ECC approves Rs100bn power subsidy for exporters

The Economic Coordination Committee (ECC) of the Cabinet on Monday formally approved a Rs100 billion electricity subsidy package for five export sectors and deferred a decision to fix the minimum support price (MSP) of wheat for 2022-23 season. The meeting, presided over by Finance Minister Ishaq Dar, also approved more than Rs410 million for effective security arrangements ahead of PTI’s upcoming march to the federal capital and relaxed conditions for the import of wheat through Gwadar port despite about Rs9,000 to 10,500 per tonne higher freight cost. The ECC approved 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. Last week, Mr 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.