The Economic Coordination Committee (ECC) of the federal cabinet on Tuesday approved the uniform application of fuel adjustment charges (FCA) to electricity bills nationwide.
Following its approval, the new FCA policy will be implemented by NEPRA from the billing cycle of August.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC meeting also considered a summary submitted by the Maritime Affairs Ministry regarding the arrest of Pakistan National Shipping Corporation ships in South Africa due to alleged claims of M/s Coniston against Pakistan Steel Mills Ltd. After deliberations, the ECC directed the Finance Division to reimburse Rs. 330.526 million to PNSC through a Technical Supplementary Grant as per a 2017 ECC decision. It also instructed the Industries and Production Ministry to expedite the finalization and settlement of the arbitration case in court and report back within three months on the progress achieved in resolving the matter on priority basis.
The ECC further approved a term sheet jointly prepared by relevant stakeholders, including NEECA, SBP and banks, based on the Draft Tripartite Agreement for the launch of the Prime Minister’s Fan Replacement Program. To kickstart the program, the ECC approved a technical supplementary grant of Rs. 2 billion in favor of NEECA.
The meeting approved a technical supplementary grant of Rs. 250 million for the National Security Division for its Strategic Policy Planning Cell, with the remaining amount to be released in phases subject to contextualization and rationalization of expenditures in consultation with the Finance Division. The ECC further accorded in-principle approval to a proposal submitted by the National Disaster Management Authority (NDMA) for federal assistance to victims of this year’s monsoon rains, approving a relief package of Rs. 5.8 billion. It directed the Finance Division to immediately release Rs. 4 billion to mitigate the sufferings of the affected people.
On a proposal from the Finance Division, the ECC approved Rs. 3.5 billion in subsidy for RAAST QR Code based person-to-merchant payments, with a provision to continue the policy for three years and accelerate digital adoption and promote the digital economy. The ECC further decided that the State Bank of Pakistan would notify the scheme immediately and submit a comprehensive evaluation report to the ECC on the operational effectiveness of the subsidy scheme by the end of the fiscal year.
The ECC also considered and approved a summary submitted by the Industries and Production Division pertaining to the New Energy Vehicle Policy 2025-30. It commended the Division for preparing a comprehensive and forward-looking policy aligned with international best practices and recognized its potential to steer the country’s transition towards electric vehicles.
The ECC was further briefed on the risk coverage scheme for small farmers and underserved areas, designed to provide coverage to subsistence farmers in Punjab and Sindh as well as all farmers in Khyber-Pakhtunkhwa, Balochistan, Azad Jammu and Kashmir and Gilgit-Baltistan in view of their low share in current agricultural credit disbursements. The scheme is expected to add more than 750,000 new borrowers to the formal credit system over the next three years.
Finally, the ECC reviewed the overall gas sector and supply situation in the country and directed the Ministry of Petroleum to take effective measures to control losses in the sector and ensure operational efficiency. Reportedly, the Petroleum Ministry may seek to renegotiate an existing LNG contract with Qatar in this regard.