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  • Zed
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    #1
    Lot of PMLN supporters i.e. Awan applaud Shahbaz Sharif administrative and management skills. Well here is the reality of his performance as Punjab Chief minister for 10 years.

    Punjab’s finance minister recently revealed that the province is nearly bankrupt. Punjab has accumulated a total debt of Rs1.1 trillion, exhausted its Provident Fund of Rs100 billion that rightfully belongs to government employees, fully used its borrowing line of Rs37 billion and reportedly issued cheques worth Rs57 billion in the last financial year that could not be honoured.

    After the 7th NFC Award, federal transfers to Punjab almost quadrupled in the last 10 years from Rs300+ billion to nearly Rs1.2 trillion. How did then Punjab manage to reach this point, despite this significant increase in resources?

    There are three patterns that define fiscal management in the last five years.

    Firstly, after the 7th NFC Award, provinces were flush with money but had little capacity to spend. As a result, almost all provincial governments started having cash surpluses. The then chief minister of Punjab was quick to realise this opportunity and adopted a new model to put this money to use. Scores of Section 42 companies undertook mega projects in energy, roads, municipal services and mass transit. The model was so effective in utilising funds that soon its appetite for resources far outstripped the resource inflow. The annual development programme that was merely Rs150 billion 10 years ago, grew more than four times to a whopping Rs635 billion by 2017-18. Much of this increase was financed by stretching all possible sources and diverting all funds towards priority projects.

    The last government’s infrastructure-led strategy overshadowed almost all other aspects of development. Looking at the last five years’ development allocations for education, health, sports, environment and infrastructure, it becomes clear that 66% of allocations went to infrastructure as opposed to 19 and 13% for education and health, respectively. Higher budget utilisation further enhanced its share to almost 70%.

    The second pattern was ballooning of commercial debt owing to large-scale commodity operations, riddled with corruption and leakages, to finance inefficient wheat subsidies. Debt for commodity operations grew from almost nothing to Rs446 billion in 2017-18. A research paper by Ahsan Rana shows that last year, the bank mark-up alone accounted for more than 70% of the cost of wheat procurement in Punjab with almost no benefit directly passed on to small farmers.

    The third pattern is the tremendous growth in public spending, outpacing GDP growth. Government spending grew by 15% while the development spending grew by 25% every year, during the last five years, as opposed to average GDP growth of 4-5%. Expenditure on pensions rose by 23% a year since 2013. Ironically this growth does not reflect the impact of 460,000 employees who were regularised at the very end of the last government’s tenure.

    These figures depict an expansionary fiscal policy, whose effects are going to last much longer. Increases in recurrent spending are hard to reverse, whereas development spending is likely to create new recurrent costs and a permanent drag on the budget for future years. Such drag could come in the form of subsidies for mass transit projects, interest payments and salaries and maintenance costs for new facilities.

    These issues all put together have created immediate financial distress for the provincial government. And with the IMF looking for a possible reduction in provincial share in the NFC, the challenge can get compounded, with hardly any money left for new development.

    With a modest budget, the provincial government may possibly avert this crisis. But a course correction is in order to keep a check on government’s size, reprioritising Punjab’s resource allocation, doing away with commodity operations and mobilising private financing for infrastructure through public-private partnerships. Most importantly, if the government wants to move away from the model of mega projects, it should start investing in local governments’ capacity to use them as vehicles for local spending.

    Published in The Express Tribune, October 16th, 2018.

    • This topic was modified 54 years, 3 months ago by .
    Zed
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    #2
    After the NFC awards, Punjab recieved huge supply of funds. Instead of bringing about a comprehensive local bodies system and alocating funds to them subsequently, Showbaz decided to start mega infrastructure projects which utilized all the funds quickly while ignoring other sectors i.e. health and education.

    If a comprehensive local government system was brought in place and surplus funds were allocated to them, condition of people of Punjab would be much different. Showbaz is decision to spend funds on flashy infrastructure project led Punjab to the brink of bankruptcy.

