The Economic Coordination Committee (ECC) of the Cabinet has given its approval for a surcharge of Rs.1.52 per unit to be collected from K-Electric (KE) customers over a period of 12 months. The decision was made during an ECC meeting chaired by Federal Minister for Finance Ishaq Dar, according to a statement from the Finance Division.
According to the statement, the Ministry of Energy (Power Division) presented a summary on the Quarterly Tariff Adjustments of KE and informed that, in line with the National Electricity Policy 2021, the government can maintain a consistent tariff for both KE and state-owned distribution companies. Therefore, it is necessary to modify the applicable uniform variable charge of KE to ensure uniformity in tariffs across the country.
“The ECC, following discussions, approved the surcharge of Rs.1.52 per unit to be collected from K-Electric consumers over a period of 12 months. Additionally, the ECC authorized the release and utilization of the available budget of Rs76 billion to clear outstanding payments under various categories,” stated the announcement.
The committee also reviewed another summary from the Ministry of Energy (Power Division) concerning the implementation of a revised plan for managing circular debt and the utilization of Rs20.726 billion for government-owned power plants.
After deliberation, the ECC granted authorization to the Power Division to fully utilize the assigned amount from the account, exempting the monthly limit of Rs4 billion for June 2023, for the next five months. This measure ensures that there will be no additional payment liabilities to Independent Power Producers (IPPs) from July 2023 to November 2023, as mentioned in the statement.
Another summary from the Power Division regarding the release of Rs56 billion, as approved under the revised Circular Debt Management Plan (CDMP), for Azad Jammu and Kashmir receivables was also considered and approved by the ECC.
Furthermore, the Ministry of Commerce presented a summary on the suspension of import conditions outlined in the Import Policy Order 2022 regarding timber/wood imports. The meeting also addressed concerns raised by the wood/timber industry.
“After a detailed discussion, the ECC suspended the relevant import conditions from the date of IPO 2022 issuance until October 31, 2023. The Ministry of National Food Security & Research (MoNFS&R) was directed to review the import policy and provide recommendations to resolve this issue,” stated the Finance Division.
The ECC also reviewed and approved a summary from the Ministry of Commerce regarding the amendment of a relevant clause in the Import Policy Order 2022. This amendment enables government agencies to import pharmaceutical raw materials.
Additionally, the ECC approved Technical Supplementary Grants (TSG) for various ministries and departments. These include Rs567.120 million for the Ministry of Federal Education and Professional Training for development expenditures, Rs40 million for Cadet College Hassanabdal to support financially challenged students through need-based scholarships, Rs14.022 million for the Federal Tax Ombudsman for ERE expenditure, Rs19.236 million for the Ministry of Interior for helicopter repair and maintenance by Pakistan Rangers, Rs6.279 million for the Directorate General of Immigration and Passports, Rs150 million for the Intelligence Bureau to cover Employee Related Expenses (ERE), and Rs147.913 million for the Gilgit-Baltistan Council and its departments.
Furthermore, the ECC approved Rs500 million for the Ministry of Housing and Works for the implementation of development projects. Lastly, Rs470.26 million was approved for the Ministry of Housing and Works to cover repair and maintenance expenses for the Supreme Court of Pakistan building in Islamabad, judges’ residences, rest houses, and sub-offices in various cities.
