KARACHI: A delegation of the World Bank met Chief Minister Murad Ali Shah and members of his cabinet in Islamabad on Monday and expressed satisfaction that the funds given for projects in Sindh `are being used properly`.

According to a press release, the WB delegation met the CM and his ministers Sharjeel Memon, Nasir Shah, Sardar Shah, Muhammad Bakhsh Mahar, Muhammad Ali Malkani, Chief Se cretary Asif Haider Shah and others at Sindh House, Islamabad.

`The delegation felt happy to see that the funds given for the projects in Sindh are being used properly.

Projects are being completed transparently and quickly in Sindh,` the press release added.

The CM told the delegation that the federal and Sindh governments and the World Bank worked together after the floods and the bank had immediately approved $1.6 billion for the rehabilitation of the flood victims. `We look forward to a stronger partnership with the World Bank,` he said.

The visiting delegation was briefed on the ongoingprojects in Sindh with the support of the World Bank.

The delegation was informed that the work on the Solid Waste Emergency and Efficiency Project, Karachi Water and Sewerage Services Improvement Project, Sindh Solar Energy Project, Karachi Mobility Project, Sindh Early Learning Enhancement through Classroom Transformation, Sindh Water and Agriculture Transformation Project, Sindh Barrages Improvement Project, Sindh Livestock and Aquaculture Sector Transformation Project and National Health Support Programme was going on rapidly and five more projects were in the pipeline in the province.

The delegation was told that Sindh was the first province which had adopted the public-private partnership method and this was going very successful.

The delegation expressed satisfaction and happiness over the progress of the Sindh government on the projects and also assured of further cooperation in the future, the statement added.

Murad for equitable financial resource distribution Earlier in the day, CM Shah met a United Nations Fund for Population Activities (UNFPA) delegation, led by its Country Representative Dr Luay Shabaneh, at the CM House.

He said that the formula for the National Finance Commission (NFC) award should be based on income disparity, demographic performance, human development, tax efforts and forest cover.

A press statement said that the chief minister andUNFPA team analysed the NFC award in a significant step towards ensuring the equitable distribution of financial resources and promoting sustainable economic growth.

The CM told the delegates that for the first time, multiple criteria had been adopted for distribution of resources under the 7th NFC award. He emphasised that since 2008, the PPP had advocated for provinces to have full authority over sales tax collection to improve revenue generation.

He explained that provinces are closer to consumers, which makes them more efficient in tax collection.

However, he pointed out that 90 per cent of taxes in Pakistan are collected at the federal level, while provinces are only responsible for collecting 10pc per cent of taxes themselves.

`This dependence forces provinces to rely on federal allocations,` he said and added that granting full financial autonomy to provinces would not only enhance tax collection but also ensure a more effective distribution of resources.

Dr Ashfaque Khan, the director general of the NUST and part of the visiting delegation, presented a comprehensive overview that highlighted the historical evolution of the NFC, existing fiscal imbalances, and the need for a reformed approach to revenue sharing.

During the discussion, it was pointed out that unlike many countries where population plays a minimal role in financial distribution, Pakistan has historically based resource allocation primarily on population size.

The 7th NFC Award was the first to adopt a multi-factorformula, reducing the population`s weight from 100pc to 82pc and incorporating factors like poverty levels, revenue generation, and inverse population density.

The presentation included a detailed census analysis, illustrating significant population growth trends and their implications for financial planning. Pakistan`s population increased from 33.7 million in 1951 to 241.5m in 2023, highlighting the urgency for a balanced, growth-oriented NFC formula.

The meeting discussed international experiences, which provided key lessons, with India`s financial management model offering relevant insights. `The Indian Finance Commission operates independently, with technocrats rather than politicians at the helm and not all states are represented, with only five members serving on the commission,` it was disclosed.

Dr Ashfaque said Pakistan`s NFC structure, however, has been politicised, leading to statistical manipulation and incentivising provinces to overstate population figures during census exercises. This has made population size and growth rates politically sensitive factors. A reformed NFC formula, focused on de-politicisation and an equitable, data-driven approach, is essential to ensuring a fair and progressive financial distribution mechanism in the country.

It was proposed that criteria for horizontal distribution among provinces may have certain parameters and weight. It was proposed that the income gap may be given weight 30pc, population (2023) 10pc, demographic performance 17.5pc, human development index (HDI) 10pc,area7.5pc,taxeffort5pe andforestcover5pc.