ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved Rs80 billion subsidy for the power sector and allowed K-Electric to recover Rs1.52 per unit from consumers.
The ECC meeting presided over by Finance Minister Ishaq Dar approved the Ministry of Energy (Power Division)’s various summaries with the one seeking quarterly tariff adjustments of KE.
The meeting was told that as per the National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for KE and state-owned distribution companies. Accordingly, the KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country.
Power sector subsidy: Finance shows willingness to allocate Rs450bn
The ECC after discussion approved a surcharge of Rs1.52/unit to be recovered from K-Electric consumers in 12 months. The meeting also allowed the release and utilisation of the available budget of Rs76 billion as payment of arrears under different heads.
The ECC considered another summary of the Ministry of Energy (Power Division) regarding the implementation of the revised circular debt management plan (CDMP) and utilisation of Rs20.726 billion to government-owned power plants.
The ECC after discussion authorised Power Division to utilise one-time full amount out of the assignment account in relaxation of the limit of using Rs4 billion per month during June 2023 for the next five months and to ensure that there will be no more payment liability to IPPs for the period July 2023 to November 2023.
The ECC also considered and approved another summary of Power Division regarding the release of Rs56 billion as approved under revised CDMP against the AJ&K receivables.
The meeting allowed government agencies to import pharmaceutical raw materials after approving an amendment in Import Policy Order 2022 on a summary moved by the Ministry of Commerce.
The Ministry of Commerce moved another summary to the ECC for suspension of import conditions contained in IPO 2022 related to the import of timber/wood and briefed the meeting on the concerns of the wood/timber industry.
The ECC after detailed discussion suspended the relevant import conditions from the date of issuance of IPO 2022 to 31st October 2023 with direction to the Ministry of National Food Security and Research to review the import policy and come up with suggestions to settle this issue.
The ECC approved technical supplementary grants; (i) Rs567.120 million in favour of Ministry of Federal Education and Professional Training for its development expenditure; (ii) Rs40 million in favour of Ministry of Federal Education and Professional Training for Cadet College Hassanabdal for need-based scholarships to financially challenged students; (iii) Rs14.022 million as TSG in favour of Federal Tax Ombudsman for ERE expenditure; (iv)Rs19.236 million as TSG in favour of Ministry of Interior for repair and maintenance of helicopter by Pakistan Rangers;(v) Rs6.279 million as TSG in favour of the Directorate General of Immigration and Passports;(vi) Rs150 million as TSG in favour of Intelligence Bureau to meet its ERE expenditure; (vii) Rs147.913 million in favour of Gilgit-Baltistan Council and its departments; (viii) Rs500 million in favour of Ministry of Housing and Works for the execution of development projects; and (ix) Rs470.26 million in favour of Ministry of Housing and Works for Repair and Maintenance of Supreme Court of Pakistan building, Islamabad and judges residences, rest houses and sub-offices in various cities.
