ISLAMABAD: The Ministry of Planning, Development and Special Initiatives has imposed a cut of whopping Rs1.24 billion on the development budget of the Pakistan Sports Board (PSB) that is going to be introduced for the fourth quarter.
‘The News’ has learnt from well-placed sources that Rs3.40 billion was the actual quarterly grant for the PSB’s ongoing development projects out of which a cut of Rs1.24 billion has been introduced.
"We are already under pressure as fifty percent cut had been imposed on PSB’s running expenditures a couple of months back. Now the cut has been imposed on the development budget and the schemes that are already in progress. The PSB is currently working on 17 development projects. The recent cut on the development projects would serve no good to sports’ cause in special context with the hosting of upcoming South Asian Games in March 2024," a ministry official, when contacted, said.
He added that the early release of the fourth quarterly instalment could have ensured timely completion of these ongoing projects. Narowal Sports City Complex is already eating up a hefty amount of the sports budget. Chances are there that a major amount of the newly released development budget will be diverted to that mega scheme while the remaining amount will be spent on the other 16 schemes.
On February 23, the Finance Division introduced a fifty percent cut on the PSB’s running expenditures (non-development budget) including grants to the federations, daily running expenses, up-gradation work and all other relevant expenditures.
Barring employees’ salary, pension, and perks that is around Rs100 million per quarter, around Rs70 million cut per quarter was introduced.
"Considering the financial crunch the country is facing, the fifty percent cut was imposed on the running expenditures of the PSB. Now another 35 percent cut has been imposed on development expenditures. The cut will further delay completion of some of the projects," the official added.
The fourth quarter has already started. Almost 22 months back, former minister had surrendered fourth quarterly installment of Rs440 million to the Finance Division, resultantly causing a stalemate in sports activities.
Later the quarterly installment for the non-development budget was further reduced to around Rs240 million which has seen a further cut of 50 percent (barring employees' salaries). With rupee depreciation already pegging back the value of development work, it is generally believed that the PSB would not be in a position to prepare infrastructure for the South Asian Games.
Meanwhile, the PSB is in the final stages of awarding grants to the recognised federations. Chances are there that these federations may get even lesser quarterly grants than they used to get in the past.