Exports- Sugar shortage recovered

Sugar millers make out case for exports

 

- File Photo

KARACHI: The country will have around one million tonnes of extra sugar this year based on monthly consumption of around 390,000 tonnes and available stocks of 3.45 million tonnes held by sugar mills of three provinces till May 15, 2014, according to millers’ estimates.
They said mills in Punjab hold 1.927m tonnes of sugar stocks, followed by 1.328m tonnes in Sindh and 200,000 tonnes in Khyber Pakhtunkhwa.
“If we use 390,000 tonnes of sugar per month, our consumption comes to 2.34m tonnes from May 15 to November 2014 which means we will still have around 1m tonnes of surplus stocks,” Javed Kayani, a former chairman of the Pakistan Sugar Mills Association (PSMA), told Dawn from Lahore.

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One million tonnes of surplus sugar likely this year

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He said sugar production from November 2013 to April 2014 stood at 5.45m tonnes, of which Punjab produced 3.25m tonnes, Sindh 1.850m tonnes and Khyber Pakhtunkhwa 350,000 tonnes.
However, despite all indicators regarding sugar production and stocks situation are satisfactory, Mr Kayani was unsatisfied with slow pace of sugar exports.
According to figures of Pakistan Bureau of Statistics (PBS), sugar exports plunged by 27 per cent in quantity and 37pc in value.
In the first 10 months (July-April) of this fiscal year, exports stood at 564,960 tonnes ($248m) compared to 778,775 tonnes ($393m) in same period last fiscal. This export data also included export shipment of over 60,000 tonnes made in July-September 2013-2014.
When the government had announced export permission of 500,000 tonnes of sugar on Sept 7, 2013, 400,000 tonnes were exported to various foreign destinations on the same terms and conditions as of last year.
However, in March this year, the government further allowed export of 250,000 tonnes but took away all the benefits like withdrawing SRO 77, inland freight subsidy while exports were further hit by rupee’s appreciation against the dollar.
He said that by June 15 only 50,000-60,000 tonnes of export out of 250,000 tonnes would be made as per contracts with foreign buyers.
Mr Kayani said that India having good crop is providing freight subsidy of $54 per tonne besides a subsidy of 66-billion Indian rupees to growers.
Millers, he said, had cleared payment of Rs220bn to growers and only Rs15-20bn was pending.
He said the government should restore the previous incentives and benefits so that Pakistan could fetch more revenues through sugar exports. “There will be no sugar crisis after calculating consumption and available exportable surplus,” he added.
Around 70pc of sugar out of country’s total production is consumed in juices, squashes, syrups, soft drinks, biscuits and confectionery, while the share of households and other customers is just 25-30pc.
According to data of large-scale manufacturing, the country’s soft drinks production rose to 1.75bn litres in 2012-13 compared to 1.6bn litres in 2011-12. A total of 238m litres of juices, syrups and squashes were produced in 2012-13 compared to 214m litres in 2011-12.
In July-March 2013-14, soft drinks production rose to 1.542bn litres from 1.151bn litres in the same period last fiscal. Production of juices, syrups and squashes jumped to 178m litres in the nine-month period from 157m litres from a year earlier.
Pakistan also imported sugar in July-April period of this fiscal year: some 9,352 tonnes worth $5m landed here compared to 5,737 tonnes worth $4m in the year-ago period.
“This imported sugar is being brought by some pharmaceutical companies otherwise there is no need for imports when the country has good production and stocks,” Mr Kayani, the former PSMA chairman, said.

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Budget for 2014 presented by PMLN government

Dar set to unveil tax-heavy budget

 

 

