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ECC approves uniform fuel charges to balance power tariffs

Published on: August 20, 2025 4:41 PM

The Economic Coordination Committee (ECC) has approved the nationwide uniform application of fuel charges adjustment (FCA), extending the measure to K-Electric consumers in Karachi to ensure consistent power tariffs across the country. This decision, taken under the chairmanship of Finance Minister Muhammad Aurangzeb, will align K-Electric with state-run distribution companies, creating parity through tariff rationalisation and safeguarding the financial sustainability of the energy sector.

Moreover, the ECC announced that any gap between the monthly FCA rate determined for K-Electric and the notified rate will be bridged through subsidies or cross-subsidies. This step will prevent a direct burden on consumers while enabling the government to maintain a uniform tariff policy nationwide. The application of uniform FCA will start from June 2025 and be charged in electricity bills of August, bringing clarity and stability to the billing system.

In addition to tariff decisions, the ECC approved a relief package worth Rs5.8 billion for people affected by recent monsoon rains, directing the Finance Division to release Rs4 billion immediately. The committee stressed the urgency of supporting flood-hit communities and instructed the National Disaster Management Authority (NDMA) to ensure transparent and timely distribution of relief funds. This move highlights the government’s commitment to assisting vulnerable citizens in times of crisis.

The meeting also approved the launch of the Prime Minister’s Fan Replacement Programme by allocating Rs2 billion, aiming to promote energy efficiency and reduce electricity consumption. Furthermore, the ECC cleared Rs3.5 billion in subsidies for Raast QR Code-based merchant payments, promoting digital adoption and supporting Pakistan’s transition toward a modern digital economy. Officials emphasized that the State Bank of Pakistan will notify the scheme immediately and review its effectiveness before the fiscal year ends.

Additionally, the ECC endorsed the new Energy Vehicle Policy 2025-30, calling it a comprehensive plan aligned with global best practices. The policy is expected to accelerate the adoption of electric vehicles and support environmental sustainability. The committee also reviewed a risk coverage scheme for small farmers in underserved regions, which is expected to bring over 750,000 new borrowers into the formal credit system, thereby strengthening agricultural finance.

Finally, the ECC examined the gas sector’s performance and directed the Ministry of Petroleum to take urgent measures to reduce system losses and ensure operational efficiency. By addressing structural challenges across the energy, agriculture, and digital sectors, the ECC demonstrated a broad-based approach toward strengthening Pakistan’s economy and providing relief to its citizens.

Filed Under: Business Tagged With: ECC approves uniform fuel charges to balance power tariffs, Economic Coordination Committee (ECC), Latest, Lead2, nationwide uniform application of fuel charges adjustment (FCA)

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