Finance Minister Muhammad Aurangzeb chaired a crucial meeting of the Economic Coordination Committee (ECC) in Islamabad, where a significant decision was made to meet the requirements set by the International Monetary Fund (IMF). The government has approved a summary for the annual re-basing of electricity tariffs, a move essential to comply with the IMF agreement. This decision will have far-reaching implications for the energy sector and consumers alike.
Approval of IMF-Required Electricity Tariff Re-Basing
During the ECC meeting, it was directed that the National Electric Power Regulatory Authority (NEPRA) issue annual policy guidelines for the tariff re-basing process. Effective from January 1, the Power Division has been tasked with ensuring NEPRA’s strict adherence to the new guidelines. This step is crucial in maintaining transparency and accountability in the electricity tariff structure, aligning it with international standards.
Significant Financial Allocations for Various Sectors
In addition to the approval of the electricity tariff re-basing, the ECC also allocated substantial financial resources to various sectors. The Ministry of Foreign Affairs received a technical grant exceeding Rs90 million, earmarked for enhancing the operational capabilities of Pakistan International Airlines (PIA) and the Pakistan Air Force (PAF). This funding will bolster the efficiency and effectiveness of these crucial national entities.
Furthermore, the ECC sanctioned a grant of Rs940 million to address the operational requirements of the Frontier Corps (FC) North. This allocation underscores the government’s commitment to strengthening security forces and ensuring their operational readiness. Additionally, the withdrawal of a bank guarantee linked to Afghan transit trade via the Gwadar Port was approved, facilitating smoother trade operations and regional connectivity.
Focus on State-Owned Enterprises and Food Safety
The ECC’s decisions also extended support to state-owned enterprises, with a grant of Rs930 million approved for the payment of salaries to employees of the Pakistan Steel Mills. This financial assistance will help in sustaining operations and ensuring the welfare of the workforce. Moreover, funding for the establishment of the National Food Safety and Plant Health Regulatory Authority was greenlit, with a technical grant of Rs910 million allocated for its formation. This step underscores the government’s commitment to ensuring food safety standards and protecting plant health across the country.
As the government takes these significant steps to meet international obligations and support key sectors, the impact on the economy and various industries will be closely monitored. It is imperative for stakeholders and citizens to stay informed about these developments and understand their implications for the country’s overall progress and stability.
