ECC approves Rs935.8m salaries for PSM employees

ISLAMABAD: In a bid to reduce the prices per unit, the Economic Coordination Committee (ECC) of the cabinet Friday approved that the baseline tariff of electricity would be determined and notified in January instead of July every year.

Earlier, when the baseline tariff was determined and notified with effect from July 1 every year, it resulted into higher tariff keeping in view the increased FPA and other calculations. Currently, the baseline tariff stands at Rs35.50 per unit.

Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired an ECC meeting on Friday where the forum 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 Nepra for revising the annual tariff determination process timeline by amending the legal and regulatory framework.

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 the National Food Safety, Animal, and Plant Health Regulatory Authority (NFSAPHRA).

The forum 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 authoriced the Finance Division to approve the payment of the projected net salary of Rs935.78 million for FY 2024-25, to be disbursed monthly according to the salary demand of the PSM. These funds would 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 would 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 Technical Supplementary Grant 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 also considered the proposal of the Ministry of Overseas Pakistanis and Human Resource Development for budget proposals for FY 2024-25 and revised estimates for FY 2023-24 regarding Employees’ Old-Age Benefits Institution (EOBI).