Failure to introduce reforms in the power sector is draining national exchequer of Rs one billion daily loss of one billion daily on accounts of power thefts and line losses.
According to reports, the government had allocated Rs 170 billion in the budget for power sector to provide relief to the poor classes. However the Finance Ministry has fed of RS 225 billion in the first seven months of the year to the sector, which is Rs 55 billion more than the allocations for the whole year.
The Government had assured the IMF, World Bank, Asian Development Bank and other institutions that it would introduce reforms in the power sector by improving the distribution system, reducing the line losses and preventing theft of electricity.
However the sources said the government has so far failed to take the required steps and it is feared that the subsidy in power sector would reach Rs 365 billion by the end of the year.