ISLAMABAD: Federal Minister for Energy Omar Ayub on Thursday said that despite the economic crisis, the government had given a subsidy of Rs 4773 billion to the power sector last year.
Addressing a press conference along with Minister for Planning and Development Asad Umar and Special Assistant to the Prime Minister for Power Tabish Gohar, he said that the PTI government had inherited the capabilities from the PML-N government.
“The PML-N government had entered into an agreement with the power sector based on wrong intentions and corrupt practices,” he said.
The Minister further said that due to the policies of the previous government, the electricity tariff has been increased by Rs. 2.18 billion but the present government has decided to increase it by only 1 unit 95 paise per unit.
Ayub said that the annual capacity payment to IPPs was Rs 185 billion in 2013, Rs 468 billion in 2018, Rs 642 billion in 2019, Rs 860 billion in 2020, while in 2023 it will reach Rs 1455 billion.
“These are landmines, I’m talking,” he said.
On the occasion, Special Assistant to the Prime Minister for Power (SAPM), Tabish Gohar, said that the government has taken several steps to reduce the circular debt.
“Due to the measures taken by the present government, electricity prices will come down by Rs 1 to Rs 2 in the coming years,” he said. He added that the government has entered into agreements with the power sector in accordance with the law and regulations.
The SAPM said that the federal government would take steps to curb power theft in coordination with the provinces.
Tabish Gohar said that the shortcomings of power companies would be rectified and their monopoly would end in the next three to four years.