Power tariff: PML-N government ''laid landmine'' for PTI government: Ayub

08 May, 2019

Minister for Power Umar Ayub Khan on Tuesday said circular debt will be taken down from Rs 450 billion to Rs 293 billion in the current fiscal year, while it will eventually be eliminated by the end of fiscal year 2020. During a press conference, the minister affirmed that the government has initiated campaigns against theft and measures to curtail circular debt have already been taken.
He said 2.7 percent recoveries in line losses led to improvement in power sector recovery of Rs 61 billion. The minister said that effective campaign against power theft is in the progress and 27 FIRs have been lodged while more than 4,000 people including power sector employees were arrested. He said that there is no load shedding on 80 percent feeders. The minister explained that out of over Rs 806 billion circular debt, Rs 450 billion was accumulated in one year and in view of elections, measures were not taken on high loss feeders to reduce losses. He said that full power supply was provided to high loss feeders at a time when oil prices were increasing in the international market.
The PML-N government was collecting GST at 55 to 60 percent on oil products when oil prices were at $27 per barrel and now when the oil prices are going up, the opposition is making a hue and cry over sales tax rate.
He said that the then PML-N government "laid down landmine" for the next government by not implementing the tariff determined by the NEPRA during the last couple of years of its tenure. He said that against Rs 3.29 per unit tariff determined by the NEPRA during the PML-N government, the PTI government implemented only Rs 1.27 per unit.
He said that load management schedule for Ramazan was also shared with the federal cabinet and out of 8,783 feeders, only 60 feeders will face load shedding, adding the government wants to supply electricity even to these feeders but these feeders are unable to lift power.
He said that companies are directed not to carry out any load management during Sehr and Iftar hours even on high line losses feeders. He said that transmission constraints have been removed and 3,000MW additional electricity can be transmitted now.
He said that pre-paid electronic meters will be introduced and complete energy plan has been finalized, adding there is no extra installed capacity as claimed by the previous government. Previous government has left Rs 226 billion unfunded in the power sector for its successor. The minister said that capacity charges will be passed on to the consumers in instalments during the next two years.
Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan speaking on the occasion said that next budget will be public friendly and all allied parties will be taken into confidence before the next budget session of the Parliament.
Briefing media regarding decisions taken in federal cabinet meeting, the special assistant said the cabinet reviewed the issue of energy in depth and the Power Division was directed to ensure power supply during Sehr and Iftar during Ramazan.
She said that the summary of appointment of Syed Shabbar Zaidi as Chairman FBR was discussed in the cabinet.
The cabinet has given informal approval to the appointment of Syed Shabbar Zaidi as Chairman FBR. However, a formal summary would be circulated in cabinet for a formal approval, she added.
She said the cabinet ratified the ECC decisions of the previous meeting.
Awan said the cabinet was briefed by Education Minister Shafqat Mahmood regarding initiatives to bring 30,000 seminaries into mainstream. She said they will be linked with the ministry and act independently.
The education minister apprised the cabinet that a one-window registration of these seminaries as well as monitoring of their funding is important.
The Education Ministry will also support and give facilities to foreign students studying in these seminaries.
In addition, vocational training and capacity building of seminary students are also essential in order to give them an opportunity to earn living after graduation.
The cabinet ratified agreement on technical cooperation between Pakistan and Brazil. It also gave approval to annual report of SECP that will be presented to the cabinet.
The special assistant said cabinet also approved abolishing of allocation entertainment and gifts in ministries and public sector organisations. It granted approval for extension in acting charge of Chairman Export Processing Zone. The cabinet also decided that no additional charges will be granted after three months and all posts will be filled in all ministries and divisions according to the law and procedures.

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