ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet has been apprised by the power division that the Balochistan government isn’t cooperating over the finalization of Rs86 billion discount in electricity bills of agricultural tube wells.
The matter of the Rs218 billion arrears outstanding against the federal, provincial governments and Baloch farmers has been put forth by the power division with the ECC, informed sources said, reports Dawn.
And the two proposals regarding subsidized power rates along with two proposals were taken up with the ECC. The recommendations needed Balochistan government’s input, as it would have to take the burden of responsibility of providing funds worth Rs27.6 billion or Rs52 billion, the sources said.
But the power division protested to the ECC that the provincial government was not cooperating and giving financial commitments.
The power division in writing informed the ECC that the Balochistan government had not offered any comments despite constant reminders.
According to sources, the Power Minister Omar Ayub Khan-led team constituting of power secretary Iran and officials of the power division and Quetta Electric Supply Company (QESCO) will meet Balochistan Chief Minister in this week to get a positive fiscal commitment and clearance of backlog besides assistance for initiating a drive for the recovery of unpaid bills and against power theft in the province.
Also, sources told in a meeting of the ECC chaired by Finance Minister Asad Umar last week had reached the conclusion that continuation of subsidy for farmers in Balochistan couldn’t be approved without the commitment of the provincial government.
The ECC called for a proper approach from the Balochistan government.
And the power division declared it was backing extension of the subsidy scheme “with great reluctance” because of outstanding liabilities and current financial crunch provided if the Balochistan government and federal finance ministry gave a “firm commitment to clear outstanding subsidy affairs and streamline the subsidy payment process.”
Moreover, the power division stated the Balochistan government and the finance ministry would be needed to pay Rs767.57 million and Rs1.15 billion respectively in a 40:60 proportion on top of Rs10,000 a month to be paid by tube well consumers using 30-HP motors.
The second suggestion foresees monthly payment of Rs1.12 billion and Rs2.13 billion by the federal and provincial governments in a proportion of 40:60 and Rs10,000 by consumers using 50-HP motors because of a low underground water table.
