ISLAMABAD: The Finance Ministry has reportedly refused to release Rs 45 billion to Ministry of Water and Power arguing that power sector has already exhausted the revised budget of Rs 291 billion as Tariff-Based Subsidy (TBS). The government revised the budgeted inter-disco tariff differential upward from Rs 170 billion (Rs 120 billion rupees earmarked for Wapda/Pepco and Rs 50 billion for KESC) in the current fiscal year.
The Finance Ministry's refusal has come at a time when the furnace oil stocks are sufficient for only two days and the Tarbela reservoir touched dead level. Power sector needs stocks of at least four days to ensure reliable production. "We are fighting with the Finance Ministry for release of pledged Rs 45 billion but the outcome has not been encouraging," an official said.
The Ministry of Water and Power has requested the Finance Ministry to release Rs 45 billion on account of subsidy and adjust it in fiscal year 2013-14 but the Finance Ministry insisted that this was not possible. Pakistan State Oil (PSO) has enhanced supply of furnace oil to 16,000 tons per day but power sector needs between 20,000 and 22,000 tons of furnace oil per day.
"I guarantee that if government gives us Rs 40 billion net and 250 MMCFD gas, the duration of load shedding will not be more than two hours," the official maintained. On April 26, Prime Minister's Advisor on Finance Shahid Amjad Chaudhry had stated that the Ministry of Finance and the Ministry of Petroleum would provide Rs 45 billion and 150 mmcfd gas to power sector to add 2,700 megawatts to the system, which would help reduce power outages by three hours in coming days.
The Advisor had pledged the immediate release of Rs 10 billion to the power sector and Rs 35 billion in two weeks as short-term measures to reduce load shedding. He said the Petroleum Ministry has agreed to provide 150 mmcfd gas to power plants which would add 1,500MW to the system immediately and another 1,200MW in the next 15 days. Sources in the Water and Power Ministry said that there was no progress on both these pledges announced after formal approval of caretaker Prime Minister Mir Hazar Khan Khoso.