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Express Tribune
11 minutes ago
- Business
- Express Tribune
PAC seeks remedy for post-200 unit billing
Junaid Akbar was elected unopposed as Chairman of the Public Accounts Committee in January 2025. Photo: Express/ File The Public Accounts Committee (PAC) on Tuesday took notice of the electricity tariff slab hike that penalises consumers for exceeding 200 units, directing the Power Division to propose a solution for inflated bills that persist for six months even after a single unit crosses the limit. The committee meeting, chaired by MNA Junaid Akbar Khan, reviewed audit paras related to the Ministry of Energy. Expressing concern, the chair demanded an explanation for the prolonged penalty on consumers who exceed the 200-unit threshold once. Officials briefed the committee on the status of Independent Power Producers (IPPs), revealing a sharp rise in installed capacity over the years. Committee member Shazia Marri questioned why provinces like Sindh and Khyber-Pakhtunkhwa continue to endure up to 16 hours of load-shedding despite a surplus in electricity generation. The power secretary informed the committee that 58% of electricity users fall under the 200-unit slab, with subsidised rates now benefiting 18 million consumersup from 11 million previously. He acknowledged the issue of high bills lasting months for consumers who breach the limit once. "To increase the slab limit, a higher subsidy will be needed," he said, adding that the government aims to reform the system by 2027, shifting to direct subsidies using BISP data. The Energy Ministry also noted that the installed capacity of IPPs rose from 9,765MW in 2015 to 25,642MW in 2024, with annual capacity payments jumping from Rs141 billion to Rs1.4 trillion. Committee member Syed Naveed Qamar disputed the Power Division's claim that coal was the main driver of high electricity costs. Meanwhile, Junaid Akbar raised doubts over reports of 200% electricity generation from bagasse, calling the numbers unrealistic.
Express Tribune
11-07-2025
- Business
- Express Tribune
PSDP spending revised to Rs1.05tr
Listen to article Planning Minister Ahsan Iqbal announced on Thursday that actual federal development spending surged to a record Rs1.05 trillion in the last fiscal year due to booking more external development loans and eleventh-hour releases by budget controllers. The development marked an anticlimax for the planning ministry's efforts to fully utilise the revised allocation of Rs1.1 trillion and the finance ministry's tactics to slow fund releases, including partially shutting down systems by the Accountant General of Pakistan Revenue (AGPR). For the first time in Pakistan's history, the Public Sector Development Programme (PSDP) spending rose to Rs1.046 trillion in fiscal year 2024-25, said Ahsan Iqbal while addressing a press conference. Last week, the planning minister had confirmed to The Express Tribune that the PSDP spending remained at Rs905 billion due to slower releases by the AGPR office. After the close of fiscal year on June 30, the finance ministry provisionally assessed that it had managed to achieve the primary budget surplus target agreed with the International Monetary Fund (IMF). A planning ministry's report showed that it booked spending of another Rs141 billion from July 2 to 9, which pushed total expenses to Rs1.046 trillion. In yet another record, the government showed spending of Rs449 billion, or 43% of the total, in June alone. The planning minister said that the addition of Rs141 billion in one week was because of booking Rs80 billion in more foreign loans and further releases by the AGPR. After this, the total foreign loans for the PSDP increased to Rs237.4 billion. The planning ministry official said that the AGPR had shut the system used to book the spending claims. He said that the system was shut down to make sure that the IMF's primary budget surplus target was achieved. He added that on the intervention of the PM Office, the system was opened and more funds were released. To a question, PIDE University Vice Chancellor Dr Nadeem Javaid said that by limiting development spending to Rs905 billion, the finance ministry was trying to show an overall budget deficit at 5.6% of GDP against the target of 5.9%. He said that the higher spending of Rs1.046 trillion would not impact the primary budget surplus target. The planning minister said that one of the reasons behind booking massive spending in June was the wrong budget strategy, which had an "in-built bias" against utilisation by linking 40% of PSDP spending with the last quarter of the fiscal year. The Ministry of Finance on Wednesday released the development budget strategy for fiscal year 2025-26, which again highlighted the release of 40% budget in the last quarter. Funds for the development budget shall be authorised by the Planning, Development & Special Initiatives Division out of the PSDP allocation for FY26 for approved projects at 15% for Q1, 20% for Q2, 25% for Q3 and 40% for Q4, according to the finance ministry. "Notwithstanding anything contained in this strategy, all releases shall be subject to availability of fiscal space," stated the strategy, which again put a question mark over whether the Rs1 trillion budget for the new fiscal year would be given or not. Ahsan Iqbal said that the planning ministry would take up the matter with the finance ministry and would urge it to equally distribute funds instead of 40% spending in the last quarter. The back-end fund releases create artificial budget surpluses in the first three quarters, which evaporate in the last quarter. The minister said that the additional expenses of Rs141 billion helped create fiscal space for projects in this fiscal year. He said that the water sector's entire allocation of Rs194 billion was utilised because of eleventh-hour releases. Likewise, Suparco, the Pakistan Atomic Energy Commission and the power ministry also fully utilised their development budgets. Planning Commission Chief Economist Dr Imtiaz Ahmad also released the monthly development update for June. The report showed that last month 33 projects worth Rs90.4 billion were approved and 19 projects totaling Rs1.4 trillion were recommended to Ecnec. Major investments were targeted in the energy sector, where over Rs500 billion worth of projects were approved, followed by Rs395 billion worth of Hyderabad-Sukkur Motorway Eastbay Expressway costing Rs301 billion. These initiatives are expected to generate 9,986 direct and 47,174 indirect jobs, according to the report. As a direct outcome of these initiatives, 5,074 formal posts will be established immediately during the project execution period. According to the provisional figures, the government spent Rs63.6 billion on parliamentarians' schemes in the last fiscal year. The spending was more than the downward-revised budget. But Iqbal said that after initially deciding to revise the budget downwards, the government decided to retain the original allocation of Rs75 billion for the Sustainable Development Goals (SDGs) programme. The parliamentarians' schemes are branded as SDG initiatives. Another Rs82 billion was spent on provincial projects, which are funded by the federal government. A week ago, the provincial spending was shown at Rs69 billion. The financing of provincial schemes is against the commitments given to the IMF and the National Fiscal Pact. About Rs70 billion was spent on schemes being executed in the erstwhile Federally Administered Tribal Areas, now merged with Khyber-Pakhtunkhwa. Spending on higher education remained at Rs59.6 billion. The Pakistan Atomic Energy Commission received its full budget of Rs25 billion, but for this fiscal year, the government has drastically cut its allocation. Development spending by the Space & Upper Atmosphere Research Commission (Suparco) remained at Rs41 billion. The government spent Rs194 billion on projects of the Ministry of Water Resources, Rs40 billion more than shown a week ago. For this fiscal year, the government has reduced the water sector allocation by 28%.
