ISLAMABAD, March 9: The construction of Bhasha dam seems to be getting off the government’s priority list as an amount of Rs6 billion allocated for the dam is now being diverted to Neelum-Jhelum hydropower project for which the government has to arrange Rs25bn by the end of the current fiscal year.
Finance Minister Saleem H. Mandviwalla told journalists on Saturday that Rs10bn would be arranged through bank loans and the rest by making adjustments in allocations for other development projects.
The Neelum-Jhelum hydropower project estimated to produce 969MW of electricity is scheduled to be completed by November 2016.
Planned to be built near Muzaffarabad, the project envisages diversion of Neelum river flow through a tunnel into Jhelum river.
Mr Mandviwalla said the finance ministry was not in favour of the cabinet decision of giving Rs16bn in subsidy to tube-wells. Terming it a political decision, he said the amount would lead to increase in fiscal deficit.
He said the government had no plan to seek fresh loan from International Monetary Fund, adding the country had enough foreign exchange reserves to meet the import bill for three months.
Answering a question about the view of international financial institutions about financial needs of Pakistan, Mr Mandviwalla said these institutions had their own calculations and the government had its own. For the time being the country is in a comfortable position and there is no need to request the IMF for assistance, he added.
The minister said the tax amnesty bill would be submitted to the National Assembly on Tuesday.http://dawn.com/2013/03/10/funds-allocated-for-bhasha-dam-being-diverted/
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