ECC approves Rs72.63 billion for onward disbursements of PHL

ISLAMABAD-The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has in principle approved technical supplementary grant amounting to Rs72.635 billion to Power Holding Limited (PHL) for onward disbursements to respective banks or through financial instruments as and when due during the current financial year.

The ECC chaired by Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh has approved technical supplementary grant for PHL. In an earlier decision, the ECC had decided to shift the power sector debt stock of Rs804 billion to public debt. As per debt repayment schedule agreed between PHL and lending institutions, an amount of Rs72.635 billion were required to be paid partially during the FY 2019-20 and remaining is payable in 2020-21 as principal repayments to lenders.

Furthermore, the loan amounting to Rs82 billion taken from OGDCL (Oil Gas Development Company) and included in the total of Rs804 billion is required to be considered separately through non-cash/cash settlements. ECC also formed a committee headed by Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, representative of Finance and Power Divisions Dr. Waqar Masood Khan to prepare a proposal for the settlement of dues of power sector and other related issues in a holistic manner for onward submission in ECC.

On the summary moved by the Ministry of Information and Broadcasting for allocation of additional funds for the payment of media campaigns launched on 5th August (Kashmir Siege Day), ECC decided that Ministry of Information and Broadcasting may meet the immediate fund requirement through re-appropriation from its budget allocated for the financial year 2021 and any shortfall due to re-appropriation of the funds would be met through technical supplementary grant towards the end of the current financial year.

Ministry of Energy requested ECC to give directions for the settlement of a loan of about Rs7.6 billion and its associated costs from NBP in relation to advance payment for Karkey Karandeniz Elektrik Uretim (KARKEY). ECC decided that, Finance division should engage with the National Bank of Pakistan for the settlement of the loan. It was decided that a well-rounded proposal with all stakeholders on board would be presented before ECC for the final approval.

The ECC has allocated Rs10 billion from Stimulus Package for the payment of 1st instalment of interest/ profit for the period of 21-05-2020 to 20-11-2020 in respect of Pakistan Energy Sukuk-II (amounting Rs200 billion).

The ECC approved the allocation of funds for implementation of the Interest Free Loans (IFL) programme by Pakistan Poverty alleviation fund. Benazir Income Support Programme has surrendered funds amounting to Rs4.98 billion in favour of Pakistan Poverty Alleviation Fund during the financial year 2020-21 which shall be used for the purpose of the IFL program. 

The meeting was attended by Minister for Food Security Syed Fakhar Imam, Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razaq Dawood, Minister for Railways Sheikh Rashid Ahmed, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, Special Assistant to the Prime Minister on Revenue Dr. Waqar Masood Khan and Minister for Power Omar Ayub Khan. The SAPM on Petroleum Nadeem Babar and Governor State Bank Syed Baqar Raza participated through video link.

Article source: https://nation.com.pk/15-Oct-2020/ecc-approves-rs72-63-billion-for-onward-disbursements-of-phl