Cabinet announced 10 paisa increase in power tariff

Islamabad: The Cabinet on Wednesday approved a 10 paisa per unit increase in power tariff to fund strategically important 969 MW Neelum-Jhelum hydropower project at a revised cost of Rs 128.4 billion with a foreign exchange component of Rs 46.5 billion.

Official sources told Business Recorder the increase in tariff for Wapda and KESC consumers will appear in electricity bills as a special surcharge. 'The approval paves way for the construction of the project which came Pakistan's way following the historic Indus Basin Treaty with India,' says an official statement issued after the Cabinet meeting.

Addressing the Cabinet, Prime Minister Mohammadmian Soomro expressed confidence that the project which had been delayed for many years, will not only help secure Pakistan's rights over the Neelum-Jhelum waters but also go a long way in bridging the energy gap through generation of additional 969 MW of hydel power.

The Prime Minister, briefing the Cabinet on his meetings with caretaker chief ministers and members of their respective cabinets, expressed satisfaction over the arrangements being made by provincial governments to maintain law and order before and during the January 8 elections.

He said his interaction with representatives of various political parties has been useful and it would facilitate in creating a conducive political climate until the elections. The Cabinet approved the signing of agreement between Pakistan and Hungary on abolition of visa for the nationals of the two countries holding diplomatic passports.

The Cabinet also approved in principle for signing of MoU for the export of IRRI-6 aand Basmati Rice to Indonesia. The Prime Minister expressed concern over lack of housing facilities for federal government employees in Islamabad and directed for preparation of a comprehensive plan by a special committee of the Cabinet to be headed by Health Minister Ijaz Rahim with Kashmir Affairs and Northern Areas Minister Abbas Sarfraz Khan and Housing and Works Minister Nisar Mohammad Khan as members. The committee was also directed to look into the possibilities of making land available for this purpose and submit its report within 10 days.