KP govt to sell power from Malakand III to industries

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has decided to sell the power generated from Malakand III directly to industries instead of providing it to the federal government.

Officials privy to the development told this scribe that the move will reduce the province’s dependence on the central government whereas Islamabad has been informed about the decision.

Advisor to the Chief Minister on Energy, Hamayatullah Khan, said that the provincial government will sell 300MW of electricity from Balakot power generation projects to various industrial zones in KP, which will bring an annual income of Rs15 billion for the provincial exchequer.
Khan said that four more new projects are currently underway and will generate enough revenue to meet the budget allocated for the KP’s annual development programme (ADP).

The adviser said that at present power generation in Malakand III costs Rs2.5 per unit and they have been selling it to the federation at the same price for 10 years but on return WAPDA is providing electricity to KP at Rs18 per unit.

Similarly, he said KP sells the electricity of Pehore Power Project at Rs4 per unit to the federal government but in return the province has to purchase it at Rs18 per unit.

Therefore, it was decided that instead of giving the electricity to center government, the province will directly sell to the industries in KP.

He said that this will provide cheaper electricity to the local industries and will reduce the cost of production. He said that this will also boost the local industrial production and will generate more employment opportunities.

The minister said that the federal government has yet to pay arrears worth billions of rupees. He said that due to non-payment of the arrears, the province is facing severe financial crises and most its developmental projects are stopped due to the unavailability of funds. He said that even now, the federal government has to provide Rs45 billion in term of hydropower and Rs6 billion in PEDO.

Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

Must Read

Honda Atlas Cars’ Profit-after-tax down by 62%

Honda Atlas Cars (Pakistan) Limited (HCAR) reported a nearly 62% drop in profit-after-tax (PAT) for the quarter ending September 30, 2024, compared to the...