Govt caves in to PPP’s demand for more funds

Allocates Rs12 billion extra for flood-hit victims in Sindh

ISLAMABAD:

The coalition government led by the PML-N on Thursday succumbed to its ally PPP’s demand, allocating an additional amount of Rs12 billion in the fiscal year 2023-24 budget for last year’s flood victims.

The PPP had warned that it would not vote for the budget if its demand for the funds for the flood victims was not met – placing the alliance between the two major parties in jeopardy.

Addressing the budget session in the National Assembly on Thursday, Finance Minister Ishaq Dar said the flood victims had a right to the national treasury and it was the government’s responsibility to assist them.

He added that an amount of $16.3 billion was required for the complete rehabilitation of the flood victims.

The finance minister said funds to the tune of Rs50 billion were needed for the rehabilitation of the flood victims of Sindh, of which Rs25 billion would be provided by the federal government.

Dar pointed out that the federal government had planned to significantly increase the funds of Benazir Income Support Programme (BISP).

He added that the BISP funds were going to be jacked up from Rs250 billion to Rs450 billion.

The finance minister maintained that nature also helped if there was an intention to carry out welfare work.

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“Provision of financial assistance to deserving women is our responsibility,” he continued.

Dar claimed that a sum of Rs80 billion was distributed to the flood victims.

He added that Pakistan lost $30 billion because of the last year’s devastating floods.

The finance minister said an amount of Rs100 billion was required for flood rescue and relief operations.

He continued that this amount was used by the National Disaster Management Authority (NDMA) from its own stock.

Dar informed the house that the Economic Coordination Committee (ECC) of the Cabinet had approved a grant of Rs12 billion for the NDMA in the last two weeks.

Elaborating further, the finance minister said after the floods, a body was formed that estimated in its report that $30 billion was lost because of the natural disaster.

Dar explained that it was decided that after the budget, a master plan would be prepared by July 15 for the next four years to collect $16.3 billion for the rehabilitation of the flood victims.

He added that half of the $16.3 billion was in the form of pledges from foreign states and the remaining amount would have to be managed by the country itself.

Explaining further, Dar said half of the $8 billion would be arranged by the federal government and the rest by the provinces.

The finance minister said the Sindh government had started an emergency housing project for the flood victims at a cost of $727 million.

He continued that Rs50 billion had been allocated for the project for the next financial year.

Dar maintained that both the Centre and Sindh government would each pay Rs25 billion for the project.

The finance minister said Karachi’s K-IV water project would cost Rs40 billion and Rs6 billion had been earmarked for it in the budget.

He added that Rs3 billion each would be paid by the Centre and Sindh government for the project.

Dar said there were three projects that required immediate attention.

The first one of them was the Flight Emergency Housing Project and the Sindh government had already started this project, he added.

The finance minister assured the lawmakers that the updated copy of the final draft of the budget would be provided to them before it was passed.