• Okays Rs960bn sovereign guarantee for Rs1.225tr loans from local banks
• Says remittance incentives to be phased out with caution
• Gas allocated to fertiliser sector; LNG cost adjustments cleared for tariffs

ISLAMABAD: The Econo­mic Coordination Committee (ECC) of the Cabinet on Fri­day approved an inter-corporate circular debt settlement plan, including tariff rationalisation for all six operational nuclear power plants in line with other power producers, thus also paving the way to wind up Power Holding Ltd (PHL), a shell company created to park old circular debt.

The meeting of the ECC, pre­­sided over by Finance Mi­­nister Muhammad Aurangzeb, also approved about Rs660 billion in sovereign guarantees for Rs1.225 trillion in commercial loans from local banks for circular debt settlement and the diversion of gas for fertiliser plants.

As finalised by the military-led task force on power sector reforms in line with similar previous renegotiations with private and government-ow­ned power plants earlier this year, the ECC approved a sum­mary of the Power Divi­sion for “rationalisation of tariffs and payment adjustments for nuclear power plants (NPPs), government-owned power plants (GPPs), OGDCL and SNGPL”, a statement said.

The ECC approved the memorandums of understanding (MOUs) with the Pakistan........

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