ISLAMABAD: The government on Friday approved diversion of funds from information technology research to cybersecurity and imposed an additional charge of Rs1.72 per unit on K-Electric consumers on electricity consumed in peak summer months of 2023.

These decisions were made at an Economic Coordination Committee (ECC) of the Cabinet meeting, which also raised Light House Charges on shipping agents by 200 per cent, extended a Rs100 billion guarantee limit to Pakistan State Oil for another year to meet international payment obligations for fuel imports.

The meeting, chaired by caretaker Finance Minister Dr Shamshad Akhtar, was informed that the country’s digital information infrastructure required to be strengthened due to repeated cyberattacks on Pakistan’s ICT infrastructure and cyberspace by international enemies, posing security threats.

Therefore, the Digital Information Infrastructure Initiative (DIII), was prepared by the IT ministry, telecom authority, and relevant law enforcement agencies to mitigate the challenges of cyberattacks. The DIII intends to enhance technical capabilities to proactively identify potential cyber threats on the national critical information infrastructure and block cybersecurity incidents in real time.

Approves Rs1.72 per unit additional charge for KE consumers; extends Rs100bn guarantee limit to PSO

However, all stakeholders reported the non-availability of funds worth Rs5bn in the absence of budgetary allocations and IMF restrictions. Legal challenges were also present for permanently diverting funds from the research and development fund collected from telecom companies. A solution was found for temporary diversion, enabling an immediate Rs5bn transfer to the DIII as ‘one-time bridge financing.’ The Ministry of Finance is mandated to recoup this amount in the last quarter of the current fiscal year.

K-Electric tariff

The ECC also approved an additional charge of Rs1.72 per unit for KE consumers in the months from December 2023 to February 2024, aligning with the national uniform tariff to minimise government subsidies.

Under this decision, KE consumers will pay Rs1.2486 per unit additional charge for consumption from July to September 2023, and an additional 47 paise per unit for consumption from April to June 2023. Both quarterly tariff adjustments (QTAs) will be charged together to consumers in the billing months from December 2023 to February 2024.

An official announcement said the ECC took up a case “Uniform Quarterly Tariff Adjustments for K-Electric Consumers at par with XWDISCOs 2nd & 3rd Quarterly FY 2023” and decided that the tariff rationalisation through adjustments for K-Electric in line with the uniform QTA application guidelines already issued to Nepra, adjustments will apply to consumption in July, August, and September 2023, to be recovered from K-Electric consumers in December 2023, January 2024, and February 2024, respectively.

Moreover, the application of XWDISCOs’ second QTA of Rs0.4689/unit, already approved for K-Electric consumers, in line with the uniform QTA guidelines, will apply to the consumption in April, May, and June 2023, to be recovered from K-Electric consumers in December 2023, January 2024, and February 2024, respectively.

Lighthouse charges

The meeting also approved a Ministry of Maritime Affairs’ summary on the “Revision of Lighthouse Dues,” allowing a change in lighthouse dues from Rs7 to Rs20 per net registered tonnage under Section 10(1) of the Lighthouse Act, 1927, that empowers the government to revise lighthouse dues when deemed necessary and prescribe different rates for various classes of ships or ships of the same class when used for different purposes or in different circumstances.

The ECC approved a Ministry of Energy summary for extending the GOP guarantee ceiling of Rs100bn in favour of PSO until December 2024, subject to the Finance Division’s approval of the terms and conditions for each financing facility upon renewal.

Furthermore, the meeting approved the disbursement of Rs20bn credited to the Federal Government Account by the Finance Department, Government of Punjab for further disbursement to Green Corporative Initiative (Pvt) for Green Pakistan Initiative.

Another summary regarding the Grant of Special Relief Package for Daily Wage Workers on Chaman Border was also considered. The ECC asked the BISP to examine the cases of 8,000 registered daily wage workers to see whether they were already in its system and provide support to the eligible ones.

The ECC also approved a Rs47.45 million supplementary grant to Ministry of Interior.

Published in Dawn, November 11th, 2023