ISLAMABAD: The federal government has increased subsidy for power sector by a whopping 103.7 percent – from the revised estimates of 584 billion for 2023-24 to Rs 1.190 trillion for FY 2024-25.
Total subsidies increased by 28 percent – from the revised estimates of 1,071,000 billion rupees to 1,363, 412 billion in FY 2024-25.
In power sector, the amount of subsidy for Inter-Disco tariff differential has been increased to Rs 276 billion for 2024-25 from Rs 150 billion allocated for 2023-24 showing an increase of 54.36 per cent. Subsidy for tariff differential to agri tubewells in Balochistan will be Rs 9.5 billion in 2024-25 which is at the same level of FY 2023-24. And Rs 120 billion has been earmarked in the name of additional subsidy, but no details have been provided in budget documents.
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The government has budgeted Rs 65 billion for WAPDA/ PEPCO receivables – merged districts of KP, erstwhile FATA.
The government has earmarked Rs 108 billion for AJ&K TDS in 2024-25 against budgeted Rs 25 billion in 2023-24. For FATA subsidy arrears, an amount of Rs 86 billion has been earmarked.
An amount of Rs 48 billion has been earmarked under Pakistan Energy Revolving Fund (PERA), to make payment of Rs 4 billion every month to IPPs established under China Pakistan Economic Corridor (CPEC). The total arrears of Chinese IPPs have reached Rs 500 billion.
For K-Electric, the government has earmarked Rs 174 billion under the head of TDS for FY 2024-25against Rs 171 billion earmarked for 2023-24 whereas Rs 500 million have been allocated as subsidy for agriculture tubewells in Balochistan. For arrears of KE’s TDS an amount of Rs 88 billion has been estimated for 2024-25 against 127 billion in 2023-24.
The government has also allocated Rs 509 billion subsidy for 2024-25 under the head of lump sum provision for power subsidy against Rs 444.075 billion of 2023-24, of which Rs 215 billion will be meant for GPPS-equity against Rs 262.075 billion in 2023-24.
The government has earmarked Rs 18.400 billion as subsidy for petroleum for FY 2024-25 , against budgeted amount of Rs 50.60 billion in 2023-24, of which Rs 2.4 billion will be as shortfall in guaranteed throughout of PEPCO, Rs 6 billion payment of shortfall to Asia Petroleum and Rs 10 billion domestic consumers through SNGPL (RLNG).
For Passco, Rs 12 billion have been earmarked for wheat operation and wheat reserved stock during FY 2024-25, of which Rs 8 billion will be meant for wheat reserve stock and Rs 4 billion for cost differential for sale of wheat, against Rs 10 billion in 2023-24.
An amount of Rs 65 billion has been estimated for Utility Stores Corporation USC) operation during 2024-25 against actual allocation of Rs 35 billion for 2023-24, of this Rs 10 billion will be for Ramazan package, Rs 50 billion on account of PM package and arrears and Rs 5 billion for sugar subsidy arrears.
For production and supply of urea fertilizer (fertilizer plants) an amount of Rs 3 billion has been earmarked for 2024-25 against Rs 25 billion in 2023-24.
The amount of subsidy under the head of other subsidies has been earmarked at Rs 75.012 billion for 2024-25 against actual allocation of Rs 49.6 billion and revised allocation of Rs 366.4 billion.
Details of total amount of Rs 75.012 billion for other subsidies are as follows: (i) wheat to Gilgit Baltistan, Rs 15. 972 billion;(ii) subsidy on import of urea fertilizer, Rs 10 billion; (iii) subsidy on NAYA Pakistan Housing Society, Rs 1 billion; (iv) Mera Pakistan Mera Ghar Scheme (mark-up subsidy on housing finance scheme, Rs 21.080 billion;(v) mark-up subsidy and risk sharing scheme for farm mechanization/Kissan package, Rs 5 billion; (vi) refinance and credit guaranteed scheme (SME Asaan Finance) Rs 3.2 billion; (vii) subsidy for enhancing financing to SME sector Rs 2 billion; (viii) mark up subsidy to support phasing out of the SBP’s refinancing scheme, Rs 13.860 billion and; (ix) Metro Bus subsidy Rs 3 billion.
Copyright Business Recorder, 2024
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