Sindh and Punjab by reducing distance and saving precious time & fuel.
Good News for Karachi: In addition to that the chief minister that the government was going to launch the biggest infrastructure road project of Karachi “Malir Expressway” The project’s feasibility study has been completed and soon it would be launched under PPP mode. Another project “Link Road” for facilitating heavy traffic from N5 to M9 would also be launched under PPP, next year.
Govt Reforms: Public Financial Management is a cross-cutting theme that can affect public service delivery and economic development in the fashion it is practiced, the chief minister said and added the major efforts of reforms were focused on: institutional development, improvement in legal and regulatory framework, capacity building, transparency in budget formulation and execution, tax revenue mobilization.
Transparency in Budget Formulation & Execution: The Budget Strategy Paper (BSP) is now a regular feature to make budget formulation process more transparent and participative. Along with BSP, Quarterly Budget Execution Reports (QBERs) are published to ensure transparency in budget execution by providing detailed information on budget allocation (original and revised) and actual expenditure incurred during each quarter.
Institutional Development: The government has established, Debt Management Unit to systematically manage provincial debt portfolio on modern lines; Tax Reform Unit to initiate evidence-led tax policy formulation, based on research and empirical analysis. It also lends support to coordination among provincial tax collecting agencies, and better tax administration. Internal Audit Unit, initially in Finance, Education, Health, and Home Departments, prepared risk-based audit plan and conducted internal audits.
Legal and Regulatory Framework: The notable efforts include preparation of Public Finance Administration Act, 2018, Internal Audit Manual, Internal Audit Charter, 2018, External Debt Manual, Sindh Financial Rules, Treasury Rules, Capacity Development Strategy, Budget Manual; and Planning Manual.
Sindh Tax Revenue Mobilization: The tax receipts have increased from Rs. 91.37 billion to Rs. 185.62 billion (BE FY 2017-18) in three years after the implementation of STRMP. SRB publishes its quarterly and annual reports to publicly share its performance. STS collection has increased from Rs. 33.67 billion to Rs. 100 billion (BE FY 2017-18) during last 5 years, with 24.32 percent annual compound growth rate.
Property and Professional Tax Survey: The Government undertook a detailed on-ground digitized property and professional survey of Sukkur District to determine relevant increase in tax revenue. So far, in addition to the already recorded units of 39,590, the survey added 58,590 new units, making total units up to 98,064. It constitutes 148 percent increase. Out of these units, 70,712 are in Sukkur, 15,485 are in Rohri, and 11,867 are in Pano Akil.
ICT Interventions: ADP Monitoring Dashboard is gradually shifting the manual system of monitoring and evaluation of the development schemes to an ICT-based one. This is an ongoing activity, which his adding value to monitoring and evaluation processes. In addition, a financial and fiscal dashboard is also being developed in Finance Department for transparency and better fiscal discipline. Integrated Financial Management Information System (IFMIS) connectivity is also being provided to 31 line departments for effective expenditure monitoring.
Capacity Development: Need-based specific capacity development trainings are being imparted related to the areas in public procurement, medium term budgeting framework, financial management, taxation, SAP, and advanced excel.
Procurement Certification and Procurement Performance Management System (PPMS)
The Sindh government started capacity building/certification courses (in-class training as well as through Massive Open Online Courses - MOOC) in procurement rules and processes. So far, 555 officers/officials Sindh have been certified in procurement rules and processes. Additionally, a newly developed Procurement Performance Management System (PPMS)has been launched to comply with the procurement procedures. It has registered more than 700 procuring agencies, and has uploaded bid evaluation data of more than 13,700 schemes. Now, all Notices Inviting Tenders (NITs) and Contracts are being processed through the PPMS.