PTI govt has nothing to do with hike in power tariff: Asad Umar
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Finance Minister Asad Umar on Thursday distanced the federal government from the recently announced increase in power tariffs, stressing that the hike was determined by the National Electric Power Regulatory Authority (Nepra) before the PTI government had even taken shape.
"The power tariff and any hikes in it are decided by Nepra," he explained. "This time, Nepra, after conducting its review, had recommended that the power tariff should be increased by Rs3.82.
"I should clarify that this government had nothing to do with even a penny of this hike. This determination of the price hike was completed in August.
"After the ECC's decision and its cabinet's sanctioning today, the average price hike (per unit) will be Rs1.27 instead of Rs3.82, which is less than one-third of what was recommended."
The finance minister said that the hike in power tariff will not affect those who consume less than 300 units of electricity.
"Seventy per cent of household connections fall in this category, and they will not have to pay a penny more," he said. "The 20pc people whose consumption is between 300 and 700 units, their rates have been increased by 10pc; and consumers of 700 plus units, their rates have been increased by 15pc."
The finance minister further said that "commercial consumers who consume less than 5KV of electricity", which he said comprise 95 per cent of overall commercial connections, will also remain unaffected.
Umar said that the government is trying to secure loans "not just from the IMF", but from multiple lenders.
Regarding the recent protests by Utility Stores employees in Islamabad, the finance minister said that Abdul Razak Dawood has been asked "to make a plan to make the Utility Stores Corporations viable."
The finance minister clarified that there is no direct Saudi involvement in the China-Pakistan Economic Corridor (CPEC), which he emphasised, remains a bilateral venture between China and Pakistan.
"One month ago when the Chinese finance minister came to Pakistan, we spoke to him about CPEC projects," he said.
"The entire CPEC programme is a bilateral project. Underneath the CPEC there are many more plans, in which we had discussed whether we can invite a third country to invest — to which China agreed.
In this context, we had talked to Saudi Arabia for a project, and other countries could also join this."
"There is no direct linkage of Saudi Arabia and CPEC," Umar asserted.
The finance minister also dismissed concerns that Pakistan may have had to agree to meet some Saudi demands in return for securing a bailout package.
"The Saudis did not make any demands that we refused to meet," he said. "[In fact], they made no demands. And this is the Pak-Saudi relation; it's a people-to-people connection. They will stand by Pakistan's side during our time of need."
NAB officers to get 'official passports': information minister
Information Minister Fawad Chaudhry, meanwhile, said that the government is taking measures to facilitate National Accountability Bureau's (NAB) officers so they can better perform their jobs.
"NAB officers will be given official passports so that they don't have difficulty traveling and can catch thieves easily," he said.
The information minister further said that the federal cabinet has asked Minister for Education Shafqat Mehmood to find ways to improve the National Testing Service (NTS).
Chaudhry said that "in addition to the already announced agreements with Saudi Arabia, the visa fees for the kingdom has also been lowered from SAR2,000 to SAR300".
Govt to clamp down on power thieves: Ayub
Minister for Power Omar Ayub Khan said that instead of "blindly" increasing power tariff to the level Nepra had recommended, the government is also looking inwards to reduce power sector deficits.
He said that the federal government will not only clamp down on those stealing electricity but also reduce inefficiencies and recover overdue bills.
"We are going to launch this drive from Lahore and Punjab," the power minister said. "Local DCs, security agencies and others will conducts raids."
Ayub warned electricity thieves to "stop their activities right away" or get ready to be "behind bars or face heavy fines".
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Comments (100) Closed
Oct 25, 2018 03:34pm
It will certainly increase inflation and will hike prices of essentials. Another round of increase of gas and electricity is expected after the IMF team visit.
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Oct 25, 2018 03:39pm
Beyond Funny, is Nepra not under this government? Can't this government reverse any decision taken by previous set up ?
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Oct 25, 2018 03:52pm
on the container they blamed the then Government now they say they have nothing to do with it.
