Fiscal crisis cripples govt departments

Institutions currently unable to cover their daily expenses, leading to a dire situation, say sources

RAWALPINDI:

As the new financial year entered its second month, government institutions are grappling with a severe financial crisis caused by the non-payment of allocated funds.

According to official sources, the institutions are currently unable to cover their daily expenses, leading to a dire situation.

In response to the outstanding bills, Islamabad Electric Supply Company (IESCO), Sui Northern Gas Pipelines Limited (SNGPL), and Pakistan Telecommunication Company Ltd (PTCL) have issued notices to discontinue their service to these government institutions.

On Wednesday, IESCO teams visited several government offices with the intention to disconnect electricity connections.

IESCO teams reiterated the seriousness of the matter and issued a final warning.

However, officials from the public departments managed to avert the disconnections by requesting a deadline extension to submit the utility bills, promising to do so by the end of August.

Sources further said the situation is dire, as the government institutions responsible for managing essential services and public welfare programmes have confirmed that the new financial year commenced on July 1, yet, they have not received the necessary funds to meet their daily expenses.

 

Published in The Express Tribune, August 3^rd, 2023.