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  • Foreign investment into Pakistan surges by 131%

    Foreign investment into Pakistan surges by 131%

    KARACHI: The total inflows of foreign investment into Pakistan has increased by 131 per cent to $1.85 billion during first eight months (July – February) 2021/2022, State Bank of Pakistan (SBP) said on Friday.

    The net inflow of the foreign investment into Pakistan was $799 million in the same months of the last fiscal year.

    READ MORE: Foreign investment surges by 176% during July – January

    The foreign public investment increased around eight times during the period under review due proceeds received under Sukuks. The inflows under debt securities jumped up to $905 million during July – February 2021/2022 as against outflow of $132 million in the same period of the last fiscal year.

    READ MORE: Pakistan’s foreign investment surges by 73% in 5 months

    Total foreign private investment is flat at 1.2 per cent to $943 million during first eight months of the current fiscal year as compared with $931 million in the corresponding months of the last fiscal year.

    Total foreign direct investment (FDI) into Pakistan has posted an increase of 6.1 per cent to $1.26 billion during first eight months (July – February) 2021/2022. The flow of FDI was $1.19 billion in the corresponding period of the last fiscal year.

    READ MORE: Carrefour enhances Pakistan investment to Rs10.5 billion

    The portfolio investment recorded a 24 per cent increase in outflows to $315 million during first eight months of the current fiscal year as compared with the outflow of $254 million in the corresponding period of the last fiscal year.

    READ MORE: Jazz’s investment in Pakistan crosses $10 billion

  • Pakistan’s economy maintains growth momentum: SBP

    Pakistan’s economy maintains growth momentum: SBP

    KARACHI: Pakistan’s economy has maintained growth momentum in first quarter of fiscal year 2021/2022, which was begun during the preceding fiscal year, the State Bank of Pakistan (SBP) said in the first quarterly (July – September) 2021-2022 report on State of Pakistan Economy.

    “Both the supply and demand sides contributed to this momentum. Broad-based expansion in large-scale manufacturing (LSM) and improved kharif crop outcomes reflected favorable supply-side dynamics; whereas strong sales of fast-moving consumer goods and cars, import volumes, energy consumption and consumer financing, indicated buoyancy on the demand side,” according to the report.

    Higher economic activity contributed to improved tax revenues and a lower fiscal deficit. However, the substantial increase in global commodity prices contributed to in a build-up in inflationary pressures and a widening current account deficit, it added.

    READ MORE: Pakistan’s forex reserves dip to $22.283 billion

    The SBP said the analysis and economic outlook of the report are based on data for the July-September 2021 period, and were finalized in November 2021, using data available as of then. As such, the report did not incorporate the rebasing of the large-scale manufacturing and GDP in January 2022.

    The report notes that the continuation of the accommodative policy stance during the Jul-Sep 2021 period; SBP’s longstanding refinance schemes for exporting firms; and a growth-oriented Budget FY22 – contributed to LSM growth rising to 5.1 percent from 4.5 percent last year. Industries that benefited directly from the fiscal support – such as automobiles and construction-allied sectors – also posted higher growth. In agriculture, preliminary estimates for rice, sugarcane and cotton pointed to encouraging output levels.

    On the monetary side, the availability of affordable credit played a major role in propping up industrial activity, especially in the wake of rising input costs. Commercial banks’ lending to private sector businesses rose by Rs.177.4 billion during Q1-FY22, compared to a net retirement of Rs.101.4 billion witnessed last year. Textiles, edible oil companies and oil refineries borrowed heavily for working capital, partly due to higher imported input costs.

    READ MORE: SBP allows microfinance banks to offer IPS accounts

    For export-oriented industries like textiles, the Export Finance Scheme and the Long-Term Financing Facility, along with continued disbursements under the Temporary Economic Refinance Facility, allowed them to borrow at concessional rates for working capital and fixed investment purposes respectively.

    The government and the SBP’s efforts to encourage housing finance – including via subsidized financing under the Mera Pakistan Mera Ghar (MPMG) scheme – began to yield desirable results as well. Banks approved Rs.72 billion in financing under MPMG by end-September 2021, out of which Rs.16.97 billion were disbursed. As a result, the outstanding stock of banks’ housing and construction finance had increased to Rs.305 billion by quarter-end, from Rs.166 billion a year earlier.

