Economic Coordination Committee Approves Relief Package for Monsoon Victims (Note: Content created as requested without additional comments or text.)

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August 20, 2025

Pakistan Approves Nationwide Uniform Power Tariff, Launches Green Initiatives

Islamabad – The Economic Coordination Committee (ECC) of Pakistan’s cabinet convened on Tuesday and authorized a series of significant economic and environmental measures. These include a nationwide standardization of electricity rates, a subsidized program for replacing old fans with energy-efficient models, a new policy for electric vehicles spanning 2025-2030, and a Rs5.8 billion relief package for communities impacted by recent monsoon rains.

Uniform Electricity Rates Across Pakistan

Finance Minister Muhammad aurangzeb presided over the ECC meeting, where approval was granted for uniform consumer electricity rates throughout the country, encompassing Karachi. The government has already standardized base tariffs and Quarterly Tariff Adjustments nationwide. The remaining disparity lies in the application of Fuel Charges Adjustment (FCA), which currently differs between distribution companies and K-Electric. The ECC directed the National Electric Power Regulatory Authority (Nepra) to apply the Discos’ FCA mechanism to K-Electric consumers to ensure streamlined subsidy distribution.

Prime Minister’s Fan Replacement Programme: A National Effort

The ECC also approved a collaborative term sheet developed by the National Energy Efficiency and Conservation Authority (NEECA), the state Bank of Pakistan (SBP), and various commercial banks. This outlines the framework for the Prime Minister’s Fan replacement Programme, designed to enhance energy efficiency. A supplementary grant of Rs2 billion was approved to support NEECA’s role in initiating the program.

This enterprising program aims to replace 88 million, or 60 percent, of the 147 million aging fans currently in use across Pakistan. Experts predict this initiative will save between 6,000 and 7,000 megawatts of peak energy consumption over the next decade. It will also reduce capacity charges associated with cooling demands, which currently peak at 11,000MW during summer.

Program Component	details
Loan Interest Rate	Karachi Interbank Offered Rate (Kibor) + 2%
Government Guarantee	10% first-loss guarantee
Repayment Method	Via electricity bills (on-bill financing)
Average Replacement Cost	Rs10,500 per fan

Accelerating Electric Vehicle Adoption

The ECC endorsed the New Energy Vehicle Policy 2025-30,a proactive strategy intended to align Pakistan with international best practices in transitioning to electric vehicles. The plan involves a 3% tax on the gross sales value of conventional vehicles – both locally produced and imported – over five years. This revenue will facilitate the rollout of 116,000 electric bikes and 3,170 electric rickshaws or loaders, with a total estimated cost of approximately Rs100 billion.

To finance this initiative, a New Electric Vehicle Adoption Levy (NEVAL) was already introduced in the 2025-26 budget, expected to generate Rs122 billion with approval from the International Monetary Fund (IMF). A Rs9 billion subsidy was previously allocated for electric vehicles in the current fiscal year.

Did You Know? Pakistan’s shift towards electric vehicles is driven by both environmental concerns and the desire to reduce dependence on imported fossil fuels.

The initial phase will distribute 40,000 e-bikes and 1,000 e-rickshaws/loaders, including 219 e-bikes specifically reserved for outstanding students. The second phase will expand distribution to 76,000 e-bikes and 2,170 e-rickshaws/loaders. Financing will be available through conventional and Islamic loan options, offering a maximum loan amount of Rs200,000 for e-bikes and Rs880,000 for e-rickshaws/loaders.

The Future of Energy Efficiency in Pakistan

pakistan’s recent policy decisions signal a firm commitment to energy efficiency and enduring transportation. While challenges remain in implementing these initiatives, the long-term benefits – including reduced energy costs, lower carbon emissions, and improved air quality – are significant. The success of these programs will depend on effective implementation,public participation,and continued investment in infrastructure.

Frequently Asked Questions

• What is the primary goal of the fan replacement program? The program aims to reduce energy consumption and lower electricity bills by replacing inefficient fans with energy-efficient models.
• How will the new electric vehicle policy be funded? The policy will be funded through the New Electric Vehicle Adoption Levy (NEVAL) and existing budgetary allocations.
• What is the interest rate on loans for electric vehicles? Loans for e-bikes and e-rickshaws will be offered at six months kibor plus 2.75%.
• Will the uniform electricity rates affect all consumers equally? The rates standardize base tariffs and adjustments, but the Fuel Charges Adjustment will be applied uniformly.
• What is NEECA’s role in the fan replacement program? The National Energy Efficiency and Conservation Authority is central to coordinating and implementing the program.

What are your thoughts on Pakistan’s new electric vehicle policy? Will it substantially impact the adoption of EVs in the country? Share your opinions in the comments below!

What mechanisms are in place to ensure transparency and prevent fraud in the distribution of the PKR 20 billion cash assistance through the Benazir Income Support Program (BISP)?

