ISLAMABAD: Ministry of Communications has sought ECC’s help for release of Rs 37.33 billion to clear outstanding liabilities of the utility companies, official sources told Business Recorder.

Pakistan Post Office Department (PPOD) is an attached department of Ministry of Communications. Under Rules of Business, 1973 PPOD in addition to its core functions also performs agency functions on behalf of Federal/ Provincial Governments and other corporate entities.

The collection of utility bills is one of the functions performed by the PPOD and the amount thus collected in this regard is deposited in State Bank of Pakistan’s Central Account No.1 (Non Food).

Pakistan Post had the facility to clear the liabilities of utility companies through the Letter of Credit (LoC) issued by the Director of Accounts PPOD Lahore in terms of article No. 81 to 86 of Initial Account code Vol-1 duly approved by the Auditor General of Pakistan. After the promulgation of Public Finance Management Act, 2019, Finance Division on June 23, 2021, directed PPOD to open an account in the State Bank of Pakistan (SBP).

Meanwhile, Finance Division kept on issuing LoC up to November, 2021 for cash transactions including agency functions. However, LoC issued by the Finance Division in December, 2021 did not include agency functions, which has resulted in accumulation of liabilities to the tune of Rs. 62.33 billion up to March 31, 2022.

The issue of outstanding liabilities was taken up with the Finance Division by Ministry Communications on April 15, 2022 which approved Rs. 25 billion for payment to the utility companies. The remaining liabilities of utility companies/ agency partners are Rs. 37.33 billion.

Furthermore, PPOD with the approval of the Finance Division has opened an account in National Bank of Pakistan from April 1, 2022 and the amount collected under agency functions is now being regularly transferred to the utility companies from the account. Therefore, no further liability has accrued. However, the amount of Rs.37.33 billion earlier deposited in Central Account No.-1 is still pending for payment.

Ministry of Communications has directed the ECC to direct the Finance Division to release funds amounting to Rs. 37.33 billion for clearing outstanding liabilities of the utility companies/ agency partners by the PPOD.

Copyright Business Recorder, 2022