Mohsin Siddiqui (Chief Reporter)

The Economic Coordination Committee (ECC) of the cabinet convened on Wednesday and gave the green light to disburse Rs320 billion to public sector power plants and K-Electric. This crucial decision, facilitated through supplementary grants, aligns with the International Monetary Fund’s (IMF) requirements.

During the meeting, caretaker Finance Minister Dr Shamshad Akhtar presided over the committee, emphasizing the need to meet IMF conditions. The ECC also maintained the minimum support price for wheat at Rs3,900 per 40kg. Additionally, the board of directors of Pakistan Steel Mills faced criticism for their mismanagement of substantial mill assets, including vast land holdings.

A pivotal point of discussion during the ECC meeting was the approval of a Power Division summary, paving the way for the settlement of payables to government-owned power plants (GPPs) through a supplementary grant of Rs262.075 billion.

According to a senior official from the Power Division, the ECC was briefed on the clearance of Rs444.5 billion in past liabilities of GPPs in March 2022. In response, the ECC sanctioned a supplementary grant of Rs182.465 billion for payment to entities such as the Pakistan Atomic Energy Commission (PAEC), the Water & Power Development Authority (Wapda), and the National Power Parks Management Company (NPPMCL). This funding is earmarked for nuclear plants, hydropower plants, and LNG-based power plants, following a mechanism similar to that employed for Independent Power Producers (IPPs). These funds have been subsequently released in the fiscal year 2023.