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Govt paid Rs473 billion subsidy to power sector last year, says Omar Ayub

Federal Minister for Power, Petroleum, and Natural Resources Omar Ayub. Photo: Screenshot via Geo News

ISLAMABAD: Federal Minister for Energy Omar Ayub on Thursday said the government had paid Rs473 billion subsidy to power sector last year despite the economic crunch.

Addressing a press conference accompanied by the Minister for Planning and Development Asad Umar and Special Assistant to Prime Minister for Power Tabish Gohar, he said the PTI government inherited capacity payments from PML-N government.

"The agreements inked by the PML-N government with the power sector were based on bad intentions and corrupt practices," he said.

The minister added that due to the policies of the previous government, the increase in electricity tariff had reached Rs2.18 but the present government had decided to increase the rates by Rs1.95 per unit only.

Ayub said that the annual capacity payments to IPPs were Rs185 billion in 2013, Rs 468 billion in 2018, Rs 642 billion in 2019, Rs 860 billion in 2020, while it would reach Rs 1455 billion in 2023.


“These are the land mines, I am talking about,” he said.

Speaking on the occasion, Special Assistant to Prime Minister (SAPM) on Power, Tabish Gohar said the government had taken a number of initiatives to reduce circular debt.

"Due to the initiatives of the present government, Rs1 to Rs2 per unit would be reduced in the prices of electricity in upcoming years," he said, adding that government had made agreements with power sectors as per law and regulations.

The SAPM said that with the coordination of provinces, the federal government would take steps to control the electricity theft.

Tabish Gohar said deficiencies of power companies would be improved and their monopoly would be ended in the next three to four years.

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