Latest news with #PakhtunkhwaEnergyDevelopmentOrganization
Express Tribune
6 days ago
- Business
- Express Tribune
Govt refutes allegations of irregularities
The Khyber-Pakhtunkhwa government has strongly rejected allegations of irregularities and financial misconduct in its flagship initiative to provide free solar energy systems to 130,000 low and middle-income households. In a statement issued on Sunday, the provincial administration labeled recent media reports as "baseless" and part of a "misleading propaganda campaign" allegedly driven by vested interests within the solar industry. The Energy and Power Department clarified that the large-scale solarization project is being implemented through the Pakhtunkhwa Energy Development Organization (PEDO), a subsidiary body of the department. Chief Minister Ali Amin Gandapur recently inaugurated the first phase of the initiative via online e-balloting, ensuring a transparent selection of eligible beneficiaries. Authorities emphasized that no funds have yet been disbursed under the scheme, nor has any contract been awarded to a vendor. The project's cost estimates have been prepared in line with the Market Rate System (MRS) 2024 and endorsed by the Finance Department's approved market analysis. The project underwent rigorous evaluation and received clearance from a Technical Committee.
Express Tribune
18-05-2025
- Business
- Express Tribune
K-P's solar dream fades in the light of reality
As the world moves away from using fossil fuels for the generation of electricity, the Khyber-Pakhtunkhwa (K-P) government too has announced its decision to provide free or subsidized solar energy systems to over 130,000 families across the province. However, critics argue that the existing infrastructure is unequipped to handle the sudden shift to solar power. According to government figures, 32,500 households have been selected in the first phase of the project costing Rs20 billion. Over 2.5 million citizens reportedly applied online; an overwhelming response that reflects both the acute energy crisis in K-P and the desperation of residents living under chronic load shedding and erratic power supply. Despite the scale and cost, details around beneficiary selection, contract awarding, and post-installation support remain frustratingly opaque. An official from the Pakhtunkhwa Energy Development Organization (PEDO), speaking on the condition of anonymity, admitted that many logistical and technical elements were still being "worked out," raising doubts about the readiness of the project. "We're still finalizing several implementation phases and vendor alignments," he said, without elaborating further. This lack of preparedness is concerning given the ambitious scope and the financial burden on an already cash-strapped provincial government. In public announcements, K-P's finance adviser Muzzamil Aslam hailed the project as a "first-of-its-kind" effort to deliver free electricity to households. He further claimed that solarizing homes, schools, and religious institutions will help relieve the national grid and generate significant savings. However, critics argue that the numbers being touted do not align with the realities on the ground. The solarization of 1,100 schools in the merged tribal districts includes those that already had solar panels but are now being upgraded. A PEDO report confirms that only 342 schools have completed installations to date, despite funding approvals exceeding Rs1.1 billion. Annual revenue projections of Rs170 million remain theoretical, not backed by independent audits or third-party validation. Similarly, the solarization of 2,000 mosques under another high-profile scheme is presented as a game-changer, with a claimed cost-saving of Rs75 million annually. Yet, critics argue that targeting religious institutions may be politically motivated, especially with local elections looming. Priority lists for eligible mosques and madrassas are being generated by "competent authorities," but the lack of transparency over how these lists are formed raises questions about favoritism and political patronage. According to Dr Kaleem Ullah, Associate Professor at the US-Pakistan Center for Advanced Studies in Energy (USPCAS-E) at the University of Engineering and Technology (UET), solar energy not only eases the burden on consumers but also reduces dependency on conventional power sources like coal, which currently accounts for 64 per cent of our power generation hence this shift could lead to significant savings for the national exchequer. "However, there is a critical gap in the current infrastructure. Despite the growing momentum in solar adoption across departments and institutions, we lack adequate power storage facilities at grid stations. There is an urgent need to establish storage systems to harness and manage solar power effectively," he stressed. In Torghar, a relatively underdeveloped district, the government has promised to solarize 154 religious and community sites and over 3,200 houses. Yet, locals say there's been little outreach or clarity on who qualifies and what the timelines are. The government claims it will also solarize 23,000 public buildings across K-P. However, rather than investing in energy audits or comprehensive feasibility studies, officials appear to be taking a blanket approach, relying on private companies to handle procurement and installation. This opens the door for cost inflation, substandard equipment, and even corruptionissues that have plagued past energy projects in Pakistan. With Rs20 billion in play, civil society organizations are calling for stronger oversight. "There needs to be an independent monitoring body to ensure funds are being used efficiently," said a representative from the K-P Civil Society Network. "We've seen time and again how large-scale projects become political tools rather than genuine public services."
