Islamabad - In a statement Sunday, the finance ministry refuted the claim of the Sindh Chief Minister regarding the announcement of Rs 12 billion for Karachi operation and said that “the Prime Minister had not announced any such package.”

“There is no basis in the assertion of Qaim Ali Shah’s claim that the Prime Minister had announced a package of Rs.12 billion for fight against terrorism”.

It further said that the claim made by Sindh CM that the provincial government is fighting this war alone from its own resources is baseless. More importantly, law and order is the responsibility of provincial governments and they are receiving a significant portion of national revenues for fulfilling such obligations, the spokesman added.

Yet, realising the gravity of the situation, Sindh Rangers - a part of federal civil armed forces is deployed in Karachi and is leading the war against terror. All expenses of this force are borne by the Federal Government, the spokesman maintained.

Regarding the releases for K-4 project, related to the water supply to Karachi, the spokesman stated that the Government of Sindh has not released any amount for this project so far. However, during 2014-15, against a budget estimate of Rs200 million, Federal Government had released Rs2.2 billion for this scheme. For current fiscal year 2015-16, another Rs500 million is budgeted.

It is strange that CM Sindh has disregarded both these facts, ie. that his government has not expended any expenditure on the water supply scheme to Karachi and that federal government has released such a large amount for the project, which he has not even acknowledged.

Given the significance of this scheme for residents of Karachi, Federal Government assures the Government of Sindh that as much as they will spend on this scheme, the Federal Government will release matching grants, the spokesman added.

The spokesman of the Ministry of Finance has refuted the claim of Sindh CM that the Federal Government has not issued sovereign guarantee for Sind-Engro Power Project, to Chinese financiers for nearly two and half years.

“The fact is that the government had agreed to issue the sovereign guarantee as soon as the Sindh Government agrees on giving a counter-guarantee, as the project is a public-private partnership between Government of Sindh and a private party (Engro),” the spokesman said.

The spokesman said that the delay was made by the Government of Sindh as it took a long time to agree to this condition and as soon as they consented, the Government of Pakistan approved the issuance of the sovereign guarantee after proper documentation.

About a week ago, the spokesman said, the financiers approached the ministry for approval of terms of financing for the rupee portion ($500 million) and issuance of guarantee for foreign currency portion ($200 million), which are being processed for early approval in the Ministry. The matter of sovereign guarantee is now settled,” the spokesperson said.

The spokesman said that the Federal Government has not only agreed to issue the sovereign guarantee but has also constantly included the Thar Coal Power project among the early harvest projects under the CPEC.