Cash-strapped WASA unable to pay salaries, bills for October

Agency requests Punjab govt for bailout package of Rs722m, which remains pending

RAWALPINDI: The financial deficit of Water and Sanitation Agency (WASA) is reflecting a critical imbalance between the income and expenditures of the organization. As the agency’s expenditures cross Rs1.3 billion, the organisation has no guarantee if it will continue its operations from October or pay staff salaries.

A couple of months ago, WASA requested a bailout package of Rs722 million from the Punjab government on account of pending staff salary payments which came up to Rs30 million and monthly electricity bills in excess of Rs50 million.

However, the provincial government has not yet responded to the agency’s plea. The organisation’s current monthly income stands at Rs30 million while salary and electricity expenses stand at Rs80 million. To cope with the financial crisis, WASA had sent its recommendations for revision of water supply tariffs to the provincial government.

The aggravated financial situation is caused due to a number of factors, which include moderate water charges of Rs98 for a five marla home and grant of subsidies for tankers and electricity expenditures incurred on 400 tube wells in various parts of the city.



Furthermore, uncollected dues of Rs420 million on account of Khanpur Water Supply Project’s operational and maintenance costs have also contributed to the current financial breakdown. Consequently, WASA does not even have the funds to pay off salaries for the upcoming month or pay its electricity bills, which poses an additional threat to WASA’s equipment, including 22 water bowsers, two heavy sucker machines and ten rowing machines for sewage lines.

WASA Managing Director Raja Shaukat said that the non-revision of water tariff and increase in electricity costs for tube wells have been worsening the ongoing financial crisis. “Electricity expenditure has also marginally increased and water supply for the citizens cut because the water level in tube wells has been gradually declining” he said, suggesting that supply from Ghazi Brotha Dam would be the only long term solution to the impeding water crisis. In addition to resolving the problem of water shortage, he said, the new arrangement would also bring relief in increasing bills of electricity. 

Published in The Express Tribune, September 21^st, 2018.