Rs715.45bn approved for energy sector

Business Recorder

25-06-2025

ISLAMABAD: National assembly on Tuesday approved funding allocations amounting to Rs715.45 billion for the energy sector for the fiscal year ending 30 June 2026.
The Power Division will receive the lion's share – Rs636.9 billion – primarily to cover operational expenditures. Additional allocations include Rs2.17 billion for the Petroleum Division and Rs1.15 billion for the Geological Survey of Pakistan.
For development spending, the government has earmarked Rs2.39 billion for the Power Division, along with Rs72.1 billion in external development loans and advances related to power projects. A further Rs718.6 million has been set aside for capital outlay in the petroleum sector.
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Concluding the debate on the cut motions, Minister for Power Awais Leghari launched a scathing attack on the opposition Pakistan Tehreek-e-Insaf (PTI), alleging that the previous government had awarded preferential energy contracts to powerful business groups.
'We took back Rs3,500 billion from their mouths,' Leghari said in parliament, accusing the PTI of placing long-term financial burdens on the public. He said the current government resisted pressure from business lobbies.
Without naming former Prime Minister Imran Khan directly, Leghari also accused the PTI of attempting to revive the political relevance of its jailed leader. He asserted that Pakistan had not only averted default but had improved its standing internationally during the current administration's tenure.
Responding to criticism from the opposition benches, Leghari said electricity tariffs had been reduced for 20 million of the country's 30 million metered consumers. He claimed a 58 per cent cut for those consuming up to 200 units, calling it an unprecedented move in the country's history.
He also pointed to the cancellation of energy deals signed under the PTI government, which he said would have resulted in an additional Rs4,500 billion in consumer costs over the next seven years. Of the 17,000 megawatts (MW) of power purchases previously approved, 10,000 MW have reportedly been scrapped.
Leghari added that losses incurred by distribution companies had decreased by Rs180 billion over 11 months, down from an annual Rs580 billion.
On the issue of circular debt, the minister said that previous debt servicing through utility bills had raised Rs323 billion annually – insufficient even to meet interest payments. He announced a new Rs1,260 billion plan to eliminate circular debt over six years.
The minister also claimed that Rs110 billion in over-billing had been reimbursed to consumers. He pledged reforms to the net metering system and criticised the performance of state-owned generation companies (Gencos), describing them as 'dysfunctional.' He alleged that employees were drawing Rs7 billion annually without rendering effective services.
Leghari concluded by highlighting improvements in Pakistan's international relations, stating that ties with China, the United States, Iran, and Afghanistan were at their 'best possible position.' He further claimed that the country's global image had improved under the current government, citing increased respect for the Pakistani passport at the United Nations.
At the onset of the session, the opposition PTI lawmakers raised questions over nomination of US President Donald Trump for the Nobel Peace Prize, as well as the federal cabinet's size and the repatriation of Afghan Taliban members during the previous government's tenure.
During discussions on cut motions in the National Assembly, Ali Muhammad Khan of PTI asked whether Trump's nomination had been approved by the federal cabinet. He also referred to a recent meeting between Trump and Field Marshal Asim Munir, and called for both the cabinet and the parliament to be briefed on its contents.
He also addressed what he described as a misconception surrounding the repatriation of Taliban fighters to Pakistan. He said the issue was discussed in 2021 during a high-level meeting chaired by Imran Khan and attended by key ministers, the then-army chief, and the ISI director general. However, he claimed no decision was taken due to opposition within the cabinet, and the matter did not proceed further before the PTI government was ousted.
Khan said the process of repatriation occurred between 2022 and 2023 under the current coalition government and urged its leaders to explain the rationale and process. 'It happened with you in the saddle. You are responsible for it,' he said, addressing the PML-N and PPP leadership. He also called for enhanced coordination and capacity-building among security agencies to combat terrorism effectively.
Separately, Sahibzada Sibghat Ullah questioned whether the Trump nomination was the decision of an individual or the entire cabinet. He criticised Trump's role in the Middle East, citing Israel's actions in Palestine and Iran, and said there was no apparent justification for nominating him for a peace prize.
Jamiat Ulema-e-Islam-Fazl (JUI-F) lawmaker Aliya Kamran raised concerns over the size of the federal cabinet, pointing to Article 92 (1) of the Constitution, which caps cabinet size at 11 per cent of total parliamentary membership – equivalent to 48 ministers. She claimed the current cabinet exceeds 80 members, calling it a violation of the 18th Constitutional Amendment.
'This is against the spirit of the 18th Amendment,' she said, urging the government to reduce the cabinet's size and redirect savings to public welfare.
Kamran also noted overlapping roles between the Special Investment Facilitation Council (SIFC) and the Board of Investment (BOI), saying it was inefficient to allocate funds to both bodies and called for reforms to address the overlap.
Copyright Business Recorder, 2025