Govt Approves Revised Circular Debt Management Plan

The Economic Coordination Committee (ECC) of the Cabinet on Friday approved the Revised Circular Debt Management Plan for the power sector.

Finance Minister Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Friday.

The Ministry of Energy (Power Division) presented a summary on the refinancing of Power Holding Limited’s debt and a surcharge to recover markup payments.

Surcharge of Rs. 1 Per Unit

The ECC after discussion approved the proposal to recover Rs. 76 billion while exempting non-ToU domestic consumers having consumption of fewer than 300 units and private agriculture consumers in four months period from March 2023 to June 2023 to recover the markup charges of PHL loans and allowed to impose an additional surcharge of Rs. 1 per unit for FY 2023-24 to recover additional markup charges of PHL loans not covered through the already applicable FC surcharge. The above surcharges will be applicable to K-Electric consumers to maintain uniform tariff across the country.

The meeting deferred PHL’s principal installments payable in respect of Rs. 283.287 billion for a period of two years from the date of execution of fresh facilities and directed Finance Division to issue a Government Guarantee for repayment of principal as well as interest/fees, etc for the fresh facilities of Rs. 283.287 billion.

Fuel Adjustment Charges

The committee considered and approved the proposals contained in another summary of the Ministry of Energy (Power Division) regarding the recovery of staggered Fuel Charges Adjustment applicable for the months of August and September 2022.

The ECC deferred the electricity bills for the month of September 2022 for commercial consumers in the flood-affected areas till the next billing cycle and waived off electricity bills for the months of August and September 2022 for the non-ToU domestic consumers having less than 300 unit consumption. The ECC also approved an additional supplementary grant of Rs. 10.34 billion to cover the waiver of electricity bills in flood-affected areas.

The ECC considered and approved in principle a summary of the Finance Division on the Kamyab Pakistan Program and entrusted the State Bank of Pakistan to validate the claims of Wholesale lenders (WLs) after due diligence, due to the non-existence of Program Management Unit (PMU) at Finance Division.

The ECC considered a summary of the Ministry of Energy (Petroleum Division) and granted approval for the declaration of commerciality (DOC), Field Development Plan (FDP), and Development and Production lease (D&PL) for the period of five years w.e.f. 25th January 2022 over Jugan Field (Latif Block) to M/s United Energy Pakistan (UEP) Beta.

The ECC also considered another summary of the Ministry of Energy (Petroleum Division) and granted two years extension in renewal in Missa Keswal Development and Production Lease (D &PL) covering an area of 23.43 Sq km in district Rawalpindi, Punjab w.e.f. 11th April 2022.

The ECC also approved in principle a technical supplementary grant of Rs. 450 million in favor of the Ministry of Defence.

Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, SAPMs Tariq Bajwa, Tariq Mehmood Pasha, Dr. Muhammad Jehanzeb Khan, Chairman SECP, Federal Secretaries and other senior officers attended the meeting.

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