State-run media incur losses
ISLAMABAD- The Public Accounts Committee (PAC) was informed that all the three state-run media/entertainment organisations, Associated Press of Pakistan (APP), Radio Pakistan and PTV, have recorded an accumulated loss of over Rs 1 billion mainly due to government’s strict control over their approach and policies.
Secretary Information Anwar Mahmood, who represented his ministry in the meeting when the committee took up audit reports pertaining the Ministry of Information, however, offered a strong defence to many objectionable points raised by the Auditor General of Pakistan. He said that there was a change in the approach and policies of the present government with regard to these media and entertainment organisations.
Managing-Director (MD) PTV Yousaf Mirza claimed that now the PTV was not running in losses. He could not satisfy the committee when the Finance Ministry pointed out that the Corporation still had to repay a loan of about half a billion rupees. The MD contested the figures saying the loan was only Rs 40 million and was being serviced regularly.
The PAC meeting was presided over by its chairman H U Beg. Earlier, the audit told the Committee that three state-run media organisations were running in losses and were mostly running on government grants. According to audit contention, the income of APP had decreased to Rs 90 million in 1998-99 from Rs 96 million whereas the expenditure was not reduced proportionately. The excess of expenditure over income was 119 per cent.
Other expenses also increased to Rs 1.4 million as on June 30, 1999 from Rs 0.6 million as on June 30, 1998, registering an increase of 129 per cent this is an abnormal increase, said the Audit.
The department concerned was of the view that due to its role to project and create awareness of government policies, plans and activities among the masses through national network, the agency role should not be viewed as a source of income. It was also claimed that APP’s own income had increased by Rs 0.33 million in 1998-99 as compared to 1997-98 and expenditure was also reduced.
The Audit also pointed out that subscription fee of Rs 14 million was recoverable from 98 parties and the PAC asked the concerned to expedite the process. Secretary Information Anwar Mahmood said now the role of APP was being changed by making it competitive and news worthy. He said there was no ban on APP to carry stories other than official proceedings. They were free to file stories about the opposition parties etc. He said the APP was still doing well.
The PAC also expressed concern over the disparity in the salary package of writers and the naib qasids who were drawing more money and asked the concerned to rationalise this difference.
The Audit pointed out that the Pakistan Broadcasting Corporation (PBC) was also running into losses and so far an accumulated loss of Rs 0.5 billion had been reported which is over 4 per cent of last correspondent year.
The audit was of the view that the income of PBC had risen due to increase in government subsidy by Rs 197 million, otherwise, the corporation had been sustaining losses. It was pointed out that the corporation still owes a loan of Rs 1.2 billion.
However, Secretary Information Anwar Mahmood was of the view that nowhere in the world the radio services were running in profit as the medium is quite different and the government had to give subsidies as it was like a public service.
He pointed out that it was not an unusual that the Radio was running on government grants. Moreover, Mahmood said, the government decision to end the radio licence fee had also played havoc with the income of the radio and now it was totally dependent on government grant and some advertisement business.
While replying to a question put by a PAC member about introduction of rightsizing and downsizing in the Radio, Mahmood said the PBC’s demand of manpower was 5,000 while only 3,000 were performing their duties, so this was not possible.
About the Pakistan Television Corporation (PTV), the Audit said that statement of income and expenditure for the year ended June 30, 2000, disclosed a loss of about Rs 400 million and the loss was also reported on PTV channel 2 and 3. Huge expenditure was incurred on operation and maintenance of these channels, which, according to Audit, needs to be controlled.
The PAC was told that the number of employees of PTV were also increased to 5,541 from 5,202 during the year 1999-2000. But, the PTV MD disputed this claim of sustaining losses saying since 1997 onward the corporation had been earning profit and this had been possible due to strict financial control over expenditure. It was pointed out that there was 40 per cent rise in profit before taxation.
The MD said the PTV had also identified the surplus staff and would be forming a policy to get rid of them. He said in some PTV sections the staff were surplus and in some others it were short and we were trying to balance the situation by sacking unnecessary and recruiting the required manpower.
The PAC also asked the PTV to get their dues from the government for the air time being given to official departments and other concerned and by that way try to improve its financial position. The Secretary Information also pointed out that to meet the modern demands of communication, a Rs 2 billion project was being launched from next financial year to import modern equipment to enable the PTV to compete with other private channels, which will soon be reaching the Pakistani audience.
The PAC also wanted to know from the PTV people that how would they manage the revenue situation when private channels with more liberal and pro-viewers policies would be eating up most of the advertisement business which is currently being exploited by the PTV due to its monopoly.
The PTV MD said the PTV would still have an edge and they were not foreseeing any significant loss on this count.
Source: The News
Date:6/9/2002
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