RCB’s financial woes worsen

Stoppage of payments to suppliers taking toll on uplift schemes

RAWALPINDI:

The Rawalpindi Cantonment Board (RCB) is facing a severe financial crisis as its expenditures have increased manifolds compared to sources of income.

Sources said the payments to contractors for the completion of development work and supply of goods to the cantonment store have also been stopped, which has affected the development schemes.

According to sources, the elected members are also facing harsh reactions from the people for not being able to solve issues of public importance.

On the other hand, the Cantonment Executive Officer has issued a policy to minimise expenditure in the institution.

The sources said that the RCB’s revenue has been badly affected due to the ongoing national economic crisis and extraordinary reduction in the construction work and sale and purchase of the real-estate property.

The recovery of property tax is also less than the set target which is also adversely affecting the board’s revenue generation.

The sources claimed that the board was spending Rs160 million for payment of salaries, Rs20 million for pension, Rs10 million for POL and Rs30 million for electricity charges and Rs10 million for transferring the solid waste from its jurisdiction each month.

“A massive amount is being spent on reimbursement of the medical claims of employees as well as advance and utility services, whereas, huge expenses are also being incurred on the board’s water supply system,” they said.

In this situation, elected members of the cantonment board said that despite the approval, the development works are not being carried out in their respective constituencies.

They said the residential areas of their wards were facing difficulties due to the non-availability of street lights.

Regarding the financial difficulties, they said the grants have not been received from the federal as well as provincial governments for a year, adding to the woes of the board.

“All the working has been reduced to just maintenance and paperwork,” they said.

When contacted, Cantonment Executive Officer, Imran Gulzar, said: “We are facing financial problems but the situation will get better from June.” He added that the board would start paying the contractors from Eidul Fitr.

Gulzar said that the development schemes, which were approved in the last board meeting, were also being worked upon.

“The months of March, April and May are not encouraging in terms of property tax recovery,” he admitted, adding: “However, the property tax recovery is high in June through which we will clear all the dues.”

 

Published in The Express Tribune, March 21^st, 2023.