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The Economic Coordination Committee (ECC) of the cabinet has granted permission to K-Electric, the sole power distribution company in Karachi, to recover a surcharge of Rs1.52 per unit from its consumers over the next 12 months. The decision was made during a meeting chaired by Finance Minister Ishaq Dar in Islamabad.
The Ministry of Energy (Power Division) presented a summary on the quarterly tariff adjustments of K-Electric, highlighting the need to maintain a uniform consumer-end tariff for both K-Electric and state-owned distribution companies, in line with the National Electricity Policy 2021. As a result, the ECC approved the modification of K-Electric’s applicable uniform variable charge to ensure uniform tariffs across the country.
The ECC also authorized the release and utilization of a budget of Rs76 billion for payment of arrears under different categories. Another summary from the Ministry of Energy (Power Division) regarding the implementation of a revised circular debt management plan and the utilization of Rs20.726 billion for government-owned power plants was considered and approved. The ECC granted the Power Division the authority to utilize the assigned amount in a lump sum, relaxing the monthly limit for the next five months and ensuring no further payment liabilities to Independent Power Producers (IPPs) from July to November 2023.
Furthermore, the ECC approved the release of Rs56 billion against AJ&K receivables as per the revised circular debt management plan. Additionally, technical supplementary grants were approved for various ministries and divisions, amounting to Rs1,914.83 million.
The ECC also approved an amendment to the Import Policy Order 2022, allowing government agencies to import pharmaceutical raw materials, based on a summary from the Ministry of Commerce.
Various Technical Supplementary Grants (TSG) were approved, including Rs567.120 million for the Ministry of Federal Education and Professional Training’s development expenditure and Rs40 million for Cadet College Hassanabdal to provide need-based scholarships to financially challenged students. The ECC also approved TSG for the Federal Tax Ombudsman, Ministry of Interior, Directorate General of Immigration and Passports, Intelligence Bureau, GB Council and its departments, Ministry of Housing and Works for development projects and repair/maintenance purposes.
Overall, the ECC’s decisions covered a range of financial matters, including surcharge recovery, arrears payment, circular debt management, grants allocation, and import policy amendments.
