ECC approves issuance of $500 million Eurobonds

ECC approves issuance of $500 million Eurobonds

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Thursday in principal approved the issuance of $500 million Eurobonds.

The ECC directed to work out modalities in consultation with the Finance Division and the State Bank of Pakistan.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting. Minister for Privatization Mohammad Mian Soomro, Minister for Energy Omar Ayub, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razaq Dawood, Minister for Railways Azam Khan Swati, SAPM on Petroleum Nadeem Babar, SAPM on Power Tabish Gauhar, Minister for Maritime Affairs Ali Haider Zaidi, Minister for Water Resources Faisal Vawda and Governor State Bank Reza Baqir participated in the meeting.

Ministry of Water Resources presented a summary for issuance of WAPDA’s debut US$500 million Eurobonds to arrange finances for Diamer Basha and Mohmand Dams.

Ministry of Planning, Development and Special Initiatives presented a detailed presentation on Karachi Transformation Plan (KTP) before ECC.

The forum discussed the plan thoroughly and endorsed, in principle, with the direction to secure approval from all relevant quarters before submission to Cabinet.

The Chair directed to follow all codal formalities with reference to various components of KTP. Ministry of Maritime Affairs presented amendments in the Master Plan, originally formulated in 2001, regarding establishment of 05 terminals on BOT Basis. These terminals would fulfil increased demand for container handling capacity.

The ECC approved amendments in the Master Plan for establishing 05 terminals including two LNG terminals, two multipurpose cargo terminals and one integrated container terminal on BOT basis.

A detailed summary was placed before ECC by the Ministry of Energy (Petroleum Division) regarding shelving the LNG Air Mix Projects by Sui companies.

After deliberation, the ECC decided that SNGPL may abandon the three projects namely Drosh, Ayun and Chitral Town and dispose off the land and equipment with minimal loss possible through an open transparent process.

Ministry of Energy also presented a summary regarding repayment of GHPL loan and future funding requirements for expenditure in relation to ISGSL gas import and infrastructure projects. GHPL had funded all the expenses of ISGSL through medium term loan as per ECC’s earlier decision dated 15 December, 2016.

Various proposals were presented before the forum.

The ECC approved the proposals in principle subject to clearance by the High Power Board. The ECC also approved the summary by the Ministry of Industries and Production regarding duty and tax free import of cryogenic oxygen tanks for better handling of COVID-19 situation.

The duty free import of cryogenic tanks would ensure uninterrupted supply of oxygen gas at competitive rates. ECC also approved the change in the shareholding structure of the Pakistan Credit Guarantee Company (PCGC).

According to the new structure, the shareholding of the Government of Pakistan in the Company has been reduced to 49 percent from the earlier 70 percent.

Any dividends announced by PCGC against shares held by the State Bank of Pakistan or any proceeds from the sale of shares in PCGC, held by the SBP, shall be remitted in the Government treasury.

The Following Technical supplementary grants were approved by the ECC:

• The amount to the tune of Rs 757.100 million was approved for the completion of different projects under Sustainable Goals Achievement Program (SAP).

• Rs.500 million were approved for the reimbursement of fee for less developed areas as requested by the Higher Education Commission.

• Rs.500 million for the Ministry of Housing and Works to provide interest free loans to borrowers under Prime Minister’s Low Cost Housing Scheme.

• Rs.4,189 million for the execution of development schemes for Sindh and Balochistan provinces under PSDP being executed by the Ministry of Housing and Works/Pak PWD.

• Rs. 327 million were approved for Auditor General of Pakistan to sustain the World Bank’s public financial management and accountability service delivery project during FY 2020-21.