ISLAMABAD (Kashmir English): The Central Power Purchasing Agency-Guaranteed (CPPA-G) has received Rs 148.75 billion from the State Bank of Pakistan (SBP) for paying Tariff Differential Subsidies (TDS) for the fiscal year 2024-25. The amount was released on March 28, 2025, after all required approvals and procedures were completed, according to a news report.
These funds were approved by the Accountant General of Pakistan Revenue (AGPR) and will be used to cover various subsidy payments, including those for inter-Disco tariff differences, support for the merged areas of Khyber Pakhtunkhwa, and subsidies for Azad Jammu and Kashmirs (AJK).
As per the report, Rs 12.745 billion has been allocated to cover the tariff gap between different distribution companies. Rs 2.281 billion has been set aside for the merged districts of KP, while Rs 12.123 billion has been released for Azad Kashmir under the 2024-25 federal budget.
In addition, the AGPR has disbursed Rs 8.863 billion as advance subsidies for Azad Kashmir. These payments were approved earlier by the Economic Coordination Committee (ECC) in June 2023.
For Balochistan, Rs 399 million has been provided to support agricultural tubewells, along with an additional Rs 457 million for further subsidies in the same category.
A major chunk of the disbursement, around Rs 115 billion, has gone towards clearing pending dues to government-owned power plants (GPPs) for the current fiscal year. Another Rs 3.007 billion has also been released for the merged KP districts as part of the relevant grant allocations.
Moreover, Rs 4 billion has been paid to Chinese Independent Power Producers (IPPs) under an agreement between the governments of Pakistan and China. This payment is part of an ongoing plan to ensure regular monthly payments to Chinese power plants.
These fund releases are part of the government’s continuous efforts to support the power sector, manage tariff-related challenges, and maintain smooth operations. All spending will be carried out in line with official rules and procedures.
