For customers of Karachi-Electric (KE), the Economic Coordination Committee (ECC) approved an increase in the cost of electricity. The new consumer prices will include an approximate Rs5 per unit hike, encompassing taxes and charges.
The ECC, presided over by Finance Minister Ishaq Dar, also changed the country’s electricity transmission policy to align with SIFC guidelines and assigned two projects to Gulf nations.
Key decisions comprised an Rs80 billion incentive package for foreign remittances, an Rs30 billion subsidy package for economically vulnerable Utility Stores Corporation (USC) customers, and a standardized tariff structure for K-Electric (KE) consumers.
The revised tariff structure will lead to an estimated Rs5 per unit increase, distributed over July, August, and September 2023. Nepra guidelines were amended, and a new tariff approval process was expedited, maintaining consistency across government-owned distribution companies and KE.
Transmission Line Policy 2015 amendments were approved to include energy projects in scope, particularly 2,000 MVAR Reactive Compensation and 1,000 MVAR Battery Energy Storage systems, for presentation to Gulf nations.
An incentive package of Rs79.5 billion for banks to boost home remittances, enhancements in remittance incentives, modification of exchange companies’ incentive limits, and discontinuation of the M-Wallet remittance scheme were also endorsed.
Lastly, the ECC approved an additional grant of Rs 3 billion for the Prime Minister’s Health Insurance Scheme, targeting media workers, journalists, and artists. Additionally, the allocation of the Film Finance Fund to the Ministry of Information and Broadcasting received approval.