Decision on power subsidy suspended

Published October 27, 2008

ISLAMABAD, Oct 26: The government has put off implementation of its decision to reduce subsidy on electricity by Rs120 billion and pass on the burden to the consumers.

Minister for Water and Power Raja Pervez Ashraf said at a news conference on Sunday that the government had earlier decided to slash the annual subsidy from Rs185 billion to Rs65 billion, but the implementation of the decision had been put off.

However, protests against increase in power tariff and unannounced loadshedding continued across the country despite the government’s decision to cut electricity bills by about 40 per cent after putting off a 31 per cent hike approved by the National Electric Power Regulatory Authority (Nepra).

The minister said the previous government had left Rs400 billion in circular debt in the power sector for which the PPP-led government was paying the price.

He said the huge circular debt had affected supply of furnace oil and gas to power companies and taken a heavy toll on the generation capacity of independent power producers (IPPs) and functioning of the Water and Power Development Authority (Wapda) and distribution companies.

He said release of Rs60 billion outstanding loans to IPPs a few days back had helped increase power generation. “I appeal to the masses to stop the protests because the increase in tariff has not been implemented,” he said.

He claimed that some people were fuelling the issue for political ends. He said those who had resorted to protests and damaged public and private property were not serving the country.

Opinion

Editorial

PTI in disarray
Updated 30 Nov, 2024

PTI in disarray

PTI’s protest plans came abruptly undone because key decisions were swayed by personal ambitions rather than political wisdom and restraint.
Tired tactics
30 Nov, 2024

Tired tactics

Matiullah's arrest appears to be a case of the state’s overzealous and misplaced application of the law.
Smog struggle
30 Nov, 2024

Smog struggle

AS smog continues to shroud parts of Pakistan, an Ipsos survey highlights the scope of this environmental hazard....
Solidarity with Palestine
Updated 29 Nov, 2024

Solidarity with Palestine

The wretched of the earth see in the Palestinian struggle against Israel a mirror of themselves.
Little relief for public
29 Nov, 2024

Little relief for public

INFLATION, the rate of increase in the prices of goods and services over a given period of time, has receded...
Right to education
29 Nov, 2024

Right to education

IT is troubling to learn that over 16,500 students of the University of Karachi (KU) have defaulted on fee payments...