K-P balks at sharing demands with Senate special panel just yet

Issue of sovereign guarantees on hydel power and other projects also considered

PESHAWAR: The Khyber-Pakhtunkhwa government has worked out its 24-point demands but has not shared the same with the Senate’s Special Committee arbitrating between the provincial and federal governments, officials privy to the matter informed The Express Tribune on Sunday. The demands were finalised on Thursday during a meeting presided over by K-P Chief Minister Pervaiz Khattak.

“The demands have been finalised and will soon be sent to the Senate’s special committee,” said an official who attended the meeting. The K-P government also issued a handout regarding a meeting held Sunday evening, stating that the amended demands had been finalised.



The official said that the Centre and K-P had signed a memorandum of understanding (MoU) on the outstanding amount of net hydel profit (NHP), under which the centre agreed to pay Rs70 billion in arrears of profit earned on electricity to the K-P.

Khattak, however, called for “a permanent solution” for the province’s share in the hydel power generation under the AGN Qazi formula.

The official also said that the federal government also agreed to give 100 million cubic feet daily (MCFD) gas to K-P. The meeting, he said, decided that the gas issue should also be taken up with the federal government as the matter was still pending.

Referring to the demand regarding the windfall levy on oil and gas, the official quoted the chief minister as saying that he would take up the issue with the federal government. “We want 50 % share in the windfall levy,” the official said.

The demand for sovereign guarantees on hydel power and other projects was also agreed in the meeting.



Regarding the incidence of load-shedding and K-P’s share in the total power generation, it was decided that the federal government should supply 13.5% of electricity to the province, besides sharing the schedule of the production and distribution of electricity.

The meeting also decided to set up anti-theft committees at the district level.  The chief minister also stressed the need for upgrading electricity infrastructure in the province. The province is also demanding royalty on Liquefied Petroleum Gas (LPG).

“If this (issue) is not resolved, the provincial government will have to seek a legal solution,” the handout issued by the chief minister’s office stated.

The chief minister directed the authorities concerned to complete the Chashma Lift Irrigation project as reflected in the Public Sector Development Programme (PSDP) in accordance with the prime minister’s commitments.

Khyber-Pakhtunkhwa’s government is to share 30 per cent of the expenditure while the federal government will provide 70 per cent of funds needed for the completion of the Rs120 billion scheme for irrigating 300,000 acres of barren land.

Published in The Express Tribune, November 14^th, 2016.