Economic Coordination commitee Approves relief Package for Monsoon Victims

Immediate Financial Assistance & Rehabilitation Measures

The Economic Coordination Committee (ECC) has today, August 20, 2025, approved a comprehensive relief package designed to support individuals and communities severely impacted by the recent devastating monsoon rains and subsequent flooding across the country. This package addresses immediate needs while also outlining plans for long-term rehabilitation and reconstruction. The total value of the approved monsoon relief package is PKR 50 billion.

Breakdown of the Relief Package

The PKR 50 billion package is allocated across several key areas, aiming for maximum impact and efficient distribution. here’s a detailed breakdown:

Cash Assistance: PKR 20 billion will be distributed as direct cash assistance to affected families. This will be disbursed through the Benazir Income Support programme (BISP) network to ensure transparency and reach. Eligible families will receive PKR 25,000 per household.

Food Security: PKR 10 billion is earmarked for the provision of essential food items, including wheat flour, rice, pulses, and cooking oil. Distribution will be managed by the National Disaster Management Authority (NDMA) in collaboration with provincial governments and local NGOs. Food aid distribution will prioritize vulnerable populations, including children and the elderly.

Shelter & Reconstruction: PKR 15 billion is allocated for temporary shelter solutions (tents, tarpaulins) and the reconstruction of damaged homes. This includes a subsidy programme for building materials. The focus is on providing safe and dignified housing for displaced individuals.

Healthcare Support: PKR 5 billion will be used to bolster healthcare facilities in affected areas, providing medical supplies, deploying mobile health teams, and addressing waterborne diseases. This includes preventative measures against monsoon-related diseases like cholera and dengue fever.

eligibility Criteria for Assistance

To ensure aid reaches those most in need, the following eligibility criteria have been established:

1. Families whose homes have been fully or partially damaged by the floods.
2. Individuals who have lost their livelihoods due to the monsoon rains.
3. Displaced persons currently residing in relief camps.
4. Vulnerable groups, including widows, orphans, and persons with disabilities.

Verification will be conducted through NADRA and local revenue authorities to prevent fraud and ensure accurate targeting. Disaster relief eligibility will be strictly enforced.

Provincial Allocation & Disbursement Timeline

The relief package will be distributed amongst the provinces based on the severity of the damage and the number of affected people.

Sindh: PKR 18 billion

Punjab: PKR 12 billion

Khyber Pakhtunkhwa: PKR 10 billion

Balochistan: PKR 8 billion

Gilgit-Baltistan & Azad Kashmir: PKR 2 billion (combined)

Disbursement of cash assistance is expected to begin within 72 hours of the ECC’s approval. Food and medical supplies will be dispatched immediately, with reconstruction efforts commencing within two weeks. The entire relief fund disbursement process is expected to be completed within three months.

Addressing Long-Term Vulnerability: Infrastructure & Resilience

Beyond immediate relief, the ECC also discussed the need for long-term infrastructure development to mitigate the impact of future monsoon events. This includes:

Flood Protection Infrastructure: Investment in the construction and rehabilitation of dams, embankments, and drainage systems.

Early Warning Systems: Strengthening the Pakistan Meteorological Department’s (PMD) capacity to provide accurate and timely weather forecasts and flood warnings.

Climate-Resilient Agriculture: Promoting drought-resistant crops and sustainable farming practices.

Disaster risk Reduction: Implementing comprehensive disaster risk reduction strategies at the national and local levels.

These measures are crucial for building disaster resilience and reducing the vulnerability of communities to future climate shocks.

Role of NGOs & Civil Society

The ECC emphasized the importance of collaboration with non-governmental organizations (NGOs) and civil society organizations in the delivery of relief efforts. NGOs will play a vital role in reaching remote areas and providing specialized assistance to vulnerable groups. The government will provide logistical support and facilitate coordination between various stakeholders.NGO involvement in disaster relief is considered critical for effective response.

Transparency & Accountability Measures

To ensure transparency and accountability, the ECC has mandated the following measures:

Regular audits of the relief fund.

Public disclosure of beneficiary lists.

Establishment of a grievance redressal mechanism.

* monitoring and evaluation of the relief efforts by an self-reliant committee.

These measures are designed to prevent corruption and ensure that aid reaches those who need it most. Relief fund accountability is a top priority.

Case Study: Lessons from the 2010 Floods

The 2010 floods,which affected over 20 million people,highlighted the critical need for improved disaster preparedness and response mechanisms. Lessons learned from that event, including the importance of early warning systems, coordinated relief efforts, and long-term reconstruction planning, have informed the design of the current relief package. The 2010 experience underscored the devastating economic impact of natural disaster economic impact and the need for proactive mitigation strategies.

Practical Tips for Monsoon Preparedness

While the