ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the Power Division’s proposal to revise the annual electricity tariff rebasing timeline, moving it from July 1 to January 1, effective from January 2025.
The ECC, chaired by Finance Minister Senator Muhammad Aurangzeb, discussed and approved the proposal to adjust the annual rebasing determination process. Policy guidelines were also approved for the National Electric Power Regulatory Authority (NEPRA), enabling amendments to the legal and regulatory framework to implement this change. The ECC directed that the rebasing should be notified annually from January 1, following the completion of regulatory proceedings. The Power Division was given the authority to approach NEPRA to implement these policy guidelines.
Additionally, the ECC considered and approved a proposal from the Ministry of National Food Security and Research for a Technical Supplementary Grant (TSG) of Rs. 910 million to establish the National Food Safety, Animal, and Plant Health Regulatory Authority (NFSAPHRA).
The Committee also discussed the proposal from the Ministry of Industries and Production regarding salary disbursements for Pakistan Steel Mills (PSM) employees for the fiscal year 2024-25. The ECC authorized the Finance Division to approve the disbursement of Rs. 935.78 million in projected salaries for FY 2024-25, to be paid monthly as per PSM’s salary requirements. These funds will be sourced from the previously approved budgetary allocation of Rs. 3.5 billion.
The Ministry of Commerce presented a proposal to extend regulatory duties on finished flat steel products. The ECC approved the extension of these duties until March 31, 2025, as recommended by the Tariff Policy Board in its 61st meeting on December 26, 2024. However, the ECC emphasized that no further extensions would be granted, as per the Federal Government’s authority under Sub-section 3 of Section 18 of the Customs Act, 1968.
The ECC also approved a TSG of Rs. 90.275 million for the Ministry of Foreign Affairs to facilitate payments to Pakistan Air Force (PAF) and Pakistan International Airlines (PIA) for operational efficiency in FY 2024-25.
A TSG of Rs. 941.4 million was also sanctioned for the Ministry of Interior to meet the operational requirements of the Frontier Corps (FC) North during FY 2024-25.
The ECC reviewed a proposal from the Ministry of Maritime Affairs regarding the withdrawal of bank guarantees for Afghan Transit Trade through Gwadar Port. The Committee approved replacing these bank guarantees, imposed on October 7, 2023, for the import of Di-Ammonium Phosphate (DAP) under the Afghanistan-Pakistan Transit Trade Agreement (APTTA), with insurance guarantees.
Finally, the Ministry of Overseas Pakistanis and Human Resource Development presented its budget proposals for FY 2024-25 and revised estimates for FY 2023-24 regarding the Employees’ Old-Age Benefits Institution (EOBI). The ECC expressed strong dissatisfaction with the delayed submission of the proposals by EOBI and MOPHRD. While the budget proposals for FY 2024-25 were reluctantly approved, the revised estimates for FY 2023-24 were not. The ECC also raised concerns over the delay in the EOBI audits, with the last audit conducted in 2019. Authorities were instructed to investigate this delay thoroughly and report back to the ECC within one week.
Finance Minister Senator Muhammad Aurangzeb emphasized the importance of efficient and transparent implementation of all decisions to ensure the desired outcomes.
The meeting was attended by various ministers, including Mr. Ahsan Iqbal Chaudhry, Minister for Planning, Development, and Special Initiatives; Rana Tanveer Hussain, Minister for Industries and Production; Mr. Ahad Khan Cheema, Minister for Economic Affairs; Mr. Jam Kamal Khan, Minister for Commerce; Sardar Awais Ahmed Khan Leghari, Minister for Power; as well as senior officers from relevant ministries and divisions.
