News Paper: Business Recorder
KARACHI (July 20 2010): The Sindh government would take up the issue of financing Rs 277 billion federally funded projects in the Economic Co-ordination Committee (ECC) of the Cabinet today (Tuesday), said Advisor to Chief Minister for Planning and Development Dr Kaiser Bangali.
Dozens of development schemes are being executed by the federal government's funding, however, after signing of the 7th National Finance Commission (NFC) Award and approval of 18th Amendment of the Constitution, the Centre has transferred these schemes to Sindh government, saying that province could arrange funding, he added.
He stated this while addressing a meeting of Sindh Advisory Group on Federalism in Pakistan: Impacts and Implication of the 7th NFC Award and 18th Amendment, organised jointly by Centre for Civic Education Pakistan Forum of Federation at a local hotel on Monday.
The advisor said Islamabad had refused to provide funds of Rs 277 billion for its underway projects in the province and putting extra burden of financing of Rs 277 billion was sheer injustice with Sindh. "The Sindh government take up the matter in the ECC meeting to be chaired by Prime Minister Syed Yousuf Raza Gilani and urge the Centre to ensure release of funds for the federally funded projects till their completion", Bangali informed.
This year, the Sindh government has enhanced budget for the Annual Development Programme (ADP) from Rs 90 billion to Rs 133 billion, he said, adding that the government was also paying special attention to improve water distribution system, develop better highways, generation power and education.
The watercourses in the province would be brick-lined, each district would be connected with other high-speed dual carriageway to provide better transportation facilities. The literacy ratio in Sindh is very low and the government would shortly launch a multi billion Comprehensive School Programme in which students from class 1 to 10 would be provided with free education with pick and drop facilities, he said.
Dr Kaiser said that the Sindh government was focusing to generate its own electricity by developing vast reserves of Thar Coal as it had remained ignored in the past due to political reasons. About the current status of the General Sales Tax (GST) on Services, the advisor said that the Centre was authorised to collect it till October 1, 2010. The central bureaucracy was deliberately sabotaging the decision of the government such as flaws in the NFC Award documents .
Under the 18th Amendment, the provinces have been made the signatory in any exploration agreement with the multinational oil and gas companies, however, in past the concerned province did not have information about any deal. "Sindh has been fighting for its fundamental right and it would continue to do so as things can not be changed overnight", he says.
Former Senator and General Secretary Pakistan Peoples Party (PPP) Taj Haider opined that the NFC Award should have been signed after the 18th Amendment to avoid implication in the implementation process. Sindh government has constituted an implementation committee headed by Advisor to CM for planning and development Dr Kaiser Bangali that would meet the implementation deadline, ie June 30, 2011, he informed.
The GST on Services was the provincial subject according to 1973 Constitution of Pakistan, however, Sindh should have tried to transfer sales tax on goods. "The leakages in the sales tax on services is high and more than Rs 60 to Rs 70 billion can be achieved after removing tax evasion", he said, adding that the Council of Common Interest (CCI) had further been empowered to resolve inter-provincial disputes. Punjab is the most tax-evader due to which the Tax-to-GDP ratio is low, he said.
Moreover, Taj Haider said that 50 percent ownership on oil and gas had been transferred to provinces under the 18th Amendment and the provinces have the right of information about any agreement with the national and multinational companies and added that there was a dire need of special attention to 18 explored gas fields to contain gas shortage. The gas is being wasted and the people would suffer badly in coming winter as there would be no gas, he noted.
He also suggested establishment of the provincial electricity generation and distribution authority to promote Thar Coalfields, besides setting up of a small port at Ali Bunder, Thatta to export coal. Taj also vehemently criticised the bureaucracy for what he termed "deliberate attempts" to sabotage the government and the system as well, adding that flaw admitted in the Presidential Order and Irsa's decision of reopening of Chashma Jhehlum Link Canal was part of it.
MQM's parliamentary leader in the Sindh Assembly Syed Sardar Ahmed also criticised the bureaucracy by saying that it should refrain from doing politics and creating hurdles for the elected government. "Sindh has been striving to get right over sales tax on services since 1990 but making the federal government agree in principle is a major achievement of this government that ensures fiscal federalism", he added.
