KARACHI: Pakistan’s top economic body this week approved a grant of $713 million to ease the power sector’s cash flow constraints, the Finance Division said in a statement, as Islamabad looks to reform its priority sectors.
The development took place as Finance Minister Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) to approve grants for various projects and review the overall economic situation of the country.
“[ECC approved] another Technical Supplementary Grant amounting to Rs200 billion ($713 million) under the head of Government of Pakistan investment in DISCOs’ equity to address cash flow constraints in the power sector,” the Finance Division said on Thursday.
DISCOs, which handle billing, recoveries and grid maintenance, have long suffered from corruption and political interference.
Pakistan has attempted to privatize its loss-making state-owned enterprises to raise funds and reform them as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