    The report points out that this increased economic activity – coupled with rising imports, withdrawal of corporate income tax exemptions, increase in domestic prices, tax administration efforts and some budgetary measures – contributed to the sizable 38.3 percent growth in FBR taxes during Q1-FY22. The higher revenues allowed for a substantial rise in non-interest expenditures, stemming from an increase in development spending, purchase of Covid-19 vaccines, and power sector subsidies. As a result, the primary balance continued to remain in surplus. The fiscal position also materially benefited from the reduction in interest payments on both domestic and external debt. As a result, the fiscal deficit reduced to 0.8 percent of GDP from 1.0 percent last year.

    At the same time, the report also notes that these macroeconomic gains were tested by the significant upswing in global commodity prices and shipping costs during the period. Despite some deceleration from last year, CPI inflation remained at an elevated level of 8.6 percent during Q1-FY22. The food group was the top contributor to headline inflation, amidst rising prices of edible oil, poultry, wheat and sugar. Meanwhile, the sharp rise in global oil prices contributed to higher energy inflation, despite the government’s decision to partially absorb the price hike by lowering taxes during Jul-Sep 2021.

    The report points out that the surge in global commodity prices also played a dominant role in significantly pushing up import payments. The country’s import demand was also elevated amidst strong industrial activity, the need to import Covid-19 vaccines, and imports of capital equipment. The rise in export receipts and workers’ remittances, though quite encouraging, could not offset the increase in import payments. As a result, the current account deficit widened to US$ 3.5 billion in Q1-FY22, and these payment pressures led to the market-determined exchange rate depreciating by 7.7 percent against the US Dollar during the quarter.

    In response to the pressures, the report notes that policymakers had to strike a careful balance. The primary concern was to avoid disrupting the ongoing economic momentum, especially given the heightened uncertainty created by the spread of the Delta variant-driven Covid-19 wave during the Jul-Sep 2021 period. These concerns had to be balanced against the external account pressures and expectations of higher inflation going forward. In response, the SBP’s Monetary Policy Committee modified its monetary policy stance by raising the policy rate by 25 basis points in its September 2021 meeting, after keeping rates unchanged during the July 2021 meeting. The SBP also undertook multiple regulatory measures to restrain import demand.

    While the current account gap widened, the report highlights that the country’s external buffers remained intact, given the availability of higher external financing. The major financial flows came from the additional SDR allocation and tap issuance of Eurobonds. Furthermore, the Roshan Digital Accounts (RDAs) continued to attract interest from overseas Pakistanis, with inflows during Jul-Sep 2021 amounting to US$ 849 million, and cumulative inflows from inception reaching US$ 2.4 billion by end-September 2021. As a result, the SBP’s FX reserves increased by US$ 2.0 billion to US$ 19.3 billion by end-September 2021.

    The report notes that the developments in the first quarter of FY22 highlight Pakistan’s susceptibility to global commodity price shocks, and the need for consistent policies at the sectoral level. Given the serious implications of the surging global palm and soybean oil prices on the external account and inflation, the Special Section in the report analyses the domestic oilseed sector in Pakistan. The section highlights that while reference to domestic oilseed development can be found as far back as in the country’s first Five-Year Plan (1955-60), the absence of a consistent policy and a dedicated and functional implementation agency over the years has steadily increased the country’s reliance on imports. The section concludes by providing policy recommendations to encourage domestic oilseed production.

  • Pakistan’s forex reserves dip to $22.283 billion

    Pakistan’s forex reserves dip to $22.283 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves fell by $386 million to $22.283 billion by week ended March 11, 2022 as compared with $22.669 billion a week ago i.e. March 04, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the State Bank fell by $381 million to $15.831 billion by week ended March 11, 2022 as compared with $16.212 billion a week ago.

    The foreign exchange reserves held by commercial banks also eased by $5 million to $6.452 billion by week ended March 11, 2022 as compared with $6.457 billion a week ago.

    READ MORE: SBP’s reserves slip by $250 million on foreign payments

  • ECC approves Ramzan Relief Package for all Pakistanis

    ECC approves Ramzan Relief Package for all Pakistanis

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved Rs8.2 billion for Ramzan Relief Package for all Pakistanis.

    Federal Minister for Finance and Revenue Shaukat Tarin presided over Economic Coordination Committee (ECC) of the Cabinet, on Tuesday.

