Provinces unlikely to deliver promised Rs600bn to Centre

While the markup and dividend earnings of the federal government from the state-owned enterprises (SOEs) more than doubled in the first three quarters (July-March) of the current fiscal year, the provinces are unlikely to deliver the promised Rs600 billion cash surplus to the Centre if past trends are any indication. The government has collected about Rs227bn on account of markup from loans extended to the SOEs in the first nine months (July-March) compared to just Rs85bn a year ago, a rise of almost 170pc. Likewise, the dividend from government shareholding in various SOEs and privatised entities amounted to Rs64bn in July-March against Rs52bn last year, showing an increase of 23pc. The cumulative earnings — from both dividend and markup — in the nine months came in at about Rs291bn compared to just Rs137bn a year ago, showing an increase of 112pc.