ISLAMABAD: The Economic Coordination Committee of the Cabinet on Saturday approved the criteria for disbursement of Rs200 billion in the power sector raised from the issuance of Islamic sukuk.

The ECC, after detailed discussion, said the energy purchase price inclusive of the general sales tax (GST) will be paid to ensure maximum generation is available during the next three months of summer: June, July and August as per the generation plan for the period.

As per the press release issued by the finance ministry, capacity payments will be disbursed to meet the debt servicing and taxation requirements for the period from June to end August and payments to the Water and Power Development Authority (Wapda) and nuclear power plants.

Partial settlement for power imports from Iran and the National Transmission and Despatch Company transmission charges will be disbursed separately for operational requirements of public sector plants and entities, as Wapda and nuclear power plants comprise of more than 30 per cent of the total planned gener ation in the next three months.

However, the disbursement criteria will be followed for funds released under Rs200bn only.

The ECC directed the energy ministry to submit a proposal within next two weeks for setting up the general principles and exact formula of payments based on the principles for the future payments.

PM`s Finance Adviser Abdul Hafeez Shaikh, who chaired the meeting, also directed the energy ministry to minimise discretion in the principles or formula so that the funds may reach the maximum possible number of receivers and reduce the buildup of liabilities towards the government. The committee also directed that as soon as the payments are made, the information should also be made public through the official website of the Ministryfor the Information for the general public.