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

Islamabad march
Updated 27 Nov, 2024

Islamabad march

WITH emotions running high, chaos closes in. As these words were being written, rumours and speculation were all...
Policing the internet
27 Nov, 2024

Policing the internet

IT is chilling to witness how Pakistan — a nation that embraced the freedoms of modern democracy, and the tech ...
Correcting sports priorities
27 Nov, 2024

Correcting sports priorities

IT has been a lingering battle that has cast a shadow over sports in Pakistan: who are the national sports...
Kurram ceasefire
Updated 26 Nov, 2024

Kurram ceasefire

DESPITE efforts by the KP government to bring about a ceasefire in Kurram tribal district, the bloodletting has...
Hollow victory
26 Nov, 2024

Hollow victory

THE conclusion of COP29 in Baku has left developing nations — struggling with the mounting costs of climate...
Infrastructure schemes
26 Nov, 2024

Infrastructure schemes

THE government’s decision to finance priority PSDP schemes on a three-year rolling basis is a significant step...