Balochistan employees go without salaries

Province to draw overdraft as federal govt yet to release NFC funds.


Shezad Baloch July 26, 2011

QUETTA:


The Balochistan government finds itself entangled in yet another financial crunch as it decided to opt for an overdraft from the State Bank of Pakistan in order to pay the pending salaries of government employees.


A senior official of the provincial finance department said that the province had no funds to pay its employees as the federal government had so far not released funds under the National Finance Commission (NFC) Award.

“Balochistan, along with other provinces, was supposed to receive funds on July 17 to 20 under the NFC Award. However, the funds were not released. The federal government said it does not have the funds yet and has not released it to other provinces either,” the official said.

Last year, the federal government had taken a Rs17.5 billion bank overdraft as the province was unable to pay it back. The official said that Balochistan will again opt for a bank overdraft from the State Bank to pay the salary bill.

Sources revealed that the federal government had also not released its due share of the subsidy for the agriculture tube wells.

“The provincial government was supposed to release Rs2 billion in the current fiscal year and has initially only released Rs1 billion while the federal government is yet to release the funds for the tube well subsidy. The federal government is likely to release Rs4 billion in this financial year,” sources added.

Earlier in 2010, government effectively ended the subsidy on electricity for the tube wells on the dictates from the International Monetary Fund. However, Prime Minister Yousaf Raza Gilani, during his visit to the flood-stricken areas of the province, announced that the federal and provincial government will provide the designated amount of subsidy for the electricity of tube wells.

Published in The Express Tribune, July 26th,  2011.

COMMENTS (4)

Dr Priyanka | 12 years ago | Reply I feel sorry for these people.
A J Khan | 12 years ago | Reply

People of Balochistan will go without food very soon under the corrupt bureaucracy and incapable politicians.

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