    GeoG
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    #3
    After the NFC awards, Punjab recieved huge supply of funds. Instead of bringing about a comprehensive local bodies system and alocating funds to them subsequently, Showbaz decided to start mega infrastructure projects which utilized all the funds quickly while ignoring other sectors i.e. health and education. If a comprehensive local government system was brought in place and surplus funds were allocated to them, condition of people of Punjab would be much different. Showbaz is decision to spend funds on flashy infrastructure project led Punjab to the brink of bankruptcy.

    Did you do that in KP that you are demanding in Punjab.

    If he was doing flashy projects, why did you copy in KP? where you claimed you would make it in 8 Billion but when actual costing was done it was 50+ Billion and now 80+ Billion, look in the mirror and then criticise others 

    Noon had somehow given financial stability and you have totally f… it up and this is not me but your own beloved candidate in NA131 saying since yesterday, convince him first and then come on the forum to convince others.

    جمہور پسند
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    #4
    پاکستان شروع سے فسکل مس کا شکار ہے ، شہباز شریف نے بھی اپنا حصہ ڈالا ہو گا اس میں کوئی شک نہیں

    غریب آدمی جب ہاتھی پالتا ہے ، تو اس کے گھر میں فاقے ہونا کوئی نئی بات نہیں ، تو تو میں میں بھی چلتی رہتی ہے

    Zed
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    #5
    GeoG

    Did you even read the article or is this a knee jerk reaction to the truth exposed? First of all as the article mentions, Punjab was insurplus 10 years ago and at the end of Showbaz’s last govt, Punjab is into a 1.1 trillion debt. how did your manage to blame this onto a 60 days old PTI govt???

    This thread is for financial mismanagement in Punjab, if you want to discuss Peshawar metro than open a thread and we’ll discuss it there, dont try to derail this thread iif you can’t defend Showbaz’s incompetence.

    • This reply was modified 54 years, 3 months ago by .
    جمہور پسند
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    بینک آپ پنجاب کو کب لوٹا گیا ؟…بقول خان صاحب پنجاب کے سب سے بڑے ڈاکو پرویز الہی کے دور میں …اس وقت کے تیرہ ارب آج کے چھبیس ارب کے برابر تو ہوں گے

    Bank of Punjab scam swells to Rs13 billion
    July 31, 2008

    LAHORE Another Rs4 billion have been found embezzled in the Bank of Punjab fraud, raising the total volume of the ‘biggest ever’ financial scam in Pakistan to Rs13 billion or $180.6 million

    https://www.dawn.com/news/897270

    GeoG Did you even read the article or is this a knee jerk reaction to the truth exposed? First of all as the article mentions, Punjab was insurplus 10 years ago and at the end of Showbaz’s last govt, Punjab is into a 1.1 trillion debt. how did your manage to blame this onto a 60 days old PTI govt??? This thread is for financial mismanagement in Punjab, if you want to discuss Peshawar metro than open a thread and we’ll discuss it there, dont try to derail this thread iif you can’t defend Showbaz’s incompetence.
    اَتھرا
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    پاکستان شروع سے فسکل مس کا شکار ہے ، شہباز شریف نے بھی اپنا حصہ ڈالا ہو گا اس میں کوئی شک نہیں غریب آدمی جب ہاتھی پالتا ہے ، تو اس کے گھر میں فاقے ہونا کوئی نئی بات نہیں ، تو تو میں میں بھی چلتی رہتی ہے

    اگر اس جملے کو اس طرح لکھ دیا جائے تو زیادہ لطف نہیں دے گا؟

    پاکستان شروع سے مس فسکل کا شکار تھا، جبکہ شریفوں کی صورت بیگم فسکل کا شکار ہو گیا

    :bigsmile: :bigsmile:

    Kaka
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    #8
    Ex Finance Minister Miftah Ismail give general comments about PTI’s (mis)management of economy, his comments are somewhat also relevant to this thread:

    “PTI makes a mistake by talking our economy down. They have forced investors to lose confidence. They give exaggerated debt figures, etc. Exports after being down for 3 years grew 13% last year. There are problems and a way to solve them and inducing panic is not the way. Best.”

    With clueless and immature govt in control after years of institutional wrangling, everyone please fasten your seat belts as very difficult times ahead.

