PESHAWAR, Aug 12: NWFP is not expecting to get increased its annual net hydel profit share beyond the existing level of Rs6bn due to poor economic health of the Water and Power Development Authority (Wapda), according to official sources.

In its budget for the 2002-03 financial year the NWFP government has clearly indicated that it would get Rs6bn on account of net hydel profit share against Rs15.904bn it should get in accordance with the AGN Kazi formula.

In this respect, an amount of Rs9.904bn has been reflected as likely shortfall in a separate column under the budgetary estimates for 2002-03 financial year.

Not only that the provincial government, as per its budget document, would receive Rs6bn net profit share during the current financial year, its medium-term budgetary framework (MTBF)—budgetary estimates for the next four years—also indicates the same amount for 2003-04, 2004-05 and 2005-06 financial years.

The MTBF is a budgetary plan, which has qualified the NWFP for the Structure Adjustment Credit (SAC) facility of the World Bank.

The province has recently received $95m SAC tranche under an agreement with the World Bank. The agreement is extendible for a period of two more years given the future provincial government ensures implementation of the provincial reforms programme (PRP) in letter and spirit.

Apart from showing the net hydel profit share in its MTBF at Rs6bn, the provincial government would claim Rs50.82bn from Wapda during the next four financial years.

In its MTBF, the provincial government has shown an amount of Rs9.893bn as ‘hydel profit receivable’ during the 2002-03 financial year, over and above the Rs6bn the amount the province is set to get during the current financial year.

Similarly, the plan shows an amount of Rs11.641bn as receivable during the 2003-04 financial year, Rs13.582bn during 2004-5 and Rs15.736bn during 2005-6.

Official sources told this scribe that although the provincial finance minister had announced that the share may be increased in current financial year, it was not expected to happen in view of the bad financial health of the Wapda.

Official sources said that MTBF had relied on the resource distribution formula and other monetary details envisaged under the current National Finance Commission (NFC) award and was subject to go through changes if a new financial plan comes into force under the new NFC, presently under progress.