Islamabad, September 11, 2024 – The Economic Coordination Committee (ECC) of the Cabinet, in a pivotal decision on Wednesday, approved the reallocation of gas supply priorities, elevating the industrial sector to top priority.
The meeting, presided over by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, addressed several significant economic matters, emphasizing the government’s commitment to bolstering industrial growth.
The approved amendment reshuffles the existing gas allocation framework, prioritizing gas usage for industrial processes alongside domestic and commercial consumption. This critical decision ensures that industries reliant on gas for operational processes are granted the highest priority in resource allocation. Conversely, industries utilizing gas for captive power generation have been demoted in priority, aligning them with the lower-priority Compressed Natural Gas (CNG) sector.
The ECC’s decision is expected to provide substantial relief to the manufacturing sector, enabling continuous operations amid fluctuating energy supply conditions. The proposal, tabled by the Ministry of Energy (Petroleum Division), underscores the government’s strategic focus on industrial productivity as a driver of economic growth. This shift in gas prioritization will enhance industrial efficiency and competitiveness in both local and international markets.
In addition to the gas allocation proposal, the ECC deliberated on other crucial financial measures. A significant agenda item was the allocation of Rs. 238.42 million to settle arrears under the wheat subsidy schemes for 2015-16. The Ministry of National Food Security and Research (NFSR) sought these funds to clear long-standing claims, which were directed to be settled through existing budgetary resources. The committee’s swift action on this matter reflects its ongoing commitment to addressing pressing fiscal challenges.
The ECC further reviewed a proposal from the Ministry of Communications regarding the “Kalkatak-Chitral 48 km (Section-III) Road Project (N-45)” and authorized the procurement of civil works under Public Procurement Rule-5. This decision is part of the government’s broader infrastructure development strategy aimed at improving connectivity in remote areas.
Moreover, the ECC discussed a financial request from the Ministry of National Food Security and Research for Rs. 656 million in loans to the Pakistan Central Cotton Committee (PCCC) to facilitate the payment of employee salaries and pensions. The committee, however, questioned the entity’s financial viability and proposed winding it down, referring the case to the Cabinet Committee for Rightsizing of the Federal Government.
The ECC meeting, attended by key ministers and senior officials, marked another step forward in the government’s efforts to streamline economic governance, with particular attention to the energy, infrastructure, and agriculture sectors.