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Oct 25, 2018 04:00pm
if recommendation was for 3.82 rupees per unit, and you have shared only 1.2, also only 20 percent of users pay this, then how is the power companies going to recover the losses, meaning you will compensate them from the 6 Billion you got from Saudi, Means it will be back to square one of our economy in 5 years time. well done...,
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Oct 25, 2018 04:04pm
How is going to burn electricity bill now??
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Oct 25, 2018 04:06pm
Yeah government is not responsible for raising tariff but they want credit of raising Rs. 1.27 instead of Rs. 3.82 per unit. I expected lot better from Asad Umar. PTI made tall claims before elections and now stuck with single excuse of putting it all on the previous governments.
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Oct 25, 2018 04:06pm
So why do we need you guys if you have no control?
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Oct 25, 2018 04:10pm
if that's the case, than how dare anyone raise a price while PTI is in government. Why is PTI Government not taking notice of it and stopping it from coming info effect because PTI is the government of people by the people and for the people so as they say it loud and clear all the time. Is Asad Umar saying that NEPRA is more powerful than government or he's trying to offer a lame excuse !! This duplicity and hoodwinking will not prevail for long as people are fast realizing that this government is incompetent as it back tracks on its promises without any shame and keeps doing the unwanted while blaming everyone else. Such moves raise huge question marks on this governments competence, ability, capacity and willingness to deliver on the numerous lofty promises
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Oct 25, 2018 04:11pm
Keeping in view the fact that NEPRA is an independen institution but still under the umbrella of the govt.,makes this statement to be completely mind boggling to begin with. One fails to understand the fuitility of this press conference when even a layman watches the government day in and day out wailings about fiscal & current account deficit of $18B, its acceptance of fulfillment of a conditionality of IMF hiking gas /electricity tariff for expected bailout package.Trying to play smart to absolve itself from a painful decision, bringing more economic hardships to lower earning groups, is not going to help it because ultimately the buck stops at FM. It is prudent that instead of creating unnecessary scapegoats, the sitting govt. should own such unpopular decisions irrespective of its negative political fallout. These press conferences happening so frequently & that too spreading such make believe stories are a non starter showing govt.’s. jitteriness & dispensed with sooner the better
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Oct 25, 2018 04:13pm
Respected Finance Minister,
YOUR government IS responsible for increasing the price for NEPRA cannot increase price without current government approval. We as people do understand the circumstances however you should take ownership of this decision.
Deflecting this to other institution which is governed by the government does not reflect well in people's eyes.
And since current government is of PTI so PTI is RESPONSIBLE for increasing the prices regardless of the good or bad outcomes.
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Oct 25, 2018 04:15pm
What an absurd statement. Asad Umer is turning out to be such a huge disappointment.
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Oct 25, 2018 04:16pm
PTI government should get their priorities straight. Bringing back the looted money was the only way out of this situation. We have the examples of Malaysia, China and Saudia Arabia where they were able to recover money in quick time. At the moment not a single penny has been recovered. Just a single arrest made and that too of Shabaz Sharif who will be out in no time just like Nawaz Sharif. Others are also roaming freely with VIP protocols. Now where us commoners will go? How are we going to get both ends meet? How will a common man sustain these price hikes? There are no jobs, infact businesses are laying off employees. PTI government you are heading towards disaster because for a common man bringing food to the table is becoming impossible. Sorry state of affairs.
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Oct 25, 2018 04:17pm
70% consumers see no price increase. Thats not bad. This is how it should be, those who use more, should pay more (this inckudes me and I am happy to pay more).
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Oct 25, 2018 04:19pm
I think your elder brother from PML-N has a different view point.
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Oct 25, 2018 04:20pm
Whatever you say, snce the hike in power tariffs is happening under your watch, inadvertently, the credit or discredit goes to you and the P.T.I.'s government.
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Oct 25, 2018 04:22pm
For next 4 and a half years any increase in prices have already been decided by the previous government whilst any reductions will be decided by the current government.
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Oct 25, 2018 04:23pm
PTI had nothing to do with the gas price increase also? And the Saudi package would have been given even if Nawaz Sharif had been prime minister? Just what does PTI do, apart from blaming others for its failures?
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Oct 25, 2018 04:26pm
What he is talking about? Doesn't make any sense to me.
