ECC to approve retargeting of power sector subsidies

The Economic Coordination Committee (ECC) of the cabinet will discuss a nine-point agenda in its meeting on Thursday, wherein it is expected to approve the retargeting of second phase of subsidies in the power sector.

Previously, when the government jacked up power tariff, it did so with the confidence that while the hike would allow the government to meet its fiscal requirements, it would be able to grant relief to the people through targeted subsidies in this sector.

The rationale was that there are those who availed subsidy in the winter, despite using more than 300 units in the summer, and the government wanted to recover the cost of electricity.

The government has already stated that retargeting of subsidies would allow it to grant relief to the people while enabling industries to maintain a competitive edge.

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According to sources, the meeting, which would be chaired by federal minister for economic affairs, will approve a technical supplementary grant of Rs2.65 billion for the Ministry of Housing.

It will also review the approval of technical supplementary grants for clearance of 40 per cent dues to independent power producers (IPPs) with whom the government signed contracts back in 2002.

The Ministry of industry and Production is likely to present a summary of preferential orders for gas supply during Thursday’s meeting.

Furthermore, the cabinet is expected to approve budget for publicizing development work undertaken by the government.