ISLAMABAD: Finance Minister Ishaq Dar is all set to present the second budget by the Pakistan Muslim League-Nawaz government in the National Assembly on Tuesday.
The finance bill, which will be tabled in parliament next week, is expected to include Rs535 billion in additional taxes and other administrative measures.
The ambitious new tax measures revolve around three pillars — documenting and taxing the rich, raising the existing withholding tax rates for non-compliant taxpayers, and increasing the income tax share in overall revenue collection.
Officials privy to the budget-making process say these proposals are aimed at offering industrialists a better environment through the lowering of customs duties. But this will not provide any relief to salaried individuals or the common man.
A well-placed source in the Finance Ministry told Dawn: “The Federal Board of Revenue has obtained approval from the prime minister for the new taxes.”
The government has projected an ambitious revenue collection target of Rs2,810bn for FY2014-15. But tax officials say this target is too high and predict that FBR may be able to collect not more than Rs2,700bn.
SALES TAX: Any change in the sales tax rates will directly affect the weaker sections of society and have an impact on inflation. Prime Minister Nawaz Sharif has agreed in principle to bring down the existing rate to single digit and has also approved the constitution of a commission to explore this possibility.
At present only four per cent of the total sales tax collected reaches the government, with fake receipts accounting for the bulk of the losses.
Mr Sharif has agreed to bring down sales tax to five-seven per cent and to do away with input adjustments and refunds.
A tax official said: “The reduction in sales tax rate will bring political mileage for the PML-N government,” adding that this might not go down well with the International Monetary Fund.
The government is also expected to make receipts mandatory for all transactions. Tax authorities are considering offering incentives such as a lottery scheme to encourage people to obtain receipts at shops, restaurants, etc.
While no exemptions will be withdrawn from kitchen items, stationery, pharmaceuticals and dairy products, the steel sector may see the sales tax rate climbing up to Rs7 per unit from Rs4 per unit.
A proposal is under consideration to levy over 5pc sales tax on export proceeds, which will be charged from foreign buyers.
The government appears reluctant to give the salaried class tax concessions despite the fact that in the previous year, most wealth statements were filed by salaried individuals.
Experts suggest a 15pc to 20pc income tax concession for those earning more than Rs35,000 per month, while for those earning around Rs1.2 million per month the concession may be around 10pc.
WITHHOLDING TAX: To differentiate between taxpayers and non-taxpayers, the government has decided to increase the cost of doing business for non-taxpayers by increasing withholding tax across the board.
All existing withholding tax rates will be increased by 1.5pc to 2pc for non-taxpayers. Those who are on the tax rolls and file their returns will pay the existing withholding tax rates.
For example, on cash withdrawal from banks, the withholding rate will be increased from 0.3pc to 0.5pc. Those who have NTNs and file returns will pay a lower rate. Similarly, there will be an increase in the withholding tax on interest and dividend. “We will provide all NTN and returns data to banks,” the official said.
Filers who travel abroad often will be subject to an adjustable 5pc withholding tax, while the rate for non-filers will be 10pc. The taxes will be applied only on first-class and business-class tickets.
Gas and electricity connections will also be linked to NTNs. Each transaction, whether for business or non-business purposes, will only be allowed through cross cheque and the penalties for issuing bogus cheques will be enhanced.
The FBR has no proposal to withdraw income tax exemptions on perks and privileges of judges of the superior judiciary, the president of Pakistan and services chiefs, among others.
There are several SROs which cannot be withdrawn because of their expected impact on the end-consumer. For example, the withdrawal of a sales tax exemption on crude oil will fetch Rs94 billion in revenue but it will lead to an increase in the price of oil.
There are several proposals on the cards, including the levy of regulatory duties on luxury items. The government may also increase taxes on the import of used cars

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Government funds for Cancer hospital.

Nawaz gives nod to cancer hospital in all provincial capitals

By Mateen Haider

ISLAMABAD: The National Economic Council (NEC), which met here on Thursday with Prime Minister Nawaz Sharif in the chair, decided to construct a cancer hospital in every provincial capital.

Prime Minister Sharif remarked that Federally Administered Tribal Area (Fata) needs special attention and current developmental schemes need to be expedited there.

The meeting ordered inquiry into Quetta Water Supply Scheme where despite an expenditure of Rs10 billion there was nothing to show on ground.

The meeting also asked the Balochistan government to prepare a feasibility of solar panels to overcome energy shortages in the province.

The provincial government was also directed to plan a water supply scheme for Gwadar.

Earlier, the Council of Common Interests (CCI), with Prime Minister Sharif in the chair also, approved the mechanism for at source deduction of outstanding power sector payable of the provinces.

Under the mechanism which will be effective from July 1, the provinces and the federal government are to reconcile old arrears within 30 days’ time.

Today’s meeting also gave its approval to a draft of the Pakistan Energy Efficiency and Conservation (PEEC) Bill 2014 and for its tabling in the National Assembly.

The council also okayed a draft amendment in the Code of Criminal Procedure, 1898 in relation to the restoration of executive magistracy. The amendment would later be tabled in the Parliament for formal approval.

