ISLAMABAD: The Economic Coordination Committee of the Cabinet on Friday approved the issuance of a Government of Pakistan guarantee worth 659 billion rupees for circular debt financing of 1.225 trillion rupees, the Press Information Department said in a statement issued on Nov. 7, 2025.
The approval, granted during a meeting chaired by Pakistani Finance Minister Muhammad Aurangzeb, aims to settle the debt of Power Holding Limited and clear overdue payments to Independent Power Producers. The committee also authorized the Finance Division to issue a Letter of Comfort and directed the Power Division to present a timeline for the closure of Power Holding Limited once the debt is settled.
The meeting also endorsed a framework for rationalizing tariffs and adjusting payments related to nuclear power plants, government-owned generation companies, Oil and Gas Development Company Limited and Sui Northern Gas Pipelines Limited. The framework, developed by the Prime Minister’s Task Force on Power Sector Reforms, seeks to improve financial sustainability and reduce costs in the energy sector.
In addition, the committee approved a proposal from the Petroleum Division to allocate and price gas from the Mari Field for fertilizer plants to maintain an adequate and affordable supply. It also allowed the Ministry of National Food Security and Research to reallocate funds to support ongoing agricultural research projects.
A summary from the Ministry of Maritime Affairs regarding the use of Pakistan International Bulk Terminal at Port Qasim for exporting minerals and metals was deferred, with instructions for the ministry to revise the proposal in consultation with stakeholders.
The meeting also reviewed a report on the "Home Remittance Incentive Schemes" to ensure continued stability in remittance inflows.
The committee further approved a technical supplementary grant of "960 million rupees for the payment of salaries to transferred staff of the Pakistan Public Works Department for the current quarter. The Capital Development Authority was asked to submit a report on its long-term plan for the employees by December," the statement added.
