Non- payment of funds: PRAL expresses inability to continue functions

Pakistan Revenue Automation Limited (PRAL), a subsidiary of the Federal Board of Revenue (FBR), has expressed its inability to continue the IT- related functions in March 2012, if the FBR do not release the allocated grant by the February 29, 2012 deadline.
Sources told Business Recorder here on Saturday that Chief Executive Officer PRAL Nasir Uddin Khan has written a letter to the FBR with serious observation for immediate release of funds for the PRAL. According to him, the PRAL has a Contract of Rs 677.48 million for provision of services to FBR during 2011-12. This amount, as per the terms of the contract, is payable in four quarterly instalments.
However, due to financial constraints during the first six months only a sum of Rs 300.00 million was released by Ministry of Finance. Furthermore, FBR made payments from PRAL's allocation to M/s Agility, service provider of Pakistan Customs Computerised System (PACCs) to continue the PACCS operations. To make up for the shortfall, FBR has initiated a request for a supplementary allocation. The supplementary allocation is pending for final approval by Ministry of Finance.
Nasir Uddin Khan said that a sum of Rs 208.11 million was due to PRAL in January 2012 as third quarter advance, out of which Ministry of Finance has made delayed payment of Rs 58.00 million, which created a situation that our January 2012 payroll was delayed for 10 days causing great hardship to over 1400 employees. The PRAL is now hoping that payroll be processed in February, 2012. This will leave us with virtually 'nil' funds and we urgently need the remaining sum of Rs 150.11 million to continue operations.
The PRAL has asked the FBR that the pending amount of Rs 58.00 million be released from the approved budgetary allocation, so that we can continue our operations in February 2012, Nasir Uddin Khan apprehended. The case for supplementary allocation of Rs 259.48 million may please be processed no later than February 29, 2012 and funds released to PRAL so that we can continue our operations in the month of March 2012, Chief Executive Officer PRAL added.