Murad Ali Shah addresses media on economic concerns, flood recovery, and poverty alleviation efforts during World Bank event in Karachi.
Sindh Chief Minister Syed Murad Ali Shah stated that neither the federal government nor the International Monetary Fund (IMF) has approached him regarding concerns over the National Finance Commission (NFC) Award or the 18th Amendment.
Shah noted that the federal government has begun implementing the 18th Amendment by devolving some of its ministries.
Speaking to the media after attending the launch of the World Bank’s South Asia Development Update (SADU) and Pakistan Development Update (PDU) for October 2024, Shah mentioned that while his administration has reservations on certain matters, discussions with the federal government are ongoing.
He emphasized that the Pakistan Peoples Party (PPP) would support only measures beneficial to the country.
Responding to a question, CM Shah said he learned from media reports about the federal government terminating power purchase contracts with five independent power producers (IPPs) to reduce electricity tariffs.
He suggested offering surplus electricity at subsidized rates to industrial units, encouraging them to increase production with additional night shifts.
This, he explained, could help offset capacity charges paid to IPPs, boost production, and create jobs.
During the event, Shah highlighted the World Bank reports, which provide insights into Pakistan’s economic challenges and outline strategies for sustained growth.
He reflected on the 2022 floods that submerged 70% of Sindh, causing significant damage.
Despite these challenges, he said, the Sindh government worked to restore infrastructure and alleviate economic hardships.
Discussing poverty alleviation, Shah noted that his government responded to findings in the report, which indicated rising poverty in 2023.
The Sindh government has launched several initiatives to support vulnerable populations, including the Emergency Housing Reconstruction Project aimed at providing climate-resilient housing for over two million people affected by the floods.
As the provincial finance minister, Shah also highlighted efforts to combat inflation, mentioning that district administrations have been mobilized to regulate prices of essential goods and collaborate with federal authorities to manage the Consumer Price Index (CPI) and Sensitive Price Index (SPI).
He also addressed the issue of circular debt in the power sector, emphasizing the government’s cooperation with federal agencies to curb electricity theft and enhance recovery operations.
The event was attended by several provincial ministers, provincial lawmakers, and World Bank representatives, including Chief Economist for South Asia, Franziska Lieselotte Ohnsorge.