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AJK power subsidy may be pared

ASIF FAROOQI

ISLAMABAD: The Finance Ministry has accepted Wapda's demand for a "reasonable" increase in power tariff for the Azad Jammu Kashmir (AJK) region while maintaining the special status which entitles it to subsidy, ministry sources said.

As a result of a presentation by Water and Power Development Authority Chairman Lt. Gen. Zulfikar Ali Khan, Finance Minister Shaukat Aziz directed AJK officials to prepare a revised tariff structure for themselves which should reduce the burden on Wapda without adding to the AJK consumers' bills.

Like many far flung areas of the country, the AJK region is entitled to a subsidy on electricity. Wapda has been demanding withdrawal of subsidy on power tariff to some of the regions including AJK and the Federally Administered Tribal areas.

Sources however said that General Zulfikar came out with a new tariff proposal for AJK region to lessen the burden on his troubled organisation. In a presentation to the finance minister, General Zulfikar pleaded that transmission cost for Wapda to supply electricity to the hilly areas of Azad Kashmir was proving too much for Wapda. He pleaded that Wapda was facing huge financial losses because of the subsidised rates whereas AJK government was enjoying an un-deserved relaxation.

Sources said his positions was appreciated to the extent that the minister desired a revision of the power tariff for the region, but refused to do away with the subsidy. The minister agreed that while common people of AJK should still be given a subsidy on their utility bills, Wapda must also be helped out of deep financial crisis.

"The AJK government was asked to take up this issue at the Cabinet level and get back to the Finance Ministry with a new proposal on revised power tariff," the sources said. They added that the AJK officials informed the ministry that AJK Prime Minister Sultan Mehmood was out of country and a special Cabinet meeting would be arranged on his return.