Major Approvals in Islamabad
ISLAMABAD: The Economic Coordination Committee (ECC) on Tuesday cleared a series of crucial economic and infrastructure initiatives. Approvals included an Rs11bn bailout for Pakistan Television (PTV), recovery of Rs47bn in petroleum levy dues from Cynergico Refinery, and the use of captive gas levy funds to reduce electricity rates for all categories of consumers. Finance Minister Muhammad Aurangzeb chaired the meeting.
Gas Levy Relief for All
The captive levy, introduced under IMF commitments, applies to gas and RLNG supplies to captive power plants. Beginning July 1, it started at five percent above tariff, rising to 20 percent by 2026. ECC reaffirmed that funds must lower tariffs for all consumer categories, rejecting business groups’ demands to restrict benefits to industries. A monthly adjustment mechanism was approved, ensuring levy relief reaches bills with a two-month lag.
Petroleum Levy Recovery
ECC also approved a settlement framework for Cynergico PK Limited, which owes Rs47.5bn in petroleum levy arrears since 2019. With surcharges, dues total nearly Rs60bn. Under the settlement, Cynergico will pay Rs1bn monthly. The Petroleum Division will sign the deed and enforce repayment strictly.
PTV Bailout Plan
Facing severe financial stress after the government scrapped the PTV fee from electricity bills, the broadcaster received an Rs11bn rescue package. The Finance Ministry will release Rs3.8bn immediately, followed by Rs2.396bn quarterly installments. This measure shifts costs from power consumers to taxpayers while securing salaries, pensions, and operations.
Oil Pipeline with Azerbaijan
A strategic energy project also received approval. ECC endorsed the tariff framework for the Machike-Thallian-Tarrujabba white oil pipeline, developed with Azerbaijan. Frontier Works Organisation, Pakistan State Oil, and Socar will jointly manage the venture. OGRA will set tariffs in US dollars. Oil marketing companies must commit to minimum annual volumes, with inland freight margins covering shortfalls.
Flood Relief for GB
Finally, the ECC sanctioned Rs3bn for Gilgit-Baltistan flood victims. Funds will provide tents, food, medicines, and essentials under the Prime Minister’s directives.
