Power for zero-rated sectors: MoF asked to arrange funds
- Commerce Ministry has requested to convey decision of the Minister for Finance and Revenue to Power Division to supply electricity at Rs 19.99/ kWh all-inclusive to five export oriented sectors from October 1, 2022 to June 2023
ISLAMABAD: Commerce Ministry has urged Finance Ministry to arrange requisite funds enabling Power Division to continue supply of electricity to five zero rated sectors at agreed rate of Rs 19.99/kWh all inclusive, to be applicable from October 1, 2022 to June 30, 2023.
On Friday, Commerce Ministry in a letter to Secretary Finance stated that a meeting was held on October 6, 2022 under the chairmanship of Minister for Finance and Revenue and participation from Minister for Commerce, Minister for Energy (Power Division), Coordinator to the Prime Minister on Commerce, Secretary Finance, Secretary Commerce, Secretary Power, Special Secretary Commerce, and representatives of Finance, Commerce and power divisions to discuss apprehension of five export oriented sectors at the discontinuity of regionally competitive electricity tariff in contrast to earlier commitments by the Government, making them internationally uncompetitive.
According to Commerce Ministry, after thorough deliberations, the Minister for Finance and Revenue announced that electricity will be continued to be provided to five export oriented sectors at regionally competitive tariff, i.e., Rs. 19.99 per kWh all-inclusive (instead of US cents) from October 1, 2022 to June 30, 2023.
Five zero-rated sectors’ concessional tariff issue to be resolved soon: MoC
Commerce Ministry has requested Finance Ministry to convey decision of the Minister for Finance and Revenue to Power Division to supply electricity at Rs 19.99/ kWh all-inclusive to five export oriented sectors from October 1, 2022 to June 2023 and provide requisite funds enabling Power Division to continue supply of electricity at agreed rates. Meanwhile, Commerce Ministry issued a notification on Friday with respect to supply of electricity to five export-oriented sectors at Rs 11.99/kWh from October 1, 2022 to June 30, 2023.
The Finance Ministry has to arrange Rs 90-100 billion as subsidy for the five sectors. Previously, Finance Ministry had opposed continuation of electricity supply at Cents 9 per unit to five zero rated sectors, saying that the government cannot give subsidy in violation of agreement with the IMF. Finance Ministry had obtained Prime Minister’s approval for discontinuation of subsidy.
Copyright Business Recorder, 2022
Comments
Comments are closed for this article.