QUETTA, Feb 6: The State Bank of Pakistan has deducted about Rs300 million on account of Balochistan government’s overdraft, despite federal government’s decision to defer its payment for six months.

It is learnt that the SBP deducted the amount because the federal finance ministry failed to convey the federal government’s decision to the SBP about the Rs17.5 billion overdraft.

“The State Bank deducted its monthly instalment on Feb 1 from the amount that the Balochistan government was to receive this month from Islamabad,” a senior Balochistan government official told Dawn. He said that the central bank had informed him that it had not received any instructions about the federal government’s decision.

The decision to defer the payment of the overdraft was taken in a meeting held in Islamabad last month.

Sources said the provincial government had been informed that it would receive a reduced share of revenue for February because the Federal Board of Revenue failed to meet its collection target because of a decline in production, badly hit by the power crisis across the country.

“Balochistan will get about Rs2.5 billion after deduction of loan and mark-up instalment and that will not be enough to pay provincial government’s bills.”

Balochistan Chief Minister Nawab Mohammad Aslam Raisani is reported to have informed the prime minister about the situation. — Saleem Shahid