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Oct 25, 2018 04:28pm
I think Asad Umar forgot he's no longer in opposition but in government, which controls, among other things, power tariffs in the country !
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Oct 25, 2018 04:28pm
The people of Pakistan should refuse to pay electricity bills,gas bills andTax as Imran khan declared in Dharna that he will not pay these bills.People must follow him and the TV channels should telecast that video for the guidance of the people to follow their selected leader.
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Oct 25, 2018 04:29pm
@Shakir Lakhani Very true
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Oct 25, 2018 04:29pm
Utterly credible. Do the countries in our region make the same claim? Can anyone explain why the rates there are lower than here?
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Oct 25, 2018 04:34pm
What? Alternative facts from PTI.
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Oct 25, 2018 04:42pm
Laugh or cry? What a lame excuse it is. Have some courage if you increase prices behave like a man and stand on your words and actions.
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Oct 25, 2018 04:42pm
Atleast we should give some time and space to the new Government.
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Oct 25, 2018 04:45pm
@Omer It is very understanble that PTI government can not manouver too much considering the dire state of economy and massive debts left by previous governments. We shall hold them accountable after two or three years once they have a chance to implement their policies.
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Oct 25, 2018 04:50pm
Reading these comments, it seems to be that Pakistani public wants them to raise their magic wand and fix issues immediately. For goodness sake, show some sensibility and let PTI folks do their job. They are cleaning the bad doing of last 70 years. Remember Rome was not build overnight.Unnecessary criticism has become a hobby these days.
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Oct 25, 2018 05:11pm
Someday they will give the statement that PTI has nothing to do with the current government.
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Oct 25, 2018 05:36pm
@Lake PTI had claimed that they will solve and fix all problems. The slogan of 'Naya Pakistan' brought them in the government. PTI has sold these promises to come into the government. Now they have to walk the talk. Why they lied to the people when they have no solution and they were misguiding the public?. No more time to make lame excuses. They promised the revolution and we are waiting for it.
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Oct 25, 2018 05:39pm
I agree with Asad Umar on this issue. Price hike was necessary because of devaluation of rupee. The way they have increased the tariff is to target consumers in higher income quintiles.
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Oct 25, 2018 05:42pm
No shame in selected government.
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Oct 25, 2018 05:54pm
Lame excuse
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Oct 25, 2018 05:57pm
@Mohsin Malik Bravo !! Best comment of this thread and looks like it will actually be announced by someone from within PTI and real soon !!
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Oct 25, 2018 05:58pm
@Nit Read the above properly, NEPRA recommended rate was not accepted but slashed. 90% of poor people who uses less than 300 units will not get affected. This section of people are the most vulnerable, hence, they will not pay more than what they are already paying. It the people who will be affected - 301- 700 & 701 units above will be affected who are raising their voices, these are the people who can afford it.
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Oct 25, 2018 05:59pm
PTI needs to fix the circular debt issue before anything.
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Oct 25, 2018 06:08pm
We are going to launch this drive from Lahore and Punjab," the power minister said.
In all the power companies working in Pakistan the best performance are iesco and lesco. Why this PTI government is going after people of Lahore. Previous government also looted the people of this city in return of few flowers and flyovers. They should strart work from pesco, qesco and sesco. Rich people in these areas are using electricity without paying bills for time immorality. Stop judging the people of Lahore as rich because a grade-16 gov employee gets same pay in Lahore and Sukkhur or khuzdar.
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Oct 25, 2018 06:24pm
Good statement
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Oct 25, 2018 06:31pm
@AJ this unit bracket is a low-middle income usage bracket for power consumption in the rest of the world. Our people are sheep led by a camel.
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Oct 25, 2018 06:36pm
Well those technocrats in the comment section who are blaming the govt for tariff price increase, for their knowledge if previous govt installed expensive power projects where per unit cost is higher than what do they expect from Current Govt ? to Keep bearing the subsidy and deficit account and as a result get more & more loan....
However, I am more interested in Govt to sit and decide the tariff increase for both Electric & Gas all for once and don't do these small increase every other month...Perception of price hike is more devastating than the real price increase. Lastly they need to think how to bring down the electricity production cost ...