    Kaka
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    #9
    Those who are lecturing about high debt today, needs to wait for only one year, when PTI govt will break all the previous record of increase in debts.
    Awan
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    #10
    Everything in this world is relative so a comparison in real world is always required. If Punjab government was in surplus so was KPK; KPK government also have a loan of 50 Billion. If metro in Punjab is wrong then same goes to Peshawar metro. If motorways in Punjab are wrong then same goes to Swat motorway. Time is money, Lahore metro was completed in 30 Billions in 11 months Peshawar metro is in progress for years and cost has increased to 70 Billion.

    Even in west, when economy in recession; government immediately start spending on infrastructure project to help run economy and to provide jobs to people. As far as Punjab’s education is concerned, 10,000 school from government sector were shifted to public private partnership. This was based on the results on a pilot project showing tremendous improvement in attendance and results. World bank recommended this system to all developing nations based on the success it achieved. More than 30 new universities were opened in Punjab alone. Although I am not satisfied in health sector improvement but several new hospitals with a lot of upgradation still answers some questions. Before questioning Shahbaz Sharif incompetency ask Pervaiz Khattak who’s infrastructure projects including metro & motorway are in delay for years. Who criticize PML(N) on health neglect has not built a single hospital in KPK. Let us see what new government in Punjab achieves; I am sure they are far far away from the brilliancy of Shahbaz.

    Zed

    • This reply was modified 54 years, 3 months ago by .
    shami11
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    #11
    شہباز شریف کی بے گناہی کا اس سے بڑا کیا ثبوت ہو گا اب تو الماس بوبی بھی شہباز شریف کے لئے بول اٹھی ہے

    :bhangra: :bhangra:   :bhangra:

    Zed
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    #12
    Awan

    Janab,

    Like I said before let’s open a thread on KPK financial performance and discuss it there. This thread is about Punjab, especially last 10 years of Showbaz performance. I would like to point out that Shahbaz enjoyed a free hand in last 10 years where as PTI was in a very weak coalition government in KPK along with a hostile PMLn govt in centre and keep in mind Kpk was worst hit by terrorists. So your argument that KPk should be judged by the same criteria as Punjab is a bit disengenuous. But I would love to discuss PTI’S performance in a KPK separate thread.

    So now to your points, Showbaz spend 100 billion from teachers pension fund, it’ completely empty now, this alone is financial corruption and he will have to answer for that.

    In 2015, pmln government  transfered 88 billion from 2005 Earthquake rehabilitation program to Lahore. This was done for Showbaz, he plundered them on his wasteful schemes. Following are schemes that were started by Showbaz which failed miserably.

    Peeli Taxi

    Danish Schools

    Laptop scheme

    Ashiana housing

    Sasti Roti

    Saaf Paani

    Multan Metro

    I totally support Pindi Metro and Lahore Metro as its heavily used by public. If spending 50 billion on metro and than plunging the province in 1.1 trillion is good management than God help us.

    Shahbaz and Shahbaz Sharif alone controlled such massive amount of funds in Punjab. What has he achieved? A metro in Pindi and Lahore, that’s it…!

    Why didn’t PMLN bring about local government system? Why doesn’t PMLN want democracy at local levels of government? Why does PMLN prefer centralized power structure? This strategy of Pmln leads to massive corruption and projects that only benefit certain parts of the province i.e. Lahore. Now that Showbaz is under scrutiny, pmln is calling foul, first get your house in order.

    • This reply was modified 54 years, 3 months ago by .
    Zed
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    #13
    بینک آپ پنجاب کو کب لوٹا گیا ؟…بقول خان صاحب پنجاب کے سب سے بڑے ڈاکو پرویز الہی کے دور میں …اس وقت کے تیرہ ارب آج کے چھبیس ارب کے برابر تو ہوں گے Bank of Punjab scam swells to Rs13 billion July 31, 2008 LAHORE Another Rs4 billion have been found embezzled in the Bank of Punjab fraud, raising the total volume of the ‘biggest ever’ financial scam in Pakistan to Rs13 billion or $180.6 million https://www.dawn.com/news/897270

    Hazrat,

    Bank of Punjab scandal was before the NFC award to provinces. Punjab recieved a surplus after this scandal. Keep in mind, for comparison Showbaz emptied out 100 billion from pension fund alone. So, this is a tricky issue for Pmln because in my opinion Pervaiz Elahi was a much better CM than Showbaz and this is based on his financial performance.

