News
Friday, April 23, 2010
Power subsidy to go in coming budget, SC told* Court told WAPDA suffering Rs 1bn monthly loss as PHC has ‘frozen’ tariff to 2008 rates
* CJP says govt must reduce expensesBy Masood Rehman
ISLAMABAD: The Supreme Court (SC) was informed on Thursday that the Rs 135 billion subsidy given to consumers on electricity bills was reduced to Rs 55 billion in 2009-10 financial budget, while in fiscal year 2010-11, there will be no subsidy on electricity under the conditions set by the International Monetary Fund (IMF) and the power rates will increase further.
Anwar Kamal – counsel for power distribution companies – made the revelation to a three-member SC bench comprising Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry, Justice Chaudhry Ijaz Ahmed and Justice Ghulam Rabbani, which was hearing a suo motu case about the increase in power tariff.
Kamal stated that with the passage of time, the government would increase the electricity rates. He said the Peshawar High Court (PHC) has not allowed the power rates to be increased since 2008, due to which the Water and Power Development Authority (WAPDA) was suffering losses amounting to Rs1 billion every month.
Honest leadership: The CJP observed that despite the exorbitant electricity rates being charged by the government, the country’s industries were being shutdown. He said the government should reduce its expenses, adding that the court has nothing to do with the affairs of the government. Rabbani said that even though the people of Pakistan are extremely hardworking, the country had failed to develop into a prosperous state. Pakistan needs ‘honest leadership’, he added.
Courtesy www.dailytimes.com.pk