IDEAS was funded from Export Development Fund (EDF) for the first time in 2002, since then Rs 380.425 million has been extended to Ministry of Defence Production against the requested amount of Rs 757.125 million.
IDEAS 2010 could not be organised due to floods, therefore, the approved amount of Rs 60 million could not be released in 2010. However, the same amount was released for IDEAS 2012.
Ministry of Defence Production had sent a request for Rs 130 million for IDEAS 2014 which was considered by the EDF Board in its 66th meeting held on October 3, 3014 and unanimously approved 50 per cent of Rs 130 million ie Rs 65 million as subsidy for IDEAS 2014 due to shortage of time. The Board further decided that DEPO would obtain subsidy from Ministry of Finance through Ministry of Defence Production. It was also decided that no subsidy shall be given to DEPO in future.
A meeting was held between Minister for Commerce and Minister for Defence Production on September 28, 2015 on subsidy for "IDEAS 2016". In the meeting, it was desired by the Minister for Commerce that MoDP initiate the subsidy case through the Ministry of Commerce for further processing with Ministry of Finance to obtain a separate budget for IDEAS. The MoDP initiated a note which was duly supported by MoC for consideration of Ministry of Finance. However, Finance Ministry turned down the request of MoDP.
According to sources, DEPO again requested EDB Board for allocation of funds for IDEAs and an "outstanding" amount (requested by DEPO but not approved by EDF Board) for the past two events ie IDEAS 2012 and 2014. The EDB Board in its 72nd meeting held on June 21, 2016 turned down the request of "remaining amount" and unanimously observed the following: (i) there is no concept of outstanding claims or arrears against the Board for requests which were not approved. In a similar case EDB''''s request for providing additional funds for Hanover Messes 2016 was not approved though it was acknowledged that EDB had done a good job in organizing the event; (ii) the disagreement on source of funding for IDEAS notwithstanding the Board acknowledged the importance of the event for promotion of defence experts; and (ii) the event should become self-supporting especially after a lapse of 16 years.
The Board approved financial support for IDEAS 2016 of Rs 70 million as a gesture of goodwill for Pakistani defence-related manufacturers and as an exceptional case for that year only. The event must become self-financing or find alternative sources of funding instead of perpetually looking towards EDF.
The sources said EDF secretariat issued sanction of the approved amount of Rs 70 million to TDAP on August 26, 2016 for disbursement to DEPO. In the 73rd meeting of EDF Board held on October 6, 2016, TDAP informed the Board that it intends to deduct Rs 18.36 million from approved amount of Rs 70 million on account of liability on the part of DEPO. The Board allowed TDAP to deduct the outstanding amount of Rs 18.36 million. TDAP released the balance amount of Rs 51.640 million on October 18, 2016.
In November 2016, Ministry of Defence Production sent a request that funds released so far were absolutely inadequate and it would be impossible for DEPO to arrange the forthcoming mega event. Therefore, at least Rs 100 million should be released.
However, when this proposal was tabled before the Board on December 12, 2016, the Board members'''' expressed astonishment that DEPO was against requesting the "balance amount" though the Board had turned down the request with unambiguous observation that there was no concept of outstanding claims or arrears against the Board for the request which were not approved. The members also observed that "unambiguous support of Government to DEPO" was being misconstrued as "support from EDF to DEPO".
The Board expressed concerns at DEPO''''s persistent reliance of EDF funds for IDEAS and its failure to raise finances from alternate sources despite the EDF Board''''s unequivocal observations that no more funds would be provided from EDF. The Board expressed willingness to revise its earlier decision of providing no more funding for IDEAS.
The Chairman informed the Board that the Minister for Defence Production had called on him and requested additional funds of Rs 70 million for IDEAS 2016 for the last time with the promise that no more requests would be made to EDF for IDEAs events in future.
After detailed deliberations, the Board unanimously approved Rs 70 million for the last time for any IDEAS event and subject to undertaking in writing by Ministry of Defence Production that it will not approach EDF Board for financial support in future"
The sources said, the decision of the Board was communicated to DEPO but it did not submit the undertaking and the approved Rs 70 million has not been released.
Now, DEPO has sent the following recommendations: (i) outstanding balance amount of Rs 311 million on account of subsidy for IDEAS 2012. 2014 and 2016 be settled on priority; (ii) unjustified deduction of Rs 18.36 million from approved Rs 70 million for IDEAS-2016 be reimbursed; and (iii) conditional approval of Rs 70 million for IDEAS-2016 be reviewed and amount be approved without any condition.
The Secretary EDB Board submitted the DEPO proposals to the Board with following clarifications: (i) the request has been rejected by the Board multiple times; (ii) the deduction was justified and action was taken by TDAP with the approval of EDF Board: and (iii) it shows DEPO desires to continue the practice of obtaining large chunk of funds from EDF for future IDEAS events instead of making the event self sustaining at least if not profitable.
After detailed discussion, the Board in its meeting held a couple of weeks ago did not approve the proposal of DEPO.