ISLAMABAD : The government has decided to close Power Holding Limited (PHL) following settlement of debts in in books.
The decision was taken by the Economic Coordination Committee of the Cabinet on Friday.
Presided over by the Finance Minister, the ECC took up a summary submitted by the Power Division regarding the rationalization of tariffs and payment adjustments for nuclear power plants (NPPs), Government-owned Power Plants (GPPs), OGDCL and SNGPL. The proposal formulated through the Prime Minister’s Task Force on Power Sector Reforms, aims to enhance financial sustainability, streamline payments, and reduce overall costs in the power sector. The Committee endorsed the agreed framework among the concerned entities for the settlement of outstanding dues and waiver of specific financial claims to support fiscal balance and tariff rationalization. These measures are part of the government’s broader efforts to strengthen the financial health of the energy sector and ensure long-term cost efficiency.
The ECC also considered and approved another summary by the Power Division for issuance of a Government of Pakistan guarantee amounting to Rs. 659.646 billion for circular debt financing of Rs. 1.225 trillion. The guarantee is intended for the settlement of Power Holding Limited’s debt and overdue payments to Independent Power Producers. The ECC also authorized the Finance Division to issue a Letter of Comfort accordingly. Power Division was directed to report back to ECC on the timeframe for the closure of PHL following the settlement of debt issue.
The Committee also approved a proposal by the Ministry of National Food Security and Research for the reallocation of funds within the Division. The approval allows the transfer of resources from the IPC Division through a technical supplementary grant to support ongoing agricultural research initiatives.
A summary submitted by the Ministry of Maritime Affairs regarding the the terms of engagement for the utilization of Pakistan International Bulk Terminal (PIBT) at Port Qasim for handling and exporting copper-gold commodities, minerals, metals, and other natural resourcesm was also discussed and deferred with the instruction to the Ministry to resubmit it with a clear and well-considered framework following consultation from stakeholders.
The ECC also discussed a summary by the Ministry of Interior for grant of a TSG amounting to Rs 960,273,000/- to ensure timely disbursement to the transferred staff of Pak PWD for the months of October 2025 to June 2026. The Committee approved the TSG to the extent of payment of salaries for the current quarter and sought a report from CDA by December on its plans for the transferred Pak PWD staff.
On a proposal from the Petroleum Division, the ECC approved the allocation and pricing of gas from the Mari Field to fertilizer plants to ensure an adequate and affordable supply of fertilizer on a structural basis.
Towards the end, the ECC was also presented by the Finance Division a report on the Home Remittance Incentive Schemes (HRIS).
The meeting was attended by Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Federal Minister for Petroleum, Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Commerce Jam Kamal Khan, as well as federal secretaries and senior officials from relevant ministries, departments, and regulatory bodies. Ends
