Asad Umar chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) this morning at the Cabinet Division.

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Federal Minister for Finance, Revenue and Economic Affairs Asad Umar chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) this morning at the Cabinet Division.
The meeting received a presentation on the issue of circular debt that has accumulated over the years to a hefty sum of 1188 billion rupees. The Committee was briefed on the impact of Industrial Support Package, Azad Jammu Kashmir subsidized units, Balochistan agricultural tubewells, FATA receivables, and the impact of existing time lag on tariff determination mechanism of NEPRA.
The ECC observed that the PML-N government had taken the decision to discontinue the provision of subsidized power supply to AJK in budget 2018 and the previous government had also decided to discontinue the industrial Support package. The Committee decided to bring the facts to the attention of the Federal Cabinet.
On the issue of recoveries, it was decided that meters of those persons/ Departments and Ministries will be disconnected failing to pay their bills for consecutive three months. On the payment of their bills they will be provided prepaid meters
Chairman ECC directed the Power Division to take strict legal action against those officials and individual who are involved in power theft and to not show any leniency on the issue.
The ECC also decided that to cope up with the issue of fertilizer shortage in the country, three domestic power plants will be supplied a mix of domestic gas and RLNG to start operating from September. These Plants will utilize their full potential and the decision to import fertilizer will be taken after taking into account their production capacity.
ECC observed that fertilizer manufacturers had made windfall profits following the decision to allow export of fertilizers, resulting in the shortage in local market and the resultant price hike. It was decided that no one will be allowed to take undue benefit at the cost of the farmers. Those taking advantage of the situation will be required to make compensation for the same.
On the summary moved by the Ministry of Railways for the Transfer of Pension Liability of Pakistan Railways to the Federal Government, the ECC decided that a Pension Fund for catering for the pension liabilities of Pakistan Railways will be established. Finance Division and the Ministry of Railways will work out the modalities of the fund.
On the presentation of the Special Audit Report on payment of Circular Debt of Rs. 480 billion by the Department of Auditor General of Pakistan, the ECC directed to hold a complete Operational and Financial Audit of the Power Sector. It was decided that the Auditor General of Pakistan will complete the Audit of 4 highest loss making Discos in one month’s time and the audit of the entire sector will be completed in two month’s time after the approval from Cabinet.
The ECC also considered the matter of K-Electric Update on National Security Certificate and issued directions to the Departments concerned to formulate their recommendations for CCOP.

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