ECC approves Rs4bn for IPP arbitration proceedings
- Committee also greenlights three dedicated Export Finance Subsidy Schemes for export enhancement
The ECC approved a Rs4 billion grant for IPP arbitration, new export finance schemes to boost national exports, and several energy sector proposals, including declaring a tight gas reservoir.
- International arbitration costs for independent power plants.
- New export finance schemes to boost national exports.
- Declaration of a new tight gas reservoir.
The Economic Coordination Committee (ECC) approved on Monday a Technical Supplementary Grant (TSG) of Rs4 billion to meet the expenses relating to multiple international arbitration proceedings initiated by independent power plant (IPP) developers and major utility shareholders, the Finance Division said.
The ECC of the Cabinet met at the Finance Division under the chairmanship of Finance Minister Muhammad Aurangzeb.
The ECC further approved another summary submitted by the Power Division on the proposal for adjustment of pensioners of closed Generation Companies (GENCOs) to their respective pension-disbursing Distribution Companies (DISCOs) for payments of their retirement’s benefits.
During the meeting, the ECC also considered a summary submitted by the Finance Division and approved three dedicated Export Finance Subsidy Schemes for export enhancement. These include enhancement in the EXIM-administered Export Finance Scheme (E-EFS), launch of a new Long Term Export Growth Financing Facility (LTEGFF), and a performance-based Rebate on Incremental Exports.
The export package provides fixed low-rate financing, strengthens support for the export and import sectors, and places special emphasis on the inclusion of the SME sector. While approving the proposals, the Committee further directed that a six-month performance report be presented to assess the outcome of the schemes.
The ECC further approved a summary submitted by the Petroleum Division regarding the declaration of the Pab reservoir in Rehman-8 ST-3 well as a Tight Gas Reservoir under the Tight Gas (Exploration & Production) Policy, 2011.
It approved another summary submitted by the Petroleum Division with proposal for the tariff fixation for indigenous gas supplies made to RLNG-based power plants on the SNGPL network during April, May and June 2026.
The committee considered and approved a summary submitted by the Ministry of Overseas Pakistanis and Human Resource Development reflecting the budget estimates of the Employees’ Old-Age Benefits Institution (EOBI) for FY 2025-26 and the revised budget estimates for FY 2024-25.
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