Rs1.54tr in power subsidies sought

[maithil]

The Ministry of Energy has demanded Rs1.54 trillion in power subsidies for the next fiscal year, a colossal amount that is 70% more than this year’s revised budget, aimed at reducing circular debt to a level agreed with the International Monetary Fund (IMF).

The demand is surprising since the government has twice increased electricity tariffs in the outgoing fiscal year in order to reduce subsidies and control circular debt.

Sources in the Ministry of Energy told The Express Tribune that Rs1.54 trillion was needed in fiscal year 2023-24 for avoiding any further increase in circular debt and settling arrears.

The amount included Rs250 billion for paying dues of China-Pakistan Economic Corridor’s (CPEC) energy projects, the sources said.

The development comes at a time when the PML-N led coalition government is going to unveil next fiscal year’s budget around June 10, as it has not accepted Pakistan Tehreek-e-Insaf’s (PTI) demand to let a caretaker government present the budget.

In the absence of an IMF umbrella, there is apprehension that the coalition government may give preference to its political objectives over economic needs in the upcoming budget.

The demand for Rs1.54 trillion is Rs634 billion, or 70%, higher than the estimated power subsidies in the outgoing fiscal year. However, as compared to the original budget, the demand was higher by 203%.

A senior official of the Ministry of Energy was of the view that like the outgoing fiscal year, the finance ministry may again give lower-than-required funds to manage both the flow and stock of circular debt.

Rs1.54tr in power subsidies sought | The Express Tribune

Amount 70% higher than this year’s revised budget aimed at curbing debt

tribune.com.pk

 

[Samlee]

Abolish tds allow each Disco to set it's own tariff.Nepra should stop acting like a price control committee

 

[Jango]

Abolish tds allow each Disco to set it's own tariff.Nepra should stop acting like a price control committee

But would such a system work in Pakistan?
The whole power generation and distribution system would need to be revamped top to bottom, can't change only one component.

 

[Samlee]

But would such a system work in Pakistan?
The whole power generation and distribution system would need to be revamped top to bottom, can't change only one component.

It's worked all over the world why not in Pakistan and It's Certainly A Better Idea Than Committing Trillions of Rupees Just To Make The Electricity Tariff Uniform Throughout The Country

 

[Jango]

It's worked all over the world why not in Pakistan and It's Certainly A Better Idea Than Committing Trillions of Rupees Just To Make The Electricity Tariff Uniform Throughout The Country

Oh you misunderstood me. I meant that only making some changes in the NEPRA structure wouldn't make much of a difference, unless the whole government machinery, including the Ministry of energy, makes changes and approaches the power sector from a more deregulated standpoint.

But if all that can be done, then it would be the best thing to happen to our governments' functioning.

Governments don't like to usually change how things are done, for one reason or another. Just look at how long it took for a stupidly simple thing like WACOG to get implemented.

 

[Samlee]

Oh you misunderstood me. I meant that only making some changes in the NEPRA structure wouldn't make much of a difference, unless the whole government machinery, including the Ministry of energy, makes changes and approaches the power sector from a more deregulated standpoint.

But if all that can be done, then it would be the best thing to happen to our governments' functioning.

Governments don't like to usually change how things are done, for one reason or another. Just look at how long it took for a stupidly simple thing like WACOG to get implemented.

Restructuring NEPRA Is One Reform.We Have To Go For Prepaid Meters,Replace Single Buyer Market Which Is The Root of The Disease Affecting Our Power Sector Allow NTDC and DISCOs To Lease Their Infrastructure Private Virtual Suppliers.I'll Talk ABout This Later

 

[Jango]

Restructuring NEPRA Is One Reform.We Have To Go For Prepaid Meters,Replace Single Buyer Market Which Is The Root of The Disease Affecting Our Power Sector Allow NTDC and DISCOs To Lease Their Infrastructure Private Virtual Suppliers.I'll Talk ABout This Later

Cannot disagree.

 

[ziaulislam]

But would such a system work in Pakistan?
The whole power generation and distribution system would need to be revamped top to bottom, can't change only one component.

Privatize everything and it will work
But again will privitzation work in country without rule of law..the answer is no.

Where vegos rule the country side nothing can work

Restructuring NEPRA Is One Reform.We Have To Go For Prepaid Meters,Replace Single Buyer Market Which Is The Root of The Disease Affecting Our Power Sector Allow NTDC and DISCOs To Lease Their Infrastructure Private Virtual Suppliers.I'll Talk ABout This Later

Nothing will work because there is no rule of law

People will simple place kundas so prepaid meters don't work .most of defaulters are big politicians generals and beurocrats..so that work either

 

[Jango]

Privatize everything and it will work
But again will privitzation work in country without rule of law..the answer is no.

Where vegos rule the country side nothing can work

As you said, privatization demands that you have a strong regulator without any political interference.

Privatization would do jack all for competition if there is a cartel and everyone is playing together.