# *Detailed SUMMARY of the article "A mixed bag" by Editorial, Published in Dawn on June 14th, 2025:* The article examines *Sindh's Rs3.45 trillion budget* for the *next fiscal year*, which combines *populism* with *provincial tax reforms* while prioritizing *flood rehabilitation* and *renewable energy* in its *public sector development programme* funded by *foreign lenders* and *donors*. The *Sindh government* continues focusing on reforming its *services sales tax* by developing a *negative list* of services exempt from *general sales tax*, expanding tax scope for *higher revenue yields* and simplifying the levy for taxpayers. *Chief Minister Murad Ali Shah* proposed abolishing *five levies* - *professional tax*, *entertainment duty*, *drainage cess*, *cotton fees*, and *local cess* - to please *urban* and *rural middle classes*, while slashing *motor vehicle tax* from next year, though this won't affect *provincial revenues*. *Sindh* launched a *bank credit scheme* for *small farmers* similar to *Punjab's initiative*, but the *CM* didn't describe measures for recovering *agriculture income tax* from *big landholders* to meet *IMF funding programme* goals for *federating units*. With *three-fourths* of revenues from the *federal divisible tax pool*, the ruling *PPP* allowed higher *salary* and *pension increases* for employees than announced in the *federal budget*. Instead of showing *cash surplus* required by the *centre* to produce a *primary budget surplus of 1.6%* under *IMF strictures*, the budget booked a nominal *resource shortfall of Rs38 billion*. The *Sindh government* deserves appreciation for consistently focusing on building *climate-resilient infrastructure*, providing *free housing* to women who lost homes in the *2022 deluge*, and rehabilitating affected populations. Though the job remains incomplete due to *resource constraints*, *weak administrative capacity*, and effort scope, the province's significant resource diversion is positive. *Sindh* is leading the national shift to *cleaner energy*, which is good news given the increasing severity of the *climate challenge* in the country. # *Easy/Short SUMMARY*: *Sindh's Rs3.45 trillion budget* combines *populism* with *tax reforms*, prioritizing *flood rehabilitation* and *renewable energy*. The province reformed *services sales tax*, abolished *five levies*, and launched *farmer credit schemes* but failed to address *agriculture income tax* from *big landholders* for *IMF compliance*. Despite a *Rs38 billion shortfall* instead of required *cash surplus*, *Sindh* leads in *climate-resilient infrastructure* and *cleaner energy* transition. # *SOLUTIONS of The Problem*: ## *1. Implement Agriculture Income Tax* Enforce *agriculture income tax* collection from *big landholders* to meet *IMF programme* requirements. ## *2. Achieve Budget Surplus* Work towards *cash surplus* instead of *Rs38 billion shortfall* to comply with *IMF strictures*. ## *3. Strengthen Administrative Capacity* Improve *administrative efficiency* to complete *flood rehabilitation* and infrastructure projects. ## *4. Diversify Revenue Sources* Reduce dependence on *federal divisible tax pool* by expanding *provincial revenue* streams. ## *5. Complete Flood Rehabilitation* Accelerate *2022 deluge* rehabilitation efforts with better resource allocation and planning. ## *6. Enhance Tax Collection* Improve *services sales tax* collection through better enforcement and compliance mechanisms. ## *7. Optimize Development Spending* Ensure efficient utilization of *foreign funding* for *public sector development programme*. ## *8. Balance Populist Measures* Align *populist policies* with fiscal responsibility and *IMF compliance* requirements. ## *9. Expand Climate Infrastructure* Continue building *climate-resilient infrastructure* with increased funding and faster implementation. ## *10. Promote Clean Energy* Accelerate *renewable energy* projects to lead national *cleaner energy* transition effectively. # *IMPORTANT Facts and Figures Given in the article*: - *Sindh's budget* for next fiscal year is *Rs3.45 trillion*. - *Three-fourths* of *Sindh's revenues* come from *federal divisible tax pool*. - Budget shows *resource shortfall of Rs38 billion* instead of surplus. - *IMF* requires *primary budget surplus of 1.6%* from provinces. - *Five levies* abolished: *professional tax*, *entertainment duty*, *drainage cess*, *cotton fees*, *local cess*. - *2022 deluge* affected population still being rehabilitated. - *Motor vehicle tax* to be slashed from next year. # *IMPORTANT Facts and Figures out of the article*: - *Sindh* contributes *25%* to *Pakistan's GDP* (*Pakistan Bureau of Statistics*, 2024). - *2022 floods* affected *33 million people* in *Pakistan* (*UN*, 2022). - *Provincial governments* collect only *15%* of total taxes in *Pakistan* (*FBR*, 2024). - *IMF programme* worth *$3 billion* for *Pakistan* (*IMF*, 2023). - *Agriculture sector* employs *42%* of *Pakistan's labor force* (*World Bank*, 2024). - *Sindh* has *30%* of *Pakistan's arable land* (*FAO*, 2023). # *MCQs from the Article*: ### 1. *What is the size of Sindh's budget for the next fiscal year?