Now Sindh can levy and collect sales tax and it is expected that the goal would be achieved gradually, said Sardar Ahmed. He said the civil society and people belonging to different walks of life should support the government to overcome the persisting crisis, which the country was facing nowadays.
PPP MPA in Sindh Assembly Humera Alwani said the major achievements of present government were Balochistan Package, consensus on NFC Award, 18th Constitutional Amendment. At least 47 departments and 24 institutions currently working under federal government's control would be transferred to Sindh government by June 30, 2010, she said.
After transfer, the Jinnah Postgraduate and Medical Center (JPMC), National Institute of Children Health (NICH) and National Institute of Cardio Vascular Diseases (NICVD) would cost Sindh more than Rs 2 billion. "There is a dire need to train and inform the elected representatives about the mechanism to run these institutions by the provincial authorities", she added.
Abrar Kazi, a politician and technocrat, said that the proper implementation of the 18th Amendment would remove duplication of departments while the provinces have also been empowered for International Financial Institutions (IFIs) for project assistance.
"There should be representation of the provinces in the Planning Commission, which should work with the Planning and Development Departments of the provinces", he suggested. Besides, in order to ensure fiscal federalism, there should be equal distribution of jobs in the Armed Forces and Federal Government's institution on the basis of population, he said.
Earlier welcoming the participants, Executive Director, Centre for Civic Education Pakistan, Zafarullah Khan said the country was experiencing a major transformation of its fiscal system and structure. The 7th NFC Award and elements related to fiscal federalism in the 18th Constitutional Amendment have significantly changed resource distribution criterion, ownership of natural resources, cost of governance after abolition of the Concurrent List and overall fiscal management including province's power to raise domestic and international loans and provide guarantees, he added.
These significant changes require deeper understanding of the issues associated with this transformation. Equally important is to examine the overall impact and implications of this fiscal restructuring, he said. Khan said it was also important to access the state of preparedness in terms of human and institutional capacities and resources. A number of politicians, journalists and civil society representatives participated in the meeting
-www.brecorder.com
Dozens of development schemes are being executed by the federal government's funding, however, after signing of the 7th National Finance Commission (NFC) Award and approval of 18th Amendment of the Constitution, the Centre has transferred these schemes to Sindh government, saying that province could arrange funding, he added.
He stated this while addressing a meeting of Sindh Advisory Group on Federalism in Pakistan: Impacts and Implication of the 7th NFC Award and 18th Amendment, organised jointly by Centre for Civic Education Pakistan Forum of Federation at a local hotel on Monday.
The advisor said Islamabad had refused to provide funds of Rs 277 billion for its underway projects in the province and putting extra burden of financing of Rs 277 billion was sheer injustice with Sindh. "The Sindh government take up the matter in the ECC meeting to be chaired by Prime Minister Syed Yousuf Raza Gilani and urge the Centre to ensure release of funds for the federally funded projects till their completion", Bangali informed.
This year, the Sindh government has enhanced budget for the Annual Development Programme (ADP) from Rs 90 billion to Rs 133 billion, he said, adding that the government was also paying special attention to improve water distribution system, develop better highways, generation power and education.
The watercourses in the province would be brick-lined, each district would be connected with other high-speed dual carriageway to provide better transportation facilities. The literacy ratio in Sindh is very low and the government would shortly launch a multi billion Comprehensive School Programme in which students from class 1 to 10 would be provided with free education with pick and drop facilities, he said.
Dr Kaiser said that the Sindh government was focusing to generate its own electricity by developing vast reserves of Thar Coal as it had remained ignored in the past due to political reasons. About the current status of the General Sales Tax (GST) on Services, the advisor said that the Centre was authorised to collect it till October 1, 2010. The central bureaucracy was deliberately sabotaging the decision of the government such as flaws in the NFC Award documents .
