ISLAMABAD-The Economic Coordination Committee of the Cabinet (ECC) on Monday approved a proposal from the Ministry of Water and Power for issuance of Sovereign Guarantee in respect of syndicated term finance facility for the power sector.
Federal Minister for Finance Mohammad Ishaq Dar chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC).
The meeting had a detailed discussion on the proposal by the Ministry of Industries and Production for release of Rs1035.202 million to the Utility Stores Corporation (USC) on account of maintaining subsidised prices of 11 essential items. The chair with consensus of the House deferred the matter of release of funds and ordered a special audit of the sale-purchase prices of certain items within 15 days to determine the need for release of the amount of subsidy.
On the occasion, the water and power secretary gave a short presentation on performance of power sector from 2014 to 2016. He said that in line with the vision of Prime Minister Nawaz Sharif all possible efforts had been made for development and strengthening of the power sector. With concerted efforts there has been a considerable decrease in loadshedding in the country. In Urban areas loadshedding has decreased from 12-14 hours in 2013 to four hours in December 16. For industrial consumers loadshedding has become zero. He said during the last two years recovery rate was as high as 93%, which had benefited the national exchequer by Rs93 billion. Transmission and Distribution losses had been brought down to lowest ever, 17.80% by 2016, again benefiting the exchequer by Rs23 billion. AT&C losses stood at 23% in 2016, unprecedented not only in Pakistan but in the region and this saved an amount of Rs116 billion for the nation. The water and power secretary further said that efforts were afoot to achieve zero percent load-shedding.
The ECC appreciated the performance of the Ministry of Water and Power and directed the ministry to ensure completion of the remaining development and reform initiatives as per the schedule.
Another proposal by the Ministry of Water and Power on withholding tax on dividend for HVDC Transmission Line from Matiari to Lahore was deferred for inter-ministerial discussion and re-submission to the ECC thereafter.