    Ministry of National Food Security & Research presented a summary for Ramzan Relief Package. The ECC approved in principle the Ramzan Relief Package -2022, involving subsidy of 8.2 billion for the whole population of the country rather than only 20 million households registered with Ehsaas Rashan Riyat Programme with directions to frame procedural mechanism for limiting the interventions by each family.

    READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

    Ministry of National Food Security & Research submitted a summary regarding intervention price for Cotton 2022-23 Crop. In order to revive cotton production in the country, bring stability in domestic market and assure fair return to the farmers, the ECC allowed Rs. 5,700/40 kg threshold intervention price of seed-cotton. The ECC further allowed to initially procuring two million bales of cotton at intervention price with direction that quantity would be reviewed on monthly basis.

    Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Economic Affairs Omar Ayub Khan, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Adviser to the Prime Minister on Commerce & Investment Abdul Razak Dawood, Federal Secretaries and senior officials participated in the meeting.

    READ MORE: PM Imran reduces, freezes POL prices

    Ministry of Economic Affairs submitted a summary on G-20 Debt Service Suspension Initiative (DSSI).  The ECC allowed Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).

    ECC approved the proposal of Petroleum Division regarding issuance of sovereign guarantee amounting to Rs. 21,000 million in favour of M/s Faysal Bank Limited at considerably lower mark up rate for the remaining tenor of the loan i.e 4 and ½ years along with issuance of letter of comfort for new finance agreement w.r.t pipeline infrastructure development project LNG-II.

    On a proposal of Petroleum Division for re-allocation of OGDCL’s Jhal Magsi gas to SSGCL, the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL. SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.

    READ MORE: PM Imran announces setting up technology startup fund

    On a proposal of Petroleum Division for allocation of gas from Mari (Deep) gas reservoir to M/s SNGPL, the ECC approved in principle upto 110 MMCFD gas from Mari deep (Goru-B) gas reservoir allocation to SNGPL till 30-06-2024 on firm basis with direction for the determination of price mechanism of gas.

    To address PSO and other Oil Marketing Companies (OMCs) concerns over mechanism of payment of Price Differential Claims (PDC), Petroleum Division submitted a summary on revised mechanism with the change to the previously approved mechanism that the PDC will be applicable on sale of petroleum products rather than on procurement of products. The ECC approved the proposal with allocation of additional Rs. 11.73 billion as supplementary grant to meet the expenditure on payment of PDC up to 31st March 2022.

    ECC also approved Technical Supplementary Grant amounting to Rs. 200 million to Pakistan Military Accounts Department (PMAD) for conversion of Pensioners to Direct Credit System.

    ECC also approved Technical Supplementary Grant of Rs. 3500 Million in favour of Higher Education Commission for the Project titled “Pak University of Engineering and Emerging Technologies (PUEET).

  • Pakistan briefs Saudi envoy on investment opportunities

    Pakistan briefs Saudi envoy on investment opportunities

    ISLAMABAD: A state minister on Thursday briefed Saudi envoy about investment opportunities in Pakistan.

    Minister of State and Chairman Board of Investment (BOI), Muhammad Azfar Ahsan highlighted the investment opportunities at a meeting with the Ambassador of Kingdom of Saudi Arabia to Pakistan, Nawaf bin Said Al-Malki.

    Both sides shed light on the cordial relations between the two countries and deliberated on ways to further enhance and promote bilateral relations, said a press release issued here.

    READ MORE: Pakistan, Saudi Fund sign debt service suspension pacts

    Chairman BOI briefed the ambassador about the lucrative investment opportunities available in Pakistan with special mention of incentivized priority sectors.

    He stressed that Board of Investment under the leadership of Prime Minister Imran Khan is committed to facilitate and encourage investment in the country.

    Azfar Ahsan expounded that Pakistan has ample untapped opportunities waiting to be explored in various sectors of the economy. He added that Pak-Saudi relations are moving in an upward trajectory and Pakistan is really looking forward to facilitate Saudi investors in the country.

    READ MORE: SBP signs $3bn deposit agreement with Saudi Fund

    Ambassador Malki agreed with the Chairman about Pakistan’s massive investment potential. Highlighting the recent positive developments in Pak-Saudi bilateral relations, the ambassador stated that he was confident about substantial economic cooperation between KSA and Pakistan in coming future.

