Federal Board of Intermediate and Secondary Education (FBISE), which was a financially viable autonomous entity in early 2000, now having no surplus funds to launch new development projects. Professor Israr Ali, Secretary FBISE, while talking to Business Recorder said on Friday that the Board of Director of FBISE proposed several development projects including construction of new building worth Rs 200 million, but due to lack of funds the projects were postponed.
Majority of the FBISE's employees that were recruited in 70s would reach to superannuation within next two years, however due to scarcity of funds it is next to impossible for the board to pay them all service benefits including service gratuity and pension, he added.
He said that the working capital needs of the board swelled to 800 million annually and currently no surplus funds are available with the board. The FBISE is not receiving a penny from the government for running its affairs, as the board generates its revenue through tuition and examinations fees and fines from domestic and overseas students, he added.
"Overseas students are the main income source, as large junk of revenue is being generated by the board through tuition and examinations fees and fines, which pay in foreign currency. However, examination fee structure for domestic students is comparatively less than other educational boards of the country," Professor Israr Ali said.
According to Auditor General of Pakistan report, which was prepared for period of 2007-08, revealed, "The accumulated balance of Rs 1,020 million collected by the FBISE through tuition and examination fees and fines is sufficient to meet the working capital needs of the board for next four years (approximately 266 million a year). The Finance Division had approved working balance limit of Rs 22.154 million for the financial year 2007-08 for the FBISE vide letter no. F.4 (I) BR- II/2002-Part-893 dated May 20, 2008. The excess accumulated balance of Rs 1,020 million was invested by the board."
The Audit report further stated that in an era where government is starving for funds, large funds are available with the autonomous bodies, which they spend in purchasing government securities. Government issues these securities to lower budget deficits. The practice causes domestic debt to increase which, in turn, affects macroeconomic stability. Thus, government institutions (autonomous) are earning money on their surplus funds, while simultaneously the government is facing budget deficits each year. It is recommended that a policy be devised by the Finance Division that amounts exceeding the specified working balance needs of the autonomous bodies be deposited into the Government Treasury.
Meanwhile, Secretary FBISE, Professor Israr Ali said that the report was compiled on the basis of surplus funds, which were generated during 1996 to 2008, which had already been utilized by the board. However, the organisation only has enough funds to meet its annual expenditure, mounting to 800 million, he added.