Power generation: Rs20 bn couldn’t be released for furnace oil purchase

ISLAMABAD: The government failed to release Rs 20 billion to purchase furnace oil for power generation despite an approval granted in this regard by the caretaker Prime Minister Hazar Khan Khoso.

The Interim Prime Minister had given a go ahead to the release of Rs20 billion on April 9 but the funds could not be released even after the lapse of two days.

A subsidy of Rs278 billion has already been approved for the power sector for July 2012 to April 2013.

Originally in the federal budget a subsidy of Rs185 billion had been allocated for the power sector for the entire fiscal year but it had to be raised to Rs291 billion later.

In case of release of Rs20 billion, the total amount of subsidy for the power sector would reach Rs298 billion, reflecting an increase of Rs7 billion over the revised allocation.