KP, centre tiff over net hydel profits may reach SC

Published October 9, 2022
KP Finance Minister Taimur Jhagra addresses a press conference on Saturday. — DawnNewsTV
KP Finance Minister Taimur Jhagra addresses a press conference on Saturday. — DawnNewsTV

ISLAMABAD: The Khyber Pakhtunkhwa government will approach the Supreme Court over non-payment of net hydel profit (NHP) and share of erstwhile Federally Adminis­tered Tribal Areas (Fata) from the federal budget.

Addressing a press conference at Khyber Pakhtunkhwa House, KP Finance Minister Taimur Jhagra, along with Special Assistant on Information Barrister Muhammad Ali Saif, held the federal government responsible for withholding the province’s share to bring it on the verge of default.

“We don’t want to use the option to approach the superior court in the first place,” Mr Jhagra said, adding that paying dues was a constitutional obligation for the centre.

He said a special meeting of the KP cabinet will be convened early next week to discuss all options including approaching the SC.

KP finance minister says option to approach apex court on the cards; claims that no NHP has been paid since April

Mr Jhagra added that from January 2021 to April 2022, the province received Rs63 billion under the NHP payments and arrears and not a single penny has been paid since then, taking the arrears to almost Rs60bn.

The non-payment of NHP has created a huge financial crisis for the province, the minister said.

Net hydel profit is the money paid by the centre to respective regions for the electricity produced from hydropower stations within their areas.

Mr Jhagra added that the centre also has to pay Rs30bn for the newly merged districts (NMDs). “We need immediately Rs90bn to overcome our financial woes.”

He further said that the province received only Rs8bn out of Rs17bn for the development projects in the tribal areas and the KP government was paying from to continue Sehat Card programme in tribal areas.

“We are not seeking any favour from the federal government”, he said, adding that these payments were their due right.

He remarked that the province’s revenue will reach between Rs75bn and Rs85bn this year and the government wants to further increase it.

Mr Jhagra said his government had requested the federal government to review the targets agreed upon with the IMF but their concerns were linked with anti-state activities.

Now, the federal government itself is considering the same thing in the wake of devastation caused by floods, he said.

The minister said KP has estimated damages to be around Rs125bn and the government will spare Rs50bn to Rs60bn this year for repair and rehabilitation.

Published in Dawn, October 9th, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

Ominous demands
Updated 18 May, 2024

Ominous demands

The federal government needs to boost its revenues to reduce future borrowing and pay back its existing debt.
Property leaks
18 May, 2024

Property leaks

THE leaked Dubai property data reported on by media organisations around the world earlier this week seems to have...
Heat warnings
18 May, 2024

Heat warnings

STARTING next week, the country must brace for brutal heatwaves. The NDMA warns of severe conditions with...
Dangerous law
Updated 17 May, 2024

Dangerous law

It must remember that the same law can be weaponised against it one day, just as Peca was when the PTI took power.
Uncalled for pressure
17 May, 2024

Uncalled for pressure

THE recent press conferences by Senators Faisal Vawda and Talal Chaudhry, where they demanded evidence from judges...
KP tussle
17 May, 2024

KP tussle

THE growing war of words between KP Chief Minister Ali Amin Gandapur and Governor Faisal Karim Kundi is affecting...