The Economic Coordination Committee (ECC) of the Cabinet has approved a major relief package for national grid electricity consumers, authorizing the return of Rs50 billion collected through levies on captive power plants to the public.
Approval of Proposals from Various Ministries
The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, reviewed and approved proposals from several ministries.
Flood Relief for Gilgit-Baltistan: The committee considered a summary from the Ministry of Kashmir Affairs and Gilgit Baltistan and approved the release of Rs3 billion for flood relief efforts, following the Prime Minister’s directives. The funds are for the timely provision of tents, medicines, food, and other essential supplies for affected families, as well as for the reconstruction of damaged infrastructure and early recovery measures.
Funds for Pakistan Television Corporation (PTVC): The ECC reviewed a summary from the Ministry of Information and Broadcasting for a Technical Supplementary Grant of Rs11 billion for PTVC. The committee approved Rs3.813 billion, with the remaining amount to be released on a quarterly basis to cover the state broadcaster’s salaries, pensions, and operational expenses. In approving the request, the ECC emphasized that it is critical for PTV to reduce its reliance on budgetary support and move towards self-sustainability.
Deferred Decisions and Recovery Framework
VSS for Utility Stores Corporation Employees: The ECC did not consider the summary seeking approval for a Voluntary Separation Scheme (VSS) for employees of the Utility Stores Corporation (USC). The committee stated that the proposal must first be considered by a committee established by the Prime Minister before being approved by the ECC.
Petroleum Levy Recovery: The committee deliberated on a summary from the Petroleum Division for the recovery of petroleum levies that have been in default by M/s Cnergyico PK Limited (CPL) since 2019. Following a detailed discussion, the ECC approved a settlement framework prepared in line with the decisions of the SIFC Apex/EC/IC for the recovery of the principal amount of the audited petroleum levy. It also authorized the Petroleum Division to sign the proposed deed of settlement with CPL and directed that the outstanding amount be recovered strictly in accordance with the terms of the settlement.
Consumer Relief and Pakistan-Azerbaijan Project
Relief from Captive Transmission Levy: Responding to a summary from the Power Division seeking relief for power consumers from the captive transmission levy, the ECC approved a mechanism to pass the benefits of the levy collected from captive power on to electricity grid consumers.
Machike-Thallian Tarrujabba White Oil Pipeline: The committee also considered a summary to review the tariff determination of the Machike-Thallian Tarrujabba White Oil Pipeline project, which is being developed on a government-to-government basis with Azerbaijan. The ECC approved the terms and conditions proposed by the Petroleum Division, enabling the launch of this strategic project. This project is expected to further strengthen bilateral friendship, trade, and investment ties between Pakistan and Azerbaijan.
