The government released Rs40 billion to the power companies and Pakistan State Oil (PSO) yesterday to ensure reduction in the duration of loadshedding.
A finance ministry official said with the disbursement on the last day of fiscal year 2013-14, the power sector subsidies had reached Rs292 billion – Rs40bn more than Rs252bn allocated in the budget, but the subsidy target had been revised to Rs292bn under supplementary grants.
Of the amount released on Monday, Rs23bn was provided to PSO to improve its cash flows and enable it to retire letters of credit due to international oil suppliers.
The remaining Rs17bn has been provided to power companies for payments to the banking sector.
The disbursements were approved by the prime minister who had instructed the relevant quarters to ensure uninterrupted power supply during Sehr, Iftar and Taraveeh and avoid unannounced loadshedding during Ramazan.
