ECC okays Rs19bn golden handshake plan for PSM, raises gas, electricity tariffs

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved over Rs19 billion golden handshake plan for the employees of the state-owned Pakistan Steel Mills (PSM)
The ECC, which met here on Wednesday with Prime Minister’s Advisor on Finance Dr Abdul Hafeez Shaikh in the chair, decided to start the implementation of the retrenchment plan of PSM on immediate basis.
The committee approved Rs19.65 billion funds for golden handshake plan for PSM employees. Moreover, Rs11.6 billion funds were allocated for the clearance of dues of non-petitioner employees of the state entity.
The ECC allowed gas or RLNG supply to five zero-rated industrial sectors, including textile, carpets, leather, sports and surgical goods, to reduce the pressure on the Sui Southern Gas Company (SSGC).
Starting from Thursday, gas supplies would be reduced to 50 percent for both Saturdays and Sunday to the export sector for two consecutive weekends and possibly the third weekend to build sustainable gas pressures in SSGC’s system.
The ECC also mulled over the Oil and Gas Regulatory Authority (OGRA) recommendations with regard to the sale price of natural gas to the gas companies. The ECC approved the increase in natural gas sale price for commercial consumers excluding domestic, tandoor (oven).
The ECC also approved an increase of Rs20 per month as meter rent for domestic consumers for both gas companies, besides directing authorities to receive one-third dues of Gas Infrastructure Development Cess (GIDC) from consumers. A total of Rs22 billion will be received by the government in terms of dues clearance.
The ECC also allowed an increase of 32 paisas in electricity tariff for consumers of up to 200 units. TLTP