Caretaker Finance Minister of Punjab Zia Haider Rizvi said that the Punjab government is facing a severe cash flow crisis due to hefty payments over Rs 71 billion under different heads
Mr. Haider Rizvi informed that the main concern currently is to make sure that the salaries of the government employees are released in a timely manner. He said that the reason for the cash flow crunch is due to the slow payment of funds due to provincial share in the National Finance Commission (NFC) award by the federal government
Furthermore, Punjab Revenue Authority (PRA) is suffering because the Supreme Court suspended taxes on all the mobile phone balance of all leading telecom operators. This has affected the Punjab revenue negatively.
Initially, the order to suspend taxes on mobile balance was for 15 days. On June 11th Supreme Court issued the order, restraining Federal Board of Revenue (FBR) and telecom providers from deducting the taxes on mobile phone top-up cards. But recently Chief Justice of Pakistan Mian Saqib Nisar said, “It was said that the decision to suspend tax deduction on mobile balance was for a limited time period and that the practice would resume following the expiry of two weeks.”
Adding, “The taxes on mobile balance cannot be deducted until the court’s next orders. The decision to suspend tax collection on mobile cards will hold until then.”
Other than this there many other factors that have led to the financial crisis that Punjab government is facing. Corruption is one of the reasons that has aggravated the situation in Punjab. Leaders spending money for their own benefit has only caused suffering for the people of not just Punjab but all provinces in Pakistan.