Federal Government agrees to uncap Net Hydel Profit

Peshawar, March 24, 2015 (PPI-OT): Khyber Pakhtunkhwa Government negotiating team after a series of meetings with Federal Government finally succeeded in making a breakthrough to uncap the Net Hydel Profit. The province would now get Rs.16 to 17 billion annually instead of Rs. 6 billion capped amount of annual generation in Khyber Pakhtunkhwa. A draft agreement to this effect will be jointly prepared shortly. The other two important demands to be part of the agreement included payment of arrear of NHP payable from 2005-06 onwards up till 2011-12 and the claim of mark-up payable on the principle amount of Rs. 110 billion agreed in the Arbitration Award.

The decision to this effect was taken in a high level meeting held on March 16, 2015 under the Chairmanship of Federal Minister for Water and Power, Khuwaja Muhammad Asif at Islamabad. Federal team comprised Federal Secretary Water and Power, Joint Secretary Water and Power, Authorities of Ministry of Finance and member Finance WAPDA. Team from Government of Khyber Pakhtunkhwa included Muhammad Faheem, Special Secretary Finance, Shumail Butt, Legal Advisor and Umar Akbar Chief Executive Officer PEDO.

It merits to mention here that Khyber Pakhtunkhwa Finance Minister, Mr. Muzaffar Said during a press conference some days back had announced the boycott of NFC meeting to register a strong protest of the KP Government over non-payment of the Net Hydel Profit. Apart from that Chief Minister KP had also actively pursued the stance of the province and held a series of meetings with the Federal Government at top level.

Though WAPDA was reluctant in accepting the recommendation of the technical sub-committee, but the Federal Minister for Water and Power categorically declared WAPDA’s fears as misplaced and against the principle of federalism and the federal spirit. He agreed to the demand of the province being the genuine reasonable.

This will be a landmark agreement and will help KP Government a lot to prepare a poor-friendly budget, overcome its budgetary deficit and forward its agenda for rapid socio-economic development of terrorism-hit province of Khyber Pakhtunkhwa.

For more information, contact:
Government of Khyber Pakhtunkhwa
Tel: 091-9211789
Email: info@khyberpakhtunkhwa.gov.pk

The post Federal Government agrees to uncap Net Hydel Profit appeared first on AsiaNet-Pakistan.

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