The Economic Coordination Committee (ECC) on Friday approved a revision to the electricity tariff rebasing timeline, seeking the annual rebasing to be notified in January, with effect from Jan. 1, 2025, after the completion of regulatory proceedings.
Chaired by Finance Minister Muhammad Aurangzeb, the meeting approved policy guidelines for the National Electric Power Regulatory Authority (NEPRA) by amending the legal and regulatory framework. It also authorized the Power Division to approach NEPRA for the implementation of these policy guidelines.
The decision aims to address consumer grievances linked to overlapping tariff adjustments in summer months. During the meeting, the Power Division argued that high fuel charges adjustments and quarterly tariff adjustments during peak consumption months often lead to unaffordable electricity bills, public dissatisfaction, and nationwide protests.
Additionally, the ECC considered and approved a proposal of the National Food Security and Research Ministry for the allocation of technical supplementary grant of Rs. 910 million for the establishment of the National Food Safety, Animal, and Plant Health Regulatory Authority. It further deliberated on a proposal of the Industries and Production Ministry regarding the disbursement of salaries to Pakistan Steel Mills (PSM) employees for the financial year 2024-25. Authorizing the payment of the projected net salary of Rs. 935.78 million, the meeting directed its monthly disbursement according to the salary demand of the Steel Mills.
The Ministry of Commerce presented a proposal seeking an extension of regulatory duties on finished flat steel products. Approving the extension until March 31, 2025, as recommended by the Tariff Policy Board, the ECC warned that no further extensions would be entertained.
The cabinet body also approved a request from the Foreign Affairs Ministry for a technical supplementary grant of Rs. 90.275 million to disburse payments to PAF and PIA, ensuring operational efficiency. It similarly approved the release of Rs. 941 million to the Interior Ministry for operational requirements of the Frontier Corps North during the current financial year.
The ECC also considered a proposal from the Maritime Affairs Ministry regarding withdrawal of bank guarantees for Afghan Transit Trade facilitation through Gwadar Port, approving the replacement of bank guarantees imposed on Oct. 7, 2023 for the import of Di-Ammonium Phosphate with insurance guarantees.
The ECC further considered a proposal of the Overseas Pakistanis and Human Resource Development Ministry for budget proposals for the ongoing fiscal and revised estimates for the previous year regarding Employees’ Old-Age Benefits Institution (EOBI). Criticizing the delayed submission of the proposals, the ECC “reluctantly approved” budget proposals for FY2024-25 but rejected those for FY2023-24. It further registered its concerns over the delay in EOBI audits, noting the last one was conducted in 2019. Relevant authorities were directed to thoroughly investigate the delay and submit an update within a week.
The finance minister emphasized the importance of efficient and transparent implementation of all decisions to achieve desired outcomes.