With the revival of commissionerate system in the province once again, the Sindh government has frozen all the accounts being managed by the district governments and town municipal administrations (TMAs) that contain development and non-development funds.
However, these authorities could only use the funds to pay salaries to their staff. The remaining funds will be released to commissioners after the new administration starts its proper functioning, Pakistan Today has learnt.
It is recalled here the Sindh government has revived the commissionerate system in the province as the people of Sindh had showed their dissatisfaction over the introduction of Sindh Peoples Local Government Act 2012 that brought bad name to the ruling PPP.
After the notification of commissionerate system was issued, the finance department has forwarded a letter restricting all the district governments and TMAs for making transactions. Moreover, the funds will be unfrozen as the new setup starts proper administration in the districts, sources told Pakistan Today.
It is further said that all 23 district governments, 119 TMAs and 1,108 union councils could only utilise the funds for employees’ salaries while the development and non-development funds will remain frozen till the issuance of another notification by the finance department.
However, the salaries of the district government employees are being released according to the old formula.
The sources said the Sindh finance department had forwarded a letter to the officials of the National Bank of Pakistan to seize all funds of district governments and TMAs including the CDGK.
The letter also said that funds allocated for salaries of the employees of the said institutions would not be seized and be issued according to routine. At least Rs 145 billion are available for the 23 district governments, TMAs and union councils under the head of non-development funds while only Rs 20 billion are available as development budget, they added.
Amongst the frozen funds, at least Rs 35.510 billion belonged to Karachi Metropolitan Corporation, Rs 12 billion for Hyderabad district, Rs 6.90 billion for Sukkur district and Rs 6.5 billion for Larkana district, the sources said.
It is mentioned here that 18 towns of Karachi comprise Baldia Town, Bin Qasim Town, Gadap Town, Gulberg Town, Gulshan Town, Jamshed Town, Keamari Town, Korangi Town, Landhi Town, Liaquatabad Town, Lyari Town, Malir Town, New Karachi Town, North Nazimabad Town, Orangi Town, Saddar Town, Shah Faisal Town and SITE Town, whereas there are 101 talukas in 23 other districts. Before Sindh Peoples Local Government Act 2012, the budgets of the district councils and town committees were limited and financial crises in these institutions were a regular issue.
“The accountant general (AG) office has been instructed not to clear the bills of district governments except releasing the salaries until the commissioners start full-fledged working”, a senior official told Pakistan Today.
