The Economic Coordination Committee of the Cabinet (ECC) convened on Thursday and granted preliminary approval for the issuance of $500 million Eurobonds, marking a significant move to secure financial resources for critical national projects.
Chaired by Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, the meeting addressed key economic matters and directed further consultations with the Finance Division and the State Bank of Pakistan to finalize the modalities.
The ECC, attended by prominent government officials including Minister for Privatization Mohammad Mian Soomro, Minister for Energy Omar Ayub, and other key figures, presented a summary for the issuance of WAPDA’s debut US$500 million Eurobonds. The funds are earmarked to support the financing needs for the ambitious Diamer Basha and Mohmand Dams.
Additionally, the Ministry of Planning, Development, and Special Initiatives presented a comprehensive Karachi Transformation Plan (KTP) to the ECC. After thorough deliberation, the ECC endorsed the plan in principle, with the directive to seek approval from all relevant stakeholders before submission to the Cabinet. The Chair emphasized adherence to all codal formalities concerning various components of the KTP.
In a move to address increased demand for container handling capacity, the Ministry of Maritime Affairs proposed amendments to the Master Plan formulated in 2001. The ECC approved these amendments, paving the way for the establishment of five terminals on a Build-Operate-Transfer (BOT) basis, including two LNG terminals, two multipurpose cargo terminals, and one integrated container terminal.
The ECC further discussed the shelving of the LNG Air Mix Projects by Sui companies. After careful consideration, it was decided that SNGPL would abandon three projects – Drosh, Ayun, and Chitral Town – and dispose of the associated land and equipment transparently through an open process, minimizing potential losses.
The Ministry of Energy (Petroleum Division) presented a summary regarding the repayment of GHPL loan and future funding requirements for expenditure related to ISGSL gas import and infrastructure projects. The ECC approved the proposals in principle, subject to clearance by the High Power Board.
Recognizing the importance of uninterrupted oxygen gas supply during the COVID-19 situation, the ECC approved the Ministry of Industries and Production’s proposal for the duty and tax-free import of cryogenic oxygen tanks. This move is expected to ensure a steady supply of oxygen at competitive rates.
The ECC also greenlit the change in the shareholding structure of the Pakistan Credit Guarantee Company (PCGC), reducing the government’s share from 70 percent to 49 percent. Any dividends from PCGC shares held by the State Bank of Pakistan or proceeds from the sale of shares by the SBP will be remitted to the government treasury.
Technical supplementary grants were approved for various projects, including funds for sustainable goals achievement, fee reimbursement for less developed areas by the Higher Education Commission, interest-free loans for the Ministry of Housing and Works under the Prime Minister’s Low-Cost Housing Scheme, and development schemes in Sindh and Balochistan provinces under PSDP.
In a financial boost for the Auditor General of Pakistan, Rs. 327 million were approved to sustain the World Bank’s public financial management and accountability service delivery project during the fiscal year 2020-21.