    The ambassador underscored that there is room for collaboration between the two countries in areas of trade and investment.

    READ MORE: Saudi oil facility for Pakistan to start soon

    He shared that Saudi investors are taking keen interest in investing in several sectors of Pakistan including energy & petroleum, technology, infrastructure etc.

    Chairman BOI apprised the ambassador on an upcoming investors’ meet-up being organized by BOI and requested the ambassador for participation from the Saudi side.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    Ambassador Malki warmly accepted the invitation and assured of maximum assistance from his side.

    He also mentioned that a group of Saudi investors will soon visit the Board of Investment to formally discuss project proposals and to take this meeting to the next level.

  • SBP’s reserves slip by $250 million on foreign payments

    SBP’s reserves slip by $250 million on foreign payments

    KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) declined by $250 million owing to external debt payments.

    The official reserves of the central bank decreased to $16.212 billion by week ended March 04, 2022. The central bank’s official reserves were $16.462 billion a week ago on February 25, 2022, the SBP said on Thursday.

    The SBP said the reserves were declined due to external debt and other payments.

    The total liquid foreign exchange reserves of the country fell by $206 million to $22.669 billion by week ended March 04, 2022 as against $22.875 billion as on February 25, 2022.

    The foreign exchange reserves held by commercial banks, however, increased by $44 million to $6.457 billion by week ended March 04, 2022 as compared with $6.413 billion a week ago.

    READ MORE: Pakistan’s forex reserves decline to $22.875 billion

  • SBP receives $2.2 bn as workers remittances in February

    SBP receives $2.2 bn as workers remittances in February

    KARACHI: The State Bank of Pakistan (SBP) has received $2.2 billion as workers remittances during February 2022, a statement said on Thursday.

    With $2.2 billion of inflows during February 2022, workers’ remittances continued their strong performance and have remained above $2 billion since June 2020.

    In terms of growth, during February 2022, remittances increased by 2 percent on m/m basis despite fewer working days compared to January and fell by 2.7 percent on y/y basis.

    The overseas Pakistani workers have sent over $20 billion during first eight months (July – February) 2021/2022. The remittances have recorded a growth of 7.6 per cent during the period under review over the corresponding period of the last fiscal year.

    Remittances inflows during February 2022 were mainly sourced from Saudi Arabia ($558 million), United Arab Emirates ($387 million), United Kingdom ($319 million) and United States of America ($210 million).

    READ MORE:

    — Remittances increase to record $18 billion in 7 months

    — Exchange companies get incentive for dollar surrender

    — Incentives approved for exchange companies on dollar surrender

    — Pakistan’s remittances fall by 6.6% in November 2021

  • IMF should not object to PM relief package: Tarin

    IMF should not object to PM relief package: Tarin

    ISLAMABAD: Pakistan’s Finance Minister Shaukat Tarin on Wednesday said International Monetary Fund (IMF) should not object to the relief package announced by the prime minister as the country is generating own resources for the package besides increasing the revenue.

    The Finance Minister addressing a new conference here said negotiations have been held with the IMF over this relief package announced by the Prime Minister. He said the IMF should not have objections on the package as we are meeting it from our own resources including enhancement in tax revenues. He said this will not increase our fiscal deficit.

    READ MORE: PM Imran reduces, freezes POL prices

    Finance Minister Shaukat Tarin said the government is providing a subsidy of one hundred and four billion rupees on petroleum products in order to provide relief to the people.

    He said given soaring prices of petroleum products in the international market, we have reduced the petroleum levy and brought to zero the sales tax.

    Tarin said that those using seven hundred units of electricity per month will be provided with subsidy of five rupees per unit for the next four months. For this, he said, we will have to give a subsidy of 136 billion rupees.

    Shaukat Tarin said the government has also given industrial relief package to promote industries in the country. He said the package envisages tax holiday for overseas Pakistanis and incentives for the turnaround of sick industries.

    READ MORE: Businessmen hope $5bn investment under PM package

    The Finance Minister said tax exemptions have also been given to the IT sector in order to significantly bolster its exports. He pointed out that the IT sector grew by forty seven percent last year and currently growing by seventy percent. He said we target one hundred percent growth in this sector during the next year. Shaukat Tarin said our trade deficit has also come down.

