ECC approves Rs52bn power grant and major fiscal transfers

ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved a series of major financial decisions, including a Rs52 billion Technical Supplementary Grant (TSG) for the Central Power Purchasing Agency-Guarantee (CPPA-G) as government equity in power distribution companies.

It also approved the reallocation of Rs97.649 billion from K-Electric to the Inter-DISCO Tariff Differential Subsidy.

The meeting, chaired by Finance Minister Muhammad Aurangzeb, also approved Rs1.289 billion for Independence Day and “Marka-e-Haq” celebrations 2025, and Rs2 billion for the Marka-e-Haq Monument Project in Islamabad.

Additional approvals included Rs4.5 billion for Phase-II of the Pakistan Asan Khidmat Centre, Rs911.2 million for the Smart Islamabad Initiative, and various allocations for federal institutions and development schemes across multiple sectors.

These included funds for the Prime Minister’s Inspection Commission, incentive packages for PAS and PSP officers in Balochistan, Pakistan Steel Mills salaries, Pakistan Railways, FIA, Frontier Corps KP (North), and compensation for families of Civil Armed Forces martyrs.

The committee also approved funding for a Vessel Monitoring System for fishing boats and several public sector development initiatives.

In a separate decision, the ECC approved the extension of the EVTL Implementation Agreement at Port Qasim Authority, citing urgency due to the contract’s approaching expiry.

Officials noted that time constraints had effectively ruled out a fresh bidding process. Prime Minister Shehbaz Sharif has already ordered an inquiry into delays linked to the case.

During the meeting, members expressed concern over bureaucratic inefficiencies, describing them as a major barrier to investment and timely project execution.

Special Investment Facilitation Council (SIFC) officials said the process was completed under due diligence requirements, with negotiations increasing the contract value from $28.3 million to $242 million. They added that an independent audit by Ernst & Young had been conducted, with further review planned.

Officials confirmed that exclusivity previously granted to EVTL had been withdrawn. The committee stressed that future decisions would strictly follow merit-based procedures.

Concerns were also raised over delays by the Ministry of Maritime Affairs, with the matter already under formal investigation as directed by the Prime Minister.

The ECC concluded by directing all relevant departments to ensure full compliance with regulatory and procedural requirements before final cabinet approval.