Power Division seeks exemption from rupee cover requirement for multilateral-funded projects

The Power Division has requested the National Assembly Standing Committee on Power to exempt development projects funded by multilateral agencies from the rupee cover requirement. The request came after delays in the release of rupee cover amounts resulted in audit objections and slow project implementation, Business Recorder reported. 

Secretary of Power, Dr. Fakhre Alam Irfan, presented the proposal during a meeting of the Standing Committee, which was chaired by MNA Babar Nawaz Khan in the absence of Chairman Muhammad Idrees. The Secretary emphasized that delays in approving rupee cover were hindering progress on crucial projects.

The Committee approved Rs 251.331 billion under the Public Sector Development Programme (PSDP) for 63 ongoing and new power sector projects. These include 46 projects for the National Grid Company (NGC), and several projects for other distribution companies such as QESCO, PESCO, HESCO, SEPCO, and others. Out of these, 44 projects are ongoing, while 16 are newly proposed.

Of the total allocation, Rs 225.687 billion will come from foreign funding, while Rs 25.644 billion will be sourced locally. The NGC's proposed funding for ongoing projects includes Rs 150.515 billion from foreign financing and Rs 16.169 billion from local funding, with additional funds for new projects.

The Joint Secretary of the Power Division informed the Committee that Rs 90 billion had been allocated for 52 development projects under the PSDP for the current fiscal year. Of this, Rs 72 billion is from foreign loans, and Rs 18 billion is from local sources. However, the Power Division has received only Rs 31 billion so far, with Rs 47 billion still outstanding.

The total funding requirement for the Power Division for the current fiscal year stands at Rs 300 billion. During the meeting, Dr. Irfan urged the Committee to recommend that the Ministry of Planning, Development and Special Initiatives exempt Power Division projects from the rupee cover requirement to expedite the implementation of development projects. The Committee agreed and decided to propose the recommendation to the Ministry.