The Economic Coordination Committee (ECC) has approved a Rs194 billion power sector package, including fresh government equity for power distribution companies (DISCOs), a major reallocation of electricity subsidy funds, and the settlement of outstanding subsidy claims.

The decisions were taken during an ECC meeting chaired by Finance Minister Senator Muhammad Aurangzeb.

As part of the package, the committee approved a Rs52 billion Technical Supplementary Grant to be released to the Central Power Purchasing Agency-Guarantee (CPPA-G) as government equity for DISCOs. The funding is aimed at strengthening the financial position of electricity distribution companies.

The ECC also approved the transfer of Rs97.649 billion in tariff differential subsidy funds from K-Electric to the Inter-DISCO Tariff Differential Subsidy, effectively reallocating budgeted subsidy resources to support other power distribution companies.

In addition, the committee cleared the adjustment of Rs44.198 billion in outstanding Tariff Differential Subsidy (TDS) claims for the Tribal Areas Electric Supply Company (TESCO), resolving pending subsidy obligations linked to the utility.

Combined, the three decisions amount to nearly Rs194 billion in financial measures for Pakistan’s power sector.

The government said the approvals are intended to improve the financial health of electricity distribution companies, streamline subsidy management, and support ongoing reforms aimed at strengthening the country’s power sector.