ECC approves Rs100bn power subsidy for five export sectors

On Monday, Rs 100 billion electricity subsidy package approved by the Economic Coordination Committee (ECC) of the Cabinet for five export sectors and deferred a decision to fix the minimum support price (MSP) of wheat for 2022-23 season.

Finance Minister Ishaq Dar chaired the meeting and also approved more than Rs410 million for the security arrangements of upcoming PTI’s march to Islamabad and eased conditions for the import of wheat through Gwadar port despite about Rs9,000 to 10,500 per tonne higher freight cost.

The ECC also gave approval for the continuation of regionally competitive electricity tariff (RCET) at Rs19.99 per kWh, all-inclusive, to five export-oriented sectors — textile (including jute), leather, carpet, surgical and sports goods — across Pakistan from Oct 1 to June 30, 2023, said a statement issued by the Ministry of Finance.

In the previous week, Ishaq Dar had announced the continuation of cheaper electricity for five export sectors after textile exporters announced the closure of units for non-implementation of the cabinet’s August decision for the supply of electricity to export industries at nine cents per unit in FY23.