Assembly session: Big ticket issues with Centre? OGRA, hydel prof it and PSDP

Parliamentary committee formed to take up important matters with federal govt

PESHAWAR:

The Khyber-Pakhtunkhwa Assembly on Thursday unanimously passed three resolutions. They asked the Centre to impose federal excise duty on crude oil; pay K-P’s outstanding net hydel profit; and increase the province’s share in the Public Sector Development Programme (PSDP).

The resolutions were moved by both treasury and opposition benches and signed by several lawmakers. Moved by QWP Parliamentary Leader Sikandar Hayat Sherpao, the resolution asked the petroleum ministry to issue a notification to impose federal excise duty on crude oil under Article 161-1 of the Constitution. As a result, OGRA would be able to include it in the pricing formula of petroleum products.

The same resolution also asked the federal government to provide natural gas produced in K-P to the province under Article 158. This would allow the region to use gas at its own discretion. It called for the handing over of around 100 million cubic feet of gas to the province instead of giving it to the Private Power Infrastructure Board (PPIB). If that happens, K-P could install an 800 megawatt thermal plant.

The resolution demanded a 14.82% share for K-P in imported liquefied natural gas (LNG).

NHP

The other resolution, moved by QWP leader Anisa Zeb Tahirkheli, asked the federal government to release K-P’s outstanding net hydel profit cap, including the mark-up, so it could be utilised in the next provincial budget.

The resolution asked the Centre to offer sovereign guarantees for hydel power projects in the province and include them with ready feasibilities in the Pak-China Economic Corridor.

Development

The third resolution was moved on an adjournment motion by Minister for Energy & Power Atif Khan and called for an increase in the PSDP share of the province and make it non-lapsable. Following this, Sherpao raised the thorny subject of a route diversion to the Pak-China Trade Corridor on another adjournment motion.

The house also passed the K-P (Amendment Of Laws) Bill 2015. The private member bill was moved by PML-N lawmaker Amna Sardar and QWP’s Miraj Humayun Khan. The session was later adjourned till May 4.

Talking to the centre

Separately, a huddle of K-P’s parliamentary leaders resulted in the formation of a committee with opposition and treasury members to take up the province’s issues with the federal government. It will be headed by CM Pervez Khattak.

Khattak chaired the meeting which reached this decision at the K-P Assembly. It was attended by Assembly Speaker Asad Qaiser, ministers and lawmakers from both sides of the aisle. Two opposition members, ANP’s Syed Jaffer Shah and QWP’s Anisa Zeb Tahirkheli, would be members of the committee along with ministers Shah Farman and Atif Khan.

Powerless in K-P

Khattak said the most important issue was power cuts as the province was getting only 850 megawatts of its share of 1,300 megawatts.

He slammed Wapda for linking power supply with the payment of bills, saying recovery was not the provincial government’s job. Khattak said this was an injustice with the people of K-P.

Khattak said the federal water and power secretary informed him about the prime minister’s directives to conduct six to eight hours of power cuts in urban and rural areas, respectively. However, the situation was far worse in K-P.

The chief minister said the Centre agreed to increase the net hydel profit share of the province from Rs6 billion to Rs17 billion and this would entail an annual increase of 5%.

Khattak added authorities wanted to produce electricity for industrial estates and domestic users from the province’s own surplus production of 100 million cubic feet of gas.

“Due to shortcomings in the SNGPL, people in Karak have installed illegal pipelines which are causing a loss of around Rs4.5 billion.” The chief minister said people were ready to install gas meters and the exercise was likely to cost Rs6 billion, however, SNGPL was not paying any attention to the issue.

Khattak went on to add that Rs220 billion of K-P’s share of the PSDP could be utilised over a period of a decade. “The rest of the Rs500 billion lapsed,” he said. The chief minister added these funds should not be able to lapse.

The committee’s has been mandated to take up important issues like the Pak-China Economic Corridor, net hydel profit, electricity, oil and gas and other key subjects.

Published in The Express Tribune, April 24^th, 2015.