Govt hints at imminent hike in power tariff

Published October 17, 2018
Federal Minister for Information and Broadcasting Fawad Chaudhry addresses a press conference on Tuesday. — APP
Federal Minister for Information and Broadcasting Fawad Chaudhry addresses a press conference on Tuesday. — APP

ISLAMABAD: Putting the blame on the previous Pakistan Muslim League-Nawaz (PML-N) government for “setting up costly power projects” in the country, Information Minister Fawad Chaudhry on Tuesday hinted at an imminent increase in electricity tariff.

Speaking at a news conference, the minister said the Pakistan Tehreek-i-Insaf government had decided to carry out an audit of all power plants set up during the last five years.

Justifying the expected decision to increase electricity charges, he said the government was facing a daily loss of Rs1.2 billion by providing subsidy on electricity to the people, adding that this practice could not be continued for long.

“We have so far not taken any decision regarding increase in power tariff, but we will have to take this decisive step, we will make every effort to save the poor from facing the brunt,” the minister declared.

Minister says power plants set up by previous govt being audited; PML-N comes out with strong reaction

Hours after Mr Chaudhry’s presser, the opposition PML-N came out with a strong reaction, saying the minister was passing the buck on the previous government only to cover up “its own flawed policies and follies”.

PML-N spokesperson Marriyum Aurangzeb welcomed the government’s move to scrutinise the power projects set up by the party’s government during the last five years.

The information minister said the Economic Coordination Committee (ECC) of the cabinet could not discuss the issue of power tariff in its meeting earlier in the day as Finance Minister Asad Umar was to proceed to China on an official visit.

He said that presently the government was facing a loss of over Rs2.5 per unit as the actual cost of electricity generation was Rs14.22 per unit whereas it was charging the consumers Rs11.71 per unit.

Saying that it was necessary to inform the people of the “facts” and “criminal acts” committed by the previous government, Mr Chaudhry claimed that due to political compulsions the PML-N government had not taken bold and correct decisions and had not passed the burden of increased electricity charges to the consumers despite recommendations by the National Electric Power Regulatory Authority (Nepra).

He said Nepra kept on insisting that electricity charges should be increased to avoid losses, but the PML-N government did not pay any heed to it.

“Actually they (PML-N leaders) did not have political credibility and courage to make big decisions. They did not increase the price which they should have increased one and a half year ago,” he said.

The minister alleged that the Quaid-i-Azam solar power plant in Bahawalpur was the world’s most expensive project as it was generating electricity at a cost of Rs17 per unit. He said the government had decided to carry out an audit of the power plants set up at Bhikki, Haveli Bahadur, Sahiwal, Baloki and Port Qasim and other plants and those found responsible for causing losses to the national exchequer would be taken to task.

He said the National Accountability Bureau (NAB) had already started investigation into the plants being run on liquefied natural gas (LNG) in Punjab.

The minister said Prime Minister Imran Khan would soon take the nation into confidence on the economic issues.

He said that with the continuation of their policies, a ‘New Pakistan’ the foundation of which had been laid by PM Khan would emerge after eight to 10 months.

He expressed the hope that the situation would soon improve as the government had put the country on right track, adding that the government’s focus was presently on increasing foreign remittances and exports, eliminating money laundering and encouraging investments.

Mr Chaudhry said there would be a lot of good news for the country with inflow of heavy investment during the next few months. The government, he said, would definitely give relief to the people, but it needed a few months to get its policies implemented.

Responding to a question, the minister said the PTI had bagged the highest number of votes in Sunday’s by-elections. He admitted that the party had suffered defeats in Attock and Bannu because of the division within the party ranks.

He said the ongoing accountability process would continue despite hue and cry of the opposition.

Meanwhile, the PML-N spokesperson said in a statement that the panic displayed by the information minister in his press conference was a clear indication that the government would soon announce an increase in electricity tariff.

Marriyum Aurangzeb, who had served as information minister in the previous PML-N government, said the PTI was panicky after facing anger of voters in the by-elections.

“The government is about to announce raise in electricity prices and that is why they have started spreading lies and deceit among the masses.”

She said the government had dropped an “inflation bomb” on the people and destroyed social life in the country.

“The government will now further pollute the social and political life in the country by telling lies in order to justify its decision to raise electricity prices.”

Ms Aurangzeb said former prime minister Nawaz Sharif had ensured the availability of electricity and other necessities of life to the common people at the lowest price, adding that it was the PML-N government that gave a comprehensive power project package to Pakistan to improve the electricity supply situation and make cheap electricity available to the common people.

She said they would welcome the government to take PMLN power projects to NAB for investigation, but the bureau should also investigate 350 “ghost dams” supposedly constructed by the PTI government in Khyber Pakhtunkhwa.

Published in Dawn, October 17th, 2018

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