PTV gets Rs11 billion subsidy
The government on Tuesday approved a subsidy of Rs11 billion for the Pakistan Television Corporation (PTV) — one-third to be disbursed immediately, to offset the losses it would sustain due to the withdrawal of Rs35 in monthly fee charged through electricity bills.
The Economic Coordination Committee (ECC) of the cabinet considered a summary submitted by the Ministry of Information and Broadcasting for a supplementary grant of Rs11 billion in favour of PTV for tariff adjustment and net metering, said a statement issued by the Ministry of Finance.
It added that the ECC approved Rs3.8 billion while the remaining would be released on a quarterly basis for payment of salaries, pensions and operational expenses of the state broadcaster.
While approving the request, the ECC underscored that it was imperative for PTV to reduce reliance on budgetary support and chart a path towards self-sustainability, the finance ministry said.
The government had abolished the per electricity connection fee of Rs35 from bills last month as part of efforts to lower the cost of electricity for end-consumers. However, this created financial issues for the firm, which is heavily dependent on state dole-outs.
Earlier, Prime Minister Shehbaz Sharif had directed to discontinue the collection of TV licence fee, which the information ministry stated strained PTV's financial position, resulting in pending liabilities, including unpaid salaries and pensions for three months as well as other expenses.
The PM then directed the Finance Division to allocate a grant of Rs11 billion to PTV for fiscal year 2025-26, which would be released in quarterly tranches, ensuring uninterrupted broadcasting services. For the next three quarters, PTV will receive Rs2.4 billion each quarter.
The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, also approved guidelines to reduce electricity prices for consumers to the extent of additional money collected on the use of gas by captive power plants (CPPs). As per the guidelines, the National Electric Power Regulatory Authority (Nepra) will revise prices downwards through the monthly fuel price adjustment mechanism.
The finance ministry stated that the ECC approved the mechanism proposed by the Power Division to pass on the benefit of the levy collected from captive power consumers to electricity grid consumers.
Parliament has enacted Off the Grid (Captive Power Plants) Levy Act, 2025 to impose a levy on natural gas-based captive power plants to facilitate their transition to the electricity grid.
The law provides that the concerned divisions shall calculate the rate of levy considering the difference of electricity tariff of the industrial B-3 category notified by Nepra and the self-power generation cost of the captive power plant at the gas tariff notified by the Oil and Gas Regulatory Authority (Ogra).
In accordance with the Act, the levy rate is set initially at a 5% fixed margin above the power tariff, which has increased to 10% from August 1, 2025. From February 1, 2026, the rate will be 15% and from August 1, 2026, it will be 20%.
The Power Division will submit information to Nepra with the request to allow it to be passed on to electricity consumers and accordingly Nepra will issue the determination each month after necessary due diligence.
The benefit of the levy collected in a month will be passed on to power consumers with a lag of two months. Nepra will evaluate the monthly data and determine the per-unit rate of monthly levy benefit for the entitled consumers as per the approved mechanism.
The ECC also considered a summary seeking the review of tariff determination for the Machike-Thalian-Taru Jabba White Oil Pipeline project being developed on a government-to-government basis with Azerbaijan, and approved the terms and conditions proposed by the Petroleum Division to enable the launch of the strategic project. It will further strengthen bilateral friendship, trade and investment ties between Pakistan and Azerbaijan, the finance ministry said.
The ECC reviewed a summary submitted by the Ministry of Kashmir Affairs, Gilgit-Baltistan, and States and Frontier Regions regarding the release of funds for flood relief in Gilgit-Baltistan in line with the prime minister's directives during his recent visit to the affected region.
It approved the release of Rs3 billion for timely provision of tents, medicines, food and other essential supplies for the affected families, as well as for the reconstruction of damaged infrastructure and early recovery measures to support the affected communities.