In an attempt to aid centralisation, the Finance Department has assumed the powers vested in the autonomous medical institutions to release money in advanced withdrawals for development schemes, putting a hurdle in the way of development work in the provincial health sector, Pakistan Today has learnt.
According to details, the advanced withdrawal of funds has been approved by the Autonomous Institutions Act, while the Finance Department has asked them to seek permission for using all such funds.
An official from a medical institution seeking anonymity stated that in practice, any equipment or machinery is purchased first while its payment is made later. However, when the manufacturing company demands money in advance, the Finance Department’s approval is sought.
The Autonomous Medical Institutions Act states that the board of directors of these institutions can grant approval for the timely completion of development schemes.
A medical superintendent said on the condition of anonymity that the step has proved a major hurdle in the completion of development schemes. He said the finance department has taken this step to accumulate more power, including that vested with the autonomous institutions.
“The legislation passed by the Punjab assembly has granted certain powers to the autonomous institutions, but the Finance Department has assumed these, not realising its implications for the overall development of the provincial health sector,” he said, adding that the act should be amended. An officer of the Finance Department said in all such transactions a letter of credit (L/C) is opened up in foreign exchange by the federal government through the Punjab government. He further said in the case of the development schemes introduced by the Finance Department, the money is also sanctioned by the department and that the practice has not been followed by autonomous institutions in the past.
Ishaq Dar supervising Punjab annual budget preparation
In wake of the non-availability of the Punjab finance minister, former federal Finance minister Ishaq Dar is supervising the preparation of the annual budget of the province. Sources said on Thursday that after Kamran Michael became a member of the Upper House of the Parliament, the slot for the Punjab finance ministry is lying vacant. Punjab Chief Minister Shahbaz Sharif has not awarded the Finance portfolio to anyone and was holding the additional charge himself. Sources also said the annual budget of the province was being prepared under the supervision of Ishaq Dar, a close confidant of the chief minister and was considered to be a financial expert of high repute.