The CII moreover ordered an inquiry into irregularities in the Kachi Canal project which is to be conducted by international auditors. The prime minister also expressed his displeasure at the delay in the inquiry by concerned officials.

He directed Minister for Water and Power Khawaja Asif to take action against those responsible for delaying the inquiry and submit a report at the next meeting of the CII

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NEC approves plan for Power Generation.

ISLAMABAD: The National Economic Council (NEC) approved on Thursday an ambitious 10-year plan called Vision 2025, envisaging Pakistan to be among top 25 world economies, universal primary education with 100 per cent enrolment, an increase in annual exports by six times to $150 billion and double power generation to 45,000MW by 2025.

Presided over by Prime Minister Nawaz Sharif and attended by all provincial and regional chief executives, a meeting of the NEC authorised the planning commission for regular monitoring of progress on implementation of the long-term development strategy through a performance delivery unit against key performance indicators.

The meeting approved a framework for the 11th five-year plan in line with broad outline of the Vision 2025 and directed the ministries, provinces, special areas and public sector agencies to make concerted efforts in coordination with the planning commission for effective implementation of the vision.

Based on seven key pillars are drivers of growth to transform Pakistan into a vibrant and prosperous nation by 2025 through a shared vision, political stability, peace and security, rule of law and social justice.

The vision has positioned human resource development at the top of national agenda by capitalising on existing social capital, strengthening it and improving the human skill base of the population to optimally contribute to and effectively benefit from economic growth. For this, the country has to make significant leap forward in areas like education, health and social development to take full advantage of its youth bulge.

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NEC approves Vision 2025

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Under pillar one it promises that a larger share of the GDP, at least 4pc to education and at least 3pc to health, would have to be allotted to achieve universal primary education with 100pc net primary enrolment, increase higher education coverage from 7pc to 12pc and increase proportion of population with access to improved sanitation from 38pc to 90pc.

Under pillar two for sustained, indigenous and inclusive growth, the plan promises to make every Pakistani better off by 2025 by removing a lot of existing horizontal and vertical, intra- and inter-provincial, as well as rural and urban inequalities.

The key goals in this case include a modern performance driven public sector, transforming Pakistan into one of the 25 largest economies in the world, leading to upper-middle income country status and increasing annual exports from $25bn to $150bn.

Under pillar three for a responsive, inclusive and transparent system of governance at all levels, from federal to provincial and district levels, will ensure an efficient and transparent government operating under the rule of law and providing security of life and property to its people.

It strives to develop a skilled, motivated and “results-focused” civil service, an effective regulatory framework and an infrastructure that leverages supporting technology and global best practices.

The goal here is to get a place in the top 50th percentile for political stability (bottom 1 percentile), no violence and terrorism (bottom 1 percentile), and control of corruption (bottom 13th percentile) as measured by the World Bank’s Worldwide Governance Indicators.

Pillar four promises sufficient energy, water and food security for sustainable economic growth and development. It plans to double power generation to 45,000MW and provide uninterrupted, affordable and clean ‘energy to all’. It also seeks to increase storage capacity and improve efficiency of usage in agriculture by 20pc and reduce food insecure population from 60pc to 30pc by 2025.

The pillar five – private sector led growth and entre-preneurship – aims to make Pakistan a highly attractive destination for private sector investment, with conditions that allow private investors to successfully participate in its development.

The target is to rank Pakistan in the top 50 countries on the World Bank’s Ease of Doing Business Rankings and increase diaspora investment (via remittances) in private sector to $40bn.

Pillar six seeks to increase competitive knowledge and value-addition to utilise resources in a productive manner – based on merit, quality and innovation, instead of unproductive rent seeking behaviours. Key targets would be to quadruple contribution of total factor productivity to growth and improve Pakistan’s score on the World Bank Institute’s Knowledge Economy Index from 2.2 to 4.0.

Pillar seven seeks modernisation of transportation infrastructure, greater regional connectivity. Key related targets are to ensure reduction in transportation costs, safety in mobility, effective connectivity between rural areas and markets and urban centres, inter-provincial high-speed connectivity through road and rail networks including China-Pak Economic Corridor to make Pakistan a regional hub of trade and commerce and increase road density from 32km/100km2 to 64km/100km2, and share of rail from 4pc to 20pc of freight handling in the country.

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NEC approves Development Budget.

