ISLAMABAD: State-run Pakistan Television (PTV) has suffered billions of rupees in losses due to overspending in sports, programme production, and current affairs departments, forcing the state-run channel to introduce austerity measures to avoid financial collapse.
The media organisation is currently running through makeshift arrangements. In addition to the top post of the managing director, its key departments are also managed through ad-hoc appointments.
Due to overspending in multiple departments, the financial health of the state broadcaster “is dire” rendering it unable to pay the general provident (GP) and contributory provident (CP) funds.
According to the documents available with Dawn, during 2023-24 [the] PTV suffered a loss of almost Rs30 million whereas in 2022-23 the profit was almost Rs870 million. A report on the PTV’s financial health warned that “the loss will increase alarmingly”.
State-run outlet introduces austerity measures to avoid financial collapse; Rs30m losses posted in FY24
It pointed out that the sports department of the PTV was making huge losses. The report said: “Management spent a huge amount on sports programmes, almost Rs4.65 billion up to May 2024 whereas budget was Rs3.5 billion. Hence there is an excess usage of Rs1.1 billion...”
It further said the management spent Rs615 million on programme production whereas the budget was Rs590 million. Regarding the losses in current affairs, the report disclosed that “the management spent a huge amount on current affairs programmes almost Rs478 million…whereas the budget was Rs322 million. Hence there is an excess usage of Rs156 million in [the] said head.”
As per the report, “[the] financial health of the organisation is dire, with a significant shortfall in funds to meet basic operational cost. The financial health is in a precarious state, with a high risk of insolvency and an urgent need for corrective measures.”
Owing to the poor financial health of the PTV, its acting managing director introduced austerity measures last month. The PTV management circulated the ‘economy measures’ among all PTV general managers across the country.
“Considering the financial constraint position of the organisation and to minimise the gap between cash in and out ratio, the managing director has advised following economy measures with immediate effect,” it had stated.
The state broadcaster banned capital procurement, renovation, fabrication, major repairs, purchase of tyres for vehicles, purchase of private programmes, and bulk purchase of stationery. It also banned overtime for non-operational staff beyond 60 hours.
The acting MD also imposed a “complete ban on new appointments/hiring of anchors, researchers, entertainment, refreshments, official lunch, dinners, honorarium, and cash incentives”.
It may be mentioned that there is no permanent managing director at the PTV after Amer Manzoor was forced to resign. The state-owned broadcaster is being run by the information ministry through its additional secretaries.
In response to an earlier plea, Islamabad High Court Justice Mohsin Akhtar Kayani had directed the information ministry to appoint a regular managing director. During a hearing on July 18, Justice Kayani was told that after the enactment of the State-Owned Enterprises (Governance and Operations) Act 2023, the board of directors had to be appointed under the said new law, which was in the works. In a subsequent hearing, the secretary information informed the court that the process would take two to three months to finalise.
According to sources in the state-run TV, the PTV is being run through makeshift arrangements, which has turned the profit-making entity into a loss-making organisation and it is unable to pay the GP funds and CP funds to the retired employees.
When contacted, acting MD PTV Syed Mubashir Tauqir Shah termed the reports about the PTV as ‘malicious propaganda’. When asked about the report related to financial health, he replied that he was not privy to any such document.
Published in Dawn, October 1st, 2024
