Economic Coordination Committee (ECC) Mulls Significant Payments and Key Decisions in Upcoming Meeting

In its upcoming meeting scheduled for tomorrow at 1300 hours, the Economic Coordination Committee (ECC) of the Cabinet is set to deliberate on crucial matters that could impact the country's economic landscape.

One of the major discussions on the agenda involves the review of settling payables to Government Owned Power Plants (GPPs), aligning them with Independent Power Producers (IPPs). The ECC is contemplating the release of a substantial Rs262.075 billion to public sector power plants, facilitated through a Technical Supplementary Grant (TSG).

In addition to this, the committee will assess the release of an advance subsidy amounting to Rs57 billion concerning K-Electric arrears. This move reflects the government's ongoing efforts to address financial obligations in the power sector.

A significant topic up for consideration is the phase-out of the Export Finance Scheme of the State Bank of Pakistan (SBP) under the International Monetary Fund (IMF) Standby Arrangement. This decision holds implications for the economic and trade relations of the country.

The ECC's agenda further includes the proposed transfer of the National Energy Efficiency and Conservation Authority (NEECA) from the Science & Technology Division to the Power Division. This potential shift in oversight underscores the government's focus on streamlining energy-related initiatives.

Addressing financial allocations, the committee will discuss the provision of an additional Rs250 million during the fiscal year 2023-24, contributing to key projects and initiatives.

Agricultural matters will also take center stage, with the ECC expected to decide on the profitable support price for the Wheat Crop of the upcoming year 2023-24. Additionally, the notification of minimum indicative prices for the Tobacco Crop in 2024 and the revision of cess rates on Tobacco for the fiscal year 2024-25 will be reviewed.

In a move to boost foreign investment, the ECC may approve the Turkmenistan-Afghanistan-Pakistan-India (TAPI) Project as a qualified investment, accompanied by an investment incentives package under the Foreign Investment (Promotion and Protection) Act, 2022 (FIPPA).

The meeting will also scrutinize the report on the ECC's decision regarding the liabilities of the Pakistan Steel Mills (PSM) towards the government. This review reflects the ongoing efforts to address financial challenges within state-owned enterprises.