ISLAMABAD: The Economic Coordination Committee (ECC), chaired by Finance Minister Senator Muhammad Aurangzeb, has approved the Circular Debt Management Plan (CDMP) for the fiscal year 2024-25. As part of the plan, a schedule of tariff adjustments has been developed to reduce liabilities in the power sector and improve financial sustainability.
It is noteworthy, however, that the CDMP, which has been crafted in line with commitments made to the IMF and World Bank, was presented to the ECC rather than the Cabinet Committee on Energy (CCoE). The power sector’s circular debt has already reached Rs 2.4 trillion, and there is no clear plan in place to address this growing crisis.
In addition, the ECC approved a summary from the Petroleum Division for the signing of a Sale and Purchase Agreement (SPA) between Pakistan State Oil (PSO) and SOCAR Azerbaijan for the supply of petroleum, oil, and lubricants (POL) products.
The Ministry of Industries and Production also presented a summary regarding the Peshawar High Court (PHC)’s decision on the export of sugar from Khyber Pakhtunkhwa. The ministry noted that sugar production in Khyber Pakhtunkhwa is lower than the province’s annual consumption of 0.979 million metric tons (MT). The local deficit is typically met by sugar supplied from surplus-producing provinces such as Punjab and Sindh. Consequently, the ECC reaffirmed its earlier decision based on national production figures and confirmed that no sugar shortage is expected in Khyber Pakhtunkhwa, even if future exports are allowed. The concerns and requests from Khyber Pakhtunkhwa were acknowledged by the ECC.
The Ministry of Law and Justice presented a summary for the surrender of Rs 151.787 million from the Ministry of Housing and Works, to be transferred to the Supreme Court of Pakistan for the repair and maintenance of its buildings. The ECC approved the transfer of these funds through a technical supplementary grant (TSG) for FY 2024-25.
The Ministry of Interior requested a TSG of Rs 650.35 million to cover expenses related to the SCO Summit 2024, repairs to Safe City cameras damaged during violent protests, and the maintenance of law and order in Islamabad. The ECC directed the ministry to re-appropriate these funds from its allocated budget for FY 2024-25.
In a separate matter, the Ministry of Interior also presented a summary seeking Rs 2.7 billion for arrangements and beautification of Islamabad in preparation for the 23rd SCO Summit. After detailed discussions, the ECC decided that the Capital Development Authority (CDA) and the Ministry of Interior should seek third-party verification of costs and expenditures before bringing the summary back for further consideration.
The Ministry of Information and Broadcasting (MoIB) presented a summary requesting a TSG of Rs 95.822 million to settle outstanding dues related to the 23rd Shanghai Cooperation Organisation (SCO) Council of Heads of Government (CHG) meeting. The ECC directed the ministry to re-appropriate the required amount from its FY 2024-25 budget. If a shortfall arises by the end of the fiscal year, the Finance Division will allocate additional funds as necessary.
MoIB also requested an additional TSG of Rs 536.1 million for key digital initiatives. The ECC similarly instructed the ministry to re-appropriate these funds from its existing budget, with the possibility of supplementary funds being allocated later if needed.
Finally, the ECC reviewed the rising prices of pulses (gram and maash) and chicken, expressing concern over the situation. The committee directed the National Price Monitoring Committee (NPMC) to coordinate with the Ministry of National Food Security and Research and provincial administrations to address the issue and provide relief to consumers. The ECC also decided to continue monitoring the prices of essential food items to ensure that the benefits of declining inflation reach the general public.
The meeting was attended by Musadik Masood Malik, Minister for Petroleum; Sardar Awais Ahmad Khan Leghari, Minister for Power; Ahad Khan Cheema, Minister for Economic Affairs; the Governor of the State Bank of Pakistan; the Chairman of the Securities and Exchange Commission of Pakistan (SECP); the Chairman of the Board of Investment; federal secretaries; and senior officials from the concerned ministries and departments.Ends
