Islamabad, November 7, 2025 – The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a government guarantee worth Rs659.6 billion to facilitate circular debt financing of Rs1.225 trillion in the power sector.
The decision aims to settle Power Holding Limited’s (PHL) debt and clear overdue payments to Independent Power Producers (IPPs). The ECC also authorized the Finance Division to issue a Letter of Comfort, while directing the Power Division to submit a closure plan for PHL after the debt resolution.
The meeting, chaired by Finance Minister Senator Muhammad Aurangzeb, also reviewed multiple summaries from various ministries.
The Committee approved a tariff rationalization framework for nuclear and government-owned power plants, OGDCL, and SNGPL—proposed under the Prime Minister’s Task Force on Power Sector Reforms. The framework aims to improve financial sustainability, reduce sectoral costs, and streamline payments across the energy value chain.
In another key decision, the ECC approved a phased approach to phase out the Home Remittance Incentive Schemes (HRIS), ensuring a data-driven transition without disrupting remittance inflows. The process may extend beyond FY27, depending on remittance performance and FY26 review outcomes.
The ECC also approved the reallocation of funds within the Ministry of National Food Security and Research to support agricultural research projects through a technical supplementary grant.
A proposal from the Maritime Affairs Ministry regarding the use of Pakistan International Bulk Terminal (PIBT) for mineral and metal exports was deferred for further review after stakeholder consultation.
Additionally, the ECC approved a TSG of Rs960.3 million for the Ministry of Interior to cover salaries for transferred Pak PWD staff for the current quarter.
On the recommendation of the Petroleum Division, the Committee also approved gas allocation and pricing from the Mari Field to fertilizer plants to ensure stable and affordable fertilizer supply nationwide.
The meeting was attended by Federal Ministers for Power, Petroleum, Commerce, and National Food Security, along with senior officials from relevant ministries and regulatory bodies.