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KP accuses Centre of favouring Punjab in net hydel profit payments

Profit by Pakistan Today • • 1 min read

KP accuses Centre of favouring Punjab in net hydel profit payments

According to Profit, citing The Express Tribune, the Khyber Pakhtunkhwa government has accused the Centre of breaching the Constitution by releasing net hydel profits disproportionately to Punjab. The provincial administration argues that KP, which accounts for over 70% of the country's hydropower output, receives a far smaller share of the payments. The Power Division has rejected these figures, insisting that KP was paid more than Punjab in the last fiscal year.

Billing records cited by the Power Division show KP carried forward Rs53 billion, then accrued Rs33 billion more, while Punjab carried forward Rs44 billion and accrued Rs11 billion. From the combined Rs141 billion, Rs56 billion went to Wapda, and that sum was split into Rs33 billion for KP and Rs23 billion for Punjab. The KP government says Rs22.6 billion of regular NHP remains outstanding up to August 2026, plus Rs56.1 billion of indexation arrears, bringing total dues to Rs78.7 billion.

The provincial government also points to slow CPPA-G payments to Wapda, which it says cover only invoices from December 2024 onwards, leaving a gap of about 16 months. Wapda reportedly asked for Rs17 billion a month from CPPA-G to reduce the backlog, against a monthly NHP need of roughly Rs3 billion for each province. The Power Division counters that CPPA-G funds Wapda's NHP share within the wider tariff structure, and that Nepra has approved the transfer mechanism.

At a glance

  • KP accuses the Centre of unequal NHP payments to Punjab, which it calls unconstitutional.
  • Power Division says KP received Rs33 billion last fiscal year, against Rs23 billion for Punjab.
  • KP government says total outstanding dues stand at Rs78.7 billion including indexation arrears.
Sectors:Power Generation & Distribution

Originally reported by Profit by Pakistan Today

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