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Oct 25, 2018 06:41pm
Yes. Just like Saudi has nothing to do with Jamal Khashoggi.
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Oct 25, 2018 06:54pm
@Mohsin Malik Love your comment
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Oct 25, 2018 07:04pm
What a statement! Laughing each day of this government!
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Oct 25, 2018 07:11pm
what a joke
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Oct 25, 2018 07:12pm
@Nit Looking at list of what they do and what can't do please give them 3 years to understand
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Oct 25, 2018 07:14pm
They are kinda right as Nayaa Pakistan is not like old one where government alone take decisions it is shared responsibility now with stakeholders like IMF
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Oct 25, 2018 07:18pm
No No sire....you need not give any excuses. PTI blind supports will accept anything. Every time a problem comes, they are going to point fingers at previous governments.
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Oct 25, 2018 07:27pm
@Sab Se Pehle Pakistan i think you took every word from continer as a fact. Just yesterday Asad Umar clarified that 200 billion dollars looted was just a talk and no reality in that. Also, there are no corruption charges against Shabaz and neither any tax payers money was taken by him so how keeping him in prison will help the rconomy. Govt job to boost economy not spread fake news and lies.
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Oct 25, 2018 07:29pm
What kind of answer is this?
Rs1.27 instead of Rs3.82,"
So YOU had the power to approve.. Why did you not approve -5.00 (reduce by Rs 5) nstead?
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Oct 25, 2018 07:32pm
Asad Umar has spoken the truth,that tariffs were required to be raised by the Interim Government but they pended the price hike to be decided by the elected government.Every one is entitled to have an opinion of his own.
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Oct 25, 2018 07:33pm
Most Ppl who consume over 300 units of electricity aren't exactly rich. A family living in 100 Square yard house or a flat can easily get a bill of 400 units per month in peak summer even if they don't use air conditioners. Asad umer is ignorant if he thinks ppl using less than 300 units are ones who are cash strapped. Secondly disowning this hike and blaming nepra won't work. Common man always looks at govt and pti is not doing any favors to itself by increasing prices of energy.
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Oct 25, 2018 07:35pm
@Rameez Ahmed: if you have read till the end the you would have found answer. Anyway here iit is "instead of "blindly" increasing power tariff to the level Nepra had recommended, the government is also looking inwards to reduce power sector deficits."
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Oct 25, 2018 07:44pm
Come on PTI .....we will support you, but don't ever make mistake of thinking that people are stupid. Not expected from you.
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Oct 25, 2018 08:00pm
If the tariff hike was determined by the Nepra before the PTI government had assumed power, it was its duty when it had power, to set the things in order.
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Oct 25, 2018 08:12pm
Must be PM selectors then
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Oct 25, 2018 08:20pm
I wonder if NEPRA has to decide power hike and govt. has nothing to do with that increase. Then why Govt. has made a cut in that proposed increase by nepra
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Oct 25, 2018 08:23pm
A corporate executive has the expertise in blame game and absolving themselves from all crisis.
Economic policies are articulated by economists.
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Oct 25, 2018 08:24pm
One area which Asad or his colleagues have forgotten is how are they going to stop corruption in the various electricity departments. I as a foreigner has lost a huge amount of money through an installation of a fake mater because I refused to pay bribe. A complain was registered that it was me who had installed a fake meter even when I was not in the country. Ultimately problem was resolved when my lawyer challenged their decision. However I had to settle the reduced amount as agreed by a LESCO area boss.
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Oct 25, 2018 08:31pm
Pakistanis needs to understand that when you take loans from IMF, World Bank, Asia Development Bank; they all have certain terms and conditions. All payments for these loans are maturing in the coming years. Previous governments have kept the country in the dark by taking these loans. While the loans provided huge cash flows to the country and people saw short term improvement but overall every household lost more in the long run. Previous governments provided subsidies, ignored policies set by IMF and other lenders. So today, this is the outcome. I am not a supporter of Pti but what they are doing was supposed to be done by the previous government. If they will not, then the ratings on government bonds will go down which means that any new loans taken will have a higher coupon rates. Plus, currency will devalue at a higher rate, thus deteroriating your balance of trades. People need to understand that prices previously were artificially deflated by the government to please the people
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Oct 25, 2018 08:31pm
So why didn't NEPRA raised the prices during the tenure of last government?
