Finance Minister Dr Abdul Hafeez Sheikh on Monday approved Rs 35 billion surplus budget of the National Logistic Cell (NLC) for next fiscal year. Sources said the Finance Minister, also heading National Logistic Board (NLB), was given a detailed presentation on financial affairs as well as ongoing and pending projects by officials of NLC before approval of Rs 35 billion budget for the current fiscal year.
The expenditure of NLC has been estimated at Rs 29 billion with a surplus budget of Rs 5.4 billion for the current fiscal year. Director General NLC informed the meeting that total revenue of the NLC which faced a slowdown in business after the closure of Nato supply, stood at Rs 25.012 billion during last fiscal year. He maintained that the entity paid all of its loans and liabilities and earned 11.2 percent net profit in terms of revenue in 2011-12.
The Finance Minister approved the budget for the current fiscal year with guideline that NLC would maintain a balance between realism and motivation and would not unnecessarily increase its projects. A detailed discussion was held on closure of joint venture Karachi Financial Tower Project with the high-ups of the NLC apprising the meeting that how the project was hit by snags after the departure of foreign company in the wake of global financial crisis. A settlement plan of the project with joint venture companies working on projects was also presented to the meeting. The meeting discussed different aspects of settlement plan and agreed to it in principle. The NLC was also instructed to evaluate it further.
According to a statement, the meeting also discussed and approved the proposal of NLC regarding sale of Gwadar Port shares, sale of Blue Area Plot, accounts for financial year 2009-10 and matters regarding already approved purchase of prime movers and agreement with KORAIL on the matter of paying Rs 700 million to NLC for repair of Pakistan Railway Locomotive by Pakistan Railway.
The Finance Minister asked Secretary Finance to hold a separate meeting of Pakistan Railway, NLB and Finance Division representative to resolve the issue. The meeting deliberated in detail the proposal of NLC regarding closure of joint venture agreement of NLC with other company on construction project in Qatar and to get full management and financial control of the said projects. The Finance Minister approved one part of the proposal of Qatar rayal (QR) 10 million to pay liabilities of the company and to inject fresh capital to start work independently.
On the proposal to pay off Qarar rayal 8.5 million to other company for closure of joint venture agreement with NLC, the meeting decided that NLC should work further on other aspects of financial arrangements with its joint venture company. The meeting also approved in principle the acquisition of Ultimate Building Machine from Military Engineering Services (MES) at a cost of Rs 250 million. The cost of machine will be adjusted by MES on construction contracts, it offers to NLC.
Comments
Comments are closed.