Government to Provide Rs.150 Billion as subsidy for electricity in FY19

Senate committee meeting was held under chairmanship of Shibli Faraz. The committee was informed that the circular debt volume by December 2017 was Rs 514 billion.

Key highlights for the meetings

• Circular debt volume by December 2017 was Rs 514 billion.
• Government borrow Rs 180 billion to pay circular debt
• To pay debt the amount was included in the electricity tariff
• Consumers paying as surcharge in the electricity tariff
• Government last year gives Rs 118 billion subsidy on electricity
• Government to give Rs 150 billion subidy on electricity in FY19
• To clear circular debt government include amount in electricity tariff
• Consumers get only Rs 92 billion as subsidy-joint secretary power
• Agriculture sector get Rs 12 billion, industrial sector Rs 15 billion as subsidy amount
• K-Electric to get subsidy amount of Rs.31 billion
• Circular debt rises owing to delay in decisions and operational hiccups
• Agriculture sector recorded increase in tube wells

Several farmers have installed more than four tube wells