KP's net hydel profit issue: Senate body to examine recommendations

The Senate Special Committee constituted to review 24 demands of Government of Khyber Pakhtunkhawa will examine the recommendations submitted by the Ministry of Petroleum, Federal Board of Revenue (FBR) and Ministry of Railways and will give its final report in next 10 days. A special committee on the demand of Khyber Pakhtunkhawa government was formulated on the direction of Chairman Senate Raza Rabbani to review and finalise the recommendations of all the stakeholders.
The Special committee, chaired by Convenor Committee Syed Muzaffar Hussain Shah met at Parliament House on Tuesday. The committee discussed all the recommendations given by the Ministry of Petroleum, Federal Board of Revenue (FBR) and Ministry of Railways. Senator Nouman Wazir Khattak was invited on special invitation to discuss these recommendations. He said the provincial government representatives exaggerated the issues, since federal government has never given any sovereign guarantee with respect to any electricity plans. He informed the committee that the statement regarding provision of Net Hydal Profit lacks authenticity, adding the report will be submitted with the Special Committee after confirmation.
The committee also directed Additional Secretary Finance to provide details of the agreement taken place between the federal and provincial government. Meanwhile, Additional Secretary Energy and Power Zafar Ali informed the committee that total Net Hydel Profit (NHP) arrears stood at around Rs 70 billion whereas an amount of Rs 25 billion was provided during the financial year 2015-16. In the past, sovereign guarantee was not provided but made available in 2016.
Additional Secretary WAPDA said that loan worth Rs 25 billion was given to the provincial government and the remaining amount will be given in instalments of Rs 15 billion per year in the next 3 years. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi informed the committee that new gas fields were discovered at 84 places across the country. The gas would be provided to areas from where the gas fields were discovered. Gas theft is taking place to the tune of hundreds of thousands of rupees in areas of Hangu and Karak. For production of electricity, additional gas cannot be provided to any province.