ISLAMABAD, June 18: President Gen Pervez Musharraf on Tuesday directed all the public sector organizations to ensure payment of electricity bills every month, otherwise the finance ministry would make at source deductions the following month.

Also, the president ordered the petroleum and natural resources ministry to ensure supply of 735 million cubic feet per day (MCFD) gas to Wapda latest by December 2003, official sources told Dawn.

These decisions were taken at a meeting held to address the financial difficulties being faced by the utility.

The participants, particularly those from the finance ministry, were of the view that the federal government could no longer inject resources into the loss-making organizations, sources said.

The finance ministry was also directed to help Wapda recover around Rs50 billion public sector arrears in the shortest possible time.

For the third consecutive year, Wapda’s debt service liability was absorbed by the federal government. This year a cost of Rs20 billion was picked up in the federal budget.

In real terms, the president approved a financing package which suggested various measures, including an increase in electricity tariff, conversion of its liabilities into government equity, provision of additional gas, etc.

Conversion of Rs20 billion debt liability into government equity and provision of an additional cost have been approved which would have a total impact of around Rs40 billion.

Wapda has repeatedly been complaining that the petroleum ministry is delaying supply of the additional 735 MCFD of gas for power generation that can reduce the power generation cost significantly.

It was agreed that henceforth the supply of gas for power generation would be the top priority of the government and all other gas consumers would be provided with the gas once power requirement was met.

The third major issue about upward revision in power tariff by 88 paisa per unit is pending with the National Electric Power Regulatory Authority.

The president also directed the finance ministry to resolve the question of non-payment of electricity dues by FATA consumers.

Sources said that water projects, including those of Wapda’s Vision 2025 Programme, also came under discussion.

The president was briefed by the Wapda chairman on the projects of Thal Canal, Gomal Zam dam and Right Bank Outfall Drain, and settlement of people displaced during the construction of Tarbela Dam.