ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved the revision in the annual rebasing determination timeline and directed that rebasing should be notified with effect from January 1, 2025, onward each year, following the completion of regulatory proceedings.
The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the ECC of the Cabinet, here on Friday.
The ECC discussed and approved the proposal from the Power Division regarding the revision in the annual rebasing determination timeline. Policy guidelines were approved to be issued to the Nepra for revising the annual tariff determination process timeline by amending the legal and regulatory framework.
Power tariff may be reset annually from Jan 1
Sources said that the decision of electricity tariff rebasing from January 1, each year instead of July, is aimed at avoiding public ire in summer months when impact of Fuel Charges Adjustments (FCAs) and Quarterly Tariff Adjustments (QTAs) are also on higher side.
Nepra argued that timeframe for rebasing of tariff, effective from July 2025, has already started; therefore, it would not be practical to rebase the tariff to be effective 1st January 2025 as the regulatory process for approval of relevant documents, requires nine months’ period, as provided in the guidelines.
However, the Power Division’s proposal was considered by ECC of the Cabinet on Friday. According to Power Division, the consumers face high Fuel Charges Adjustments (FCAs), as well as, the annual tariff rebasing, simultaneously in the summer months. This increase in tariff coupled with higher consumption leads to significant hike in the consumer electricity bills of summer months which in turn results in un-affordability, public dissatisfaction and nation-wide protests.
The ECC directed that rebasing should be notified with effect from January 1, 2025, onward each year, following the completion of regulatory proceedings. The Power Division was authorised to approach Nepra for the implementation of these policy guidelines.
The ECC considered and approved the proposal of the Ministry of National Food Security and Research for the allocation of additional funds as a Technical Supplementary Grant (TSG) of Rs910 million for the establishment of a National Food Safety, Animal, and Plant Health Regulatory Authority (NFSAPHRA).
The ECC also deliberated upon the proposal of the Ministry of Industries and Production regarding the disbursement of salaries to Pakistan Steel Mills (PSM) employees for the financial year 2024-25 (projected). The committee authorised the Finance Division to approve the payment of the projected net salary of Rs. 935.78 million for fiscal year 2024-25, to be disbursed monthly according to the salary demand of PSM. These funds will be provided from the already approved budgetary allocation of Rs3.5 billion.
The Ministry of Commerce presented a proposal seeking an extension of regulatory duties on finished flat steel products. The ECC approved the extension of duties on relevant iron and steel flat products until March 31, 2025, as recommended by the Tariff Policy Board during its 61st meeting held on December 26, 2024. However, the ECC emphasised that no further extensions will be entertained, referencing the Federal Government’s authority under Sub-section 3 of Section 18 of the Customs Act, 1968.
The ECC approved a request from the Ministry of Foreign Affairs for a technical supplementary grant (TSG) of Rs90.275 million during the current financial year 2024-25. These funds will be utilised to disburse payments to PAF and PIA, ensuring operational efficiency.
The ECC also approved the proposal of the Ministry of Interior for the provision of funds for operational requirements of the Frontier Corps (FC) North during the current financial year 2024-25. A TSG of Rs941.400 million was sanctioned to meet the operational needs of the Frontier Corps.
The proposal from the Ministry of Maritime Affairs regarding the withdrawal of bank guarantees for Afghan Transit Trade facilitation through Gwadar Port was also considered.
The ECC approved replacing the bank guarantees, imposed on October 7, 2023, for the import of Di-Ammonium Phosphate (DAP) under APTTA, with insurance guarantees.
The ECC considered the proposal of the Ministry of Overseas Pakistanis and Human Resource Development for budget proposals for fiscal year 2024-25 and revised estimates for fiscal year 2023-24 regarding Employees’ Old-Age Benefits Institution (EOBI).
The ECC expressed strong displeasure over the delayed submission of the proposals by EOBI and MOPHRD. While the budget proposals for 2024-25 were reluctantly approved, the revised estimates for 2023-24 were not approved.
The ECC also registered its concerns over the delay in EOBI audits, with the last audit conducted in 2019. Relevant authorities were directed to thoroughly investigate the delay and submit an update to the ECC within one week.
Finance Minister Aurangzeb emphasised the importance of efficient and transparent implementation of all decisions to achieve desired outcomes.
The meeting was attended by Ahsan Iqbal Chaudhry, Minister for Planning, Development, and Special Initiatives; Rana Tanveer Hussain, Minister for Industries and Production; Ahad Khan Cheema, Minister for Economic Affairs; Jam Kamal Khan, Minister for Commerce; Sardar Awais Ahmed Khan Leghari, Minister for Power; the chairman FBR; ED SECP; federal secretaries; and senior officers from relevant ministries and divisions.
Copyright Business Recorder, 2025
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