Pakistan Post Office Loss of 1.9 Billions
PPO spent Rs7.73b on their employees, against an allocation of Rs6.2b — overspending by 25% in 2010
Management of the Pakistan Post Office (PPO) failed to ensure financial discipline last year, as its employee-related expenses exceeded the budget, causing a loss of Rs1.9 billion to the department.
The PPO spent Rs7.73 billion on their employees, against an allocation of Rs6.2 billion an overspending of Rs1.5 billion or 25.9 per cent, according to documents available with The Express Tribune.
“PPO met an expenditure of Rs10.2 billion, while its revenue was Rs8.3 billion in 2010-11,“ the documents stated. The government had allocated an amount of Rs8.64 billion under the fiscal year 2011 budget for the ministry of postal services.
Senate standing committee briefed Meanwhile, the Senate Standing Committee on Postal Services was informed on Tuesday that over 31,000 regular employees are work ing in 13,000 offices. The PPO had revenues of Rs4.48 billion in agency receipt related matters and Rs2.5 billion from mail operations during the last fiscal year, ministry officials added.
Postal Services Minister Umar Gorgaij informed the senate panel that the PPO has till date disbursed Rs64 billion under the Benazir Income Support Programme (BISP).
“Strict actions are being taken against dishonest officials to purge the postal services ministry of corruption. Around 80 officials have been suspended on corruption charges in Lahore recently,” Gorgaij revealed.
Requests remain unmet Postal Services Secretary Ikramul Haq said that a response on a request for the creation of 730 post offices across the country is still awaited from authorities.
The cabinet approved creation of these offices in 2007, following which the postal services ministry demanded an allocation of Rs348 million in 2009. However, there has been no development on the matter so far, Haq informed the committee.
Postal Services officials said that funds to computerise the systems in PPO were not issued either, despite repeated requests to the finance division.
The postal ministry had prepared a request for funds for the computerisation of 61 departmental post offices, which was submitted to the planning commission in 2009.
The officials further said that there has been no headway on the parliamentary panel’s recommendations for the creation of 254 new post offices in the Federally Administered Tribal Areas (Fata) and Balochistan. The senate panel had also requested the finance ministry for an allocation of Rs1.57 billion for the creation of these offices.
During the course of proceedings, senators asked for an allocation of more funds for the postal department to equip the sole government mailing system with modern technology in order to make it a profitable organisation.
Committee chairman Mir Mohabbat Khan Marri has decided to hold another meeting regarding the issue in Lahore after October 31.
(Published in “Express Tribune” on 19-10-2010)