Islamabad approves $713 million to ease power sector’s cash flow constraints

Finance Minister Muhammad Aurangzeb (third right) chairs a meeting of the Economic Coordination Committee (ECC) in Islamabad, Pakistan, on December 18, 2025. (Finance Ministry)
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Updated 19 December 2025
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Islamabad approves $713 million to ease power sector’s cash flow constraints

  • Finance minister chairs Economic Coordination Committee meeting to approve grants, review economic situation
  • Pakistan is grappling with a ballooning “circular debt,” or unpaid bills and subsidies, that has choked its power sector

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. 

Prime Minister Shehbaz Sharif’s government plans to privatize three DISCOs, the Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO) in the months ahead. 

The Pakistani government, which owns or controls much of the power infrastructure, is grappling with a ballooning “circular debt,” or unpaid bills and subsidies, that has choked the power sector and weighed on the economy.

The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan’s IMF program.

The ECC also approved, on the interior ministry’s proposal, a provision of Rs 4.775 billion [$17.19 million] as payment to 945 families of “missing persons” as identified by the Commission of Inquiry on Enforced Disappearances. 

“The disbursement will be made under the supervision of the Commission in accordance with approved procedures,” it added. 

Taking stock of the economic situation, the ECC noted that cumulative inflation for the period July–November averaged 5 percent, which it said was “significantly lower” than the 7.9 percent figure recorded during the corresponding period of the previous year. 

It attributed this improvement to prudent fiscal management, effective price stabilization measures and close market monitoring by the government.


Pakistan vaccinates over 43 million children as last polio drive of 2025 enters 6th day

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Pakistan vaccinates over 43 million children as last polio drive of 2025 enters 6th day

  • Campaign running simultaneously in Pakistan and Afghanistan, last two polio-endemic countries
  • Health authorities urge parents and communities to fully cooperate with anti-polio vaccinators

ISLAMABAD: Pakistan has vaccinated more than 43.8 million children in five days of its last nationwide polio campaign of 2025, health authorities said on Saturday, as the drive entered its sixth day amid renewed efforts to curb the virus.

The campaign, running from Dec. 15 to 21, targets children under the age of five and is being conducted simultaneously in Pakistan and Afghanistan, according to Pakistan’s National Emergency Operations Center (NEOC) which oversees eradication efforts.

Pakistan and neighboring Afghanistan are the only two countries where wild poliovirus transmission has never been interrupted, keeping global eradication efforts at risk. The virus, which can cause irreversible paralysis, has no cure and can only be prevented through repeated oral vaccination.

“The last nationwide polio campaign of 2025 continues in full swing on the sixth day,” the NEOC said in a statement. “Over 43.8 million children have been vaccinated in five days so far.”

Provincial data released by the National EOC showed that around 22.7 million children had been vaccinated in Punjab province, more than 10.2 million in Sindh, approximately 6.9 million in Khyber Pakhtunkhwa and about 2.5 million in Balochistan. In Islamabad, over 450,000 children received polio drops, while more than 274,000 were vaccinated in Gilgit-Baltistan and over 714,000 in Azad Jammu and Kashmir.

“The polio campaign is being conducted simultaneously in Pakistan and Afghanistan,” the NEOC said. “More than 400,000 polio workers are going door to door across the country to administer vaccines.”

Pakistan has logged 30 polio cases so far in 2025, underscoring the fragility of progress against the virus. The country recorded 74 cases in 2024, a sharp rise from six cases in 2023, reflecting setbacks caused by vaccine hesitancy, misinformation and access challenges in high-risk areas.

Health officials say insecurity remains a major obstacle. Polio workers and their security escorts have repeatedly been targeted in militant attacks, particularly in parts of northwestern Khyber Pakhtunkhwa and southwestern Balochistan, complicating efforts to reach every child. Natural disasters, including flooding, have further disrupted vaccination campaigns in recent years.

“Parents and communities are urged to fully cooperate with polio workers,” the NEOC said, stressing that every child under the age of five must be given polio drops.

Pakistan has dramatically reduced polio prevalence since the 1990s, when annual cases exceeded 20,000. Health authorities, however, warn that without sustained access to children in underserved and conflict-affected areas, eradication will remain out of reach.