BAFL 45.66 Increased By ▲ 0.56 (1.24%)
BIPL 20.08 Decreased By ▼ -0.17 (-0.84%)
BOP 5.34 Decreased By ▼ -0.06 (-1.11%)
CNERGY 4.54 Increased By ▲ 0.01 (0.22%)
DFML 16.01 Increased By ▲ 0.33 (2.1%)
DGKC 78.62 Increased By ▲ 5.74 (7.88%)
FABL 27.80 Increased By ▲ 0.65 (2.39%)
FCCL 18.86 Increased By ▲ 1.21 (6.86%)
FFL 8.96 Decreased By ▼ -0.13 (-1.43%)
GGL 12.85 Increased By ▲ 0.21 (1.66%)
HBL 111.54 Increased By ▲ 0.88 (0.8%)
HUBC 122.23 Increased By ▲ 0.71 (0.58%)
HUMNL 7.69 Increased By ▲ 0.34 (4.63%)
KEL 3.29 Increased By ▲ 0.06 (1.86%)
LOTCHEM 27.80 Increased By ▲ 0.48 (1.76%)
MLCF 42.36 Increased By ▲ 3.03 (7.7%)
OGDC 110.37 Increased By ▲ 2.37 (2.19%)
PAEL 18.97 Increased By ▲ 1.41 (8.03%)
PIBTL 5.46 No Change ▼ 0.00 (0%)
PIOC 114.91 Increased By ▲ 6.91 (6.4%)
PPL 94.72 Increased By ▲ 2.97 (3.24%)
PRL 25.32 Increased By ▲ 0.44 (1.77%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 64.32 Increased By ▲ 1.22 (1.93%)
SSGC 12.26 Increased By ▲ 0.37 (3.11%)
TELE 8.36 Increased By ▲ 0.17 (2.08%)
TPLP 13.35 Increased By ▲ 0.24 (1.83%)
TRG 83.84 Increased By ▲ 2.23 (2.73%)
UNITY 25.89 Increased By ▲ 0.14 (0.54%)
WTL 1.54 Increased By ▲ 0.02 (1.32%)
BR100 6,308 Increased By 126.6 (2.05%)
BR30 21,973 Increased By 434.1 (2.02%)
KSE100 61,691 Increased By 1160 (1.92%)
KSE30 20,555 Increased By 366.1 (1.81%)

ISLAMABAD: Finance Ministry is likely to deduct Rs 45.6 billion from Balochistan’s NFC (National Finance Commission) share against agriculture long-outstanding dues as Centre has already lost Rs 500 billion since 2015 under this account, well informed sources told Business Recorder.

At a recent meeting held in the Finance Ministry, under the chairmanship of Secretary Finance, Imdad Ullah Bosal, Additional Secretary, Power Division, Zafar Abbas noted that out of countrywide total of 1.5 million tube wells, 1.2 million were operated on diesel and no subsidy was involved.

However, 374,000 tube wells were operated on electricity which drew a substantial amount of subsidy from federal government.

Upcoming NFC: FD seeks proposals from ministries, provinces

According to him, during last financial year Rs 98 billion were allocated whereas Rs 80 billion has been allocated during CFY for this purpose.

“Agriculture being provincial subject, federal government may get out of this subsidy regime and Discos should charge full amount of electricity consumed to the tube well owners. lf any subsidy is needed Provincial Governments may consider it at its own level,” the sources quoted Additional Secretary Power Division as saying. The meeting was further informed that as a result of a Cabinet’s decision in 2015, federal government provided subsidy on electricity consumed by agricultural tube wells in Balochistan.

The federal government was following that decision in letter and spirit; however, the said decision was not being followed by the consumers (tube well owners) and provincial governments due to which the federal government had sustained a loss of Rs 500 billion, with no chance of recovery.

The source said, additional secretary Power proposed that the decision taken in 2015 was required to be reversed.

Secretary Finance Sindh, who was also present in the meeting said that collection of General Sales Tax (GST) on electricity consumption may be collected by the concerned Distribution Company (Disco), not by the provincial government.

Additional secretary Power Division, however, clarified that the matter under discussion was not about GST on electricity, but of subsidized electricity provided by the federal government to agricultural tube wells.

He mentioned that Power Division pending recoveries towards provincial governments accounted for Rs 134 billion and special Finance secretary KPK stated that he would inform the Agriculture department and Cabinet will take a decision on it.

Finance secretary Balochistan stated that the due amounts towards Balochistan government were still not reconciled with Quetta Electric Supply Company despite numerous sessions.

He proposed reconciliation of the payable amount through a third party. Power Division clarified that dues of QESCO towards Balochistan was a separate issue, and they were focusing only on the principal amount due on account of agricultural tube wells in Balochistan.

Secretary Finance advised additional secretary Power Division to talk to CEO Qesco for immediate reconciliation with Government of Balochistan, the sources continued.

Imdad Ullah Bosal recalled that the matter was discussed time and again in detail, however, it stood where it was 4 months ago. He informed the provincial government that if reconciliation was not done quickly, the government may consider deducting Rs 45.6 billion at source from NFC share.

Federal government has already launched anti-theft and recovery drive across the country and recovered Rs 50 billion so far.

Copyright Business Recorder, 2023


Comments are closed.

Agri dues: MoF may deduct Rs45.6bn from Balochistan’s NFC share

Pakistan’s trade deficit narrows 34% to $9.38bn in 5MFY24

KSE-100 conquers 61,000 after single-day gain of 1,160 points

COP28: UAE president announces $30bn fund to bridge climate finance gap

Israel resumes Gaza attacks as truce expires, heavy fighting reported

Inter-bank: rupee records 4th consecutive gain against US dollar

Open-market: rupee continues to strengthen against US dollar

PCB includes Salman Butt in selection panel, decision draws criticism

ECP refutes Babar Awan’s statement about KP’s seats being reduced

COP28: Caretaker PM Kakar arrives at Dubai Expo City

Supreme Court seeks govt reply on plea against expulsion of Afghans, says petitioner