Citing financial difficulties due to a deficit of billions of rupees every year, the Water and Sanitation Agencies (WASA) across Punjab have requested an increase in subsidy support from the provincial government.
According to an official, the Punjab government has increased the amount sanctioned for the subsidy, but the release of the amount is awaited.
As per official data, the civic authorities receive an annual subsidy of Rs3.267 billion from the government and the amount has remained unchanged since 2014.
According to sources, they sought an increase in the amount to offset the impact of inflation, mainly increase in the prices of fuel and electricity by more than 200 per cent in recent years.
The sources said WASA officials had written to the provincial government several times to increase the subsidy but the funds could not be increased due to lack of resources.
To overcome the deficit, the WASA presented a business plan to increase water rates, but the proposal was not accepted apparently due to political reasons, the sources told The Express Tribune.
The Punjab government did not want to increase the cost of drinking water rates for the citizens due to inflation.
The annual losses of the country’s Vic agencies have risen to billions of rupees.
The Lahore WASA’s annual income is Rs14 billion and expenses around Rs18 billion. Thus it bears a loss of Rs4 billion and the amount is set to increase due to higher fuel and power prices.
The WASA authorities also launched a series of dues recovery campaigns to improve their financial position.
However, they are finding it difficult to meet the electricity, fuel and other non-development expense.
According to the sources, the Punjab government has agreed to increase the subsidy, but the funds are awaited. Lahore WASA Managing Director Ghuffran Ahmed told The Express Tribune that the organisation was facing financial problems due to inflation.
He claimed that a campaign against defaulters had been successful.
He said suggestions given to solve the financial problems on a permanent basis coul d not be implemented.
He said the Punjab government had increased the amount sanctioned for the subsidy. According to sources, agencies across Punjab, including Lahore, may receive subsidies in the coming days from the Arts Department. Instead of a lump sum payment, the subsidies will be released in phases.
Published in The Express Tribune, March 15th, 2023.
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