ISLAMABAD – The Economic Coordination Committee (ECC) on Wednesday approved a Rs194 billion financial package for power distribution companies (Discos), aimed at improving the sector’s financial health and addressing outstanding subsidy-related obligations.
According to official details, the package includes a Rs52 billion equity injection, the reallocation of Rs97.65 billion in subsidies, and the adjustment of Rs44.2 billion in arrears.
The ECC approved the transfer of Rs97.649 billion from the tariff differential subsidy allocation earmarked for K-Electric to the Inter-Disco Tariff Differential Subsidy, enabling the government to meet subsidy requirements across public-sector distribution companies.
The committee also approved the settlement of Tariff Differential Subsidy (TDS) arrears claims of Rs44.198 billion for the Tribal Areas Electricity Supply Company (Tesco), addressing pending subsidy obligations linked to the utility.
Officials said the measures are intended to provide financial support to distribution companies, improve subsidy management, and strengthen the balance sheets of utilities facing persistent losses due to low recoveries, electricity theft and high power generation costs.
