KARACHI - Following the footprints of federal government, the Sindh government has decided to make deductions of Rs3.595 billion loans at source from autonomous bodies, financial and non-financial institutions, employees, District governments and private sector, officials told The Nation on Sunday. A senior official confirmed that the Provincial Cabinet, in its recent meeting has directed the Finance Department to make deductions at source of its loans, advanced to various autonomous bodies from time to time. Official said the actual recoveries of these loans remained negligible in the past, primarily due to their fragile financial position and large budgetary deficits. However, in view of their improving financial health in the recent years, the provincial government has decided to expedite the measures for at source deduction of these loans. According to details of loans, the total amount of Rs3.595 billion to be recovered in this fiscal 2008-09 against Rs2.211 billion of last fiscal 2007-08. Out of total loans of Rs3.595 billion, a liability of Rs2.486 billion rests on the District governments and Taluka/Town Municipal Administrations governments; a sum of Rs980 million remains to be recovered from non-financial institutions such as defunct Karachi Municipal Corporation, Karachi Water and Sewerage Board, Hyderabad Development Authority, Water and Sewerage Authority Hyderabad. Similarly an amount of Rs127 million has not yet been recovered from the government employees/servants. It was to be recovered in this fiscal 2008-09. The provincial government gives loans to its employees through their departments concerned, which have failed to recover them. Usually the government employees get loans in form of prescribed installments while the deductions are made from their monthly salaries. But according to the sources concerned, various departments had not been deducting loans from employees. The government also provides loans to the district governments to help them meet their expenditures and complete the developmental projects, an official said adding that neither the district governments have returned the loans nor has the provincial government bothered to make at source deductions from their share of funds in the past. The source said these loans were given to the district governments, non-financial and autonomous institutions and government employees against a marginal mark-up. The government, however, will continue its policy of giving to above mentioned institutions and employees new loans that would be recovered within the prescribed timeframe, a senior official said.