ECC Approves Regionally Competitive Energy Rates for 5 Export-Oriented Sectors

The Economic Coordination Committee (ECC) of the cabinet on Monday approved regionally competitive energy rates for five export-oriented sectors during the financial year 2022-23 (FY23). Presided over by Finance Minister Miftah Ismail, the ECC also approved a supplementary grant of Rs. 750 million for the Ministry of Information and Broadcasting for Independence Day celebrations. Ministry of Commerce presented a summary on regionally competitive energy rates for export-oriented sectors during the financial year 2022-23. The ECC after a detailed discussion approved the RLNG rate at $9 per MMBTU, all-inclusive to five export-oriented sectors across Pakistan for existing gas connections. A subsidy cover of Rs. 40 billion for RLNG has been allocated under the federal budget 2022-23 which will be reviewed on a quarterly basis. Further, ECC recommended to the cabinet to raise the tariff of indigenous gas for export-oriented sectors to Rs. 1,350 per MMBTU and for general industry to Rs. 1,550 per MMBTU. The ECC also approved the electricity rate cents 9 cents per kWh to five export-oriented sectors from August 1, 2022, subject to (i) a subsidy of Rs. 20 billion provided by the Finance Division (ii) a quarterly review of the subsidy (iii) Petroleum Division will provide a list of industrial units getting subsidized gas and electricity, within one month to the ECC for review. The ECC also approved a supplementary grant of Rs. 750 million for the Ministry of Information and Broadcasting for Independence Day celebrations. The ECC also approved a proposal of the Ministry of Interior for payment of compensation/goodwill package from its own budget. Federal Minister for Defence Khawaja Muhammad Asif, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, federal secretaries and senior officers attended the meeting.