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ECC Approves Rebasing of Electricity Tariffs and Key Grants
ECC greenlights electricity tariff rebasing from Jan 2025, grants for operational needs of FC North, PAF, PIA, and other critical sectors.
ND
by News Desk
2025-01-17
ECC Approves Rebasing of Electricity Tariffs and Key Grants

The Economic Coordination Committee (ECC) of Pakistan, chaired by Finance Minister Muhammad Aurangzeb, has approved a summary for the annual rebasing of electricity tariffs. The rebasing will take effect from January 1, 2025, and policy guidelines will be issued to the National Electric Power Regulatory Authority (NEPRA) for implementation.

Key Decisions

During the meeting, the ECC directed the Power Division to approach NEPRA for implementing the rebasing policy. The move is expected to align electricity tariffs with evolving economic and energy sector realities.

In addition to electricity tariffs, the ECC approved several grants for operational needs and other critical areas:

  1. Ministry of Foreign Affairs:
    • A technical grant of over Rs. 90 million was approved to enhance the operational capacity of the Pakistan Air Force (PAF) and Pakistan International Airlines (PIA).
  2. Frontier Corps North:
    • A grant of Rs. 940 million was sanctioned to meet the operational requirements of FC North.
  3. Gwadar Port Operations:
    • Approval was granted to withdraw the bank guarantee obtained for Afghan transit trade through Gwadar Port.
  4. National Food Safety and Plant Health Regulatory Authority:
    • Rs. 910 million was approved for establishing this authority, which will play a crucial role in ensuring food safety and plant health.
  5. Pakistan Steel Mills:
    • Rs. 930 million was allocated for the payment of salaries to employees of the Pakistan Steel Mills. These funds are part of a previously approved Rs. 3.5 billion grant.

Implications

The ECC's decisions reflect a focus on strengthening Pakistan’s operational capacities and addressing pressing needs in various sectors. The electricity tariff rebasing, in particular, is a critical measure aimed at financial sustainability in the energy sector.

The grants for FC North and the National Food Safety Authority underscore the government’s emphasis on both security and food security. Meanwhile, the withdrawal of the bank guarantee for Afghan transit trade is expected to streamline operations at Gwadar Port, boosting regional trade activities.
Tagged:

PakistanEconomy

ElectricityTariffs

ECCDecisions
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