    • This reply was modified 54 years, 3 months ago by .
    جمہور پسند
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    یہ سکینڈل تو ٩/ ٢٠٠٨ میں سامنے آیا جب پرویز الہی کی حکومت چلی گئی تھی ….. تو سرپلس کیسے حاصل کیا پرویز الہی نے اس کے بعد ؟

    Hazrat, Bank of Punjab scandal was before the NFC award to provinces. Punjab recieved a surplus after this scandal. Keep in mind, for comparison Showbaz emptied out 100 billion from pension fund alone. So, this is a tricky issue for Pmln because in my opinion Pervaiz Elahi was a much better CM than Showbaz and this is based on his financial performance.
    Awan
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    #15
    Awan Janab, Like I said before let’s open a thread on KPK financial performance and discuss it there. This thread is about Punjab, especially last 10 years of Showbaz performance. I would like to point out that Shahbaz enjoyed a free hand in last 10 years where as PTI was in a very weak coalition government in KPK along with a hostile PMLn govt in centre and keep in mind Kpk was worst hit by terrorists. So your argument that KPk should be judged by the same criteria as Punjab is a bit disengenuous. But I would love to discuss PTI’S performance in a KPK separate thread. So now to your points, Showbaz spend 100 billion from teachers pension fund, it’ completely empty now, this alone is financial corruption and he will have to answer for that. In 2015, pmln government transfered 88 billion from 2005 Earthquake rehabilitation program to Lahore. This was done for Showbaz, he plundered them on his wasteful schemes. Following are schemes that were started by Showbaz which failed miserably. Peeli Taxi Danish Schools Laptop scheme Ashiana housing Sasti Roti Saaf Paani Multan Metro I totally support Pindi Metro and Lahore Metro as its heavily used by public. If spending 50 billion on metro and than plunging the province in 1.1 trillion is good management than God help us. Shahbaz and Shahbaz Sharif alone controlled such massive amount of funds in Punjab. What has he achieved? A metro in Pindi and Lahore, that’s it…! Why didn’t PMLN bring about local government system? Why doesn’t PMLN want democracy at local levels of government? Why does PMLN prefer centralized power structure? This strategy of Pmln leads to massive corruption and projects that only benefit certain parts of the province i.e. Lahore. Now that Showbaz is under scrutiny, pmln is calling foul, first get your house in order.

    Multan and Peshawar are about the same size in population; if Multan metro is wrong then how Peshawar metro is right. Shahbaz Sharif by-passed some of time wasting procedures and the result was Lahore metro built in 11 months and 30 Billions. PTI claimed that they will built Peshawar metro in less than 30 Billions but due to delay in project cost has increased now to 70 Billions and out of which 50 Billion is loan. How can you call lap top scheme wastage? If qualified students gets free laptop why it is wrong. Please note that these laptop went to education institutions and were distributed by institution head based on positions. Is not it a reward to position holders to get a laptop. Why Danish Schools were bad? It was a kind of scholarship to poor kids to get education expenses covered by government. Peeli taxi was also to boost jobs market for poor people; although it was not executed well in nineties. Sasti Roti idea was given by Imran Khan for which later on he has also said that his idea was stolen by Shahbaz Sharif.  Ashiana Hosing was on planning and approval stages and not a single penny was spent. If Ashiana Scheme is wrong so is new government’s 5 million houses. Why Saaf pani project is not required; majority of diseases are due to impurities in water. PML(N) was against local government because big chunk of money distributed to too many people will make it impossible to construct mega projects. KPK announced that they will distribute 30% of provincial budget to local government which consist of 43,000 local government representatives. Where is that money is now ? Councilors don’t have capability to execute big projects. I am not against local government but in favour of giving them 30% budget. We may start as low as 10% and gradually increase once system is improved. Punjab’s list of development work is huge; entire Punjab is linked to motorway system. There are roads from farm to market. Subsidy to farmers. There were power projects by Punjab government alone. There are safe City and waste management projects. There was a full list of all projects posted with map; I will try to find that and will post that. It is better to make a comparison on this thread to both governments. Last three years Law & Order is good in KPK; this is a lame excuse not to deliver due to circumstances in KPK. What KPK has done for law & order; it is all due to military operation and KPK has not spend any money on it. All expenses of military operation was provided by federal government.

