The MRPs of 18 new drugs, as recommended by the Drug Pricing Committee, were allowed to be fixed at those MRPs (DPC).
The maximum retail price of paracetamol has been raised, and the Economic Coordination Committee (ECC) of the Cabinet has authorised the collection of Rs 76 billion from consumers over the course of the next four months in order to refinance the debt of Power Holding Limited (PHL).
A summary of a motion made by the Ministry of National Health Services, Regulations, and Coordination was taken into consideration at the ECC meeting on Friday, which was presided over by the Finance Minister.
The MRPs of 18 new drugs, as recommended by the Drug Pricing Committee, were allowed to be fixed at those MRPs (DPC). The meeting was informed that these 18 new medications cost less than equivalent medicines sold in India.
The ECC decided to set the maximum retail price of paracetamol plain tablet 500 mg at Rs2.67 and paracetamol extra tablet 500 mg at Rs3.32 after considering a new summary of the Ministry of National Health Services, Regulations, and Coordination regarding the maximum retail price of paracetamol products.
The DPC’s recommendation to lower the prices of 20 drugs was accepted by the ECC after it also took into account another summary from the Ministry of National Health Services, Regulations, and Coordination.
The revised circular debt management plan for fiscal year 2023, which calls for the discontinuation of the Kissan package and the Zero Rated Industrial package as of March 1, 2023, as well as quarterly tariff adjustments, has been approved by the Economic Coordination Committee (ECC) of the Cabinet.
This is expected to result in savings of Rs 73 billion (CD). The revised Circular Debt Management Plan, worth Rs952 billion, was approved at an ECC meeting presided over by the finance minister. After stock payments, the revised CD projection would be Rs 122 billion, and the projected CD flow for the year would be Rs 336 billion.
In the fiscal year 2023, the circular debt stock was Rs 2,374 billion, of which Rs 665 billion was held in Power Holding Limited, Rs 1,509 billion was due to power companies, and Rs 100 billion was due to GENCOs.
Plans call for a timely tariff increase to close the gap between the consumer reference rate and the anticipated cost of supplying electricity, bringing down DISCO losses to 16.27 percent by the end of the fiscal year 2023.
The anticipated quarterly tariff adjustments (QTAs) include those from February to March 2023 at Rs3.21 per unit, March to May 2023 at Rs0.69 per unit, June to August 2023 at Rs1.64 per unit, and September to November 2023 at Rs1.98 per unit, along with a reduction in DISCO’s losses of 16.27% through timely tariff increases by the end of the fiscal year 2023.
The Kisan package, markup savings, GST and taxes on a collection basis, reimbursement from FBR, and additional government subsidies will also be discontinued starting on March 1, 2023.
The primary goals of CDMP included lowering CD, enabling CD monitoring, lowering electricity costs, increasing tariffs, providing subsidies, settling IPP stock and markup, resolving non-payments from K-Electric, enabling DISCO losses and recoveries, paying taxes, and governing and monitoring CDMP. A change in the power purchase invoice of about Rs 5 billion could result from a change in the exchange rate of Rs/USD.
After discussion, the proposal to recover Rs76 billion in four months from March 2023 to June 2023 (except for non-ToU domestic consumers with consumption less than 300 units and private agriculture consumers) through an additional surcharge of Rs3.94 per unit to recover the mark-up charges of the PHL loans was approved.
The Ministry of Energy’s Power Division presented a summary of the refinancing of PHL’s debt and a surcharge to recover markup payments. The ECC approved an additional FC surcharge of Re1 per unit for the fiscal years 2023–2024 to cover any additional markup fees associated with PHL loans.
The surcharges will be applied to K-Electric customers in order to maintain a uniform tariff throughout the nation.
The ECC also ordered the Finance Division to issue a government guarantee for repayment of principal as well as interest, fees, etc. for the new facilities of Rs 283.287 billion, deferring the PHL’s principal instalments due in respect of that amount for a period of two years from the date of execution of the fresh facilities.
The ECC postponed commercial electricity bills in flood-affected areas until the following billing cycle and waived domestic non-ToU electricity bills for consumers who consumed less than 300 units. A further supplementary grant of Rs 10.34 billion and the recovery of the adjusted staggered fuel charges were also approved.
This was done to pay for the waiver of electricity bills. The revised circular debt management plan was approved by the ECC after it took into account a report from the Ministry of Energy’s Power Division.