LAHORE – The Punjab government still has an outstanding loan of Rs 36 billion, out of total Rs 51 billion overdraft from the State Bank of Pakistan (SBP) that was converted in to a loan. Also, the provincial government has decided to cut over Rs 2 billion non-development expenditures by removing over 700 posts at districts and provincial levels.
Punjab Finance Minister Tanvir Ashraf Kaira said this while addressing members of Lahore Economic Journalists Association (LEJA). He was the chief guest on the oath-taking of the LEJA’s newly elected office-bearers on Friday.
LEJA President Jawwad Rizvi and General Secretary Imran Adnan also spoke on the occasion. On Punjab government’s fiscal position, he said so far Rs 15 billion had been repaid in 15 monthly installments. He disclosed that the federal government released Rs 100 billion to Punjab, which improved the fiscal position of the province. “However, the recent devastating floods put immense pressure on the provincial financial resources and dragged the economic growth,” he added.
Punjab finance minister revealed that the provincial government had decided to cut 500 posts from the police department alone. Senior officials, including AIGs, DIGs and SPs, had been removed to curtails the expenditures. In addition, some 200 positions had been abolished from the district administration, including district officers, deputy district officers and deputy officers revenue.
“Although the Punjab government has abolished a number of posts from different provincial and district department, but none a single official was sent packing owing to austerity drive”, he added.
He said that Punjab government had set up a surplus pool of the officials, which would be incorporated for future appointments in different provincial and district departments. “The surplus pool will be utilised to fill vacancies in government departments rather than making fresh recruitments,” he noted.
On net hydel profit, he averred that the federal government owed Rs 28 billion that was pending since 2004, of which the Punjab government had received Rs 18 billion. The remaining amount was expected to be cleared by next fiscal year, he hoped.
To a question on Annual Development Programme (ADP), Kaira told the LEJA members that due to heavy flooding all ADP schemes were stopped in the first quarter of the current fiscal year. However, development activities had been resumed and the provincial government had released about 50 percent of funds allocated for ADP schemes.
“The recent price hike in the province is due to a combination of two factors: after the devolution, price control system became ineffective, which jacked up prices of food items. However, the government is revamping the local government system, which will correct the price control. Secondly, inflationary effects of global recession and prices hike of food and petrol trickled down to regional level and Pakistan also felt its impact,” he added.
Later the minister administer oath of the office for the LEJA newly-elected office bearers, namely President Jawwad Rizvi, General Secretary Imran Adnan, Vice President Mian Shahid Nadeem, Treasure Rizwan Ali and Executive Committee Members Pervaizul Islam, Sibghaullah Ch and Asim Hameed.
