Punjab Slams Rs7.769B Unauthorized FBR Deduction at CCI

ISLAMABAD: The Punjab government has lodged a formal grievance with the Council of Common Interests (CCI), challenging an unauthorized deduction of Rs7.769 billion from its federal divisible pool share by the Federal Adjuster, as reported by Business Recorder.

In its submission, Punjab asserted that the deduction flouts the CCI’s May 29, 2014, ruling, which permitted only 25% at-source deductions for provincial electricity charges, contingent on bill reconciliation with power distribution companies (Discos) within 60 days. Absent reconciliation, the CCI mandated no further deductions until the process concludes.

Punjab’s Energy Department emphasized its adherence to a structured reconciliation process since July 2014, governed by Standard Operating Procedures (SOPs) established after Federal Adjuster-chaired meetings. The Punjab Energy Department’s Reconciliation Cell facilitates monthly and quarterly reconciliations with all Discos in the province.

From July 2014 to June 2025, Rs25.524 billion was deducted at-source against reconciled electricity bills, backed by signed statements shared with the Finance Division. However, an additional Rs7.769 billion deduction, authorized via a June 19, 2025, Federal Adjuster order for July 2014–March 2025, lacked reconciliation or provincial verification.

Punjab decried this as a duplicate charge, given prior 25% deductions for the same period, arguing it violates the CCI’s 2014 decision and July 22, 2014 SOPs. The province noted a major reconciliation with Pakistan Electric Power Company (PEPCO) in May 2016, clearing Rs3.583 billion up to November 2015 and Rs3.174 billion up to May 2016, while PEPCO remitted Rs1.110 billion in electricity duty up to April 2016.

The Energy Department reported completing reconciliation of electricity payables up to June 2024, totaling Rs14.958 billion, accepted without dispute in June and July 2025 meetings with Disco CEOs and Power Planning and Monitoring Company (PPMC) representatives.

Punjab’s CCI petition contends that unverified Disco claims and the Federal Adjuster’s deduction undermine the reconciliation framework and the 2014 CCI ruling’s intent.