The Economic Coordination Committee (ECC) of the federal cabinet today approved the proposed revision in consumer gas sale prices with the direction to further reduce the gas rates for export and non-export industry/ captive power.
Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the ECC at the Finance Division today.
To overcome revenue losses, contain gas sector circular debt, sustain the supply chain and invest in exploration and production, Petroleum Division placed broad principles/parameters for revision of the category–wise consumer gas sale prices.
Petroleum Division submitted a summary on the natural gas sale pricing FY 2022-23. It was submitted that since FY 2015-16, the gas prices were not revised in line with revenue requirements determined by OGRA. This resulted in the accumulation of revenue shortfall/tariff differential amounting to Rs. 547 billion as of March 2022. Similarly, the gas sector circular debt remained at Rs. 299 billion in June 2018 increasing to Rs. 1232 billion on 31st March 2022.
The Ministry of Industries and Production submitted a summary on the continuation of PM’s relief package, 2020, the Sasta Atta initiative for KPK & expansion of the Utility Stores network across Pakistan. The ECC approved the continuity of distribution of subsidized Atta under Prime Minister’s Sasta Atta Initiative on 1200 additional sale points in KPK for the two months from 1st July to 31st August 2022 with further directions to submit in the next meeting of ECC complete mechanism on the distribution of subsidy packages through USC.
The Ministry of Industries and Production submitted another summary on the provision of funds to HEC to release the markup amount. The ECC allowed funds in the form of grants amounting to Rs. 96.873 million already released as loans to HEC in pursuance of ECC’s decision dated 22nd November 2021. The ECC also approved funds amounting to Rs. 20.085 million in the form of Grant and allowed its allocation through Technical Supplementary Grant to the Ministry of Industries and Production.
The funds have already been approved by the ECC in its decision dated 30th March 2022. Further, the ECC directed the Privatization Commission that in the future all liabilities may be mentioned in contracts between buyer and seller of privatized entities.
The Ministry of National Food Security and Research submitted a summary of urgent advice relating to the award of the second international wheat tender 2022 opened on 1st July 2022 for 500,000 MT. The ECC after discussion scrapped the tenders and directed TCP to float fresh tender for the import of 300,000 MT of wheat.
Further, a committee has been formed on the directions of the Prime Minister comprising Ministers of Commerce, National Food Security & Research, and Finance to ascertain the actual wheat requirement for the country.
On a summary of Power Division, the ECC granted approval for issuance of GoP sovereign guarantee of Rs. 10 billion for construction of two units of 660 MW Super Coal Power Projects, Jamshoro, that is 90 percent complete and in favor of local banks/financial Institutions under Syndicated Term Finance Facility (STFF) agreed with M/s Faysal Bank Limited.
The Ministry of Economic Affairs submitted a summary on tax exemption from the payment of GST for the Japan International Cooperation Agency (JICA). In order to support the development activities carried out by JICA, the ECC allowed blanket exemption from the payment of GST by JICA in respect of goods purchased by JICA. This exemption shall also be available on procurement of services by JICA received in Islamabad Capital Territory under ICT ordinance, 2001.
The meeting was attended by Federal Minister for Planning, Development and Special Initiatives Mr. Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Mr. Khurram Dastgir Khan, Mr. Shahid Khaqan Abbasi, MNA, Minister of State for Petroleum Mr. Musadik Masood Malik, Federal Secretaries and senior officers.
Source: Pro Pakistan