ECC approves disbursement criteria for Rs200 bln Islamic Sukuk

ECC approves disbursement criteria for Rs200 bln Islamic Sukuk

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Islamabad: The Economic Coordination Committee (ECC) of the cabinet Saturday approved the criteria for disbursement of Rs.200 billion in power sector received through Islamic Sukuk .

According to a press statement issued by the Ministry of Finance here, the ECC meeting was chaired by Dr Abdul Hafez Sheikh, Advisor to the Prime Minister of Finance and Revenue.

ECC decided to pay the purchase price of energy including GST according to the plan to ensure the maximum power generation in the next three summer months (June 2020, July and August 2020).

The capacity payments will be disbursed to meet the debt servicing and taxation requirements for the period from June to end August 2020 and Payments to WAPDA, Nuclear Power Plants.

The partial settlement of electricity imported from Iran and the transmission costs of NTDC will be paid separately according to the operational needs of public sector factories and entities, because WAPDA and nuclear power plants account for more than 30% of the total planned power generation in the next three months.

The statement added that, however, only funds released at Rs 200 crore will follow this payment standard.
ECC instructed the Department of Energy to submit proposals within the next two weeks to establish the basic principles and exact payment methods for future payments.

The chairman also instructed the Department of Energy to minimize discretion in the principles / formula so that funds can reach the maximum number of recipients and reduce the accumulation of debt to the government.

It also indicates that once payment is made, the information should also be made available for public reference through the Ministry ’s official website.

According to the proposal of the Ministry of Industry and Production, ECC approved the release of 525.58 billion rupees to support the government of Azad Jammu and Kashmir to pay qualified industrial and commercial power consumers under PM ’s SME relief plan.

Similarly, the government of Gilgit-Baltistan will provide Rs 139,299 crore to pay for eligible commercial and industrial consumers.

The statement added that the total amount of subsidies for the AJK and GB for the SME Relief Program was Rs 662,15.7 million.

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