Financial crunch forces PSB to take austerity measures

ISLAMABAD: Pakistan Sports Board (PSB) has decided not to dole out any free membership or free use of exciting facilities besides increasing utility rates of all the existing ones to a considerable level as the board was directed to generate their own funds amid the financial crunch facing the country.

'The News' has learned that the fifty percent cut on overall expenditures has crippled PSB activities with the Finance Division stressing on the Board to generate their own funds to cater to the growing financial requirements.

“On the instruction received from the concerned authorities we have decided to increase services rates of all the facilities failing under the PSB ambit around the country. No freebie from here on. No free membership, neither any free access to facilities to anyone except the elite athletes who deserve our support and recognition,” Minister for Inter-Provincial Coordination (IPC) Ehsanur Rehman Mazari told 'The News'.

Following the decision, the PSB is in process of finalising the details as to what possible measures could be taken to improve the financial status of the Board in an effort to make it self-reliant. Some of the main facilities coming under the PSB ambit include hostel/residential, swimming, the use of outdoor and indoor sports facilities, and all other related facilities within the sports complex in Islamabad and all the four provincial national training and coaching centers of the country.

The Finance Division has recently applied a fifty percent cut on PSB expenditures (other than employees’ salaries) that include grants to federations, daily running expenses, upgradation work, and all other relevant areas.

Barring employees' salary, pension, and perks that is around Rs 100 million per quarter, around Rs 70 million cut per quarter has been introduced, meaning that instead of Rs138 million, the PSB will receive around Rs69.75 million quarterly.

“Considering the financial crunch the country is facing, a fifty percent cut has been applied on all PSB expenditures other than around 450 employees’ salaries and other relevant perks and privileges, pension. Be it a federations grant, up-gradation of exciting facilities, roads, and daily running expenditures. Following almost two months delay, the Finance Division released Rs70 million for the third quarterly non-development budget just last week,” one of the PSB officials when contacted, said.

Almost 20 months back, the former Minister of the PTI government surrendered the whole fourth quarterly installment of around 440 million to the Finance Division which resulted in a stalemate in sports activities. Now in wake of a fifty percent cut, the PSB has been directed to generate its own resources.

With the rupee depreciation already pegging back the developments, it is generally believed that the PSB would not be in a position to train their elite athletes outside the country or to hire the services of the best available coaches from around the world.

Fears are that the slowly deepening financial crunch may also affect Pakistan's preparations for the 14th South Asian Games that Pakistan is to host in a year's time.

“We already are getting peanuts from the government when it comes to grants. In wake of a 50 percent cut, we will not be in a position to get the grant equal to the electricity bill that we have to pay each month. All other neighbouring countries are injecting extra finances into sports considering its international impact. In Pakistan however we would now get half a peanut instead of the full we were getting previously,” a leading sports federation official when contacted, said.