Investor Presentaiton
Chapter II - Estimates of Receipts
Account No. II - Public Debt (Food Account): Food Account of the Province, commonly known as Account No. II, is also maintained with
the State Bank of Pakistan like Account No. I. However, the former account is meant exclusively for transactions relating to state trading in
food commodities by the Food Department.
mmm
Finances for Food Commodity
purchases raised through 'Cash
Credit Accommodation', carried
out by a Consortium of Banks
Wheat Grain procured directly
from farmers by the Food
Department with Financing from
Banking Consortia
食
Receipts from sale of wheat are
then deposited in Account No. II,
from where these are utilised to
retire the Consortia Loans
During FY2020-21, an amount of PKR 331.869 billion is estimated to be received for commodity operations compared to the amount of PKR
334.470 billion realized during FY2019-20.
Development Capital Receipts
The loans borrowed from multilateral donor agencies through the Federal Government for specific foreign-assisted development projects are
termed as Development Capital Receipts or Foreign Project Assistance. The estimated Receipts will be utilized for a number of
Development projects for which, a total of PKR 47.094 billion worth of loans for Development projects are expected to be realized during the
FY 2020-21 including 10 new projects (in pipeline) amounting to PKR 10.512 billion which are expected to be signed during next financial year
and disbursements of these new projects will be received from respective donors accordingly. The difference between the BE and RE for FY
2019-20, PKR 4.744 billion less disbursed, arose as work could not be executed due to COVID-19 and subsequent lockdowns.
The Provincial Government has taken up the issue with the Federal Government during various meetings at Secretarial as well as Ministerial
levels. The Chief Minister of Punjab has also requested the Prime Minister for his intervention. However, the settlement might take longer than
anticipated. It is, therefore, thought appropriate that these claims may not be budgeted as Receipts for the CFY as their reconciliation and
settlement may not actualize during FY 2019-20.
Moreover, at the start of FY19-20 claims of various Provincial Departments, pending with the Federal Government came to the tune of PKR
35.7 billion (excluding NHP)approximately PKR 55 Billion. However, this amount reached a total of PKR 85.39 billion after certain new claims
were identified during the year. Of this PKR 4.288 billion of PRA was settled and credited to Punjab, leaving a net claim of PKR 81.2 billion
(detail in table below) pending with the Federal Government. These claims, which if received, will create additional fiscal space in the
Development budget of the Province.
Details for pending claims are as below:
(PKR Billion)
Issues
Department
Amount
Reconciliation of Cross-Adjustments of Taxes
PRA
19.09
Federal share of Subsidy on Wheat Export
CDA share for operation of RWP-ISB Metro
Arrears of Lady Health Workers Programme
Food
9.96
Transport
2.43
Primary Health
13.79
Workers Welfare Board Fund
Labour & Human Resource
4.61
Payment of Mark-Up on 2.5 MMT of Federal Strategic Reserves of Wheat Claimed
Food
31.321
Total
81.2
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