Islamabad: The federal government has prepared a plan to make electricity cheaper by 6 rupees per unit and shared it with the IMF. And provincial governments will arrange funding of 2800 billion rupees.
In this, 1400 billion will be met by the federal government by cutting from the public sector development program, ending the subsidies given to some sectors in the budget, taking some commercial loans and withdrawing some money from the dividends (profits) of government institutions, while half of the remaining 1400 billion rupees will be paid by the four The provincial governments will deduct their share from the amount received under the National Finance Commission (NFC). But the government of Khyber Pakhtunkhwa has flatly refused to give its share from the NFC, the rest of the provinces have not yet responded. No. The Ministry of Finance is also refusing to take ownership of this project, but the Prime Minister’s Office is making strenuous efforts to make this project successful.
Under this project, by paying 2800 billion rupees, the inefficient power plants will be closed, contracts with IPPs will be terminated or their terms will be relaxed. In this regard, the federal government is in talks with the stakeholders. Sources say that the provinces are shying away from contributing to this project because the budgets of all the provinces except Khyber Pakhtunkhwa have already gone out of control. The second is that the entire benefit of this plan will go to the central government of Pakistan Muslim League (N).
The Express Tribune contacted Federal Minister for Energy Sardar Owais Leghari for information in this regard, but he was not available. However, the Ministry of Energy says that discussions with the Khyber Pakhtunkhwa government in this regard have so far been fruitless. Khyber Pakhtunkhwa government’s financial advisor Muzamil Aslam, when contacted, told The Express Tribune that his province is already the cheapest at Rs 6-7 per unit. By generating electricity, it is buying electricity for its residential and industrial customers for up to 70 rupees per unit. Planning to create a regulatory authority.
Electricity prices have become unbearable for Pakistani consumers as they are paying up to Rs 76 per unit. The federal government has given temporary relief of up to 51% to consumers up to 200 units but they will also have to pay in full by October. In Pakistan, the price of electricity per unit and consumer margin is 44 rupees, which the government wants to reduce to 38 rupees per unit. Consumers from 301 to 700 units are paying Rs 58 per unit including various taxes.
Consumers using more electricity have to buy electricity at Rs 64 per unit, while commercial consumers have to buy electricity at Rs 76 per unit. It wants to reduce the prices. In addition, some inefficient power plants will be paid in full and the contracts with them will be terminated.
Moreover, the local loans of some power plants will be paid and the circular debt of 2300 billion rupees will be removed. By reducing the profit of the government power plants, there will be scope to reduce the cost of electricity by 1.15 rupees per unit. If it succeeds in removing it, the price of electricity can be reduced by 2.83 rupees per unit. Despite all this, the problems of electricity line losses, theft and recovery of electricity subsidies will remain in place.
According to sources, when the government shared the poorly designed project with the IMF, it faced more questions than answers, as the success of the project depended on the cooperation of local power producers and provincial governments. The federal government has told the IMF that the Punjab government will give 699 billion rupees from its share, Sindh can also get 351 billion rupees, but the interesting thing is that the federal government will also get 231 billion rupees from Khyber Pakhtunkhwa. Hope to see you.
