ECC Approves Rs. 194 Billion Support Package for Power Distribution Companies
The Economic Coordination Committee (ECC) has approved a financial support package worth approximately Rs. 194 billion aimed at strengthening the operational and financial position of Pakistan’s power distribution companies (DISCOs).
According to official details, the package includes a combination of equity support, subsidy adjustments and financial reallocations designed to improve the stability of the power sector.
The approved measures include a Rs. 52 billion equity injection, a subsidy reallocation of nearly Rs. 97.65 billion and an arrears adjustment amounting to approximately Rs. 44.2 billion.
As part of the decision, the ECC authorized the reallocation of funds from an existing tariff differential subsidy allocation to support the broader inter-DISCO subsidy framework. The move is intended to help manage financial requirements across electricity distribution companies.
The committee also approved the adjustment of outstanding tariff differential subsidy claims related to the Tribal Areas Electric Supply Company (TESCO), addressing previously accumulated financial obligations.
Officials said the package is aimed at supporting the financial sustainability of electricity distribution companies and improving overall sector performance.
Pakistan’s power sector has faced various challenges in recent years, including rising operational costs, transmission losses and revenue recovery issues. Authorities believe that targeted financial support and administrative reforms can help improve service delivery and strengthen the sector’s long-term viability.
The latest approval reflects ongoing efforts to enhance the efficiency of the energy sector while ensuring the continued provision of electricity services across the country.
Government officials are also pursuing broader reforms focused on improving financial management, reducing losses and supporting sustainable growth within the power industry.
