ECC approves Rs 57 billion for payment of K-Electric arrears

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the summary of the Ministry of Energy (Power Division) for technical supplementary grant (TSG) of Rs 57 billion for payment of K-Electric arrears, ARY News reported. 

The ECC meeting, chaired by Minister for Finance, Revenue and Economic Affairs Dr Shamshad Akhtar, also approved another summary of the Power Division for settlement of payables to the Government-Owned Power Plants (GPPs) at par with Independent Power Producers (IPPs), and directed to release Rs 262.075 billion through a technical supplementary grant (TSCG) to the GPPs.

The committee agreed to initiate phase out of the Export Finance Scheme of the State Bank of Pakistan- a requirement of the IMF Standby Arrangement. To operationalize the requirement, it gave approval to release of Rs 3.87 billion to the EXIM Bank for the current fiscal year.

While deliberating the report on its decisions about the liabilities of Pakistan Steel Mills (PSM) towards the government as discussed on September 19, the finance minister directed the Ministry of Industries to carry out a diagnostic survey to determine why the liabilities of PSM persisted even though it had not been operational since 2015 and how its land had been allocated to housing companies and served other industries without due process.

The ECC showed its displeasure on the PSM Board and recommended that the Industries Division might look into the issue for further necessary action.

The committee approved transfer of National Energy Efficiency and Conservation Authority (NEECA) from the Science and Technology Division to the Power Division, with TSG of Rs 152.417 million for FY 2023-24 for the purpose.

The committee considered the summary of Ministry of National Food Security and Research (MFS&R) regarding ‘profitable support price’ for the wheat crop 2023-24 and after deliberations with all the provinces, recommended the last year’s price of Rs 3900/40 kilograms, given the substantial increase of 77% in 2022/23. It also decided that there would be no subsidy on agriculture inputs which in any case was the responsibility of provinces.

The ECC also gave approval of the notification of minimum indicative prices of Tobacco Crop 2024 and revision of cess rates on tobacco for the year 2024-25.

The committee also approved an additional agenda item from the Ministry of Information Technology and Telecommunication regarding the government’s relending to the National Database and Registration Authority (NADRA).

The meeting was attended by Minister of Planning, Development and Special Initiatives Sami Saeed, Minister for Privatization Fawad Hasan Fawad, Minister for Industries and Commerce Ejaz Gohar, Minister for Power & Petroleum Muhammad Ali and Minister for Information Technology Umar Saif, Advisor to the PM on Finance Dr Waqar Masood, federal secretaries, and other senior government officers of the relevant ministries.

Provincial chief secretaries, State Bank governor and other relevant officers also joined the meeting via video link.