* A. Rs2.45 trillion *B. Rs3.45 trillion* C. Rs4.45 trillion D. Rs5.45 trillion ### 2. *How much of Sindh's revenue comes from the federal divisible tax pool?* A. Half B. Two-thirds *C. Three-fourths* D. All ### 3. *What is the IMF requirement for primary budget surplus?* A. 1.2% B. 1.4% *C. 1.6%* D. 1.8% ### 4. *How many levies did CM Murad Ali Shah propose to abolish?* A. Three B. Four *C. Five* D. Six ### 5. *What major natural disaster is mentioned for rehabilitation efforts?* A. 2021 floods *B. 2022 deluge* C. 2023 earthquake D. 2024 drought # *VOCABULARY*: 1. *Populism* (عوام پرستی) – Political approach appealing to ordinary people 2. *Levy* (محصول) – Tax or fee imposed by government 3. *Divisible* (تقسیم پذیر) – That can be divided or shared 4. *Strictures* (پابندیاں) – Restrictions or limitations 5. *Deluge* (سیلاب) – Heavy flood or overwhelming rush 6. *Rehabilitating* (بحالی) – Restoring to normal condition 7. *Resilient* (لچکدار) – Able to recover quickly from difficulties 8. *Exempt* (مستثنیٰ) – Free from obligation or liability 9. *Shortfall* (کمی) – Deficit or shortage 10. *Federating* (وفاقی) – Related to federal system 11. *Nominal* (برائے نام) – Very small or minimal 12. *Cess* (شلک) – Additional tax for specific purpose 13. *Yields* (حاصل) – Returns or profits 14. *Simultaneously* (بیک وقت) – At the same time 15. *Scope* (دائرہ) – Range or extent 16. *Constraint* (رکاوٹ) – Limitation or restriction 17. *Divert* (موڑنا) – Redirect or change direction 18. *Severity* (شدت) – Harshness or intensity 19. *Conveniently* (آسانی سے) – In a suitable manner 20. *Initiative* (اقدام) – First step or action 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. 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Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *www.dawn.com* *A mixed bag* *Editorial* *3 minutes* SINDH'S Rs3.45tr budget for the next fiscal year seeks to combine populism with provincial tax reforms while also prioritising flood rehabilitation and renewable energy in its public sector development programme generously funded by foreign lenders and donors. In keeping with the last budget, the Sindh government has continued its focus on reforming its services sales tax. By developing a negative list of services, which will remain exempt from the general sales tax, the province will be able to expand the scope of tax for higher revenue yields as well as simplify the levy for taxpayers. Simultaneously, Chief Minister Murad Ali Shah has proposed abolishing five levies — professional tax, entertainment duty, drainage cess, cotton fees and local cess — aimed at pleasing the urban and rural middle classes, besides slashing the motor vehicle tax from the next year. The decision is unlikely to affect provincial revenues though. Additionally, Sindh has launched a bank credit scheme for small farmers in line with a similar initiative implemented in Punjab. The CM, however, conveniently did not describe the measures, if any, his administration plans to undertake for the recovery of agriculture income tax from big landholders to meet a key goal of the IMF funding programme for the federating units. With three-fourth of its revenues coming from the federal divisible tax pool, the ruling PPP in the province chose to allow a much higher salary and pension increase for its employees than announced in the federal budget. Moreover, instead of showing a cash surplus as required by the centre to produce a primary budget surplus of 1.6pc under IMF strictures, the budget has booked a nominal resource shortfall of Rs38bn. Is this called responsible budgeting? The Sindh government, nevertheless, must be appreciated for its consistent focus on building climate-resilient infrastructure in the province, providing free housing to women who lost their homes in the 2022 deluge, and rehabilitating the affected population. Though the job largely remains incomplete because of resource constraints and weak administrative capacity, as well as the scope of the effort, the fact that the province has diverted significant resource is a positive sign. Likewise, it is leading the national shift to cleaner energy, which is good news given the increasing severity of the climate challenge in the country. Published in Dawn, June 14th, 2025