Rs133bn for export sectors, Rs264.6m to deal with PTI long march: Unfunded expenditure pledged, but not spent as yet

ISLAMABAD: Two unfunded proposals that have been approved by the Economic Coordination Committee and ratified by the Cabinet are: (i) Rs 100 billion as subsidy on electricity to the five export-oriented sectors for the last nine months; and (ii) Rs 410 million to deal with the announced long march of Pakistan Tehreek-e-Insaf.

The government agreed to Rs19.99 per unit tariff to the five export sectors on the eve of the departure of Federal Finance Minister Ishaq Dar to attend the annual IMF/World Bank meeting estimated to cost Rs 100 billion. An additional Rs 33 billion is due from the previously announced subsidy of 6.5 cents per unit.

The government had budgeted only Rs 20 billion under this account for the current year.

Five export sectors: ECC approves continuation of regionally competitive power tariff

The Ministry of Interior submitted two separate supplementary grant proposals to deal with a planned though not yet scheduled protest to Islamabad by the Pakistan Tehreek-e-Insaf: (i) Rs 264.6 million; and (ii) Rs 145.6 million.

However, the Interior Ministry has informed the ECC that these amounts have already been spent and therefore cannot be rationalized. It is unclear whether more funds will be required as and when the long march gets under way.

These funds were earmarked for maintaining law & order in the federal capital and to ensure effective security, as approximately 30,000 out of district LEA personnel have also been requisitioned. Funds were utilised for provision of food to the out of district LEAs personnel, hiring of containers, cranes, fork lifters & transport, purchase of different articles including purchase of anti-riot items, tear gas shells etc.

PTI’s protest drive: Rs410m made available to interior ministry

The Ministry of Finance has clarified that Rs 410 million approved to deal with the long march supplementary grant, which indicates a new out of the budget expenditure.

Thus in total the unfunded expenditure pledged and not yet spent amounts to around Rs133 billion on account of subsidy to the five export sectors and Rs264.6 million to deal with the PTI’s planned long march.

Copyright Business Recorder, 2022