On August 19, 2025, the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved a uniform Fuel Charges Adjustment (FCA) policy for K-Electric and state-run power distribution companies (Discos), alongside several economic and disaster relief measures.
The ECC mandated that the National Electric Power Regulatory Authority (Nepra) apply the FCA for Discos to K-Electric consumers starting from the June 2025 FCA, billed in August 2025. This ensures a consistent national tariff, with subsidies or cross-subsidies covering any rate differences. The move supports the government’s uniform tariff policy and strengthens the power sector’s financial sustainability.
Key Economic and Relief Measures
- PNSC Reimbursement: The ECC approved Rs330.526 million for the Pakistan National Shipping Corporation (PNSC) to settle claims related to Pakistan Steel Mills, directing the Ministry of Industries to resolve the arbitration case within three months.
- The Prime Minister’s Fan Replacement Programme received approval for a Rs2 billion Technical Supplementary Grant (TSG), supported by a tripartite agreement among NEECA, SBP, and the banks.
- The ECC allocated Rs5.8 billion for flood relief to assist those affected by monsoon rains, releasing Rs4 billion immediately through the National Disaster Management Authority (NDMA).
- To promote a cashless economy, the government approved a Rs3.5 billion TSG for Raast QR Code-based payments, assigning the State Bank of Pakistan to evaluate its effectiveness by the end of the fiscal year.
- New Energy Vehicle Policy: The ECC endorsed the 2025-30 Electric Vehicle Policy, aligning with global best practices to drive sustainable transport.
- Farmer Support: A risk coverage scheme will integrate 750,000 new borrowers into the formal credit system, targeting small farmers in Punjab, Sindh, and underserved regions like Khyber Pakhtunkhwa and Balochistan.
- Gas Sector Efficiency: The ECC directed the Ministry of Petroleum to control losses and enhance operational efficiency in the gas sector.
These initiatives reflect Pakistan’s focus on economic stability and growth, addressing power sector challenges, disaster relief, and digital transformation. The uniform FCA and EV policy aims to bolster sustainability, while flood relief and farmer support prioritise inclusivity. The ECC’s decisions align with Pakistan’s broader economic reforms, including a $7 billion IMF bailout and recent credit rating upgrades.
With ongoing flash floods diverting attention, the ECC’s swift actions ensure progress on critical economic fronts. The approved measures, from FCA uniformity to digital payments, position Pakistan for sustainable growth and resilience in 2025 and beyond.
