K-P concerned over Centre’s nonchalance over NHP dues

Jhagra says he will take up the matter with federal power minister

PESHAWAR: Despite assurances from the federal government and also from the federal finance department, a month into the new fiscal year, the provincial government has yet to receive even a penny of the outstanding Rs56 billion in Net Hydel profits from the Centre.

This has prompted the Khyber-Pakthunkhwa Finance Minister Taimur Saleem Jhagra to express serious concerns over how the absence of the profits and the negative impact they will have on the development of projects in the province.

Jhagra said this as the first month of the fiscal year 2019-20 ended on August 1. At the end of the first month of the new financial year, Islamabad had promised to pay Peshawar Rs56 billion as part of its net hydel dues.

When contacted on Thursday, Jhagra told The Express Tribune that the province was promised by the federal government Rs56 billion last year, but they were only given Rs20 billion. The shortfall, he said, had affected the development of several projects in the province.

He added that another Rs20 billion in fresh dues had been added to the carry-forward balance of Rs36 billion, which meant that the Centre again owes the province Rs56 billion.

“I will meet with the Federal Energy Minister Umer Ayub Khan for the release of the province’s dues,” Jhagra said, adding that the federation had also failed to release sums under federal taxes assignment section, which would only compound the province’s cash flow issues and further impact their ability to complete development projects in the fiscal year.

 

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“If we get our due funds, we will complete our Public Sector Development Programme (PSDP) projects enthusiastically,” Jhagra assured.

In the middle of June, while standing on the floor of the K-P Assembly, Jhagra had told a packed budget session of the province that they had nothing except some pride and a few natural resources at their disposal — primarily water.

"This province has given cheap electricity to the entire country since the development of the Warsak and Tarbela Dams. The constitution, through Article 161, defines how we should get our share of profits for this natural resource,” Jhagra had said, adding that under the AGN Kazi formula had been ratified by the Council of Common Interests as many as eight times since 1991.

Despite that, he said that they have yet to be paid their full share under the formula.

“Our calculations show that his year, our share under the formula will be Rs129 billion,” the provincial finance minister had said as he lamented that they were only paid a measly Rs21.1 billion.

While calling on the prime minister, the federal power minister and the federal government, Jhagra had demanded that the Centre pay K-P the agreed-upon arrears of Rs34.5 billion. Further, he called for paying the net hydel dues monthly instead of a singular annual payment like other monetary transfers from the Centre.

The finance minister had also called for finding a solution to the issue of payments as per the AGN Kazi formula.

“There are many ways to find a solution, its time to sit down and find one right now.

K-P government to take up NHP non-payment issue with centre

KPRA facilitation centre inaugurated

Meanwhile, Jhagra inaugurated a modern Tax Facilitation Center (TFC) of the K-P Revenue Authority (K-PRA) in Hayatabad Phase 3. Service providers can register with the authority at the centre apart from obtaining support in tax-returns.

Jhagra congratulated the K-PRA team for launching a one-window facility for registration as part of the provincial ‘Ease of Doing Business Reforms’ agenda.

The provincial finance minister emphasized the need to facilitate taxpayers, redress their grievances on merit in a speedy fashion.

He further said that field formations present a better image of the organization in the society through transparency, fair play in their actions and better coordination with all stakeholders. In this regard, he said that additional facilitation centres will be set up in other cities of the province as well to facilitate service providers of the STS procedures.

Later, K-PRA Director General Tahir Orakzai briefed Jhagra and German Embassy’s First Secretary Development Marrion Pfennings as they toured the facilitation centre and practically reviewed services.

Orakzai said that the facilitation centre will offer services including registration and guidance about different taxes. Moreover, he said that tax-payers will not only be able to file their taxes at the centre but will also be to resolve their tax-related issues without any delay.

For this purpose, he said that they have appointed experienced tax officers in the facilitation centre.

Published in The Express Tribune, August 2^nd, 2019.