    Highlights of the press conference:

    Petroleum relief: Prior to Prime Minister’s relief package, govt. was bearing Rs 39 billion fortnightly loss through budgeted PL and Sales tax. At that time, levy on petroleum was Rs17.92 per litre and on Diesel, it was Rs13.30 per litre. With the increase in international prices and Prime Minister’s relief Package, the government will further incur loss of Rs 13.9 billion and fortnightly loss will expand to Rs52 billion. Now petroleum levy and sales tax reduced to zero percent (except for petrol Rs1.8 per Litre)

    The estimated budget loss in the next four months would be Rs250-300 billion just from petroleum relief with the assumption of $100/bbl weighted average international price.

    Electricity relief: Prime Minister announced reduction of Rs. 5 per unit in base rate for four months consecutively. The package will be applicable to all commercial & domestic non-ToU ( non -Time of Use) consumers having monthly consumption up to 700 units, excluding lifeline consumers. Overall relief is estimated at Rs 136 billion.

    Industrial package:

    READ MORE: Tax amnesty launched for setting up new industrial units

    1- Investment in new industrial units and expansion and modernization of existing units. 5 per cent across the board payment of tax for all amount invested Minimum investment threshold is Rs. 50 million.

    Industrial unit to be set-up as a company Commercial production to begin by June 30, 2024. Previous beneficiaries of Amnesty Schemes of 2018 and 2019 will not eligible. Bank loan defaulters in last three years will not be eligible.

    2- Incentive for Revival of Sick Units

    Applicable only to companies. Industrial units facing accumulated losses in continuous 3 years to be treated as sick units.

    Acquiring company allowed to adjust losses of the sick units against its income for consecutive three years.

    Revival of the sick unit to be completed within three years of acquisition. Incentive for Foreign Investment in Industrial Sector.

    3- Incentives for Overseas

    Pakistan citizens who are non-resident for five years and resident Pakistani having declared foreign assets are eligible to invest.

    One-time tax credit equal to 100 per cent of PKR equivalent of remittance to be availed in 5 years. Investment to be made in a new industrial unit. Commercial production to start by 30th June, 2024. New industrial unit to be a company

    IT package:

    READ MORE: PM Imran directs implementing incentives for IT industry

    • Tax exemption for IT/TES (Information Technology Enabled Services) firms & free lancers for 5 years.

    • Reduction in Capital Gain Tax on VC funding into Start ups to zero percent during 5 years.

    • In a historic move, PM has directed to allow IT/ITeS(Information Technology Enabled Services) Companies and Freelancers to retain 100 per cent amount of remittances received through proper banking channels, in FCY Accounts, without any compulsion to convert them into PKR.

    • Furthermore, there will be no restriction on outward remittances from FCY account for PSEB registered IT Companies and Freelancers.

    • Prime Minister has also directed SBP to introduce Financing streams for IT/ITeS sector and Freelancers keeping in view operational architecture and industry needs for these sectors.

    • Recommendations of Pakistan Technology Start-up Fund were also approved by the Prime Minister as part of this historic package for the creation of a Public Private Partnership (PPP) venture capital fund. Ignite National Technology Fund will create this Fund through PPP.

    READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

    Benefits:

    • Bringing internationally parked Foreign Currency to Pakistan.

    • Encourage foreign companies to shift business to Pakistan.

    • Employment creation and entrepreneurship promotion in the country.

    Trade Deficit:

    US $ mn November December January February Exports 2901 2765 2614 2808 Imports 7899 7666 6891 5903 Trade deficit 4998 4901 4277 3095

    • Significant decline in trade deficit due to significant decline in imports in the month of January & February.

    • Compared to 1HFY22, the current account deficit expected to decline in 2HGFY22. Already visible from trade deficit.

    • The CAD reported by SBP is higher due to some imports not reflected at PBS data due to sensitive nature but recorded by EAD. Importantly, the import differential is funded.

    • It is pertinent to note that trade deficit is lowest since June 2021. This will bring the deficit down significantly.

    Inflation:

    • February CPI is lower at 12.2 per cent as compared with 13 per cent in January.

    • Adjusted with tomatoes prices the February inflation would have been 10.8 per cent YoY basis.

    • Similarly, if we adjust the month on month tomatoes prices, the inflation would have been only 0.6 per cent, on month-on-month basis.

    • It is pertinent to note that prices are flat since November 2021, month-on-month basis. Dec (-0.02 per cent), January (0.4 per cent) and February (0.6 per cent) adjusted with tomatoes prices.