Under the 18th Amendment, the provinces have been made the signatory in any exploration agreement with the multinational oil and gas companies, however, in past the concerned province did not have information about any deal. "Sindh has been fighting for its fundamental right and it would continue to do so as things can not be changed overnight", he says.
Former Senator and General Secretary Pakistan Peoples Party (PPP) Taj Haider opined that the NFC Award should have been signed after the 18th Amendment to avoid implication in the implementation process. Sindh government has constituted an implementation committee headed by Advisor to CM for planning and development Dr Kaiser Bangali that would meet the implementation deadline, ie June 30, 2011, he informed.
The GST on Services was the provincial subject according to 1973 Constitution of Pakistan, however, Sindh should have tried to transfer sales tax on goods. "The leakages in the sales tax on services is high and more than Rs 60 to Rs 70 billion can be achieved after removing tax evasion", he said, adding that the Council of Common Interest (CCI) had further been empowered to resolve inter-provincial disputes. Punjab is the most tax-evader due to which the Tax-to-GDP ratio is low, he said.
Moreover, Taj Haider said that 50 percent ownership on oil and gas had been transferred to provinces under the 18th Amendment and the provinces have the right of information about any agreement with the national and multinational companies and added that there was a dire need of special attention to 18 explored gas fields to contain gas shortage. The gas is being wasted and the people would suffer badly in coming winter as there would be no gas, he noted.
He also suggested establishment of the provincial electricity generation and distribution authority to promote Thar Coalfields, besides setting up of a small port at Ali Bunder, Thatta to export coal. Taj also vehemently criticised the bureaucracy for what he termed "deliberate attempts" to sabotage the government and the system as well, adding that flaw admitted in the Presidential Order and Irsa's decision of reopening of Chashma Jhehlum Link Canal was part of it.
MQM's parliamentary leader in the Sindh Assembly Syed Sardar Ahmed also criticised the bureaucracy by saying that it should refrain from doing politics and creating hurdles for the elected government. "Sindh has been striving to get right over sales tax on services since 1990 but making the federal government agree in principle is a major achievement of this government that ensures fiscal federalism", he added.
Now Sindh can levy and collect sales tax and it is expected that the goal would be achieved gradually, said Sardar Ahmed. He said the civil society and people belonging to different walks of life should support the government to overcome the persisting crisis, which the country was facing nowadays.
PPP MPA in Sindh Assembly Humera Alwani said the major achievements of present government were Balochistan Package, consensus on NFC Award, 18th Constitutional Amendment. At least 47 departments and 24 institutions currently working under federal government's control would be transferred to Sindh government by June 30, 2010, she said.
After transfer, the Jinnah Postgraduate and Medical Center (JPMC), National Institute of Children Health (NICH) and National Institute of Cardio Vascular Diseases (NICVD) would cost Sindh more than Rs 2 billion. "There is a dire need to train and inform the elected representatives about the mechanism to run these institutions by the provincial authorities", she added.
Abrar Kazi, a politician and technocrat, said that the proper implementation of the 18th Amendment would remove duplication of departments while the provinces have also been empowered for International Financial Institutions (IFIs) for project assistance.
"There should be representation of the provinces in the Planning Commission, which should work with the Planning and Development Departments of the provinces", he suggested. Besides, in order to ensure fiscal federalism, there should be equal distribution of jobs in the Armed Forces and Federal Government's institution on the basis of population, he said.
Earlier welcoming the participants, Executive Director, Centre for Civic Education Pakistan, Zafarullah Khan said the country was experiencing a major transformation of its fiscal system and structure. The 7th NFC Award and elements related to fiscal federalism in the 18th Constitutional Amendment have significantly changed resource distribution criterion, ownership of natural resources, cost of governance after abolition of the Concurrent List and overall fiscal management including province's power to raise domestic and international loans and provide guarantees, he added.
These significant changes require deeper understanding of the issues associated with this transformation. Equally important is to examine the overall impact and implications of this fiscal restructuring, he said. Khan said it was also important to access the state of preparedness in terms of human and institutional capacities and resources. A number of politicians, journalists and civil society representatives participated in the meeting
-www.brecorder.com
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