Express Tribune
21-03-2025
- Politics
- Express Tribune
NA panel mulls new BISP payment system
The National Assembly Sub-Committee on Poverty Alleviation discussed improvements to the Benazir Income Support Programme (BISP) on Wednesday, focusing on the implementation of a new payment system. The panel was presided over by convener Nawabzada Iftikhar Ahmed. During the session, the BISP secretary informed the committee that the implementation of the new payment system could take a few months. However, the official said, a pilot project is expected to launch by June. The panel was told that currently banks charge a 0.4 per cent fee from the government for payments, but under the pilot project, they may charge up to 1 per cent, provided they offer comprehensive facilities to beneficiaries. The committee convener emphasised the need to hear from banking representatives, directing that they be summoned for the next meeting. BISP Chairperson Rubina Khalid also suggested that representatives from the State Bank of Pakistan (SBP) be invited to the upcoming session. Rubina backed the proposal to include beneficiary photos on ATM cards to enhance security. The committee convener suggested that BISP could obtain necessary identification data from National Database and Registration Authority (Nadra). Meanwhile, the BISP chairperson announced plans to launch an awareness campaign after Eid to ensure greater transparency and accessibility in the programme. Committee member Asiya Ishaq highlighted that many women do not personally collect their payments, while committee member Ahmed Atiq stressed that payments should be made in full and with dignity. Asiya questioned whether local body members had been engaged in the process, suggesting they could provide better guidance. The BISP chairperson acknowledged the necessity of political involvement, while Ahmed Atiq pointed out that community leaders, such as Punjab's numberdars, have deep knowledge of local populations and could serve as an effective ground force. BISP officials clarified that women are required to present themselves during the survey process, and their data is securely recorded in the database. Committee members urged the department to integrate local government systems to streamline operations. Committee member Ilyas Chaudhary praised the new banking project for its improved service model, while BISP officials maintained that those facing fingerprint authentication issues could still use ATMs. The committee convener said the next meeting, involving all key stakeholders, including banks, will be held in Karachi, adding that the discussion would focus on further improvements and potential modifications to the BISP card system in collaboration with banks. Earlier, a staggering Rs141 billion in financial irregularities had been uncovered in the BISP for the fiscal year 2023-24, according to an audit report. The audit report highlighted serious discrepancies, including payments made to individuals without valid CNICs, misuse of educational stipends, and unauthorised cash withdrawals from beneficiaries' accounts. According to the report, out of 9.3 million beneficiaries, more than three million did not have a registered family CNIC.
Express Tribune
19-03-2025
- Business
- Express Tribune
Rs141b BISP fraud exposed in audit
A staggering Rs141 billion in financial irregularities has been uncovered in the Benazir Income Support Programme (BISP) for the fiscal year 2023-24, according to an audit report. The audit report highlights serious discrepancies, including payments made to individuals without valid CNICs, misuse of educational stipends, and unauthorised cash withdrawals from beneficiaries' accounts. According to the report, out of 9.3 million beneficiaries, more than three million did not have a registered family CNIC. Despite this, payments totaling over Rs116.95 billion were made without proper verification. Audit officials warn that funds may have been distributed to government employees, businesspersons, or other ineligible individuals. Meanwhile, Rs138 million was disbursed to 5.43 million students without verifying their attendance. A further Rs154 million was given to 57,833 students who failed to meet the 70 per cent attendance requirement, while unauthorised students received over Rs10 million in scholarships. The report also reveals that Rs4 billion was inappropriately paid to individuals listed in the Active Taxpayers List. Moreover, cash grants worth Rs454.7 million were withdrawn from unrelated districts, and Rs11.5 million was unlawfully taken from beneficiaries' accounts. Furthermore, BISP has yet to disburse Rs5.46 million in outstanding payments to some beneficiaries. An unauthorised payment of $7.72 million was made under the household survey, while Rs63.7 million was improperly allocated as deputation allowances to unauthorised employees. An additional Rs55 million was overpaid under the Nashonuma Programme. The audit also highlights the non-recovery of Rs40 million lost due to misappropriation and a shortfall of Rs30 million in income tax deductions. A total of Rs6 million from BISP funds was distributed to the families of government employees. The report further exposes unauthorised student enrollments in educational stipend programmes, with Rs2.8 million already disbursed under these irregularities.