Business Recorder
25-04-2025
- Business
- Business Recorder
Hydel projects: KP seeks tax relief on par with private sector & AJK
ISLAMABAD: The Khyber Pakhtunkhwa government has sought Income Tax exemptions for its hydel projects at par with power projects of private sector and Azad Jammu and Kashmir (AJ&K). In a letter to Finance Minister, Senator Muhammad Aurangzeb, Special Assistant to Chief Minister, KPK, on Energy and Power, Brig. Tariq Saddozai (retired) stated that the province is bestowed with enormous hydro power potential which, if exploited in a systematic, planned and transparent manner, can ensure 'our energy security on long term basis in a sustainable manner.' According to the provincial government, the Federal and Provincial Governments are putting their efforts for optimal utilization of this available cheap indigenous resource for the betterment of national economy of Khyber Pakhtunkhwa. GoKP is constructing hydel projects in the Province from its own resources, which is also contributing to meeting the national energy needs and improving the economy, as no major economic activity can be sustained without adequate, cost effective and reliable supply of power. Hydel projects' crises The profits and gains from hydroelectric power generation are exempted from tax under the Income Tax Ordinance 2001. The income-tax exemption is available to private companies through Clause 132 of Part 1 of the Second Schedule of the Income Tax Ordinance 2001 and WAPDA specifically through entry No. (x) of Clause 66 of Part I of the Second Schedule of the Income Tax Ordinance 2001. Saddozai further noted that exemption is also available to companies registered in Pakistan or AJ&K owning and managing hydel power projects, set up in AJ&K or Pakistan through a proviso under Clause 132 of Part 1 of the Second Schedule to the Income Tax Ordinance 2001. However, the projects of Pakhtunkhwa Energy Development Organization (PEDO) are not given exemption under the ibid proviso and are thus being subject to discrimination. He further said PEDO is claiming exemption under this proviso of the Clause 132 of Part I of the Second Schedule to the Income Tax Ordinance 2001. Therefore, following amendments to the Income Tax Ordinance 2001, are proposed to be made: (a) in Clause (66) of Part I of the Second Schedule to the Income Tax Ordinance 2001 after entry (xvii) the following new entry shall be inserted, namely - '(xvii) Pakhtunkhwa Energy Development Organization established under Pakhtunkhwa Energy Development Organization Act 1993 as amended through the Pakhtunkhwa Energy Development Organization Act, 2020, since inception; (ii) (xix) Company(ies) formed by the Government of Khyber Pakhtunkhwa for the purpose of setting up electric power generation projects in Pakistan' : (b) in Clause (11A) of Part 4 of Second Schedule to the Income Tax Ordinance 2001 after entry (xlvi) the following new entry shall be inserted, namely; (i) '(xvii) Pakhtunkhwa Energy Development Organization established under Pakhtunkhwa Hydel Development Organization Act 1993 (| of 1993) as amended through the Khyber Pakhtunkhwa Energy Development Organization Act, 2020, since inception; and (ii) (xvi) Company(ies) formed by the Government of Khyber Pakhtunkhwa for the purpose of setting up electric power generation projects in Pakistan. The provincial government has sought exemptions as per Section 53 to the Income Tax Ordinance 2001 (Exemption and tax concessions in the Second Schedule), wherein the Finance Division may incorporate the proposed provisions of income tax for the PEDO projects and place before the National Assembly during the budget session 2025-26 for discussion and approval. GoKP has requested Finance Minister to issue directions to the appropriate authorities to amend the Income Tax Ordinance 2001 through the Finance Bill 2025-26 in the National Assembly, adding that this amendment 'will empower our province to harness and develop additional hydro power potential, thereby bolstering its economic stability.' Copyright Business Recorder, 2025
