ECC okays Rs52b for DISCOs

Power sector gets Rs52b equity; blames delays for Rs242m renegotiated EVTL contract

ISLAMABAD:

The Economic Coordination Committee (ECC) has approved a Rs52 billion Technical Supplementary Grant (TSG) for release to the Central Power Purchasing Agency-Guarantee (CPPA-G) as government equity in DISCOs, along with re-appropriation of Rs97.649 billion from K-Electric to Inter-DISCO Tariff Differential Subsidy.

The meeting, chaired by Finance Minister Muhammad Aurangzeb on Wednesday, also approved a TSG of Rs1.289 billion for Independence Day and Marka-e-Haq Celebrations 2025, and Rs2 billion for the Marka-e-Haq Monument Project in Islamabad.

The committee approved Rs4.5 billion for completion of Phase-II of the Pakistan Asan Khidmat Centre in Islamabad, and re-appropriation of Rs911.2 million to the Smart Islamabad Initiative.

A TSG of Rs8.216 million was approved for employee-related expenditure by the Prime Minister's Inspection Commission. The committee also approved Rs312.3 million for an incentive package for PAS and PSP officers serving in Balochistan, and discontinued the Telegraphic Transfer Charges Incentive Scheme from July 1, 2026.

The ECC approved Rs793.7 million for the District Shangla PSDP scheme, authorised salary payments for Pakistan Steel Mills employees, and approved Rs600 million as the federal government's share for installing a Vessel Monitoring System in fishing boats.

Other approvals included Rs250 million for Frontier Corps KP (North), extension of sovereign guarantees for SNGPL's Rs50 billion financing facility from Meezan Bank, Rs7 billion for Pakistan Railways, Rs22.4 million for the Public Private Partnership Authority, Rs193.2 million for the Federal Investigation Agency, and Rs4.2 billion for payments to families of Shuhada personnel of Civil Armed Forces.

Renegotiated EVTL deal

In a separate decision, the ECC approved the extension of the EVTL Implementation Agreement at Port Qasim Authority (PQA), while blaming bureaucratic delays for leaving the government with no other option.

During an earlier meeting, economic managers said that given the timeframe before the agreement's expiry on June 17, 2026, the ECC had been left with no alternative such as a bidding process. Prime Minister Shehbaz Sharif had also directed an inquiry against the bureaucracy over delays in decision-making.

Members of the ECC highlighted that the case exemplified sheer bureaucratic inertia and delays, which had become a major hurdle for business development and economic ventures.

Special Investment Facilitation Council (SIFC) officials informed the ECC that every possible care had been taken to finalise the case with due diligence, given the SIFC's mandate to issue directions and grant exemptions to facilitate investment and commerce.

They apprised the committee that the best price for the contract had been secured after a series of negotiations, with the price rising from $28.3 million to $242 million. An independent audit of the pricing was conducted by Ernst & Young, and another evaluation will be carried out.

Officials further informed the ECC that the exclusivity granted to EVTL had been removed. Given the urgency of the matter, as the last date for contract extension was June 18, 2026, an early decision was needed.

Concern was raised regarding delays by the Ministry of Maritime Affairs (MoMA), emphasising the need to investigate whether the delays were mala fide or the result of incompetence or neglect. The ECC was informed that an inquiry had already been directed by the prime minister.

On a query about land availability around the facility, MoMA clarified that land was available and future cases would be decided on merit. The ECC concluded that the observations raised had been adequately addressed and directed the sponsoring agency to follow all necessary codal and regulatory requirements to finalise the case. The case will be sent for cabinet ratification.

The meeting was attended by federal ministers, special assistants, secretaries and senior officials.