ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has directed Ministry of Housing and Works to use Personal Ledger Accounts (PLAs) to pay lease amount for Pakistan Quarters, Karachi, well-informed sources told Business Recorder.

On February 3, 2021, the ECC was informed that the Ministry of Housing and Works was holding property measuring 32.13 acres on lease from the provincial government of Sindh in Garden West Area, Karachi. This property was titled as Pakistan Quarters and it comprised 396 residential accommodations for federal government servants.

The Government had planned and designed a regeneration plan which would involve re-development of the area with vertical dimension.

The current occupants would be accommodated in some of the units after paying cost price. A presentation in this context was made to the Prime Minister with timelines on November 26, 2020.

The Prime Minister directed to make all-out efforts to start the project within the given timelines.

The lease of the property had expired on 31-07-1995 and regeneration project would only be possible with the renewal of the lease. Ministry of Housing and Works had obtained challans amounting to Rs 377,209,756/- for the property falling in District East Karachi measuring 61160 sq yards for which challans had been received from Land Utilization Department, the Government of Sindh.

The remaining funds would be required as and when the Provincial Government provides the challans. Finance Division had accorded their concurrence for additional funds amounting to Rs 100 million from anticipated savings surrendered by the Ministries/Divisions during the current financial year (2020-21) and advised that the remaining requirement of funds amounting to Rs 277.210 million may be met through re-appropriation from the anticipated savings as per expenditure trend shown in SAP system. The projected savings identified by the Finance Division were, in fact, not available as the funds could not be utilized due to Finance Division's policy of discontinuation of Personal Ledger Accounts (PLA). Since the Finance Division had now authorized the Pak PWD for operation of PLAs, therefore, the funds seen as saving would be utilized for meeting already accrued liabilities/ trends so no saving would be available.

Ministry of Housing and Works requested the ECC that funds amounting to Rs. 377,209,765/- as payment of lease amount for the properties of the summary to the provincial government of Sindh may be allocated through TSG under Demand No. "76- Other Expenditure of Housing and Works Division".

The ECC did not approve the proposal of the summary; however, it directed Ministry of Housing and Works to utilize PLAs funds available with them, which will be recouped by the Finance Division, at the end of CFY, if needed.

Copyright Business Recorder, 2021