Sindh CM rejects reports of IMF's concerns on NFC award, 18th Amendment

Sindh Chief Minister Syed Murad Ali Shah on Friday categorically denied media reports suggesting the International Monetary Fund’s expressed concerns over the National Finance Commission (NFC) Award or the 18th Amendment.

He said that neither the federal government nor the IMF has approached him with concerns regarding the NFC Award or the 18th Amendment.

CM Murad mentioned that the federal government has started implementing the 18th constitutional amendment by devolving or winding up some of its ministries.

The chief minister spoke to the media after attending the launch of the World Bank's latest editions of the South Asia Development Update (Sadu) and Pakistan Development Update (PDU) for October 2024 at a local hotel.

He stated that his administration has reservations about some other matters, and he is in discussions with the federal government. He added that the Pakistan Peoples Party (PPP) would only support measures that are in the interest of the country.

In response to a question, Murad Shah said that he learnt from media reports that the federal government has terminated power purchase contracts with five independent power producers (IPP), which is expected to reduce electricity tariffs.

Shah suggested that the government should take steps to utilise surplus electricity. He proposed that industrial units could be offered electricity at subsidised rates if they increased their production capacity by starting additional night shifts.

"This would help offset the capacity charges paid to the IPPs by the federal government, improve production, and create job opportunities for unemployed workers," he said.

WB report

Speaking at the launch of the World Bank's editions of the SADU and PDU at a local hotel, the CM said that the reports, which provide critical insights into the economic challenges faced by Pakistan and the South Asian region, were praised for offering a roadmap for sustained growth.

CM Murad said the devastating floods of 2022, which submerged nearly 70% of the province caused extensive infrastructural damage, compounding the developmental issues already exacerbated by the COVID-19 pandemic."

"Despite these challenges, Sindh government restored infrastructure and alleviated the economic hardships faced by the people of the province," he added.

"We are committed to overcoming these obstacles, and the people of Sindh have shown their confidence in the government to serve and uplift them," he added.

Talking about poverty alleviation, he said that his government responded to findings in the report, which underlined rising poverty during 2023.

"The Sindh government has taken several steps to support the most vulnerable segments of society," he said.

He added that the Emergency Housing Reconstruction Project was a key initiative aimed at providing housing for over two million people whose homes were destroyed in the 2022 floods. "This project, with a focus on climate resilience, is expected to drive socio-economic changes in rural areas," he said.

The chief minister who holds the portfolio of the provincial finance minister said that to combat inflation, the Sindh government has mobilised district administrations to regulate prices of essential goods and working closely with federal authorities to manage the Consumer Price Index (CPI) and Sensitive Price Index (SPI).

Murad, quoting the World Bank report, said that it has also shed light on the country's circular debt in the power sector, an issue exacerbated by low electricity bill collection rates.

"The Sindh government, in cooperation with federal agencies, has ramped up efforts to curb electricity theft and improve recovery operations."

The event was attended by provincial ministers including Dr Azra Fazal Pechuho, Syed Nasir Hussain Shah, Saeed Ghani, Syed Sardar Shah, Jam Khan Shoro, Advisor to CM Najmi Alam, Waqar Mahdi, provincial lawmakers, P&D Chairman Najam Shah and provincial secretaries of different departments.

The World Bank was represented by its Chief Economist for South Asia Franziska Lieselotte Ohnsorge and others.