Govt eyes 5.1pc growth rate in next financial year

By Khaleeq Kiani

Published about an hour ago

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- File Photo

ISLAMABAD: The National Economic Council (NEC) meets here on Thursday to approve a long-term development blueprint — Vision 2025 — for the country with an initial consolidated development programme of Rs1.310 trillion and economic growth rate of 5.1 per cent during the next financial year.

Prime Minister Nawaz Sharif will preside over the meeting to be attended by chief ministers of the four provinces and Gilgit-Baltistan, the prime minister of Azad Jammu and Kashmir, the governor of Khyber Pakhtunkhawa and federal and provincial ministers for finance and development.

Under the vision, the government aims to achieve export target of $150 billion, transform Pakistan into an upper-middle income country, reduce multi-dimensional poverty level from 49pc at present to less than 20pc by 2025.

To achieve the vision, the maximum focus of public sector investment will be on promotion of small and medium enterprises, the higher education commission and knowledge economy to meet challenges of globalisation. The vision is based on seven priority pillars like the social sector, economic inclusive growth, the energy sector, productive development, collective governance, competitiveness and connectivity.

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Long-term development blueprint likely to be approved today

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The NEC is expected to approve a Rs1,175bn development programmes for federal (Rs525bn) and provincial (Rs650bn) governments, besides a Rs135bn expenditure by Wapda and the National Transmission and Dispatch Company from their own resources as recommended by the Annual Plan Coordination Committee early this week. Some increase in development allocations could not be ruled out if the prime minister and chief ministers find some fiscal space in their respective areas, an official said.

The meeting will also approve macro-economic annual plan for the next fiscal year, envisaging 5.1pc growth in gross domestic product, to be supported by a modest 3.3pc growth in agriculture, a respectable 6.8pc improvement in industrial output and 5.2pc growth in the services sector.

This will depend on better energy supplies, normal weather conditions, positive investor confidence and political stability, according to a working paper on annual plan 2014-15 available with Dawn.

The government will focus on three core areas – taxation, investment and export – for increasing growth.

Inflation is estimated to grow by 8pc, while investment is targeted at 15.7pc of GDP against current year’s 14pc. Fixed investment is estimated to grow to 14.1pc of GDP from current 12.4pc while national savings rate is expected to improve from 12.8pc of GDP this year to 14.2pc in 2014-15.

Trade deficit is estimated at $17.2bn on the basis of $27bn exports and $44bn imports, showing an increase of 5.8pc and 6.2pc, respectively. The current account deficit is projected at $2.8bn (1.1pc of GDP) against current year’s $2.6bn (1pc of GDP).

The NEC is also expected to issue guidelines for a uniform education standard and curriculum across the country and do away with more than 200 schemes launched on political basis or those facing repeated delays for more 7-8 years.

The meeting will issue directives to complete all projects with 70pc physical progress within a year and those having more than 50pc progress in two years. A total of 303 new projects with an estimated cost of Rs1.6trn will be made part of the PSDP.

The power sector is being given top priority with highest allocation of Rs260bn, apart from Rs135bn self-financing by Wapda and the NTDC. The transport and communication sector got the second priority position with an allocation of Rs163bn, including Rs114bn for the National Highway Authority and Rs40bn for rehabilitation and revival of Pakistan Railways.

Rs45bn would be allocated for Karachi-Lahore Motorway’s land acquisition whose construction will be undertaken on build, operate and transfer basis and the Chinese investment. The prime minister’s dream project – Pak-China Economic Corridor – will also be a major focus of development programme with an investment of about Rs51bn while new initiative of Rs36bn will be launched by the prime minister for national integration through reduction in development disparities.

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Trade initiatives.

http://video.dunyanews.tv/index.php/en/mustwatch/4936/Ban-on-Indian-mango-exports;-a-unique-opportunity-for-Pakistani-exporters#.U4AmeUDAuPA

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Megawatt Power Project updates

