The Central Power Purchasing Agency-Guaranteed (CPPA-G) has received Rs 148.75 billion from the State Bank of Pakistan (SBP) for the payment of Tariff Differential Subsidies (TDS) as authorised by the Accountant General of Pakistan (AGPR) for the fiscal year 2024-25, according to a news report.
The amount was released on March 28, 2025, following the fulfillment of all necessary formalities.Â
The funds are earmarked for several subsidy payments, including those for inter-Disco tariff differentials, merged districts of Khyber Pakhtunkhwa (formerly FATA), and Azad Jammu and Kashmir (AJK).
According to the report, Rs 12.745 billion has been allocated for inter-disco tariff differentials as part of the federal budget for 2024-25. Rs 2.281 billion has been designated as subsidy payments to the CPPA-G for the merged districts of Khyber Pakhtunkhwa, and Rs 12.123 billion has been released as subsidy for AJK for the same fiscal year.
The AGPR also disbursed Rs 8.863 billion in advance subsidies to AJK, approved by the Economic Coordination Committee (ECC) of the Cabinet in June 2023, and Rs 399 million for tariff differential subsidies to agricultural tubewells in Balochistan. Furthermore, Rs 457 million has been allocated for additional subsidy payments to these tubewells.
In addition, a substantial Rs 115 billion has been disbursed for the settlement of payables to government-owned power plants (GPPs) for FY 2024-25. The AGPR has also released Rs 3.007 billion for the merged districts of Khyber Pakhtunkhwa under the relevant grant allocation.
Another release includes Rs 4 billion to Chinese Independent Power Producers (IPPs) as part of the agreement with the Chinese government, aimed at ensuring monthly payments to Chinese power plants.
These disbursements are part of ongoing efforts to support the power sector and address tariff differential issues, with the further utilization of funds subject to compliance with all required regulations and procedures.
