ECC approves Rs200b power subsidy to keep circular debt within IMF-agreed limits

As the government projects an alarming increase of Rs491 billion in circular debt within six months, a cabinet body on Thursday approved Rs200 billion power subsidies to keep the flow of the debt within limits agreed with the International Monetary Fund. The Economic Coordination Committee of the Cabinet that took the decision also approved Rs11.5 billion for discretionary spending on the parliamentarians’ schemes in total disregard to the nation’s fiscal health. The ECC approved a “supplementary grant amounting to Rs200 billion under the head of government of Pakistan investment in DISCOs’ equity to address cash flow constraints in the power sector”, according to an announcement by the Ministry of Finance after the meeting.