ISLAMABAD: In what seems like a move tailored to embarrass the government of Prime Minister Nawaz Sharif, the National Accountability Bureau (NAB) has picked up the head of a government-run power board — who is supposed to be a key part of the ground-breaking ceremony for a 1,320 megawatt power project scheduled to be held in Karachi on Tuesday.
According to NAB spokesperson Ramzan Sajid, the bureau arrested on Sunday three people in connection with a Rs22 billion rental power project (RPP) scam. The three men picked up are Private Power and Infrastructure Board (PPIB) Managing Director N.A. Zuberi and two former chief executive officers of Lakhra Power Generation Company Limited (LPGCL-Genco) Anwar Brohi and Muhammad Jamil. The former was taken into custody from Islamabad while the other two were picked up from Karachi.
The NAB spokesperson said the bureau was investigating the allegedly illegal award of contract to M/s Karkey Karadenize Electric Uretium, a Turkish company, for the commissioning of a rental power project in Karachi. An agreement to this effect was signed between Karkey and LPGCL, he added.
“The three men in custody are accused of causing massive losses to the national exchequer by extending undue favours to the Turkish firm,” he said.
He said the estimated losses recoverable from Karkey amounted to nearly $128.14 million, in addition to a mark-up of about Rs120m. Nearly Rs672.70m is to be recovered from the public office holders responsible, he said, adding: “The accused will be produced before an accountability court so we can obtain their physical remand.”
Prime Minister Nawaz Sharif is expected to be the chief guest at the ground-breaking ceremony of the coal-fired Port Qasim Power Plant on May 6, a project supervised by the PPIB. The ceremony is likely to be attended by foreign delegates and investors, invited by the PPIB to invest in the power sector.
In this context, the PPIB chief’s arrest could undermine the confidence of foreign investors and may embarrass the prime minister when he meets these foreign delegates at the ceremony.
According to the Prime Minister Office, on Aug 29 last year, M/s QINVEST LLC, Doha, Qatar, M/s Power Construction Corporation of China (Power China), M/s SEPCOIII Electric Power Construction Corp, the government of Punjab and PPIB signed an MoU for the development of 10x660MW (2x660MW in phase-I and 8x660MW in phase-II) coal-fired power project for the coastal areas of Gadani in Balochistan.
The project to be commissioned on Tuesday is a joint venture of Sinohydro Resources Limited, China, (a wholly owned subsidiary of M/s Power Construction Corporation of China) and M/s Al-Mirqab Capital, Qatar. They will undertake the development of two 660MW coal-based power projects at Port Qasim. A ‘Notice to Proceed’ was issued by the PPIB to sponsors on March 6 this year.
Despite repeated attempts, a PPIB spokesperson was not available for comment.
Separately, a source in the water and power ministry told Dawn that most of the major players in the Rs22bn RPP scam were roaming free, while those who were not behind the corruption were being grilled. Some of the main accused who are still not in NAB custody include former prime ministers Yousuf Raza Gilani and Raja Pervez Ashraf, former federal minister Shaukat Tareen, former water and power secretary Shahid Rafi and Fayyaz Elahi, former managing director of PPIB.

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OGRA recommends reduction in petroleum prices.

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) recommended on Monday reduction in prices of all petroleum products from May 1.

Informed sources said Ogra had sent a summary for revision in the prices to Finance Minister Ishaq Dar and Petroleum Minister Shahid Khaqan Abbasi who are expected to take a decision in this regard on Wednesday.

They said Ogra was expecting significant reduction in oil prices in the first half of the current month. However, some appreciation of dollar against rupee and a rising pricing trend in the international market over the past 10 days dashed those expectations.

Therefore, Ogra has suggested a minor reduction of 34 paisa per litre in the price of petrol. With the reduction the price would come down from the exiting Rs108.31 to Rs107.97 per litre.

The regulator has proposed a reasonable reduction of Rs4.51 per litre in the price of high speed diesel which is mostly used for tube-wells and majority of the freight and public transport vehicles. Its price would be reduced from the existing Rs113.85 to Rs109.34 per litre.

The price of kerosene, the poor man’s fuel mostly used in rural areas, is estimated to drop by Rs3.08 to Rs98.07 from Rs101.15 per litre.

Likewise, the price of light diesel oil has been estimated to come down to Rs94 from Rs94.93 per litre with a reduction of 93 paisa per litre.

The price of high octane blending component has been estimated to drop by Rs1.94 to Rs133.08 form Rs134.63 per litre.

An official said this reduction had been worked out on the basis of maximum petroleum levy permissible under an act of parliament and currently being charged to consumers in full.

Apart from Rs6 to Rs14 per litre petroleum levy, the government also charges 16 per cent general sales tax on the prices of all oil products.

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ECP draws up five year plan (2014-2018)

ISLAMABAD: The Election Commission of Pakistan (ECP) has drawn up a second five-year plan (2014-2018), with complete autonomy as one of the 13 objectives to achieve.

