ISLAMABAD: The government reduced the allocation for development projects by Rs100 billion during the current fiscal year because of financial problems, but it failed to utilise about Rs47 billion of an internationally-mandated fund collected from telecom companies for providing telecom facilities in rural areas, just because the prime minister did not find time to preside over a board meeting.
More than 500 small schemes designed for providing basic telecom services in more than 12,000 ‘un-served and under-served remote’ villages and small towns in over 85 tehsils have been stalled, and work on almost an equal number of schemes could not be taken up.
The government’s failure to make use of Rs37 billion Universal Service Fund (USF) for extending optic fibre and internet connectivity to remote areas provided an excuse to the telecom operators, including multinationals, to demand an end to contributions to the fund mandated under an agreement with the International Telecommunication Union (ITU). Another Rs10 billion of information and communication technology research and development fund (ICTRD) has also remained unused.Sources said the prime minister’s secretariat had cancelled a meeting of the board of directors of USF and ICTRD more than five times. This happened because the prime minister as minister in charge of informational technology is chairman of the board of directors. “The prime minister does not have time to chair a board meeting and repeated requests to delegate his powers to the information technology secretary have been turned down,” a senior official said.
The boards used to meet every six weeks, but since March 31 last year they have met only once when Sardar Aseff Ahmed Ali was briefly given the additional charge of minister for information technology that too could take decision on matters of salary of the relevant staff.
In the past, the information secretary as vice chairman of the boards has been presiding over the USF and ICTRD meetings that led to laying of about 3000 kilometres optic fibre in more than 33 tehsils, providing telecom connectivity to 3,500 villages.
In the process, the political government has missed an opportunity to complete small schemes in remote areas of Balochistan, Sindh, Khyber Pakhtunkhwa and Fata and secure political mileage that it could have gained through inaugurating such schemes. “Funds are there and schemes are ready but there is nobody to push them forward and take credit,” said a disgruntled officer in the ministry of information technology.
The funds are currently lying with banks, but attempts are afoot to amend laws for their diversion. Under the existing law, “the USF shall be utilised exclusively for providing access to telecom services to people in the un-served, underserved, rural and remote areas and other expenditure to be made and incurred by the federal government in managing USF”.
Many schemes for which the bidding process had been completed, but required changes because of financial issues could not be awarded since procurement rules require the USF schemes to be approved by its board.
Because of security situation and energy shortfall, the telecom operators had asked certain changes in existing contracts to subsidise power supply through USF but could not be cleared by the government in the absence of board approval. The schemes, particularly in Balochistan and Fata, have been stalled.
The sources said at least four leading companies were on record as having asked the government to stop collecting USF contributions for subsidising telecom access in less-developed areas under international obligations that envisage providing telecom and IT facilities to all citizens as a basic right.
“We propose that further collection of USF and R&D contribution may kindly be capped till the current funds are efficiently consumed,” said a joint letter sent to the ministry of information technology and telecom by Mobilink, Telenor, Warid and China Mobile.
The sources said that the USF, a company established under the Companies Ordinance on the suggestion of the World Bank and International Telecommunication Union, has not been able to award contracts for the launch of rural telecom services, broadband access, laying of optic fibre cables and multi-purpose community tele-centres in more than 6,000 villages since March last year.
Similar projects in about 3,000 villages could not be completed or put into operation because the USF board of directors failed to hold its meeting. In many cases, the bidding process has been completed but contracts could not be signed because of a legal authorisation that the board of directors have to issue.
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