We want to attract Gulf investment for Karachi: Sindh CM

Sindh Chief Minister Murad Ali Shah announced on Wednesday that the provincial government will pitch Karachi as an investment destination to investors of Gulf countries, particularly Kuwait, to boost development.

Addressing a post-budget press conference, he said that the Kuwait Investment Authority spent $1 billion monthly on global projects and the government of Sindh is hoping to secure a sizable chunk of this for its capital city.

“We will hold an investment conference in Kuwait in August 2022 to attract Gulf investors to Karachi,” he said. “We are bringing mega projects to Karachi but the city needs massive investment. We are making efforts to bring international donors and investors to Pakistan.”

Sindh unveils Rs1,714-billion budget with ‘no new taxes’

Noting that the government has previously run short of money to invest in Karachi, the chief minister said that the province is determined to attract foreign investment and has also reached out to the World Bank and the Asian Development Bank.

He lamented that while Saudi Investment Authority was far larger than Kuwait Investment Authority, “Pakistan failed to get even a rupee’s investment from it.”

Shah also clarified that the government was looking for investment rather than loans.

Agriculture sector in trouble

Meanwhile, he highlighted that the rural sector of Pakistan, especially the agricultural segment, was facing a liquidity crunch due to skyrocketing prices of diesel, seeds, fertiliser and pesticides.

Murad announces plan to enhance DEPD budget

“To resolve this, the government of Sindh has doubled the development budget for Sindh,” he said. “The livestock sector received a huge allocation as well.”

Moreover, a substantial subsidy has been earmarked for fertilisers and pesticides to aid farmers.

He underlined that the establishment of a $130 million agriculture scheme in Sindh was underway by the World Bank.

Recalling a meeting with Chief Minister Punjab Hamza Shehbaz, Shah said that both parties had decided to announce wheat support price for farmers prior to crop sowing season.

Sindh budget 2022-23

On Tuesday, Shah had presented a Rs1,714-billion budget for fiscal year 2022-23 and announced that no new taxes have been imposed, while some previous ones have been rationalised.

He said that expenditure during the next fiscal year will amount to Rs1.254 trillion, while the development budget has been fixed at Rs459.65 billion.

Sindh budget today

In addition, Rs332 billion have been earmarked for the provincial Annual Development Programme. The education sector would receive Rs34.2 billion, while Rs23.3 billion has been allocated for the health sector; Rs59.36 billion for sanitation; Rs42.7 billion for agriculture and irrigation; and Rs100.64 billion for transport.

The government has also allocated Rs26.85 billion for a pro-poor relief package. To address the issue of food insecurity, a subsidy worth Rs23.324 billion has been fixed for wheat.

According to Shah, Sindh was offering farmers the highest wheat support price among all provinces - at Rs2,200 per 40 kg.

He also that Rs2.552 billion had been allocated for seeds, fertiliser and pesticide subsidy in 2021-22 and this amount has been raised to Rs3 billion for the next fiscal year.