Peshawar: The Government of Khyber Pakhtunkhwa (KP) is expected to receive PKR 85 billion as the annual net hydel profit, according to a news report. This has come as the Council of Common Interest (CCI) agreed to implement the 1991 AGN Kazi formula for profit determination.
As per the details, the KP Chief Minister Pervez Khattak took the national hydel profit (NHP) matter to the CCI meeting held on April 24 and advocated for the implementation of the decision the forum had taken previously. In the past, the CCI had referred the issue to the Inter-Provincial Coordination Committee (IPCC) for the purpose of filing recommendations according to the AGN Kazi formula.
According to Article 161 (2) of the Constitution, the net profits earned by the federal government from the bulk generation of power in hydro-electric stations should be paid to the province where the power station is located. The AGN Kazi formula to calculate NHP for the provinces was proposed by the AGN Committee in 1987 and approved by the CCI in 1991.
Previously, the Kazi formula couldn’t be implemented, but now the chief minister is adamant that this should be followed. The official document from the CCI highlights its decision for the implementation of the AGN Kazi methodology, and also the forum’s decision to establish a committee. This committee will comprise of deputy chairman of the Planning Commission, water and power and inter-provincial coordination secretaries, and chief secretaries of KP and Punjab.
When this is approved, the KP government is likely to get additional funds of PKR 65 billion per annum, increasing the total amount of net hydel profits to PKR 85 billion.
