Latest news with #Rs2.47
Business Recorder
11-08-2025
- Business
- Business Recorder
Industrial, agricultural consumers: Govt working on ‘surplus power package' proposal: minister
ISLAMABAD: Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said the government is working on a proposal for a 'Surplus Power Package' for industrial and agricultural consumers, in line with the 'Bijli Sahulat Package' for the next three years. Speaking during the question hour in the National Assembly on Monday, the minister said the proposed package would be available to all industries, including the export sector, based on incremental power consumption. He said the Energy Ministry is developing a plan to offer discounted electricity rates on additional usage. Greenfield industries—such as data centers and crypto-mining operations—may receive these discounted rates on their entire consumption, subject to certain conditions. Responding to a supplementary question, Leghari said the government is also working on a direct subsidy scheme to end cross-subsidies, which place a burden on domestic consumers. In a written reply, the minister informed the house that as of May 2025, the circular debt in the power sector stood at Rs2.47 trillion. He said the main causes of debt accumulation were inefficiencies in distribution companies (DISCOs), high technical losses, and revenue recovery shortfalls compared to targets set by National Electric Power Regulatory Authority (NEPRA). He said that other sources of debt increase include unbudgeted subsidies and financial cost (delayed payment charges) of payables to the power producers. He said that in order to reduce debt stock, an amount of Rs1.275 trillion is being arranged to finance/refinance the current stock of circular debt. He said that the loan will have a six-year tenure at an interest rate of 3-month KIBOR minus 0.9 per cent and will be repaid through the Debt Service Surcharge already collected from electricity consumers in their monthly bills as the Financial Cost Surcharge (FCS). To prevent fresh accumulation of debt, the minister said multiple measures are underway, including tariff renegotiations with independent power producers (IPPs), privatization of four DISCOs, reducing technical losses through efficiency improvements, market liberalisation, and ensuring future capacity additions are made on a least-cost basis. Responding to a calling-attention notice, Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry said the National Disaster Management Authority, in coordination with provincial authorities, regularly runs public awareness campaigns and issues timely updates, forecasts, and precautionary measures on weather conditions, rainfall, floods, and other natural disasters. Later, the National Assembly unanimously passed a resolution urging the federal and provincial governments to take necessary steps to celebrate the 1,500th Eid Milad-un-Nabi (SAW) in a befitting manner. The resolution, moved by Pir Syed Fazal Ali Shah Jillani, called for organising Milad programmes at the highest level and illuminating both government and private buildings. It emphasised the importance of promoting the teachings of the holy Prophet Hazrat Muhammad Sallallaho Alaihe WaAlayhee Wassallam, Khatim-un-Nabiyeen. In connection with National Minorities Day, the House also passed another resolution moved by Naveed Aamir Jeeva. The resolution is calling for the inclusion of Quaid-e-Azam Muhammad Ali Jinnah's historic address, delivered on 11 August 1947 to the first Constituent Assembly of Pakistan, into the national curriculum. In that address, the founder of Pakistan declared that 'you are free to go to your temples, mosques, or any other places of worship in this country. You may belong to any religion, caste, or creed that has nothing to do with the business of the State.' Copyright Business Recorder, 2025
Express Tribune
23-04-2025
- Business
- Express Tribune
Hike in EOBI pensions from May 1
The Public Accounts Committee (PAC) was informed on Wednesday that the age of Employees Old-Age Benefits Institution (EOBI) beneficiaries will be determined on the basis of the CNIC record instead of matriculation certificate, and the pensioners will get a raise in their pensions from May 1. The committee was also told that EOBI disbursed Rs2.79 billion among 5,131 fake pensioners. A meeting of PAC under the chair of Junaid Akbar vetted the audit paras of the Ministry for Overseas Pakistanis. During the meeting, the audit officials informed the committee that EOBI had disbursed Rs2.79 billion to ineligible or fake pensioners. According to the audit report, out of approximately 800,000 pensioners, the data of over 5,000 individuals was found to be incorrect. Pensions were issued to people whose dates of birth did not match between their CNICs and matriculation certificates. In some cases, men under 60 and women under 55 were receiving pensions, in violation of eligibility criteria. The audit officials revealed that age manipulation was used to grant pensions to more than 5,000 unqualified individuals. EOBI officials informed the committee that the institution's fund currently stands at Rs600 billion. They added that there are around 10 million businesses in the country, and any business with at least 10 employees is required to register with the EOBI. They said they verify the age of the beneficiaries through CNIC and other sources. The Ministry of Overseas Pakistanis secretary said that pension cases would be settled now on the basis of the CNIC, adding that EOBI pensions will be raised from May 1. PAC chairman Junaid Akbar Khan said there should be a standard criteria for determining the age of the pensioners. The EOBI chairman said they would now issue pensions based on CNICs using NADRA's data. The Ministry of Overseas Pakistanis secretary requested a month's time to rectify issues. The committee directed the ministry to investigate the matter and submit a report within a month. Audit officials also disclosed that EOBI had not recovered Rs2.47 billion from 2,864 institutions. The EOBI officials said these institutions did not register their full workforce and did not pay their due amounts. EOBI has recovered Rs1.53 billion but still working on recovering Rs1 billion, partially because some recovery cases were stuck in court. The committee chairman directed the EOBI officials to complete the recovery within a month.
Express Tribune
26-02-2025
- Business
- Express Tribune
PAC seeks action on power defaulters
The Public Accounts Committee (PAC) on Tuesday summoned details of the top 300 defaulters, as both public and private entities owe trillions to power distribution companies (DISCOs). Due to the failure of DISCOs to recover outstanding dues, the national exchequer has suffered a loss of Rs877 billion. A PAC meeting, chaired by Junaid Akbar, reviewed the audit objections related to the Power Division for the fiscal year 2023-24. The session was apprised that DISCOs had pending recoveries of over Rs877 billion from defaulters during the financial year 2022-23. An audit report revealed massive outstanding dues across various power distribution companies (DISCOs). In FESCO, 513 consumers collectively owe Rs2.47 billion. HESCO has 5,900 consumers with unpaid dues amounting to Rs44.46 billion. Meanwhile, LESCO faces arrears of Rs16.1 billion from 3,736 consumers. PESCO has 824 consumers who owe Rs8.6 billion, while QESCO's outstanding dues stand at a staggering Rs603.35 billion from 2,428 consumers. SEPCO is owed Rs119.837 billion by 342 consumers. TESCO has 146 consumers with unpaid bills totalling Rs6.17 billion. Meanwhile, IESCO's outstanding dues amount to Rs200 million from 142 consumers. Audit officials informed the committee that 118 letters had been sent to the Power Division for recovery efforts, with QESCO having the highest number of unresolved cases. During the session, committee member Khalid Magsi expressed frustration over Balochistan's deteriorating law and order situation, claiming that movement in the province has become nearly impossible. He said that people in Balochistan are left with no option but to take up arms, alleging that BLA operatives roam freely in the streets. He further asserted that dues recovery in Quetta was no longer feasible, saying the Balochistan government was itself the biggest defaulter. In response, the Power Division Secretary informed the committee that DISCOs have submitted working papers for the recovery of Rs162 billion, pledging to personally monitor the progress. The PAC chairman instructed the auditor general to verify the claim by the next session and directed the Power Division to conduct two Departmental Accounts Committees (DACs) each month, with a monthly report on recoveries. The committee also scrutinised DISCOs' failure to remove outdated electrical equipment and recover outstanding dues exceeding Rs501 billion. It was revealed that DISCO officers had been availing free electricity, prompting the Power Secretary to announce that the federal government has decided to discontinue free electricity units.
