KARACHI: Provincial governments have requested for an increase in their budget overdraft limits by Rs22.6 billion, bringing the total overdraft requested to Rs69.4 billion.
The governments have claimed that the fifty per cent hike in government employees’ salaries, passed in the recent budget, is reportedly putting a strain on provincial finances.
The revised request for overdraft currently lies with the State Bank of Pakistan and is expected to face delays due to the expiration of the acting governor’s tenure and the non-appointment of a new governor. The request will be taken up after the appointment of a new governor.
According to sources familiar with the matter, Punjab has requested an increase from Rs26.9 billion to Rs37.3 billion, Sindh has asked for a revision from Rs9.9 billion to Rs15 billion, Khyber-Pakhtunkhwa has requested its share to be raised from Rs5.5 billion to Rs10 billion and Balochistan has asked for a raise from Rs4.5 billion to Rs7.1billion.
The IMF has also placed a ceiling on provincial overdrafts, which cannot exceed six weeks’ worth of salaries.
Published in The Express Tribune, September 9th, 2010.
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