National Highway Authority (NHA) owes Rs 330 billion, including Rs 80 billion for the current fiscal year (2018-19) of non-tax revenue, to Ministry of Finance (MoF), which is reflecting in budget deficit. This was revealed by Joint Secretary Finance Division Dr Imranullah Khan while briefing the Senate Standing Committee on Communications. The committee met with Hidayat Ullah in the chair here on Friday.
The Finance Division official said the government extended financing to autonomous bodies in shape of loans which they needed to pay back. From 1991 to 2017-18, Rs 350 billion had been outstanding, besides Rs 80 billion of non-tax revenue for the current fiscal year, against NHA which were not being paid and were reflected in budget deficit, making the NHA a defaulter of the Finance Ministry. In the current fiscal year, only Rs 4 billions have been deducted from NHA as Cash Development Loans (CDL). During the last around 30 years, the NHA has paid back Rs 100 billion.
Chairman NHA Jawwad Rafique Malik objected to the rules while saying, "The government first directs NHA for building roads and then stats saying you have to pay so many loans." He further said that NHA generated revenue from toll collection and Right of Way (RoW) fee.
Malik further said the government had to pay over Rs 30 billion in liabilities under the Public Sector Development Programme (PSDP) for the current fiscal year 2019-20 to clear contractual obligations, as delay in projects as well as escalation in projects cost was feared.
The committee was informed that a total of Rs 33 billion had been released until the fourth quarter. It was revealed that a major impediment in NHA's work was the disbursement of finances in the form of loans.
Senator Ahmad Khan said that due to short releases to contractors, projects were being delayed and around 0.4 million people had lost their jobs during the last eight months. The committee directed Finance Division to make no cut in Cash Development Loans (CDL) and ensure early fund releases to avoid projects delay as unemployment was rampant in the country.
Khan was of the view that delay in fund disbursement leads to deferred work that gives rise to the escalation factor. This leads to massive financial crunch that has affected the labour market adversely. The committee took stringent notice of budget cuts and directed NHA to submit details of the schedule of payments issued to them by the Department of Finance.
The committee was informed that previous government allocated Rs 301.6 billion for NHA under the PSPD for 2019-2020, but the incumbent government revised it downward to Rs 185.197 billion, besides slashing the number of projects from 79 to 8. The government has released Rs 144.45 billion to NHA in the current fiscal year so far including major chunk of Rs 110.697 billion foreign component; however the government released only Rs 33.75 billion against the allocation of Rs 112.997 billion which is around 25 percent.
Senator Jehanzeb Jamaldini said the system of lending to a department for development was a major impediment. He said an Act of Parliament must be passed against this.
The committee took strict notice of non-compliance of rules at toll plazas.
Senator Moula Bux Chandio showed extreme displeasure at the attitude of staff at toll plazas on motorways, especially at Hyderabad, and said that small cars were exempted from toll tax but travellers were harassed at toll plazas.
Speaking about the messages displayed on billboards at toll plazas, Chandio said those were an insult to parliamentarians. The billboards read: "Honourable members of National Assembly and senators are not tax exempted." The committee demanded that all such billboards be removed immediately.
Senator Usman Khan Kakar said that the work on Shabozai to Taunsa Road project was compromised and that the Finance Department as well as those involved on a provincial level must be summoned in the next meeting.
While deliberating on the issue of broken fences on the highway, Senator Behramand Tangi asked reasons for delay in repair despite numerous reminders. Senator Fida Muhammad said many such crevices were seen on the highway fence onwards from Attock. He stressed the need for immediate repair since it was threatening the lives of local people and livestock.
The committee also expressed serious reservations over the poor condition of motorway from Mardan to Swabi and recommended for early repairs and maintenance. The committee expressed dissatisfaction over the NHA briefing and directed the department to attend next meeting with correct figures.
The meeting was attended amongst others by Senators Mir Muhammad Yousaf Badini, Syed Muhammad Sabir Shah, Muhammad Usman Khan Kakar, Fida Muhammad, Dr Ashok Kumar, Bahramand Khan Tangi, Abdul Ghafoor Haideri, and Moula Bux Chandio, and senior officers from the Ministry of Communications along.

Copyright Business Recorder, 2019

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