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Stakeholders call for institutional reforms to drive sustainable economic growth in Sindh

Karachi: Stakeholders at a consultation called for economic growth and meaningful reforms in Sindh hinges on three interlinked pillars, i.e. clearly defined institutional mandates with strong ownership, integrated and reliable data systems to support decision-making, and performance-based fiscal governance backed by political commitment.

The consultation, titled: Economic Governance Reforms, was organized here by Sustainable Development Policy Institute.

'Without the foundational elements, reforms risk remaining fragmented and project-driven rather than evolving into a durable and system-wide transformation,' the participants of the consultation said.

They also expressed concern over the persistent overlap of responsibilities between provincial departments and federal institutions, particularly between Sindh Revenue Board (SRB) and Federal Board of Revenue (FBR).

Speaking during the consultation, Naveed Rajput, Secretary-General of Sindh Revenue Board, said that weak interdepartmental coordination has led to duplication, inefficiencies, and limited sustainability of economic growth and reforms. He said that though core economic functions are formally assigned to the Finance Department and Planning and Development (PandD) Department, the absence of clearly defined operational frameworks and structured coordination mechanisms has limited the province's ability to translate policy intent into measurable outcomes.

Kamran Mughal, Additional Auditor General, Government of Sindh, said that many reform initiatives remain externally driven, often linked to donor support or Disbursement-linked indicators-based financing, with insufficient departmental ownership. As a result, he added, projects tend to remain short-term, paper-based, or poorly integrated into routine administrative systems. 'Institutional silos, fragmented funding channels, and limited interdepartmental communication further undermine coherence.' Mr Mughal emphasized that sustainable reform requires internal accountability, clear mandate allocation, and department-level leadership, rather reliance on ad hoc project cycles.

Dr Irfan Chatha, Research Fellow, SDPI, said that data governance has emerged as a structural weakness. Despite the existence of departmental datasets, there is no

fully integrated, interoperable and real-time system to support evidence-based decision-making. Duplication of financial data, weak reconciliation processes, delayed reporting, and lack of centralized coordination are repeatedly cited.

Dr Chatha said that digitization efforts and electronic payment mechanisms are underway, but implementation remains uneven, with many departments still operating through semi-manual systems. He stressed the need for a unified data coordination portal, stronger monitoring and audit frameworks, and accessible data systems to inform budgeting, tax analysis, and policy evaluation.

Ghufran Memon, the former Federal Secretary, stated that fiscal governance and revenue management requires a close focus. He said digital payments, financial inclusion, and treasury modernization are recognized as positive steps.

Representatives from the State Bank of Pakistan, Local Government Department, Sindh Bureau of Statistics, Sindh Revenue Board, Public Private Partnership, Finance Department of Sindh, and Accountant General's Sindh office attended the consultation.