The federal government reviewed the possibility of adjusting provincial outstanding electricity bills against their shares under the National Finance Commission (NFC) award, The Express Tribune reported. Â
This comes after successfully limiting power sector losses to Rs221 billion, a 40% reduction compared to last year.
The news report cited a Finance Ministry official, who clarified that the adjustment mechanism would apply only to those dues reconciled and confirmed by the provinces. These confirmed payments would be offset against the NFC dues.
The Power Division presented the performance of power distribution companies to the Economic Coordination Committee (ECC) of the Cabinet, revealing a mixed outcome in the efforts to reduce losses and improve bill collection. While distribution losses showed some increase, the collection of bills improved during the July-March period of the current fiscal year, according to official records shared with the ECC.
Federal Minister for Power, Sardar Awais Laghari, explained that while the losses increased by Rs221 billion in the first nine months of the fiscal year, this was significantly lower than the anticipated Rs390 billion. Compared to the same period last year, the power sector losses decreased by Rs143 billion or 40%, signaling progress in addressing the financial difficulties of distribution companies, though Hyderabad and Sukkur were exceptions.
The minister also stated that, following improved recoveries from the private sector, his ministry had sought the Finance Ministry’s assistance to recover outstanding dues from both federal and provincial governments.Â
In December, the government had urged provincial governments to clear their electricity bills, which amounted to Rs150 billion, to prevent power cuts and mitigate further economic losses.Â
Of the total arrears, Sindh owed Rs59.7 billion, followed by Balochistan with Rs39.6 billion, and Punjab at Rs38 billion, while Khyber Pakhtunkhwa had the lowest dues at Rs8.9 billion.
