Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur has asked Prime Minister Shehbaz Sharif to resolve the long-standing Net Hydel Profit (NHP) dispute. The disagreement is between KP province, other provinces, and Wapda, Pakistan’s water and power authority. Gandapur emphasized the urgent need to clear Rs75 billion in overdue payments to KP.
Gandapur reminded the Prime Minister that Article 161(2) of the Constitution requires profits from hydroelectric plants to be paid to the province where the plant is located. He noted that the Kazi Committee Methodology (KCM), approved by the Council of Common Interests (CCI) and upheld by the Supreme Court, guides how NHP is calculated. However, KP has not received consistent payments as per this formula, causing financial strain.
To ease the burden, a temporary tariff was set in 2016 with Wapda paying Rs1.10 per kWh plus a 5% annual increase. But payments have been irregular. KP’s government has pushed for full implementation of the KCM, and CCI-formed committees have confirmed KP’s rightful dues. Yet, delays continue, prompting Gandapur to call for renewed federal action.
Gandapur proposed three key solutions: first, the federal government should pay the overdue NHP directly. Second, hydro power plants’ ownership should transfer from Wapda to provinces as per existing power policies. Third, a small tariff increase of Re1 per unit could fund outstanding payments. He also suggested shifting payment responsibility from Wapda to the Central Power Purchasing Agency (CPPA-G) for better transparency.
The Chief Minister stressed that resolving this issue is vital for KP’s finances and called on PM Shehbaz to lead a fair solution. The dispute reflects broader tensions in Pakistan’s energy sector between federal and provincial powers. Now, the federal government must act decisively to end this years-long conflict.