ISLAMABAD: The Economic Coordination Committee (ECC) on Friday approved Rs1.3 billion as a Technical Supplementary Grant (TSG) for the implementation of Sustainable Development Goals Achievement Programme (SAP) schemes and also endorsed a reduction in electricity generation tariffs following renegotiated agreements with 14 wind power plants and a solar power project, a move expected to save more than Rs163 billion over the life of the projects.
Eleven wind power plants have agreed for revised agreements based on negotiated principles, which will result in saving of Rs78.63 billion over the life of the project. For Quaid-e-Azam solar power plant, wholly owned by the Punjab government, amended the agreement for fixation of ROE to 13 per cent rate of return at the fixed exchange rate of Rs168 against USD, reduction in future delayed payment rate, resulting into estimated saving of Rs45.7 billion.
Another key component of the proposal relates to Fauji Kabirwala Power Company Limited, where the government has recommended revision of an earlier amendment agreement approved by the federal cabinet in January 2025. Officials said certain liquidated damages arose due to non-supply of gas and RLNG in the 16th agreement year, which were treated as a force majeure event beyond the control of the company. The revised agreement seeks to reconcile those damages to settle outstanding matters between the parties. The ECC is also expected to approve the early termination of the power purchase agreement and implementation agreement with Altern Energy Limited, a 29 megawatt plant operating under the 1994 power policy. The plant has become unable to dispatch electricity to the national grid after the upgrade of IESCO’s transmission network from 66 kilovolts to 132 kilovolts.
According to an official announcement, the Economic Coordination Committee (ECC) of the Cabinet met on Friday at the Finance Division under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
The ECC approved a summary submitted by the Petroleum Division seeking a Technical Supplementary Grant (TSG) of Rs13.1 million to meet Pakistan’s annual contribution to the International Energy Forum (IEF). The Committee was informed that continued membership in the IEF remains important for Pakistan’s participation in global energy dialogue and cooperation.
The ECC also approved another summary from the Petroleum Division seeking a TSG of Rs3 billion for provision of gas supply schemes in villages located within a five-kilometre radius of gas production fields. The schemes are being implemented through Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).
The ECC further approved a summary submitted by the Ministry of Federal Education and Professional Training for a TSG of Rs200 million during FY 2025-26 to facilitate payment of outstanding dues to teachers of Basic Education Community Schools (BECS). The financial liability arises from court directives regarding payment of salary differentials in accordance with notified minimum wages for the period from August 2017 to June 2021. The Committee also considered another summary from the same ministry seeking exemption from relending terms for an additional USD4 million allocated to the Higher Education Commission (HEC) under the restructured Higher Education Development in Pakistan (HEDP) Project. The ECC was informed that the World Bank reallocated these funds to the Investment Project Financing/Technical Assistance component, thereby increasing HEC’s share beyond the previously exempted USD77 million.
The ECC further approved a summary submitted by the National Disaster Management Authority (NDMA) seeking a TSG of Rs3.63 billion for reimbursement of expenditures incurred during Monsoon Response 2025 operations and overseas humanitarian assistance.
The ECC also approved a summary submitted by the Power Division seeking a TSG of Rs1.3 billion for implementation of Sustainable Development Goals Achievement Programme (SAP) schemes during FY2025-26.
The ECC also considered a proposal submitted by the Ministry of Energy (Power Division) regarding a comprehensive reform package aimed at reducing electricity generation costs, addressing legacy payment obligations, and easing pressures arising from circular debt in the power sector. The Committee was informed that the proposed measures are the outcome of negotiations with a number of power producers and are intended to rationalize tariff structures, streamline payment arrangements, and resolve outstanding financial liabilities through mutually agreed settlements. The ECC approved the reform package and related financial measures, noting that the initiative is expected to contribute to improved sustainability of the power sector, reduce tariff pressures on consumers, and support broader sectoral reforms.
In addition to the regular agenda items, the ECC considered a summary submitted by the Ministry of Information and Broadcasting seeking a TSG of Rs2.231 billion to clear outstanding liabilities related to federal public information and awareness campaigns. The Committee approved the grant to the extent of Rs1.47 billion and directed the ministry to present the remaining requirement in the next quarter.
