Anomalies in the Power Sector Caused over Rs. 4 Trillion Loss to National Kitty

The national kitty has suffered a loss of more than Rs 4 trillion over the past 13 years due to circular debt and subsidies provided to power producers, the Power Sector investigation report released on Tuesday.

It stated that 16 independent power production companies (IPPs) invested about Rs60 billion and earned profits of more than Rs400 billion over two to four years.

The development comes after Imran Khan allowed the power sector inquiry report to be made public earlier in the day about the billions of rupees alleged anomalies in the power sector involving members of the federal cabinet.

Prime Minister Imran Khan tool this decision in a recent meeting with the federal cabinet on Tuesday.

The Energy Ministry had opposed the move to make the report public, however, fearing it could have consequences for Pakistan’s relations with other countries.

While talking to the media after the meeting, the minister said that The Minister said the federal cabinet had also agreed to set up a commission of inquiry to prosecute those guilty of corruption in the power industry.

He shared that the commission would be completed its report within the next three months. Furthermore, the commission would also carry an investigation using forensic help to come to its conclusions.

“According to the report, government institutions are also involved in corruption. Anybody who has violated the law and has affected the people of Pakistan will not be spared. The government will fully act on the recommendations of the inquiry commission without looking at who is involved,” he said.

While briefing to the media, Dr. Firdous Ashiq Awan said service taxes that came under the Islamabad Capital Territory (Tax on Services) Ordinance 2001, had been modified and exceptions provided.

“The current 5% tax on construction services, taxes on services provided by property dealers and real estate agents, and taxes on services provided by property developers have been reduced to zero,” she said.

In addition, Dr. Firdous Awan said the cabinet also approved a uniform policy on government employees’ official residences, removing all the privileges provided under the 1991 Order.

Tags
Show More

Pak Revenue

A reliable source for business, taxation & financial news, covering incentives for CPEC, automobile and performance of stock and mercantile exchanges.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close