Sindh’s last Provincial Finance Commission (PFC) award issued in 2002 expired in 2007. Though nearly 17 years have passed since then, funds are still being distributed based on the outdated award. A new PFC award has yet to be announced, depriving local bodies of much-needed finances.

The operative PFC award’s tenure is longer than the 7th National Finance Commission announced in December 2009 and made effective in July 2010 but which has been extended for over 15 years for want of a consensus on a fresh five-year NFC award between the federation and the federating units.

Chairing a review meeting on the District Annual Development Programme in July, Sindh Chief Minister Syed Murad Ali Shah took policy decisions to ensure transparent and effective implementation of district development schemes. In the same month as his directive, the planning and development department had convened two meetings to receive inputs from the finance department on guidelines, fund release strategy, and fund distribution as per the PFC Award 2007.

The total development expenditure outlay budgeted for FY26 of over Rs1 trillion includes a Rs520 billion provincial Annual Development Programme (ADP), Rs55bn for district ADP, Rs366.7bn for foreign project assistance and Rs75.58bn for federal PSDP schemes.

Local government bodies decry lack of financial transfers even as expenditures........

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