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Oct 25, 2018 08:49pm
@Nit you are absolutely right.
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Oct 25, 2018 08:50pm
if chaina and malaysia give loan to pakistan ,then pakistan will not go trought IMF.
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Oct 25, 2018 09:01pm
The drama goes on without any checks. Not guilty, says the prime suspect. So be it. Who told you to get power in the first place? Do stop the blame game and carry on what is expected of you and your members. High level promises are no solution to the problems bring faced by the people.
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Oct 25, 2018 09:06pm
Poor guys they are so inexperienced they should know whatever happens is the responsibility of the government,no organisation is independent decision maker even a common man knows.
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Oct 25, 2018 09:10pm
Which world are we living in seems like a wonderland...
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Oct 25, 2018 09:25pm
@Nit No it is not. But it is up to government to accept or not. NEPRA wanted 3% hike. Government ok-ed 1.5%.
What they mean to say is that the circular mess issue and rising furnace oil price have forced governments hand. These are circumstances beyond their control.
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Oct 25, 2018 09:27pm
It is the corruption of last 70 years this nation was indulged in. Now the living and coming generations will bear all.
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Oct 25, 2018 09:29pm
Ownership Mr. Minister.
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Oct 25, 2018 09:30pm
so tariff hike was as per NEPRA's recommendation... NEPRA responsible for increase!
govt instead of recommendation, approved only Rs 1.27 hike... credit to govt?
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Oct 25, 2018 09:32pm
Government is deciding everything about electricity rates and what price will be increased for which type of customer and cabinet approving it but still government has nothing to do with it. This is funny.
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Oct 25, 2018 09:32pm
@Anti_Corruption_World You said it loudly and clearly. Well said brother. Keep it up. Speaking out truth candidly and boldly ias always a virtue and shall remain be so.
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Oct 25, 2018 09:40pm
That's funny.
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Oct 25, 2018 10:29pm
Fine, if you do not want to pay for the electricity. Light few candles and you will get the same amount of light.
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Oct 25, 2018 11:02pm
@Kamran But fawad chaudhry is miles ahead....!
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Oct 25, 2018 11:06pm
@Mohsin Malik It is late in the night...i am tired... but i cannot go away without commending your comment.... Superb!!! ........
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Oct 25, 2018 11:50pm
@Adeel shahbaz sharif hasn't changed his name with all the the tall claims of providing electricity for all within 6 months of coming to power. This government has been in power for 2 months and you expect the country to become a economic superpower overnight, are you living in cloud cuckoo land?
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Oct 25, 2018 11:57pm
@Nit . I want you to consider your own question. Yes its under the government, but you need to also understand that if the government continues to carry the burden of subsidizing it, it will have to borrow more money, the government simply cannot afford to do that, they are left with no choice, you cannot kick the ball down the road like the last two governments. Right now, its clean up time of the mess left behind by the previous government.
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Oct 25, 2018 11:57pm
@Rehan. Your comment made no sense.
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Oct 26, 2018 12:15am
@Ash2000 - "This is funny."
You go worry about your funny business in India!
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Oct 26, 2018 12:28am
I have a solution to the power vows of Pakistan. Go solar for all household requirements. Pakistani govt should tie up with Chinese solar panel makers and Chinese banks. Get solar panel installed from Chinese at discounted priced and get them financed by Chinese banks. People would pay directly to banks for the panels. Let all coal/Hydro/Diesel based electricity be used by commercial entities. This way, no transmission loss , power theft, load shedding etc for household users. This would also move Pakistan to green sources plus would save tonnes of Forex used for buying fuel for power generation.
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Oct 26, 2018 02:07am
PTI we voted you to reduce our (poor's) worries, but instead you are after the poor to increase their troubles day by day. You clearly lack power decision. You are teasing the poor.
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Oct 26, 2018 02:15am
Blame Nawaz Sharif now for NEPRA.
