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Friday, October 9, 2009, Shawwal 19, 1430

Tariff increase not applicable to agri sector

Islamabad—National Assembly was told Thursday that recent tariff increase in electricity is not applicable to agri sector and 5.5 million other consumers.

Minister for Water and Power, Raja Pervez Asharf told the House that despite increase in tariff, these two areas have already been exempted.

Replying to a Calling Attention Notice, the minister said, the tariff on agricultural sector is just Rs 03 per kw/hr and it is uniform across the country.

Members Humair Hayat Khan Rokhri, Muhammad Hanif Abbasi, Saud Majeed, Tahira Aurengzeb and Dr Donya Aziz had drawn attention of the Minister towards withdrawal of subsidy on electric connections for agriculture in district Mianwali. The members said this subsidy was due to low sub-soil water level in areas like Mianwali, Bahawalpur and Tharparker and its withdrawal is injustice to people in these areas.

The minister said the subsidy was not withdrawn rather after setting up DISCOs, the tariff for agriculture was made uniform across the country.

To a question, the minister elaborated that despite heading towards no subsidy regime, subsidy still continues on agriculture tariff. Actual tariff for agriculture is Rs 04 per kw/hr on which Rs one is subsidy. “The decision to uniform tariff rate for agriculture was made in 2007 and this uniformity did not increase much for them,” he said. “Earlier the tariff was Rs 2.49 per kw/hr, then it was Rs 2.85 and now it is Rs 03 per kw/hr. This is not much increase. To another query, Pervez Ashraf stated that even 16% GST is not implemented on agriculture.—APP

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