Power tariff to go up by Rs2 per unit

ISLAMABAD: The federal cabinet on Tuesday ratified the Economic Coordination Committee’s decision to hike up the power tariff by Rs2 per unit that would bring an additional Rs220 billion to the cash-starved national exchequer.

In its regular meeting at the Prime Minister’s Office (PMO) chaired by Prime Minister Imran Khan, the federal cabinet also approved the appointment of Shabbar Zaidi as Chairman Federal Board of Revenue (FBR). The prime minister had announced Zaidi’s appointment on Monday.

The cabinet also approved the establishment of Pak-China Engineering University that would be set up at the Prime Minister’s House spreading over 125 acres. The university would be a centre of excellence for which the Chinese government would give a grant of Rs400 billion.

It was decided to bring the seminaries into the mainstream by imparting modern sciences to the students after their registration. The government is introducing a one-window registration system for the 30,000 seminaries countrywide.

The federal cabinet decided that the next fiscal year’s budget would meet the public aspirations and all allied parties would be taken into confidencebefore the next budget session of parliament.

Briefing the media on the federal cabinet's decision, Special Assistant to the Prime Minister Dr. Firdous Ashiq Awan said the cabinet had dilated on the issue of energy and directed the Power Division to ensure uninterrupted power supply during Sehr and Iftar.

Federal Minister for Energy and Petroleum Omer Ayub Khan also addressed the news conference. Firdous said the cabinet ratified the ECC decisions of the previous meeting. She said the cabinet was briefed by Education Minister Shafqat Mahmood on the initiative to bring 30,000 seminaries (Madaris) into the mainstream.

She said the Madaris would be linked with the ministry and act independently. Shafqat apprised the cabinet that one-window registration of Madaris and monitoring of their funding was important. He said the education ministry would also facilitate the foreign students studying in these Madaris.

In addition, vocational training and capacity building of Madaris students are also essential in order to give them an opportunity to earn their living after graduation. The cabinet ratified an agreement on technical cooperation between Pakistan and Brazil. It also gave approval to annual report of SECP that will be presented to cabinet.

Firdous said the cabinet also approved abolition of gifts and entertainment budget in the ministries and public sector organizations and approved extension in the acting charge of chairman Export Processing Zone.

The cabinet also decided that no additional charges would be granted after three months and all posts would be filled in all ministries and divisions. Minister for Power Omar Ayub Khan said the issue of power theft had been contained to a great extent. He said there was no loadshedding on 80% of a total of 8,783 feeders in the country.

“We also wanted to provide electricity during Sehr and Iftar to 60 feeders facing load management, but it could not be done due to line losses and stealing. A sum of Rs61 billion has been recovered from power thieves in the last five months through a vigorous campaign during which 4,225 arrests have been made and 27,000 FIRs lodged against the defaulters.

He said the previous government had left a burden of Rs450 billion in circular debt which would be reduced and hopefully in the next two years the debt would be cleared. He said electric metering will be ensured in the next four years in order to overcome line losses.

The cabinet had a 16-point agenda before it, including separation of Power Division and Petroleum Division as two separate entities. It also discussed the current political and law and order situation in the country.