    • Lastly, Core inflation is witnessing a declining trend in February at 7.8 per cent as compared with 8.2 per cent in January.

    • Going forward, it is expected that tomatoes prices will experience decline from mid March due to arrival of crop in Punjab. First week prices of Tomatoes have already declined by 27 per cent.

    Key Takeaways of OICCI Press Conference:

    • 207 Companies have invested $18.5 billion since 2012. They pay one 3rd of our taxes.

    • They believe Pakistan is better than 6 out of 10 regional countries in 2021 verses 3 out of 10 in 2019.

    • In 2021, 68 per cent expect accelerating growth in their businesses in the next 2-3 years vs only 27 per cent in 2019.

    • They want long-term policies to be prepared by the government to help them invest in Pakistan. Moreover, they want further improvement in ease of doing business.

    • Given, the significant improvement in business climate, they want to conduct international road shows to showcase the opportunities in Pakistan.

    ? Sehat Sahulat Program (Beneficiary Satisfaction Based on 3rd Party Feedback Survey)

    Satisfaction rate ( per cent) Total Complaints Total Resolved Total Hospital Visits Total Families Enrolled 97 68,767 67,425 3,247,198 27,694,903

    • 96 per cent beneficiaries are satisfied with the treatment provided by Sehat Sahulat program.

    • 54 per cent beneficiaries are satisfied with the hospital services.

    • 97 per cent beneficiaries are satisfied with the hospital staff behavior.

    • 98 per cent beneficiaries are satisfied with Sehat Sahulat program staff behavior at hospital.

    • 98 per cent beneficiaries were not asked to pay for services during treatment.

  • ECC approves Ramzan relief package worth Rs8.28 bn

    ECC approves Ramzan relief package worth Rs8.28 bn

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a Relief Package worth Rs8.28 billion to provide essential items at subsidized rates during the holy month of Ramzan.

    The ECC approved a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022.

    The ECC after discussion approved Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at Utility Stores Corporation (USC) with total subsidy of Rs. 8.28 billion.

    READ MORE: PM Imran reduces, freezes POL prices

    Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting.

    Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Railways Muhammad Azam Khan Swati, Federal Minister for Energy Hammad Azhar, Federal Secretaries and senior officers attended the meeting.

    ECC approved Kamyab Overseas Programme (KOP) as a new component of Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement and valid travel documents and registered with NSER to avail interest free loans under KPP.

    READ MORE: PM Imran announces setting up technology startup fund

    Maximum amount of loan would be Rs. 300,000 and returned in easy installments starting after three months of departure. The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs. 3 billion for the 4th quarter of 2021-2022.

    ECC considered and approved a summary presented by Ministry of Commerce on proposed amendments in the import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

    Ministry of Energy (Petroleum Division) submitted a summary for allocation of Gas from Togh Field on commercial basis.

    The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy. Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna and Pesu block of OGDCL.

    The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 per cent being state participator in Wali, Jandran West,Saruna and Pesu blocks of OGDCL.

    Ministry of Energy (Power Division) submitted a summary on incentive package announced by the Prime Minister regarding reduction in price of electricity.

    The ECC considered and approved PM’s relief package of Rs. 5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022).

    The relief package will be applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding life-line consumers.

    The cash flow requirement for the PM Relief Package is Rs. 136 billion. Ministry of Energy (Petroleum Division) submitted another summary on reimbursement of price differential claims of oil marketing companies (OMCs) and refineries, in line with PM relief package of reduction in the consumer prices of Motor Spirit and Diesel by Rs. 10 per litre. The price differential would be paid to the Oil Marketing Companies/ Refineries by the Government as a subsidy to avert any shortage in the market.

    The ECC approved special PDC disbursement mechanism to pay the PDC speedily within 15 days, opening of special assignment account with PSO and initial amount of Rs20 billion to PSO in accordance with the mechanism.

    The ECC also considered and approved following Technical Supplementary/ Supplementary Grants:

    i. Rs. 428.90 million to Foreign Affairs Division to meet the expenditure for holding of 48th session of the OIC Council of Foreign Ministers to be held in Islamabad on 22-23 March, 2022.

    ii. Rs. 47.561 million to poverty Alleviation and Social Safety Division.

    iii. Rs. 135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.