LAHORE, March 14: The Punjab government is considering to wind up the Punjab Health Foundation for failing to perform its required functions.

The government believes that the foundation was supposed to perform eight core functions since its inception in 1992, but it could perform only two functions and they, too, not to the satisfaction of the authorities concerned.

The PHF officials, however, claim that the government is making its mind to abolish the foundation without considering the ground realities. Admitting that the foundation was supposed to perform eight functions, they say, the foundation was also promised to be funded from five different sources. But, at least four such sources always remained dry.

At a briefing only a few days ago, the governor had criticized the poor performance of the foundation.

PHF managing director Anwaar Ahmad Khan had reportedly responded that the foundation was offering loans from within its limited resources. The existing resources, he said, did not allow the PHF to extend loans to more than five applicants a month. “The foundation can offer a maximum number of loans, if its financial base is expanded,” he maintained.

The PHF was established in November, 1992, under the Punjab Health Foundation Act, 1992, to “take all measures which it deems necessary for the promotion, development and financing of health services in the private sector”.

According to the act, the foundation was supposed to establish or cause to be established health institutions and allied projects; give grants to health institutions operating on a non-commercial basis for the purchase of equipment, furniture and for other allied projects; give loans to health institutions; provide loans to doctors for opening clinics; assist health institutions and doctors in getting loans from scheduled banks and financial institutions; lease or sell plots or assist in getting plots and land from government, development authorities and housing agencies controlled by the government; assist the private sector for providing necessary facilities for population welfare programme; and raise loans and receive grants with the approval of the government.

With regard to provision of financial resources, the act said the PHF would set up a ‘Health Foundation Fund’ which would be fed by grants made by provincial and federal governments and local bodies; income from investments made by the foundation; donations and endowments; revolving funds placed by the government at the disposal of the foundation; and all other sums received by the foundation and income from other sources.

The foundation, however, could not take off till 1997 as it was neither funded nor activated after the change in 1993 of the IJI government that established it.

In 1997, then chief minister Shahbaz Sharif had announced a revolving fund of Rs500 million to make it operational. The government reportedly started injecting funds on instalments. No other source of funding had yet been explored.

The PHF invested the revolving fund in national savings schemes and started receiving 18 per cent profit to start offering loans to health institutions and doctors for opening clinics. At present, the PHF was getting an income of Rs6.6 million per month. Some Rs550,000 (eight per cent) was being spent on foundation’s administrative matters and staff salaries. The remaining Rs6 were being extended to doctors and health institutions as loan.

The money being refunded by the borrowers was being added to the revolving fund which had now increased to Rs480 million.

When contacted, PHF MD Anwaar Khan said the PHF had so far extended loans in two categories to the tune of Rs65.9 million, while Rs150 million loan cases had been approved and being staggered due to lack of resources.