Answering a question during question hour session, she said that Rs19.5 billion was given during 2005- 06, Rs41.9 billion in 2006- 07, Rs113.7 billion in 2007-08, Rs90.5 billion in 2008- 09 and Rs146.6 billion was provided as subsidy in the year 2009-10.
She said the federal government is paying subsidies to Wapda and Pepco, picking up the difference between the tariff, determined by National Electric Power Regulatory Authority (Nepra) and by the Ministry of Water and Power.
Khar said that Rs1.8 trillion was allocated for subsidy during the current year, comprising Rs30 billion for Pepco, Rs40 billion for payment of circular debt, Rs38 billion for payment of bills in federally administered tribal areas (Fata), while Rs130 billion were allocated for subsidy in energy sector, out of which Rs100 billion has been paid so far.
However, the amount would be raised further if the situation remained the same, she said. The rising oil prices in international markets will ultimately cause an increase in subsidy, she added.
Khar further informed that the government takes loans from banks and returns it to them in three months. During the last quarter, government had taken a loan of Rs80 billion from the State Bank of Pakistan and Rs204 billion from commercial banks and has returned all these loans during the period.
Published in The Express Tribune, January 29th, 2011.
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