Public-private partnership plan: PAC directs ministry to submit proposal in two weeks

The Public Accounts Committee Tuesday directed Ministry of Postal Services to submit a proposal of public-private partnership plan with PAC within two weeks before going into any joint collaboration. The PAC meeting held here under the chairmanship of Syed Khursheed Shah to take up the issues pertaining to Pakistan Post services and expressed serious reservations over the ongoing situation of the organization. The panel said the organization is facing serious financial challenges while the relevant quarters have not yet taken appropriate steps to revive the entity.
Briefing the participants, Secretary Ministry of Postal Services Saqib Aziz said Pakistan Post is still selling the postal ticket at Rs 8 which costs Rs 17, adding that more and more financial burden is accumulating on the organization in shape of pension payments and salaries. The secretary said if the postal ticket price is increased to Rs 40 from Rs 8 per ticket, it will help reduce financial crisis by 50 percent. The panel asked the officials why postal services tickets are being sold at more than half price, adding they should be fully charged as it is not a charity organization.
The committee examined the proposal and gave approval keeping in view the interest of people and the country. Secretary Ministry of Postal Services Saqib Aziz and other senior officials briefed the committee regarding privatization of Pakistan Post. The official said there is no such advertisement published in the press for privatization of Pakistan Post, adding there are public-private partnership projects under reform agenda of Pakistan Post principally approved by competent authority for which advertisements were floated separately for obtaining expression of interests.
The committee was informed that total budget of Pakistan Post for 2017-18 was Rs 17.56 billion, adding Pakistan Post remained self-supporting entity from 1998-99 to 2008-09. The officials said the main reason of deficit has been increase in pays, allowances and pension benefits by government to employees from time to time since year 2009-10 onwards, adding that postal tariff was last revised on 02-11-2009. They added the increase in prices of commodities and services during the last few years is also a main reason of deficit. The secretary informed the panel that Rs 2 billion loan from a Korean company is being taken for the revival of the entity.
The chairman committee said that loans from foreign company will have certain conditions and, therefore, such loans must be avoided. Saqib Aziz said if the Ministry of Finance provides the amount to Pakistan Postal Services, the organization will not seek foreign loan.
The meeting was also attended by MNAs including Dr Arif Alvi, Mahmood Khan Achakzai, Maulana Abdul Ghafoor Haidri, Dr Azra Fazal, Shafqat Mahmood, Syed Ghulam Mutafa Shah, Raja Muhammad Javed Ikhlas, Syed Kazim Ali Shah, Shahida Akhtar Ali, Rana Afzal Hussain, Abdul Rasheed Godil and Parvaiz Elahi.