ECC extends sovereign guarantee for SNGPL, approves TSGs

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved an extension in the validity period of sovereign guarantees issued against a Rs 50 billion running finance facility secured by Sui Northern Gas Pipelines Limited (SNGPL) for LNG payments.
The ECC meeting, chaired by Finance Minister Senator Muhammad Aurangzeb, approved the extension of the sovereign guarantees until June 2026, citing improved cash flows of the company.
The Committee also reviewed a summary presented by the Power Division regarding the solarization of 27,000 agricultural tube-wells in Balochistan, as directed by the Prime Minister on July 2, 2024. The project is estimated to cost Rs 55 billion, with funding shared between the federal government (70%) and the Government of Balochistan (30%).
The ECC was informed that Rs 14 billion had already been released by the federal government, and the remaining Rs 24.5 billion is now proposed for release. After deliberation, the ECC approved the transfer of the requisite funds to ensure the timely completion of the project.
The ECC also instructed the Power Division to closely monitor implementation, particularly the disconnection of tube-wells from the grid and the removal of transformers and fixtures as per project design. A progress report is to be presented to the ECC in July.
In addition, the ECC approved several Technical Supplementary Grants (TSGs) submitted by various ministries and divisions, including:
Rs 300 million for the Cabinet Division to operationalize new regulatory authorities and meet other funding needs.
Rs 1,269 million for the Finance Division, reallocated from ministries following the transfer of PSDP projects previously managed by the now-defunct PWD.
Rs 250 million for the Ministry of Federal Education and Professional Training, as part of a Rs 500 million grant approved by the Prime Minister for upgrading Sadiq Public School, Bahawalpur.
Rs 109 million for the Ministry of Interior and Narcotics Control for equipment procurement by Civil Armed Forces deployed under UN Peacekeeping Missions.
Rs 500 million for operational requirements of Frontier Corps (KP) North.
Rs 25.9 million for maintenance of a Cessna aircraft under the Ministry of Interior.
Rs 2.32 million for the construction of Michni Training Centre for Frontier Constabulary in Khyber Pakhtunkhwa.
Rs 556.8 million for the Ministry of Law and Justice to operationalize 36 benches of the Appellate Tribunal Inland Revenue. Release of funds will align with project execution.
Rs 106 million for the Power Division to support awareness and implementation activities of NEECA’s nationwide fan replacement program, which aims to replace 88 million inefficient fans and reduce peak power demand by around 5,000 megawatts.
Later in the meeting, the Power Division briefed the Committee on the implementation status of the ECC’s September 4, 2024 decision concerning the governance of power distribution companies (DISCOs).
The ECC was informed that the boards of directors for all DISCOs have been reconstituted, except SEPCO and HESCO, where finalization is underway. A performance monitoring mechanism assessing operational, commercial, and financial metrics has been rolled out by the PPMC. Strategic roadmaps aligned with the National Electricity Policy were signed in February 2025 by respective BoD Chairpersons and CEOs of the DISCOs.
The performance review included DISCOs’ data on transmission and distribution (T&D) losses and recovery up to December 2024.
The meeting was attended by Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Investment Qaiser Ahmed Sheikh, and senior officials from relevant ministries and divisions.