According to the plan, the ECP will continue its efforts to achieve complete autonomy, including financial autonomy, and creation of new positions, streng­thening budgeting and procurement procedures for maximum transparency.

The ECP will undertake an assessment of the level of autonomy in line with its constitutional role to organise and conduct free and fair elections and identify areas for improvement by July 2015. It has set December 2016 as the target date for improving areas related to financial autonomy on the basis of findings of an assessment report.

Another goal the commission has set for itself is to improve the ECP’s nationwide infrastructure in line with its constitutional position and important functions it performs in the democratic system.

For this purpose it has planned to acquire land in all districts for construction of its offices and warehouses.

Strengthening IT infrastructure and extending a secure internal network access to provincial, divisional and district offices is also part of the plan.

Another important goal is to ensure that laws and rules related to electoral processes address issues it faced in the previous elections, and reforms are introduced to further strengthen the electoral system.

It will prepare a paper on the issues related to the legal framework in the light of lessons learnt from the 2013 gen­­eral election, by June this year and review amendments to the Representation of People’s Act, 1976, sent to the government prior to the 2013 elections, by March 2015.

It also plans to unify the election laws by improving the earlier draft by September 2015.

Analysis of new local government laws and rules adopted by provincial governments and drafting recommendations is also among the defined objectives.

The commission will devise legal provisions to prevent anyone from barring female voters from exercising their right to franchise, review the Political Parties Order 2002, define uniform rules for political parties, their registration, intra-party elections and allocation of symbols, by March next year.

It will also devise a complete scrutiny process covering each point in the ­nomination form in the light of Articles 62 and 63 of the constitution.

The commission has set the deadline of March 2015 for this purpose.

Yet another goal is to undertake an in-depth analysis of the current system dealing with political finance and strengthen it by removing any gaps and building the ECP’s internal capacity.

Another important goal is to analyse the present system of resolving election complaints and disputes in various phases of electoral processes, and come up with practical measures to remove any anomalies.

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IESCO revises power over power supply.

ISLAMABAD: In a bid to clear outstanding dues of billions of rupees, the capital’s electricity company disconnected power supply to most major government departments on Tuesday to demonstrate its commitment to cracking down on power thieves and defaulters.

The Islamabad Electric Supply Company (Iesco) cut power to the Prime Minister’s Secretariat, President House, Supreme Court and Pakistan Secretariat, including the offices of the Ministry of Water and Power.

But the blackout was short lived. Power was restored to the Supreme Court within half an hour of the disconnection.

Basit Zaman, an Iesco spokesperson, told Dawn that power was restored upon receipt of payment of outstanding bills from the Pakistan Works Department (PWD).

The country’s leadership remained largely unaffected by the power cuts. Prime Minister Nawaz Sharif was already en route to the United Kingdom when his offices were cut off from the national grid. The president’s residence is equipped with standby generators that are switched on if the power supply is suspended.

The PWD is responsible for maintenance and utilities for the PM Secretariat and the offices of the chief justice and cabinet ministers. The Capital Development Authority has jurisdiction over President’s House, parliament and Pakistan Secretariat, the seat of the bureaucracy.

Zaman said his company kept getting calls from different government departments, promising to clear their dues as soon as possible and asking for power to be restored. “However, we had instructions not to restore power until we received cheques against the outstanding bills,” he said.

Govt commitment

Speaking to journalists ahead of the power cuts, Minister of State for Water and Power Abid Sher Ali said the government would not discriminate against anyone and was committed to action against electricity thieves and defaulters. He said the prime minister had been quite firm with the power sector team on Monday and reprimanded them for being lenient in recovering outstanding dues.

He said the Sindh government had publicly disowned about 5,000 public sector consumers who were either illegally tapping power lines or had not paid their bills.

Sher Ali said the total outstanding dues to power companies stood at Rs475 billion, with another Rs33bn added to the total in the current fiscal year.

According to the minister, Sindh owed power companies Rs56bn, Punjab Rs3.4bn and the Khyber Pakhtunkhwa and Balochistan governments owed Rs2.5bn each. In addition, nearly Rs70bn was yet to be recovered from tubewell-owners in Balochistan.

In parts of KP and Sindh, nearly 90 per cent of power connections were illegal and the government had identified areas with a high density of defaulters for 18-20 hours of loadshedding. Areas with the least outstanding dues should expect only up to 6-8 hours of loadshedding at the height of the power crisis, he said

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