Key Points
- ECC approves framework for settlement of outstanding power sector dues, tariff rationalisation
- Rs 659.6 billion government guarantee approved for circular debt financing
- Mari gas allocation cleared for fertiliser plants to ensure adequate supply
- Technical Supplementary Grant sanctioned for Pak PWD salaries
- Reallocation approved to boost agricultural research
- PIBT utilisation summary deferred for further consultation
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved key frameworks for energy sector reforms, circular debt settlement, and rationalisation of remittance incentive schemes.
The ECC meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, approved a framework presented by the Power Division to rationalise tariffs and payment mechanisms for nuclear power plants (NPPs), government-owned power plants (GPPs), and Oil and Gas Development.
The committee also approved a Government of Pakistan guarantee of Rs 659.646 billion for circular debt financing worth Rs 1.225 trillion, intended to settle the liabilities of Power Holding Limited (PHL) and overdue payments to Independent Power Producers (IPPs). The ECC authorised the Finance Division to issue a Letter of Comfort and directed the Power Division to report back with a timeline for the closure of PHL after the settlement.
In another decision, the ECC approved a proposal from the Ministry of National Food Security and Research for the reallocation of funds through a technical supplementary grant (TSG) from the IPC Division to support agricultural research programmes. The committee noted that this reallocation would help sustain ongoing projects critical to food security and productivity enhancement.
A summary submitted by the Ministry of Maritime Affairs concerning terms of engagement for using Pakistan International Bulk Terminal (PIBT) at Port Qasim for the export of copper-gold commodities, minerals, metals, and other natural resources was discussed but deferred. The ECC directed the ministry to revise and resubmit the proposal with clearer parameters following stakeholder consultation.
The ECC also approved a partial TSG of Rs 960.273 million to facilitate the payment of salaries to transferred Pakistan Public Works Department (Pak PWD) staff for the current quarter. The Committee instructed the Capital Development Authority (CDA) to present a detailed plan by December regarding the long-term integration of the transferred personnel.
The Petroleum Division’s proposal for allocation and pricing of gas from the Mari Field to fertiliser plants was approved, ensuring a steady and affordable supply to the agriculture sector. The spokesperson said the move aligns with the government’s objective of maintaining fertiliser availability and stabilising input costs for farmers.
The Finance Division presented a progress report on the Home Remittance Incentive Schemes (HRIS), outlining the proposed plan for gradual rationalisation of incentives to streamline foreign remittance inflows and reduce fiscal burden.
The meeting was attended by Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, Minister for Commerce Jam Kamal Khan, and senior officials from the Finance Division, relevant ministries, departments, and regulatory bodies.
