Energy conference, scheduled for Tuesday (July 27) with Prime Minister Syed Yousuf Raza Gilani in the chair, will discuss ways to resolve energy crisis as well as consider extending the two-day-holiday till December-end. The conference will also attempt to mend differences between the Centre and Sindh over the imposition and collection of reformed GST, Business Recorder has learnt.
The chronic issue of circular debt is also expected to come up for discussion at the conference. The chief ministers of all the four provinces will attend the meeting. The release of the next tranche by the IMF that has been linked to the implementation of the reformed GST as well as other related issues will also be discussed and the moot will try to find substantive solution to the issues in facing the energy sector, sources said.
They said Pakistan Electric Power Company (Pepco) had proposed extension of two holidays a week till end December 2010 as a demand management measure. According to informed sources the country is saving around 1500 MW electricity due to two weekly holidays. Punjab however has opposed the extension of two weekly holidays, sources said.
Pakistan State Oil receivables against different clients are again on the rise and have accumulated to Rs 138.6 billion. PSO is to pay Rs 125.1 billion to local as well as international fuel suppliers on account of fuel supply. "The Finance Ministry has released Rs 30 billion to Water and Power Ministry in an effort to retire the circular debt," sources said, adding that the power sector has not paid dues to PSO on account of furnace oil supply. Petroleum Minister Syed Naveed Qamar is expected to take up the issue of PSO dues.
Sindh Chief Minister Syed Qaim Ali Shah along with his financial team will also attend the meeting. Talking to Business Recorder Sindh Secretary Finance Dr Fazal Pacheho said that his province would not budge from its constitutionally correct stance of collecting GST on services. However, he hoped that the differences between federal and provincial government would be resolved before October 1, 2010, the date given by the Finance Minister for enforcement of reformed GST in his budget speech.
Sources said the political leadership at the federal and provincial levels would have to develop a broader consensus to settle the issue of reformed GST on both goods and services amicably, so as to ensure that the remaining two IMF tranches will be released on time.
A meeting of provincial finance secretaries held recently at the Ministry of Finance with Secretary Finance Salman Siddique in the chair reviewed the overall fiscal position of the federal and provincial governments. The issue of reformed GST was also discussed during the meeting. The province of Sindh remains adamant about collecting the reformed GST on services. Sources said Sindh has denied any agreement in principle with the federal government on the introduction of an integrated reformed GST.