Pakistan Muslim League (N) has been utilizing contribution of telecom and broadband operators for meeting its budgetary expenses since the transferring of Rs 67.6 billion into central bank last year last year.SBP
The SBP confirmed in its quarterly report “The State of Pakistan’s Economy” that government transferred Rs67.6 billion of Universal Service Fund (USF) and National ICT R&D Fund in central bank under its control.
The impact of USF and R&D Fund alone was 0.3 percent of GDP, it noted. These funds have been declined as non-taxes revenues and maintained on on-off basis from different accounts to government’s control account at SBP.
SBP further said that USF and R&DF have been mobilized with an objective to finance expansion of the IT and cellular infrastructure in the country; utilization of these funds for other budgetary purposes may defeat this objective.
Last year, the government transferred Rs 50 billion of these two organizations from Ministry of IT and Telecommunication Federal Consolidate Fund. Operators were taken the issue into litigation but the government has become successful to transfer funds from ministry to central bank.
Federal Finance Minister Ishaq Dar mentioned money times publically that fund remained unutilized for many years thus the government has decided to use its money for its current expenditure but ensure all contributors that their money are safe and will be issued to them on the demand of projects.
The huge accumulated fund is being utilized but the two organizations are not working actively to design developmental projects for IT and Telecommunication Infrastructure. The organization could demand funds from the government on the basis of plan projects and feasibility reports which is in fact a time consuming process.