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Still unpaid : Sans NHP payment, K-P inches towards fiscal crunch

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Only one option is left. Cut of electricity until federal gov pays

PESHAWAR:
The Khyber-Pakhtunkhwa government’s recent failure to compel the Centre to release net hydel profit (NHP) arrears and its due principal amount has pushed the province closer to a financial crunch.

“The K-P government has to adjust the gap between its revenue and expenditure either by cutting current expenditures or the Annual Development Programme funds,” said a former provincial government official privy to the matter. “The government has to freeze schemes in the ADP or stop recruitment.”

One official even said the K-P government was already facing financial challenges and was “looking to borrow money from somewhere”.

“The monthly salaries of its employees cost Rs6.5 billion and the provincial administration desperately needed money to complete its development projects,” said another senior official, requesting anonymity. The official added the financial challenges were among the main reasons the K-P government has been pushing the Centre to release arrears as well as the principal amount.

A major chunk of K-P’s budget for fiscal year 2015-16 is based on the NHP and arrears owed by the federal government. Insiders said the Centre, during the last meeting with provincial authorities on December 30, 2015, tricked the K-P administration.

“Federal Minister for Water and Power Khawaja Asif said the meeting was to continue for a second day, but they (central leaders) did not show up,” said an insider. He added Federal Minister for Inter-Provincial Coordination Riaz Hussain Pirzada, federal secretary for water and power, and officials of the finance department had represented the federal government in the meeting.

Chief Minister Pervez Khattak went for the meeting personally with the provincial finance secretary, energy and power secretary and Minister for Energy Atif Khan. The K-P government’s legal adviser was Shumail Ahmed Butt.

Difference in MO

Khattak stressed on the payment of Rs45 billion from the NHP for FY 2005-06 up till 2012 in addition to Rs56 billion as mark-up on the unpaid award amount.

“The finance department will pay the mark-up [Rs56 billion] and the federal government wants the amount to be paid in instalments but the K-P government wants it in one go,” said an official familiar with the matter.

The official said the federal government wanted to adjust the arrears and principal amount for seven years (2005-06 to 2011-12) with the electricity tariff.

“However, the CM wants the money to be released for the K-P government and not be adjusted in the tariff,” he said.

Tariff differential subsidy

He added the federal government also claimed Rs18 billion in outstanding dues owed by the K-P government. The federal government has claimed the amount on account of the tariff differential subsidy which was eliminated in 2011. However, few people went to court against the elimination of the subsidy.

K-P-government-official.jpg


“When the federal government agreed to pay Rs110 billion in arrears, it was decided petitions related to the differential subsidy would be taken back,” the official explained. He stated the federal government calculated Rs18 billion against the K-P government for making use of the differential subsidy despite the fact that it was eliminated.

“The federal government wants to deduct the Rs18 billion from the Rs45 billion arrears and adjust the Rs27 billion in the electricity tariff, paying the amount over three to six years,” said the official. “We want the federal government to sit and discuss the Rs18 billion outstanding against us. If the people of K-P, along with many federal government entities, also used the differential subsidy then should we be responsible for paying their debts?” asked the official.

Help from Centre

He added the provincial government would be in a financial crisis if NHP arrears and mark-up sums were not paid in time. “The provincial government is in hot water right now and the situation will get worse if the Centre does not support it to balance expenditures and revenues.”

Talking about the next meeting and consultation, the official said the chief minister was going to Scotland and the meeting would be held upon his return. K-P Minister for Finance Muzaffar Said was not available for comments despite repeated attempts.

Published in The Express Tribune, January 18th, 2016.

Still unpaid : Sans NHP payment, K-P inches towards fiscal crunch - The Express Tribune
 
and then we have PMLN pundits here says that why we talk about rights of KPK people.
 
Since noora supporters cant defend them anymore so they say WHY ARE U SPREADING NEGATIVE ABOUT PAKISTAN. But they themself supporting criminals who are reason for these negative news each day.
 
Only one option is left. Cut of electricity until federal gov pays

The Khyber-Pakhtunkhwa government’s recent failure to compel the Centre to release net hydel profit (NHP) arrears and its due principal amount has pushed the province closer to a financial crunch.


Of course. This is to be expected. IK's followers have nothing "Normal" in them, including him. Everything is extremist base ideology in everything, from attacking the Parliament, doing violent sit-ins to here.

This is why there is a Supreme Court. You don't have to go to extremes for anything. If this case is real (like 99.9% of your articles by Dawn aren't as its "paid media", why not take it to the SC and get it resolved ?? :enjoy:

What's next? 5 more of these paid-media made up issues and you people will be back to asking for a "Pashtunistan" as Obviously you don't have real leadership in KPK to win other areas, so might as well turn it into Pashtunistan right? :yahoo:. IK and his people are genius.

The K-P government has to adjust the gap between its revenue and expenditure either by cutting current expenditures or the Annual Development Programme funds,” said a former provincial government official privy to the matter. “The government has to freeze schemes in the ADP or stop recruitment.”

Annual Development Program :o:o_O.....the one that doesn't exist....? OR the one that was put on a paper but never actually implemented, ever!!!??? :undecided: :crazy:
 
Annual Development Program :o:o_O.....the one that doesn't exist....? OR the one that was put on a paper but never actually implemented, ever!!!??? :undecided: :crazy:


A patwari like you would know, wouldn`t you? Since you are well versed with PMLN strategy of a LOT of promises, claims, projects on PAPER but in actuality, there is hardly any implementation at all.. Spoken like a true Nooni-toon based on EXPERIENCE of being in power all them years.
 
A patwari like you would know, wouldn`t you? Since you are well versed with PMLN strategy of a LOT of promises, claims, projects on PAPER but in actuality, there is hardly any implementation at all.. Spoken like a true Nooni-toon based on EXPERIENCE of being in power all them years.

Hey, what's your name? IK? Because you sound just like him, with the SAME brain power, that can invent bullshiit and low class personal comments.

Respond to my post when your content has more worth than the toilet paper. Like greeder like followers, all with a LOT of air between their ears!! :crazy::angel:
 
Hey, what's your name? IK? Because you sound just like him, with the SAME brain power, that can invent bullshiit and low class personal comments.

Respond to my post when your content has more worth than the toilet paper. Like greeder like followers, all with a LOT of air between their ears!! :crazy::angel:


Your comments are already like parchi a patwari handed you by scribbling gibberish on a piece of toilet paper while taking a massive dump so you could peddle petty patwari nonsense here. Its time you started taking some diarrhea medicine cuz all that your blabber on and on about over here stinks.

Dare yourself and defend your patwari noora league here:

WHY PLMN GOVERNMENT HARBORING TERRORIST MULLA ABDUL AZIZ ?
 

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