    جمہور پسند
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    صاحب ایک غریب ملک کے ایک شہر میں میٹرو بس موجود ہو تو ادھر اورینج لائن کی کیا ضرورت ؟… اور لاہور میں ٹرانسپورٹ پر ڈبل سبسڈی …مطلب میٹرو پر بھی سبسڈی اور اورنج لائن پر بھی …بہتر نہ ہوتا اورنج لائن کوئی نجی کمپنی بناتی ، اپنا پیسا لگاتی اور اپنا منافع …..حکومت کو الٹا ٹیکس دیتی …

    Multan and Peshawar are about the same size in population; if Multan metro is wrong then how Peshawar metro is right. Shahbaz Sharif by-passed some of time wasting procedures and the result was Lahore metro built in 11 months and 30 Billions. PTI claimed that they will built Peshawar metro in less than 30 Billions but due to delay in project cost has increased now to 70 Billions and out of which 50 Billion is loan. How can you call lap top scheme wastage? If qualified students gets free laptop why it is wrong. Please note that these laptop went to education institutions and were distributed by institution head based on positions. Is not it a reward to position holders to get a laptop. Why Danish Schools were bad? It was a kind of scholarship to poor kids to get education expenses covered by government. Peeli taxi was also to boost jobs market for poor people; although it was not executed well in nineties. Sasti Roti idea was given by Imran Khan for which later on he has also said that his idea was stolen by Shahbaz Sharif. Ashiana Hosing was on planning and approval stages and not a single penny was spent. If Ashiana Scheme is wrong so is new government’s 5 million houses. Why Saaf pani project is not required; majority of diseases are due to impurities in water. PML(N) was against local government because big chunk of money distributed to too many people will make it impossible to construct mega projects. KPK announced that they will distribute 30% of provincial budget to local government which consist of 43,000 local government representatives. Where is that money is now ? Councilors don’t have capability to execute big projects. I am not against local government but in favour of giving them 30% budget. We may start as low as 10% and gradually increase once system is improved. Punjab’s list of development work is huge; entire Punjab is linked to motorway system. There are roads from farm to market. Subsidy to farmers. There were power projects by Punjab government alone. There are safe City and waste management projects. There was a full list of all projects posted with map; I will try to find that and will post that. It is better to make a comparison on this thread to both governments. Last three years Law & Order is good in KPK; this is a lame excuse not to deliver due to circumstances in KPK. What KPK has done for law & order; it is all due to military operation and KPK has not spend any money on it. All expenses of military operation was provided by federal government.
    shahidabassi
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    #17
    Everything in this world is relative so a comparison in real world is always required. If Punjab government was in surplus so was KPK; KPK government also have a loan of 50 Billion. If metro in Punjab is wrong then same goes to Peshawar metro. If motorways in Punjab are wrong then same goes to Swat motorway. Time is money, Lahore metro was completed in 30 Billions in 11 months Peshawar metro is in progress for years and cost has increased to 70 Billion. Even in west, when economy in recession; government immediately start spending on infrastructure project to help run economy and to provide jobs to people. As far as Punjab’s education is concerned, 10,000 school from government sector were shifted to public private partnership. This was based on the results on a pilot project showing tremendous improvement in attendance and results. World bank recommended this system to all developing nations based on the success it achieved. More than 30 new universities were opened in Punjab alone. Although I am not satisfied in health sector improvement but several new hospitals with a lot of upgradation still answers some questions. Before questioning Shahbaz Sharif incompetency ask Pervaiz Khattak who’s infrastructure projects including metro & motorway are in delay for years. Who criticize PML(N) on health neglect has not built a single hospital in KPK. Let us see what new government in Punjab achieves; I am sure they are far far away from the brilliancy of Shahbaz. Zed

