The Economic Coordination Committee (ECC) of the cabinet has approved the uniform application of Fuel Charges Adjustment (FCA) across the country, extending this measure to K-Electric consumers as well. According to The News, the ECC decided that the National Electric Power Regulatory Authority (Nepra) will apply the same FCA rate determined for state-run power distribution companies (Discos) to K-Electric consumers to maintain a consistent national tariff.
This rationalization mechanism, including the applicable period, will be followed for both Discos and K-Electric, in line with the federal government’s uniform tariff policy. The move is aimed at safeguarding the financial sustainability of the power sector. Any difference between the monthly FCA rate determined for K-Electric and the unified rate will be covered by a subsidy or cross-subsidy. The uniform FCA application will begin with the FCA month of June 2025, to be reflected in the billing month of August 2025.
Other Significant Decisions
The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, also deliberated on several other important economic and developmental issues.
- Pakistan National Shipping Corporation (PNSC): The ECC addressed the matter of PNSC ships being detained in South Africa due to claims against Pakistan Steel Mills. The committee directed the Finance Division to reimburse Rs330.526 million to the PNSC through a Technical Supplementary Grant (TSG) and instructed the Ministry of Industries & Production to expedite the settlement of the arbitration case.
- Prime Minister’s Fan Replacement Programme: The ECC approved a term sheet for the launch of the program, which was jointly prepared by stakeholders including NEECA, SBP, and banks. A TSG of Rs2 billion was also approved in favor of NEECA to kickstart the initiative.
- National Security Division: The committee approved a TSG of Rs250 million for the Strategic Policy Planning Cell of the National Security Division.
- Monsoon Rain Relief: Following a proposal from the National Disaster Management Authority (NDMA), the ECC approved a relief package of Rs5.8 billion for the victims of recent monsoon rains. The committee directed the Finance Division to immediately release Rs4 billion to provide urgent relief.
- Subsidy for Digital Payments: The ECC approved an allocation of Rs3.5 billion as a subsidy for the “Raast QR Code” based person-to-merchant payments for the current fiscal year, with a provision for continuation for three years. This initiative aims to accelerate digital adoption and promote the digital economy.
- New Energy Vehicle Policy: The ECC approved a summary for the New Energy Vehicle Policy 2025-30, commending it as a comprehensive and forward-looking policy aligned with international best practices.
- Risk Coverage Scheme for Farmers: The committee was briefed on a new risk coverage scheme designed to support small farmers and underserved areas. The scheme is expected to add over 750,000 new borrowers to the formal credit system in the next three years.
- Gas Sector Review: Finally, the ECC reviewed the overall gas sector situation and directed the Ministry of Petroleum to take effective measures to control losses and ensure operational efficiency.
