ECC Greenlights Rs 70 bn for KE, Rs 55 bn for AJK to Settle Tariff Difference

The Economic Coordination Committee (ECC) greenlights the release of Rs 70 billion for Karachi Electric (KE) and Rs 55 billion for Azad Jammu and Kashmir (AJK) to address tariff differential subsidy arrears, easing liquidity pressures in the Power Sector.

Chaired by Federal Minister for Finance & Revenue Muhammad Aurangzeb, the ECC meeting saw attendance from key ministers and government officials including the Minister for Commerce Jam Kamal Khan, Minister for Petroleum Musadik Masood Malik, Minister for Privatization Abdul Aleem Khan, Minister for Industries & Production Rana Tanveer Hussain, Chairman SECP, Dy Chairman Planning Commission, Federal Secretaries, and other senior government officials of the relevant ministries.

Minister for Economic Affairs Ahad Khan Cheema and MD PASSCO attended the meeting online.

The Economic Coordination Committee (ECC) reviewed and approved a number of proposals from various Government Ministries and Divisions.

The ECC gave approval to increase the wheat procurement target for PASSCO from 1.40 to 1.80 MMT along with the required Cash Credit Limit for the purchase of additional quantity. The approval would help PASCCO scale up its on-going wheat procurement drive. The ECC also approved the proposal for import of 200,000 MTs of Urea fertiliser to meet the requirements for Kharif 2024 as proposed by Ministry of Industries & Production.

The Ministry was also directed to continuously assess the demand & supply situation of urea and suggest appropriate measures to the ECC in a timely manner. ECC also gave go-ahead to Ministry of Industries & Production’s request for the disbursement of salaries of PSM workers and directed the Ministry to present a detailed plan for the future use of the asset alongwith timelines.

ECC also allowed Power Division’s request for release of budgeted expenditures to clear the arrears of tariff differential subsidy Rs. 70 billion for KE and Rs 55 billion for AJK. This would help ease the liquidity requirements of the Power Sector.

The ECC considered a summary to authorize BISP to arrange funds from its allocated budget for financing the Special Relief Package for Daily Wage Workers on the Chaman Border, highlighting government support for the vulnerable group.

Further, the ECC considered and approved proposals for Technical Supplementary Grants, including, Rs. 4.8 billion for Pakistan Atomic Energy Commission. Rs. 5.8 billion for the Earthquake Reconstruction & Rehabilitation Authority's to clear matured liabilities of the contractors. Rs. 3.2 billion to Finance Division as rupee cover for the WB funded Financial Inclusion and Infrastructure Project (FIIP). Rs. 162 million to the Ministry of Housing & Works for Repair and Maintenance of Public Buildings in Islamabad. Rs. 2.2 billion to the Ministry of Interior for the FATA TDP-ERP Project.