Pakistan: ECC approves disbursement criteria for Rs200bn received through Islamic Sukuk

The Economic Coordination Committee has approved the criteria for disbursement of Rs.200 billion in power sector received through Islamic Sukuk.

This was disclosed in a statement released at the ECC meeting held in Islamabad with Prime Minister’s Adviser on Finance, Dr. Abdul Hafeez Shaikh, on Saturday May 30, 2020.

The ECC decided that the energy purchase price, inclusive of GST, would be paid to ensure maximum generation capacity was available during next three summer months (June, July and August 2020) according to the plan.

“The capacity payments will be disbursed to meet the debt servicing and taxation requirements for the period from June to end August 2020 and Payments to WAPDA, Nuclear Power Plants.

“The partial settlement of import of power from Iran and NTDC transmission charges would be disbursed separately for operational requirements for public sector plants and entities, as WAPDA and Nuclear power plants comprise of more than 30% of the total planned generation in the next three months,” the statement reads.

ECC directed Ministry of Energy to submit a proposal in next two weeks setting up the general principles and exact formula of payments based on the principles for the future payments.

The Chair also directed the Ministry of Energy to minimize discretion in the principles/ formula so that the funds may reach the maximum possible number of receivers and reduce the built up of liabilities towards the government.

“It was also directed that as soon as the payments are made, the information should also be made public through the official website of the Ministry for the information of the general public.

“On the proposal of the Ministry of Industries and Production, ECC approved the release of Rs 525.858 million in favor of government of Azad Jammu and Kashmir for disbursement amongst the eligible commercial and industrial consumers of electricity under the PM’s SME Relief Package.

“Similarly, Rs136.299 million would be provided to the government of Gilgit Baltistan for disbursement amongst the eligible commercial and industrial consumers of electricity,” it adds.

Total subsidy under the SME relief package for AJK and GB comes to 662.157 million rupees.