KARACHI: A fresh financial dispute has emerged between Punjab and the federal government over the alleged unauthorised at-source deduction of Rs7.769 billion from Punjab’s divisible pool share, prompting circulation of an official summary through the Council of Common Interests (CCI) for inter-provincial consultation.
Documents available with The News show that the Sindh government has received a copy of a Punjab-originated CCI summary of October 13, 2025, seeking views from all provinces on the matter. The Sindh Services General Administration and Coordination Department (SGA&CD) forwarded the communication to the Inter-Provincial Coordination Department with the remark that the Sindh chief secretary has desired “early perusal” before placing Sindh’s stance at the CCI.
The dispute stems from electricity bills of Punjab government departments, where under a 2014 CCI decision, 25 per cent of the payable amount was allowed to be deducted at-source after reconciliation with electricity distribution companies (Discos).
Punjab argues that the fresh deduction authorised in June 2025 was made without reconciliation, directly violating both the 2014 CCI decision and SOPs issued in July 2014. According to the summary signed by Punjab Chief Secretary Zahid Akhtar Zaman, the province has already paid Rs25,524.141 million through reconciled at-source deductions for the period from July 2014 to June 2025. However, the Federal Adjuster reportedly authorised an additional deduction of Rs7,769.12 million for July 2014–March 2025 period, which Punjab categorically terms a duplicate charge.
Punjab maintains that the Energy Department’s Reconciliation Cell had already finalised bill settlements up to June 2024.
No new reconciliation was carried out before the second deduction, and the deduction “is excessive, unauthorised and contrary to CCI’s original directions”, added the Punjab government in the summary.
The Punjab government has now moved the issue to the CCI in accordance with Article 157(3) of the Constitution, which allows either the Centre or a province to approach CCI in case of a dispute relating to electricity matters.
Punjab seeks reversal or adjustment of Rs7.7bn deduction as the provincial government also approached the Federal Adjuster to adhere strictly to the 2014 SOPs.
The Sindh government has not yet issued its formal stance but has moved the documents internally for comments ahead of the CCI session.
Senior officers of the Sindh government familiar with the matter told The News that the province was “carefully evaluating” whether the precedent set by unilateral at-source federal deductions could also impact provincial fiscal autonomy in other policy spheres.
