LAHORE: The Punjab government says that it will stop releasing monthly salaries to managing directors (MDs) of Water and Sanitation Agencies (Wasas) if they fail to improve bill recoveries from defaulters in Lahore, Multan, Gujranwala, Rawalpindi and Faisalabad. It also desires to make Wasa strong and autonomous corporate sector entities that could sustain without financial help of the government.

“We want such important civic organisations to work independently without seeking any sort of financial help from the government. Wasa can become strong financially if their MDs work hard by creating and generating resources and improve recovery from the defaulters to maximum extent,” Provincial Secretary for Housing, Urban Development and Public Health engineering Department Dr Zafar Nasrullah Khan told Dawn on Tuesday.

“If they improve recovery from defaulters, there is no issue. If they fail to do so, we will stop their salaries,” he warned.

For the last four months or so, Wasa has been facing financial issues, especially after the government stopped their subsidies and increased tariff (Rs13 per unit to Rs21) of hundreds of tube wells’ connections. The situation has reportedly worsened since the agency is currently facing severe hardships in the payment of millions of rupees monthly bills to their respective power distribution companies (Discos), including Lahore and Faisalabad electric supply companies. It, on the other hand, did not allow them to increase water use tariff for domestic, commercial and industrial consumers.

Dr Khan says that Wasa will have to be a self-relying organisation, failing which they would continue to be in severe financial pressure all the time. “Actually, subsidies have spoiled these organisations,” he said, adding that the government may think to release subsidies subject to the availability of funds.

“Probably they (the government) release it partially in the future. But one thing is very clear that we have to make Wasa self-relaying organisations that don’t need subsidies from the government.”

Since 2013 to 2018, the Punjab government released subsidies to all Wasa stations for not increasing water supply and sanitation charges and some other relief related to the operational cost. In the same period, the agency also requested the PML-N, caretaker and Pakistan Tehreek-i-Insaf governments to allow them increase water and sewerage tariff but in vain.

At a time when Wasa was expecting increase in subsidies, the PTI government stopped subsidies, including Rs180 million monthly subsidy to the Lahore Wasa, and about Rs2.2 billion monthly aid to the Faisalabad Wasa.

The secretary said it would not be justice with the government if officials did not perform well.

“If the government supplies electricity, water, gas and other facilities, the consumers must pay their bills regularly. And if they don’t pay, it is, then, duty of the organisation heads to ensure 100 per cent recovery from them,” Dr Khan said.

Lesco and Fesco have already changed tariff category for tubewells’ connection that led to increase in the per unit price from Rs13 to Rs21.

According to officials, Wasa-owned tube wells were previously being billed under B-2 category that is allowed for the industrial connections alone. This category gets Rs3 per unit relief in bills under the Prime Minister’s Support Programme for the industry. Since the tube wells installed and operated by Wasas do not fall under industry, Discos changed the category for such connections and started billing them under another category.

“We will ensure a smooth water and sanitation operation in summer despite hardships,” the secretary maintained.

Published in Dawn, April 10th, 2019