ECC greenlights recovery of Rs.1.52/unit surcharge and addresses key financial matters
Islamabad, June 21, 2023 – The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar, met on Wednesday to discuss and approve important financial decisions. Among the significant outcomes, the ECC gave its nod to the recovery of a surcharge from K-Electric consumers.
Under the approved plan, a surcharge of Rs.1.52 per unit will be collected from K-Electric consumers over a span of 12 months. This step aims to address financial challenges faced by the power distribution company.
READ MORE: OCAC Rejects Proposed Guidelines for Import of Petroleum Products
Additionally, the ECC authorized the release and utilization of a budget amounting to Rs.76 billion for clearing arrears under various heads. This move is expected to contribute to the improved financial stability of the sector.
During the meeting, the Ministry of Energy (Power Division) submitted a summary concerning Quarterly Tariff Adjustments for K-Electric. In line with the National Electricity Policy 2021, the government aims to maintain a uniform consumer-end tariff for both K-Electric and state-owned distribution companies. To achieve this objective, the ECC emphasized the need to modify the applicable uniform variable charge for K-Electric to ensure tariff consistency across the country.
READ MORE: Pakistan Slashes Petroleum Subsidy by 47% for FY24, Impacting Business and Industry
Addressing another key matter, the ECC discussed the implementation of a revised circular debt management plan and the allocation of Rs.20.726 billion to government-owned power plants. The committee authorized the Power Division to utilize the full amount from the assignment account in the upcoming five months, without the previously imposed monthly limit of Rs.4 billion. This decision aims to alleviate payment liabilities to Independent Power Producers (IPPs) from July 2023 to November 2023.
In a statement issued by the Ministry of Commerce, the ECC temporarily suspended import conditions outlined in the Import Policy Order 2022 for Timber/Wood until October 31, 2023. The Ministry of National Food Security and Research was directed to review the import policy and propose suitable solutions for addressing this matter.
READ MORE: Pakistan’s Petroleum Import Bill Plunges by 22%
Furthermore, the ECC approved an amendment to the Import Policy Order 2022, allowing government agencies to import pharmaceutical raw materials. This decision aims to support the healthcare sector’s needs and facilitate the availability of essential medicines.
The ECC also addressed other financial matters, including the release of funds for AJ&K receivables, Technical Supplementary Grants (TSG) for various ministries, and development projects. Notably, TSGs were approved for Ministry of Federal Education and Professional Training, Federal Tax Ombudsman, Ministry of Interior, Directorate General of Immigration and Passports, Intelligence Bureau, Gilgit-Baltistan Council, Ministry of Housing and Works, and the repair and maintenance of the Supreme Court of Pakistan building, Islamabad, as well as judges’ residences, rest houses, and sub-offices in various cities.
READ MORE: Pakistan Expected to Raise Petrol Prices from July 2023 to Boost Revenue
These decisions by the Economic Coordination Committee are expected to contribute to the financial stability of the power sector, facilitate economic growth, and address crucial import-related matters, ultimately benefiting the country and its citizens.
