In a significant move aimed at providing economic relief and addressing critical financial obligations, the Economic Coordination Committee (ECC) of the Cabinet has given its approval for the release of substantial grants totaling Rs24 billion. The decision was made during a meeting presided over by Finance Minister Muhammad Aurangzeb in Islamabad.
Major Allocation for Gas Sector Subsidy
A primary focus of the ECC's financial approvals was the energy sector, specifically targeting consumer relief. The committee sanctioned a major grant of Rs9.5 billion for the Ministry of Energy (Petroleum Division). This funding is designated to cover the price differential claims of Pakistan State Oil (PSO) and Gas Limited (SSGCL) for the months of February and March 2024.
This crucial subsidy is intended to maintain lower gas prices for protected domestic consumers, effectively shielding them from the full impact of rising international energy costs. The move underscores the government's commitment to providing targeted relief to vulnerable households amidst ongoing economic pressures.
Settling Power Dues in Former Tribal Areas
Addressing a long-standing financial issue, the ECC also approved a substantial grant of Rs7.5 billion for the Power Division. This allocation is specifically earmarked for the clearance of outstanding electricity dues in the former Federally Administered Tribal Areas (FATA).
The persistent issue of power sector arrears in these regions has strained the financial health of distribution companies. This grant is expected to help clear these liabilities, improving the cash flow for power providers and contributing to a more stable energy supply chain in the region.
Additional Financial Approvals and Support
Beyond the major energy sector grants, the ECC meeting resulted in several other key financial decisions. The committee approved Rs2 billion for the Ministry of Housing and Works to meet its various operational and project-related requirements.
Furthermore, recognizing the strategic importance of national institutions, the ECC greenlit a grant of Rs1.5 billion for the National Aerospace Science and Technology Park (NASTP). This funding is poised to support technological advancement and innovation in the aerospace sector.
In a decision supporting cultural heritage, the committee approved Rs1.4 billion for the Pakistan National Council of the Arts (PNCA). An additional Rs1.3 billion was approved for the Finance Division to manage and clear various pending technical supplementary grants, ensuring smoother governmental financial operations.
The meeting was attended by key figures including Minister for Petroleum Musadik Masood Malik, Minister for Power Awais Leghari, and other senior federal ministers and advisors. The presence of the Governor of the State Bank of Pakistan and federal secretaries from relevant departments highlighted the meeting's importance.
Implications and Economic Outlook
The collective approval of these grants, amounting to Rs24 billion, reflects the government's targeted approach to addressing sector-specific financial bottlenecks and providing direct relief. The substantial allocation for gas subsidies is a direct measure to control inflation's impact on household budgets for millions of protected consumers.
Similarly, the injection of funds to settle power dues in former FATA is a critical step towards resolving circular debt issues in the energy sector at a regional level. The support for institutions like NASTP and PNCA indicates a balanced focus on both strategic technological development and the promotion of arts and culture.
These decisions, made by the country's top economic decision-making body, are expected to have a tangible impact on the concerned sectors, offering financial stability and enabling continued service delivery. The approvals demonstrate an ongoing effort to manage economic challenges through structured fiscal interventions.
