FRIDAY APRIL 12: Power sector: Rs 20 billion to be arranged in 30 days: advisor

ISLAMABAD: Amid conflicting statements with respect to power sector, Advisor to Finance Ministry Rana Asad Amin said a meeting chaired by the Prime Minister decided that power sector would be provided Rs 20 billion but the amount would not be provided immediately rather it would be arranged in next 30 days. Earlier, the Finance Ministry had denied receiving any directives from the Prime Minister's Secretariat to release Rs 20 billion to power sector.
"We have been hearing through media that the Prime Minister directed the Finance Ministry to release Rs 20 billion to the power sector but we have not received any directive in writing," said a senior official of Finance Ministry in response to a question by Business Recorder. In reply to another question about arranging additional subsidies to power sector given that almost the entire annual revised allocation on account of tariff differential has been utilised, the Additional Secretary said that there are always some funds for unseen or contingency events which could be diverted to provide subsidies to the power sector.
The Prime Minister's spokesman further added that the government is committed to ensuring provision of fuel to thermal power plants for optimal generation of electricity. The Finance Ministry has been issued clear instructions to release a provisional amount of Rs 20 billion for the purpose, emphasised the spokesman. Rana Asad Amin said the Finance Ministry would not release any subsidy to the power sector in addition to the revised budgetary allocation and Ministry of Water and Power has been directed to improve outstanding recoveries against various sectors.
The Advisor said that the Finance Ministry has already released Rs 279 billion subsidy to the power sector against the upward revised allocation of subsidy from Rs 185 billion to Rs 291 billion on account of tariff differential during the last eight and half months and there are still more than two months to go for the end of the fiscal year. He said the Water and Power Ministry has been requesting a massive injection over and above the budgeted amount however it is imperative for the relevant ministry to recover unpaid bills from both the public and private sector.