Flood victims: compensation instalment before June 30

The government has said that two equal instalments of Rs 20,000 would be distributed among the flood victims as compensation involving an amount of Rs 24 billion in the first instalment, prior to June 30, 2011.
Secretary Finance Dr Waqar Masood informed the meeting of Senate Standing Committee on Finance, chaired by Senator Ahmed Ali to review Finance Bill 2011-12 that the government has arranged Rs 48 billion to pay two equal instalments of Rs 20,000 to each family of flood victims, that is of the total compensation of Rs 100,000 announced for them after the devastating floods.
Waqar stated that one instalment of Rs 20,000 would be paid prior to the close of current fiscal year and the next instalment of 20,000 would be paid to them during the next fiscal year. Replying to a question about net hydel profit to the Khyber Pakhtoonkhwa province, he said that Rs 25 billion have been earmarked in the next budget for the purpose and Rs 35 billion have already been released to the provincial government in compliance with the decision of arbitration tribunal to clear Rs 110 billion due for the period from 1991 to 2005.
Waqar informed the committee that it was agreed during the 7th National Finance Commission (NFC) Award that Rs 110 billion would be paid to Khyber Pakhtoonkhwa in next four years. Of Rs 110 billion, Waqar said Rs 35 billion has already been paid and Rs 25 billion would be cleared in the next fiscal year. Remaining Rs 50 billion would be paid to the province in the subsequent two years, he added.
Federal Board of Revenue Chairman Salman Siddiq, who was Finance Secretary during the signing of 7th NFC Award in 2010, informed the committee about the agreement signed to constitute a committee headed by Secretary Water and Power with the representation from Khyber Pakhtoonkhwa to decide about the dues of remaining period from 2005 to 2010. The Senate body on finance recommended that the remaining dues on account of net hydel profit for the period from 2005 onwards should also be paid to KP.
Secretary Finance said that Rs 295 billion subsidy on power sector was given during the current fiscal year with the intent not to pass on to consumer entire 48 percent electricity tariff which independent analysts believe was piling largely due Planning Commission, Economic Reforms Units of the Finance Ministry and the Ministry of Water and Power to implement the reforms in power by improving efficiency in generation, distribution and recovery.
The officials of the National Highway Authority (NHA) also informed the committee that as to how a company submitted a fake bank guarantee of Rs 400 million against mobilisation advance. They also complained that the case was referred to the Federal Investigation Agency (FIA) which released the culprits and the case was forwarded to Pakistan Engineering Council (PEC) for blacklisting of the company but no action was taken against the company.