Punjab demands payment of electricity duty from Pepco

‘The money would help the govt pay for its flood-relief activities’ .

LAHORE:
Chief Minister Shahbaz Sharif has requested the federal minister for water and power to direct the Pakistan Electric Power Company (Pepco) to pay the Punjab outstanding dues of Rs9.575 billion as early as possible, The Express Tribune has learnt.

An official of the civil secretariat requesting anonymity said a demi-official letter in this regard, carrying the chief minister’s signature, was sent to Minister Khawaja Muhammad Asif in the first week of November. One of the reasons cited for the request was that the provincial government has been facing financial problems and in paying compensation to all flood victims, the official said.

The letter says during the last financial year, the provincial government had reached an understanding with Pepco to clear their outstanding dues by May, 2014.

The provincial government paid Rs3.678 billion to Pepco, but during the process of reconciliation of figures it was realised that it had paid Rs0.58 billion in excess.


However, Pepco is yet to clear its liabilities of Rs9.575 billion accrued till August 2014, the letter says. The liabilities pertain to electricity duty levied under the Punjab Finance Act 1964 which Pepco collected on behalf of the government of the Punjab.

The letter says that the Energy Department had taken up the matter with the federal secretary for water and power but nothing had come of it.

A devastating flood hit the Punjab this year and the provincial government announced a package for the relief and rehabilitation of flood victims and to develop the areas swept away in the floods. In his letter to Asif, the chief minister said that the provincial government needed funds to finance its flood-relief activities.  The Rs9.575 billion electricity duty would help the government fulfil its responsibilities, the letter said. The official said that a response from the federal government was awaited.

Published in The Express Tribune, November 27th, 2014.
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