ECC Greenlights Rs262 Billion Payment to Power Plants via TSG; Advances Rs57 Billion for K-Electric Arrears

In a significant move to address financial commitments, the Economic Coordination Committee (ECC) of the Cabinet convened today and sanctioned the disbursement of Rs262.075 billion to Government-Owned Power Plants (GPPs). This decision aligns their payables with those of Independent Power Producers (IPPs) through the employment of the Technical Supplementary Grant (TSG). Additionally, the committee approved an advance subsidy of Rs57 billion for K-Electric arrears.

The meeting, pivotal for economic decisions, also delved into the revision of the Export Finance Scheme by the State Bank of Pakistan (SBP), following the guidelines of the International Monetary Fund (IMF) Standby Arrangement. Notably, the ECC gave the green light to the Export Finance Scheme, aiming to bolster economic prospects.

In another financial allocation, the ECC granted authorization for an additional disbursement of Rs25 billion to the Intelligence Bureau during the ongoing financial year 2023-2024. This allocation reflects the government's commitment to supporting crucial intelligence operations.

Furthermore, the session witnessed key determinations related to agriculture. The ECC established the support price for wheat in the upcoming year (2023-24) and set the minimum indicative prices for the tobacco crop in 2023.

However, it's worth highlighting that the ECC deferred the approval of the TAPI project, as presented in a summary by the Petroleum Ministry. This decision indicates the committee's cautious approach to certain projects, emphasizing a thorough evaluation before granting approval.