Centre blamed for severe financial crisis in Balochistan

Treasury is empty, but finance secretary says will release salaries and pensions on time


Mohammad Zafar June 30, 2018
Finance Secretary Qamar Masood corroborated that the provincial government was facing severe financial crisis and said, "Whatever the odds, salaries and pensions will be released on time." PHOTO: EXPRESS

QUETTA: For the first time in history, the provincial government has plunged into severe financial crisis as it has no money in its treasury to release salaries and pensions.

Under such circumstances, the provincial government has frozen the bank accounts of all departments working under its ambit and halted release of development funds.

It holds the federal government responsible for the financial woes stemming from unjustified cuts in the funds for provincial development projects.

CM Marri says reforms vital for ending financial crisis

Sources in the finance department said, “The Balochistan government is looking towards the State Bank of Pakistan to obtain loans to fill the financial gap as majority of the provincial government’s accounts have zero balance, causing the cheques to bounce.”

Finance Secretary Qamar Masood corroborated that the provincial government was facing severe financial crisis and said, “Whatever the odds, salaries and pensions will be released on time.

“We have been bearing financial woes due to the federal government’s cut of Rs6 billion on Balochistan Gas Development Surcharge and it has not yet released Rs18 billion allocated for the province in the budget.”

Balochistan uplift: BEF calls for reducing reliance on federal divisible pool

The finance department has halted release of funds for the ongoing development projects which could shatter the province’s dreams of standing at par with other provinces of the country.

A source in the finance department, seeking anonymity, confirmed that Additional Secretary Finance Riaz Baloch had reached Islamabad to discuss the provincial financial crisis with the caretaker set-up at the Centre.

The Balochistan government led by former chief minister Abdul Quddus Bizenjo had been clamouring about the Centre’s injustices against the people of the province for five months. Bizenjo had alleged that the PML-N government in the Centre was deliberately stealing Balochistan’s rights and utilising its funds in central Punjab.

Senior expert on financial affairs and former finance secretary Mehfooz Ali Khan said, “Not only Balochistan, but the federal government is also facing financial crisis. The Centre has no other option but to take further loans from the World Bank and the International Monetary Fund.”

He said, “As the provincial government had tabled the annual budget with a deficit of Rs61 billion, the next provincial government in Balochistan after the general elections is destined to face financial crisis.”

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