The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a comprehensive reform package for the power sector aimed at lowering electricity generation costs, resolving legacy payment obligations, and easing pressure from circular debt.
The decision was taken at a meeting held at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb. The committee was informed that the reform measures are the outcome of negotiations with several power producers and are designed to rationalize tariff structures, streamline payment mechanisms, and settle outstanding financial liabilities through mutually agreed arrangements. Officials noted that the initiative is expected to improve the financial sustainability of the power sector and help reduce tariff pressures on consumers.
Alongside the reform package, the ECC approved a series of Technical Supplementary Grants (TSGs) across multiple sectors.
The committee approved a summary from the Petroleum Division seeking Rs. 13.1 million to meet Pakistan’s annual contribution to the International Energy Forum (IEF), noting that continued membership is important for the country’s participation in global energy dialogue and cooperation.
Another summary from the Petroleum Division was approved for a TSG of Rs. 3 billion to finance gas supply schemes for villages located within a five-kilometer radius of gas production fields. The projects will be implemented through Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).
The ECC also approved a summary submitted by the Ministry of Federal Education and Professional Training seeking Rs. 200 million during FY2025–26 to pay outstanding dues to teachers of Basic Education Community Schools (BECS). The liability arises from court directives regarding the payment of salary differentials in line with notified minimum wages for the period from August 2017 to June 2021.
In another decision, the committee considered a request from the same ministry for exemption from relending terms on an additional $4 million allocated to the Higher Education Commission (HEC) under the restructured Higher Education Development in Pakistan Project (HEDP). The ECC was informed that the World Bank had reallocated the funds to the Investment Project Financing/Technical Assistance component, increasing HEC’s share beyond the previously exempted $77 million.
The committee further approved a TSG of Rs. 3.63 billion requested by the National Disaster Management Authority (NDMA) to reimburse expenditures incurred during Monsoon Response 2025 operations and overseas humanitarian assistance.
Additionally, the ECC approved a summary from the Power Division seeking Rs. 1.3 billion for the implementation of schemes under the Sustainable Development Goals Achievement Programme (SAP) during FY2025–26.
Separately, the committee considered a proposal from the Ministry of Information and Broadcasting seeking Rs. 2.231 billion to clear outstanding liabilities related to federal public information and awareness campaigns. The ECC approved Rs. 1.47 billion and directed the ministry to present the remaining funding requirement in the next quarter.
