PBC facing acute financial crunch

ISLAMABAD: The Pakistan Broadcasting Corporation (PBC) has been facing an acute financial crunch, sending out SOS (Save Our Souls) call to the Ministry of Finance for providing additional funding of Rs4.42 billion for averting its closure.

Even the Accountant General of Pakistan (AGP) has issued a warning to the government on account of allocating fewer budgetary resources for employee-related expenses (ERE) for the Pakistan Broadcasting Corporation. But no action was taken by the government to rectify the situation.

The PBC, known as Radio Pakistan, has been heading towards a complete financial disaster where they will not have even resources to meet Employee Related Expenses (ERE), especially for paying pensions, commutation and other perks and privileges.

There will be no money for payment of salaries, pensions and other perks and privileges if the government does not come forward to rescue another cash-bleeding state-owned entity for heads toward bankruptcy.

There will be no money left within two months for running the operation of Radio Pakistan, so the possibility of its closure will start appearing on the horizon. One top official said that the public-private partnership could provide a solution to save the PBC from total financial collapse. But who will take such crucial decisions, the top official raised a question.

Official documents and background interviews conducted by this scribe on Thursday showed that Radio Pakistan was losing its glory at an accelerated pace whereas the administrative cost was the hallmark of the entity, although, production of news and entertainment was just costing peanuts.

“If proper strategy was not worked out and implemented from today, then Radio Pakistan will be heading towards closure,” said one official. Official documents showed that the Ministry of Finance provided a grant of Rs4.628 billion for the current fiscal year against estimated expenditures of Rs7.257 billion, so there was a deficit of Rs2.629 billion for the current fiscal year. There was a deficit of Rs1.793 billion, so the accumulated financial losses touched the amount of Rs4.422 billion for the current fiscal year.

The government provided a Rs2.243 billion grant in aid for pay and allowances against the total required expenditure of Rs2.89 billion for the current fiscal year, so there was a shortfall of Rs647.566 million. The government earmarked Rs1.727 billion for payment of other allowances and pensions against the actual requirement of Rs3.287 billion, so the net shortfall stood at Rs1.559 billion.

The government provided Rs657.288 million for operating expenses against the total required expenditure of Rs1.079 billion, so the net shortfall stood at Rs421.855 million. The piled-up liabilities up to 30-6-2022, including previous years, stand at Rs1.793 billion.

The PBC informed the Ministry of Finance through the Ministry of Information & Broadcasting that during June 2022, PBC was unable to pay the monthly pension due to the non-availability of funds. Additional funds of Rs953.156 million were requested for monthly pension and outstanding commutation of 275 retired employees/widows, whereas, only Rs12 million were received as additional funds. It is pertinent to mention here that AGPR also issued a warning to the ministry regarding insufficient budget under the head of ERE of PBC.

The matter was taken up by the prime minister of Pakistan and a committee was constituted to resolve the matter, accordingly, the Finance Division has released first quarter’s budget for CFY2022-23 instead of a special additional grant for relief. The PBC paid monthly pension for June 2022 on the 7th of July 2022 from the release for first quarter of CFY2022-23.

As per budget order/NIS under demand No55, Rs4,628.057 million was allocated to PBC for CFY2022-23 against the expenditure of Rs7,257.064 million, including ERE of Rs6,177.923 million.

According to the revised strategy, the Finance Division released 40% of the total budget in the first two quarters amounting to Rs1,851.223 million and Rs230 million from 3rd Quarter as an advance against the committed expenditures (Monthly Pension, Pay & Allowance, Artist’s Fee, Utility & other unavoidable operating expenses) of Rs2,432.375 million up to October-2022. Hence, PBC could not pay house hiring to landlords of regular employees, medical expenses, 50% of the pension of October 2022 and commutation.

“Therefore, the request for additional funds of Rs4,422.840 million and the balance of the allocated budget of CFY2022-23 amounting to Rs2,546.834 million of the 3rd & 4th Quarters may please be approved and released to cope with the immediate liabilities and expenses up to 30.06.2023 of retired/regular employees, widows, artists and other parties to avoid frequent litigation against PBC as well MoIB, because they are approaching the court of law, Wafaqi Mohtasib, minister’s office and other forums for immediate relief,” the PBC letter concluded.