K-P’s hydel development funds shrink to Rs9.3b

The hydroelectricity development funds of the Khyber-Pakhtunkhwa government have been utilised in other sectors after which the total amount has reduced to Rs9.3 billion from 23.6 billion in 2013.

Documents available with The Express Tribune read that the hydel development fund which was made up of the arrears under net hydel profit has been spent on other sectors, due to which it has decreased from Rs23.6 billion to Rs9.3 billion. The documents showed that the in 2013-14 the hydel development funds had reached to Rs26.2 billion, however, the incumbent government has spent a huge chunk of these funds on other sectors.

At least Rs5.3 billion from the hydel development funds have been spent in other heads. In 2016-15, the government has withdrawn an amount of Rs2.8 billion and allocated it to other sectors. During the financial year 2016-17, the funds decreased to Rs14.4 billion.

During fiscal year 2018-19, an amount of Rs8.7 billion from the hydel development funds were used.

The provincial government along with annual net hydel development funds has also received an amount of Rs180 billion as pending hydel arrears during the PPP-ANP coalition government. The previous provincial government had also received Rs70 billion under the net hydel arrears.

The annual hydel profit increased from Rs6 billion to Rs20 billion annually during the previous provincial government.

The hydel development fund was created in 1992 with an initial allocation of Rs50 million. The fund was given legal cover through Khyber-Pakhtunkhwa, Hydel Development Fund Ordinance 2001.

The objective of this fund was to develop hydel potential of K-P.

Published in The Express Tribune, July 5^th, 2020.