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Express Tribune
18-05-2025
- Business
- Express Tribune
Balochistan's tube well solarisation stalls
Listen to article The delay in fund utilisation and the security situation have hampered progress on a multibillion-rupee project for solarising agricultural tube wells in Balochistan. The matter was taken up in a recent meeting of the Economic Coordination Committee (ECC). During the discussion, the ECC was informed that the decision on solarisation was taken in July last year, so the amount could not be budgeted and is now being claimed through the technical supplementary grant, which should fully discharge the federal government's responsibility for its share in the scheme. It was informed that Quetta Electric Supply Company (Qesco) was experiencing difficulties in retrieving the material due to ongoing security-related issues. It was further explained that due to the peculiar security situation, the provincial government is required to first clear the area before retrieval of the material, which is a time-consuming process. However, the task is underway, and the first validation report regarding the project would be furnished in the second week of May 2025 by a third party. It was emphasised that the report of the third party needs to be reviewed and therefore it would be appropriate if ECC undertakes that review. The Prime Minister's Office had conveyed to the Power Division on May 13, 2024 to firm up a plan for off-grid solutions, including the solarisation of tube wells in Balochistan, in the budget for FY 2024-25. Subsequently, consultative meetings were held under the chairmanship of the minister for power and the chief minister of Balochistan, in which the minister for commerce, minister of state for power, provincial ministers of Balochistan, secretary Power Division and chief secretary Balochistan, along with power sector specialists, participated. The recommendations were presented before the prime minister during a meeting on July 2, 2024, wherein the forum decided the solarisation of approximately 27,000 agricultural tube wells through compensation of up to Rs2 million per tube well having a legal electricity connection, subject to disconnection from the grid. It was also decided that the cost of providing part-financing for the solarisation of these tube wells, amounting to approximately Rs55 billion, would be borne by the government of Pakistan and the government of Balochistan in a 70:30 ratio, respectively. Accordingly, a detailed agreement with an implementation mechanism in the form of standard operating procedures and a steering committee was signed on July 08, 2024 by the secretary, Power Division, and the chief secretary, Balochistan, on behalf of the respective governments. The federal government has released an amount of Rs14 billion through a technical supplementary grant from the budgetary allocation of the National Food Security and Research Division under the Prime Minister's National Programme for Solarisation of Agriculture Tube Wells in Pakistan. The ECC was informed that the remaining amount of Rs24.5 billion is to be provided from the allocation under 'additional subsidy' for the power sector, as proposed by the Finance Division. It was highlighted that in order to achieve the revised CD flow target of Rs337 billion by June 2025, the Power Division needs to utilise the full amount of budgeted subsidies of Rs1,229 billion against the payables. It was also pointed out that the federal cabinet, vide its decision dated July 8, 2024, approved reallocation of Rs50 billion from the PSDP to fund the additional tariff differential subsidy requirement. This was also part of the Rs1,229 billion allocated for power sector subsidies. Accordingly, the division was of the view that presently the same amount can be allocated from the power sector budget as proposed by the Finance Division. However, in case of any shortfall, the same amount should be remitted back to the Power Division in June 2025 to meet the CD targets agreed with the Fund. Approval of the ECC was solicited to direct the Finance Division to surrender Rs25 billion from the PSDP for power subsidy as per the cabinet's approval dated July 8, 2024. Approval of a grant of Rs34.5 billion was sought for the solarisation of agricultural tube wells in Balochistan.
Business Recorder
05-05-2025
- Business
- Business Recorder
Balochistan tube-wells solarisation: ECC approves Rs24.5bn transfer
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved transfer of the requisite funds amounting Rs24.5 billion to ensure timely completion of the solarisation of 27,000 agri tube-wells in Balochistan. The ECC of the Cabinet met under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb, which was also attended by Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Investment Qaiser Ahmed Sheikh, along with federal secretaries and senior officials from relevant ministries and divisions. The ECC considered a summary by the Power Division regarding the solarisation of 27,000 agri tube-wells in Balochistan as decided by the prime minister on 2nd July 2024, at an estimated cost of Rs55 billion borne by the government of Pakistan and government of Balochistan at a ratio of 70 percent and 30 percent respectively. 'Immense national importance': ECC assures full support for Reko-Diq project The ECC was told that an amount of Rs14 billion has already been released by the federal government while the remaining Rs24.5 billion is now proposed to be released. The ECC deliberated on the matter and approved transfer of the requisite funds to ensure timely completion of the programme. The ECC further instructed the Power Division to closely monitor implementation of key components of the project, particularly the disconnection of tube-wells from the grid and removal of transformers and fixtures for every batch of feeders, as agreed under the project. The ECC also directed the Power Division to report back the progress on this account to ECC, in July. The committee also took up a summary submitted by the Petroleum Division for extension in validity period of sovereign guarantees issued against running finance facility of Rs50 billion obtained from banks for LNG payments by the Sui Northern Gas Pipelines Limited (SNGPL). The committee discussed the matter and approved extension up to June 2026 of the said sovereign guarantees on the basis of improved cash flows of the company. Besides, the ECC also took up different summaries from various ministries/ divisions for the grant of technical supplementary grants (TSGs) for various purposes and approved. The ECC approved Rs300 million TSG for the Cabinet Division for provision of funds to operationalise new regulatory authorities and other funding requirements. The committee approved Rs1,269 million TSG for Finance Division surrendered by ministries as part of transfer of PSDP projects related to defunct PWD to federal ministries and provincial departments. Further, the ECC approved Rs250 million TSG for the Ministry of Federal Education and Professional Training as part of Rs500 million grant approved by the prime minister for upgradation of Sadiq Public School, Bahawalpur. The body also approved Rs109 million additional funds for Ministry of Interior and Narcotics Control for purchase of contingent equipment and store by Civil Armed Forces on deployment of Formed Police Unit for peacekeeping under the United Nations Peacekeeping Missions. The ECC approved Rs500 million TSG for the Ministry of Interior and Narcotics Control for operational requirement of Frontier Corps (KP) North. It further approved Rs25.9 million TSG for Ministry of Interior and Narcotics Control for maintenance of Cessna aircraft. The committee also approved Rs2.32 million TSG for Ministry of Interior and Narcotics Control for construction of Michni Training Centre, Frontier Constabulary, Khyber Pakhtunkhwa. The ECC approved Rs556.8 million TSG for Ministry of Law and Justice for functionalising 36 benches of Appellate Tribunal Inland Revenue across Pakistan. The release of funds by the Finance Division would coincide with the execution of the project. The body also approved Rs106 million TSG for Power Division for programme implementation and awareness activities by the National Energy Efficiency and Conservation Authority (NEECA) for its nationwide fan replacement programme designed with the support of the Power Division, SBP and commercial banks for replacing 88 million inefficient fans across Pakistan with a view to reducing the peak electricity demand by an approximate 5,000 megawatts. The ECC was also briefed by the Power Division on the implementation status of the ECC's decision dated 4th September 2024 regarding the 'Status of Governance of all Discos whose boards have been reconstituted with a view to improving the governance of Discos'. The ECC was told that the BoDs for all Discos had been reconstituted, except for SEPCO and HESCO, where the process was in the finalisation stage. A monthly performance monitoring mechanism evaluating key operational, commercial, and financial parameters, had been implemented by the PPMC for all Discos. Additionally, strategic roadmaps in line with the National Electricity Policy had also been formulated and signed in February 2025 by the respective chairpersons of the BoDs and CEOs of all Discos. The Power Division also shared a summary of the performance of Discos in terms of T&D losses and recovery up to December 2024. Copyright Business Recorder, 2025
