ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved a circular debt management plan for the fiscal year 2024-25 on Monday. This plan aims to reduce liabilities in the power sector and enhance financial sustainability.
Meeting Highlights
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the ECC meeting. Several key agenda items were discussed, leading to important decisions.
Circular Debt Management Plan
The Ministry for Energy (Power Division) presented the Circular Debt Management Plan. The ECC approved this plan, emphasizing its goal of reducing liabilities within the power sector. This is a crucial step towards improving the financial health of the sector.
Sale Purchase Agreement Approved
The Ministry of Energy (Petroleum Division) also sought approval for a Sale Purchase Agreement (SPA) between Pakistan State Oil (PSO) and SOCAR Azerbaijan for the supply of POL products. The ECC approved the signing of this SPA, facilitating important energy supply arrangements.
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Technical Supplementary Grants
The Ministry of Information and Broadcasting (MoIB) requested a technical supplementary grant (TSG) of Rs95.822 million. This grant aims to settle outstanding dues related to the 23rd Shanghai Cooperation Organisation (SCO) Council of Heads of Government meeting. After deliberation, the ECC directed the MoIB to reallocate funds from its 2024-25 budget. If a shortfall occurs at the end of the fiscal year, the Finance Division will allocate additional funds as needed.
Another request from the MoIB involved an additional TSG of Rs536.1 million for essential digital initiatives. Similar to the previous request, the ECC directed the ministry to re-appropriate funds from its budget, with the possibility of further allocations if necessary.
Sugar Export Concerns Addressed
The Ministry of Industries and Production discussed a summary regarding the Peshawar High Court’s decision on sugar exports from Khyber-Pakhtunkhwa. The ministry reported that local sugar production is below annual consumption levels. Typically, the local deficit is met by sugar from surplus-producing provinces like Punjab and Sindh. The ECC reiterated its earlier decision, acknowledging the situation but noting the province’s concerns.
Funding for Supreme Court Repairs
The Ministry of Law and Justice requested the surrender of Rs151.787 million from the Ministry of Housing and Works. This amount will be transferred to the Supreme Court of Pakistan for building repairs and maintenance. The ECC approved this transfer through a TSG for the 2024-25 fiscal year.
Funding for Interior Ministry Needs
The Ministry of Interior requested a TSG of Rs650.35 million to cover costs related to the SCO Summit 2024 and repairs of Safe City cameras damaged during protests. The ECC directed the ministry to re-appropriate funds from its allocated budget for the fiscal year.
Additionally, the Ministry of Interior sought Rs2.70 billion for arrangements and beautification efforts in Islamabad for the 23rd SCO Summit. The ECC decided that the Capital Development Authority (CDA) and the Ministry of Interior should conduct a third-party cost verification before reconsidering the summary.
Monitoring Price Hikes
At the end of the meeting, the ECC reviewed the rising prices of pulses and chicken. The committee expressed concern and directed the National Price Monitoring Committee (NPMC) to monitor the situation closely. The ECC aims to ensure that relief reaches the public amid inflationary pressures.
The meeting included key attendees, such as Musadik Masood Malik, Minister for Petroleum; Sardar Awais Ahmad Khan Leghari, Minister for Power; and senior officials from relevant ministries.
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