    اعوان میاں ملتان اور پشاور ایک ہی سائز کے شہر نہیں۔ پشاور صوبائی دارلخلافہ ہے اور یہاں باہر سے روزانہ ۲۰ لاکھ بندہ آتا ہے۔
    پشاور میٹرو کی قیمت بڑھنے اور لیٹ ہونے کی کہانی نونیوں نے تسبیع پر رٹ رکھی ہے، لیکن یہ تو بتاؤ اورنج لائن ٹریں ڈیڑھ سال لیٹ کیوں ہے اور اس کی قیمت ۱۶۵ ارب سے ۲۵۰ ارب کیسے ہوئی۔

    SaleemRaza
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    #18
    اعوان میاں ملتان اور پشاور ایک ہی سائز کے شہر نہیں۔ پشاور صوبائی دارلخلافہ ہے اور یہاں باہر سے روزانہ ۲۰ لاکھ بندہ آتا ہے۔ پشاور میٹرو کی قیمت بڑھنے اور لیٹ ہونے کی کہانی نونیوں نے تسبیع پر رٹ رکھی ہے، لیکن یہ تو بتاؤ اورنج لائن ٹریں ڈیڑھ سال لیٹ کیوں ہے اور اس کی قیمت ۱۶۵ ارب سے ۲۵۰ ارب کیسے ہوئی۔

    استاد جی

    اگر آپکو اورنج ٹرین اور پیسوں کا حساب  چایئے تو میں آج گلٹی بھائی کو کہتا ہوں کہہ وہ حساب کتاب والا رجسڑ  لے آئیں ۔۔۔اور سب کی تسلی کروائیں ۔

    :bigsmile:

    shahidabassi
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    #19
    استاد جی اگر آپکو اورنج ٹرین اور پیسوں کا حساب چایئے تو میں آج گلٹی بھائی کو کہتا ہوں کہہ وہ حساب کتاب والا رجسڑ لے آئیں ۔۔۔اور سب کی تسلی کروائیں ۔ :bigsmile:

    گلٹی کا پتہ کرو کہیں نیب نے پکڑ کر اندر نہ کر رکھا ہو کہ بھائی گلٹی بتاؤ مریم شریف شہزادی نے آپ کے پاس جو پیسہ رکھایا تھا وہ کہاں ہے

    :lol:

    Awan
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    #20
    اعوان میاں ملتان اور پشاور ایک ہی سائز کے شہر نہیں۔ پشاور صوبائی دارلخلافہ ہے اور یہاں باہر سے روزانہ ۲۰ لاکھ بندہ آتا ہے۔ پشاور میٹرو کی قیمت بڑھنے اور لیٹ ہونے کی کہانی نونیوں نے تسبیع پر رٹ رکھی ہے، لیکن یہ تو بتاؤ اورنج لائن ٹریں ڈیڑھ سال لیٹ کیوں ہے اور اس کی قیمت ۱۶۵ ارب سے ۲۵۰ ارب کیسے ہوئی۔

    پشاور کی آبادی 19 لاکھ 70 ہزار جبکے ملتان کی آبادی 18 کروڑ ستر لاکھ ہے دونوں میں کوئی خاص فرق نہیں ہے – کیا اورینج لائن کے لیٹ ہونے کی وجہ آپ کو محلو م نہیں ؟ 22 مہینے ایک بہت بڑے حصے پر ہائی کورٹ کے سٹے کی وجہ سے کام بند رہا اور اس سال شاید مارچ میں یہ پابندی اٹھی ہے – یہ نیچے لنک ڈان نیوز کا مضمون ہے جس پر نون کا کوئی کنٹرول نہیں ہے -یہ بھی یہی که رہا ہے کہ اصل لاگت 50 ارب سے بڑھ کر 68 ارب سے زیادہ ہو گیی ہے جس میں سے 49 ارب قرض ہے –

    https://www.dawn.com/news/1409834

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