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Oct 26, 2018 02:18am
Good Strategy ... Deny responsibility!!
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Oct 26, 2018 02:40am
Thieves are within organizations who are letting theft happens, and if you remove those departmental thieves at all levels, then how you will run the departments.
In order to make departments clean, their should be employee reward to highlight places theft happening, and job protection, so Sahab Babbu thief doesn't fire him/her or put him/her on sidelines.
Hope a better reward and stick system may bring some honesties in the system.
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Oct 26, 2018 02:52am
Sir, it is very easy to deny the allegations of internationally but not that easy to do the same internally.
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Oct 26, 2018 03:06am
@ Nit - its not funny its logical....if govt overrules NEPRA and removes the hike then what is the point of it? the same happens in Australia too...they have govt bodies which review price increase independently and the govt has nothing to do with.
in this case govt did do something and that is it brought the price down to less than half after discussing with NEPRA.
until people of paksitan start thinking logically and not the way of PML-N and PPP it will not get far!
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Oct 26, 2018 04:43am
Can we privatize the power grid and distribution ?
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Oct 26, 2018 05:07am
@Mohsin Malik yes but it needs time. They don't have a magic wand. If people like you did not vote form PPP and PMLN all the time we wouldn't be facing these problems. If we were a mature democracy it would always be a smooth transition from 1 party to other. But that is not the case is it? There is no shortcut. Pakistan people have to sacrifice and support PTI because unlike previous criminals they really want to fix things and make Pakistan better.
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Oct 26, 2018 06:04am
Thank you, gentleman sir
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Oct 26, 2018 06:20am
All these politicians are bunch of useless and liers. Who needs enemy with rulers like this.
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Oct 26, 2018 06:56am
@bhaRAT© - "You go worry about your funny business in India!"
You yourself are seen in comment sections of many news articles relating to India. Practice what you preach.
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Oct 26, 2018 07:00am
They don't know what's happening in the country, they look confused all the time, backtracking and giving lame excuses; but hey, don't you ever call them incompetent. It may rile some of their die hard fans.
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Oct 26, 2018 07:44am
Thank you Honorable Minister Asad Umar we have total confidence in PTI. It's a tough job and most people will fail to understand how terrible our debt crisis is and how it's created by Zardari, Nawaz along with their families and cronies.
We are in full support of you PTI, it's now or never. No to the Naysayers and trolls from anywhere.
Go Green!!! Pakistan Zindabad!
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Oct 26, 2018 03:16pm
We, the Pakistani voters, have been hood-winked by IK and his part. In opposition, and now in government, they have blamed, blamed and blamed more, their opponents (and now Nepra and other institutions). They have neither guts nor plans nor wisdom to deliver what they have relentlessly claimed during past 5 years.
Their most potent assets are lies, U-Turns and blames, which served them well in opposition. But positions have changed now. Have they realised that? Doubt it!
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Oct 26, 2018 03:41pm
This government can review the previous government's decision like it is doing with the CPEC.
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Oct 26, 2018 04:32pm
This government may not have anything to do with the price hike of electrivity, however, since this hike is in their tenure, it will and is being linked to the present government. The best way to address this issue is through regular briefings to the press and this should have a schedule .
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Oct 26, 2018 06:57pm
@ashok - Glad you notice. Its our newspaper though - mind you!
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Oct 26, 2018 07:58pm
PTI is nothing but big sack of lies and U-Turns, they will enjoy next 5 years playing the blame game and lame excuses to hide their incompetencies, and at the end Pakistan will suffer.
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Oct 26, 2018 10:47pm
Instead of beating around bush, just say 'it was necessary'. Don't blame an institution which cannot do press conference like you.
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Oct 26, 2018 10:49pm
Trying to talk to some people is like talking to a tree. Take the price hike for instance, if you have even a trace of brain, you should know the history behind what's going on, why the prices must be raised. when you understand the whole bowl of wax, hopefully you will get your answer. Until then, stop blaming the new government and get yourself educated in the current situation.
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Oct 26, 2018 11:03pm
Now In the government still blaming past rulersghost s r increasing the prices ????Three months r enough for blame games from now on say something of ur ownplese?
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