Govt approves IMF-required electricity tariff re-basing

ECC directs NEPRA to issue annual policy guidelines for power tariff re-basing as part of IMF agreement compliance.

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The government has met another requirement set by the International Monetary Fund (IMF) by approving a summary for the annual re-basing of electricity tariffs, Express News reported.

The decision was made during a meeting of the Economic Coordination Committee (ECC) in Islamabad, chaired by Finance Minister Muhammad Aurangzeb.

In line with the IMF agreement, the ECC directed that the National Electric Power Regulatory Authority (NEPRA) issue annual policy guidelines for the tariff re-basing process. The re-basing will take effect from January 1 with the Power Division tasked with ensuring NEPRA's adherence to the new guidelines.

The ECC meeting also approved significant financial allocations for various sectors as the Ministry of Foreign Affairs received a technical grant of over Rs90 million, which will be utilised by Pakistan International Airlines (PIA) and the Pakistan Air Force (PAF) to enhance their operational capabilities.

Additionally, the committee sanctioned a grant of Rs940 million to meet the operational needs of the Frontier Corps (FC) North. It also approved the withdrawal of a bank guarantee linked to Afghan transit trade via the Gwadar Port.

Further funding was allocated for the establishment of the National Food Safety and Plant Health Regulatory Authority, with the ECC approving a technical grant of Rs910 million for its formation.

In an important move for state-owned enterprises, the committee approved a grant of Rs930 million for the payment of salaries to employees of the Pakistan Steel Mills. This grant will be sourced from previously approved funds amounting to Rs3.5 billion.