ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved solarisation of 27,000 agri tube wells in Balochistan, with 70 per cent share to be borne by the federal government. The ECC also granted assent on multiple demands for technical supplementary grants (TSG) which has become a normal practice in the aftermath of slapping ban by the IMF on supplementary grants.
The ECC was told that the board of directors for all power distribution companies (Discos) had been reconstituted, except for Sukkur Electric Supply Company (Sepco) and Hyderabad Electric Supply Company (Hesco), where the process was in the finalisation stage but the official statement did not explain its reasons. However, the sources said that political pressures were the main reasons for this indecisiveness. Similarly, a monthly performance monitoring mechanism evaluating key operational, commercial, and financial parameters, had been implemented by the Power Planning and Monitoring Company (PPMC) for all Discos. Additionally, strategic roadmaps in line with the national electricity policy had been formulated and signed in February 2025 by the respective chairpersons of the BoDs and CEOs of all Discos. The Power Division also shared a summary of the performance of Discos in terms of T&D losses and recovery up to December 2024.
The ECC of the Cabinet met under chairmanship of Finance Minister Muhammad Aurangzeb and took up a summary submitted by the Petroleum Division for extension in validity period of sovereign guarantees issued against running finance facility of Rs50 billion obtained from banks for LNG payments by the Sui Northern Gas Pipelines Limited (SNGPL). The committee discussed the matter and approved extension up to June 2026 of the said sovereign guarantees on the basis of improved cash flows of the company.
The ECC also considered a summary by the Power Division regarding the solarisation of 27,000 agri tube wells in Balochistan as decided by Prime Minister Shehbaz Sharif on 2nd July, 2024, at an estimated cost of Rs55 billion to be borne by the federal government and Balochistan government at a ratio of 70:30.
The ECC was told that an amount of Rs14 billion has already been released by the federal government, while the remaining Rs24.5 billion was now proposed to be released.
The ECC deliberated on the matter and approved transfer of the requisite funds to ensure timely completion of the programme.
The ECC further instructed the Power Division to closely monitor implementation of key components of the project, particularly the disconnection of tube wells from the grid and removal of transformers and fixtures for every batch of feeders, as agreed under the project. The ECC also directed the Power Division to report back the progress on this account to ECC, in July.
Besides, the ECC took up different summaries from various ministries/divisions for the grant of technical supplementary grants for various purposes and approved the following:
Rs300 million TSG for the Cabinet Division for provision of funds to operationalise new regulatory authorities and other funding requirements.
Rs1,269 million TSG for Finance Division surrendered by ministries as part of transfer of PSDP projects related to defunct PWD to federal ministries and provincial departments.
Rs250 million TSG for the Ministry of Federal Education and Professional Training as part of Rs500 million grant approved by the prime minister for upgradation of Sadiq Public School Bahawalpur.
Rs109 million additional funds for Ministry of Interior and Narcotics Control for purchase of contingent equipment and store by civil armed forces on deployment of Formed Police Unit for peacekeeping under the United Nations Peacekeeping Missions.
Rs500 million TSG for the Ministry of Interior and Narcotics Control for operational requirement of Frontier Corps (KP) North.
Rs25.9 million TSG for Ministry of Interior and Narcotics Control for maintenance of Cessna aircraft. Rs2.32 million TSG for Ministry of Interior and Narcotics Control for construction of Michni Training Centre, Frontier Constabulary, Khyber Pukhtunkhwa.
Rs556.8 million TSG for Ministry of Law and Justice for functionalising 36 benches of Appellate Tribunal Inland Revenue across the country. The release of funds by the Finance Division would coincide with the execution of the project.
Rs106 million TSG for Power Division for programme implementation and awareness activities by the National Energy Efficiency and Conservation Authority (NEECA) for its nationwide fan replacement programme designed with the support of the Power Division, SBP and commercial banks for replacing 88 million inefficient fans across the country with a view to reducing the peak electricity demand by an approximate 5,000 megawatts.
Towards the end, the ECC was also briefed by the Power Division on the implementation status of the ECC decision dated 4th September 2024 regarding the “Status of governance of all Discos whose boards have been reconstituted with a view to improving the governance of Discos”.
The meeting was attended by Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Investment Qaiser Ahmed Sheikh, along with federal secretaries and senior officials from relevant ministries and divisions.
