Shehbaz-led govt imposes power surcharge for FY24, approves Ramazan relief package
Pakistan
The ECC also approved Rs3,900 per 40kg uniform minimum procurement price for wheat
ISLAMABAD (Web Desk) - The coalition government has imposed a power surcharge of up to Rs3.23 per unit on electricity consumers throughout the country from July 1 2023, surrendering to another demand placed by the International Monetray Fund (IMF) on Wednesday
The move is aimed at generating Rs335 billion more in revenue over the next fiscal year to finance the power sector’s debt and liabilities.
The government also approved Ramazan Relief Package and a uniform procurement price of wheat crop 2022-23 at Rs3,900/40 kilogram.
These decisions were taken at a meeting of the cabinet’s Economic Coordination Committee (ECC), presided by Finance Minister Ishaq Dar. The committee also approved a Rs5 billion Ramazan relief package for Utility Stores, Rs3,900 per 40kg uniform minimum procurement price for wheat, and a waiver of storage charges on cargoes stuck at ports for letters of credit problems.
After the imposition of power surcharge, consumers of K-Electric would be facing double jeopardy, as the government also gave the Karachi power utility the go-ahead to increase tariff by Rs1.56 per unit in the current month and then another Rs6.11 per unit in April and May, to ensure uniform electricity rates on a par with other distribution companies in the country.
A press statement issued by finance ministry said the summary regarding wheat procurement price was tabled by Ministry of National Food Security and Research before ECC meeting, which was presided over by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.
The ECC also approved hybrid model of Ramazan Relief Package (Targeted and Un-targeted) consisting of 19 items for Utility Stores Corporation, budgeted of Rs. 5 billion. The summary was moved by the Ministry of Industries and Production.
Ministry of Industries and Production presented a report on the logistic plan of PASSCO for in-land transportation of imported wheat 2022-23.
The ECC approved Karachi Port Trust (KPT) Board Resolution regarding waiving off all the charges of storage on the stuck-up containers/cargo landed help up at Karachi Port as a result of non-retirement of Letter of Credits and remittances of Foreign Exchange subject to condition that demurrages charges on each case beyond Rs. 5 million will be waived off after getting certification from SBP.
The ECC further directed to submit a report on magnitude and amount of cleared consignments on monthly basis.
On the occasion, the Ministry of Energy (Power Division) submitted a summary on Uniform Tariff for K-Electric at par with XWDICSOS 2nd Quarter 2021-22. The ECC approved tariff rationalization for K-electric by way of adjustments on the consumption of July 2022 to September 2022 and to recover from consumers from March 2023 to May 2023 respectively.
The ECC considered another summary of Ministry of Energy (Power Division) on uniform tariff for K-Electric at par with XWDISCOS 1st Quarter 2022-23 and allowed tariff rationalization by way of adjustments for K-electric on the consumption of Feb-23 to March-23 and to recover from consumers in March-2023 to April 2023 respectively.
The cabinet committee approved several Technical Supplementary Grants/Supplementary Grants including Rs200 Million in favour of Ministry of Housing and Works for execution of development schemes- road from Lalmosa to Noona Wali Bhago and Malwana with link infrastructure Tehsil Kharian.
It also approved Rs429.436 million in favour of Ministry of Housing and Works for development schemes of district Kasur; Rs702.9 million in favour of Ministry of Housing and Works for execution of schemes in Punjab province under sustainable development goals achievement programme and Rs12 million in favour of Ministry of Interior for National progarmme for Improvement of Water courses Phase-II in ICT.
The cabinet committee also approved Rs. 20 million in favour of Ministry of Interior for National prgramme for enhancement command areas in Barani areas of ICT and Rs1,112.04 million in favour of Ministry of Interior for project implementation letter of HQ FC( South) & HQ FC (North).
Among others, the meeting was attended by Federal Minister for Power, Khurram Dastgir Khan; Federal Minister for Industries and Production, Syed Murtaza Mahmud; Federal Minister for Planning and Special Initiatives, Ahsan Iqbal; Minister of State for Petroleum, Musadik Masood Malik; Shahid Khaqan Abbasi MNA/Ex-PM; Special Assistant to Prime Minister (SAPM) on Finance, Tariq Bajwa, SAPM on Revenue, Tariq Mehmood Pasha, SAPM on Government Effectiveness, Dr. Muhammad Jehanzeb Khan; Chairman SECP,MD PASSCO, Federal Secretaries and other senior officers.
