Committee also clears petroleum imports through bonded storage, Oman energy deal and financing guarantee for PIA-linked borrowing.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the release of Pakistan Agriculture Storage and Services Corporation (PASSCO) wheat stocks to recipient agencies under a supply mix comprising 85 per cent local wheat and 15 per cent imported wheat.
The decision was taken at an ECC meeting chaired by Finance and Revenue Minister Senator Muhammad Aurangzeb, which considered nine agenda items relating to various ministries and government divisions, according to a press release issued by the Ministry of Finance.
The wheat proposal was submitted by the Ministry of National Food Security and Research on the recommendation of the PASSCO Board of Directors.
The measure is aimed at facilitating the timely disposal of imported wheat stocks while maintaining a specified proportion of locally procured wheat in supplies to recipient agencies.
ECC approves petroleum imports through bonded storage
The ECC also approved a Petroleum Division proposal allowing petroleum products to be imported on foreign suppliers’ accounts through customs bonded storage facilities.
The initiative is intended to strengthen Pakistan’s energy security framework by promoting greater indigenisation, developing strategic petroleum reserves and expanding customs bonded storage facilities.
According to the Ministry of Finance, the measure is expected to support a more resilient and sustainable petroleum supply chain.
Pakistan-Oman energy cooperation moves forward
The committee approved a Sale Purchase Agreement (SPA) under an earlier Inter-Governmental Agreement (IGA) between the Government of Pakistan and the Sultanate of Oman.
The agreement is designed to strengthen cooperation between OQ Trading and Pakistan State Oil (PSO) and facilitate commercial collaboration between the two entities in the energy sector.
Committee formed for Roosevelt Hotel redevelopment
The ECC also considered a summary submitted by the Defence Division and approved the formation of a committee to negotiate a settlement concerning the redevelopment of the Roosevelt Hotel in coordination with the union.
The move is intended to facilitate the redevelopment process while addressing matters requiring coordination with relevant stakeholders.
Government approves $153.855m guarantee for PIA financing
The ECC approved a Government of Pakistan guarantee of $153.855 million, or its equivalent amount in Pakistani rupees, based on the term sheet agreed between PIA Investment Limited (PIAIL) and National Bank of Pakistan (NBP).
The guarantee was approved following consideration of a proposal submitted by the Defence Division.
Rs7.8bn additional funding approved for K-IV
The committee approved a Technical Supplementary Grant of Rs7.797 billion submitted by the Water Resources Division for the Greater Karachi Bulk Water Supply Scheme, commonly known as the K-IV project.
The funds were remitted by the Government of Sindh from the Provincial Consolidated Fund through the Federal Consolidated Fund.
The approval is aimed at meeting the funding requirements of the major bulk water supply project, which is designed to improve water availability for Karachi.
Rs567m approved for Reko Diq security
The ECC further approved a Technical Supplementary Grant of Rs567.032 million for Frontier Corps Balochistan (South).
The grant was proposed by the Interior and Narcotics Control Division and will be provided from Finance Division savings to support security arrangements for activities related to the Reko Diq project.
The latest ECC decisions cover wheat stock management, petroleum supply infrastructure, Pakistan-Oman energy cooperation, PIA-related financing, Karachi’s K-IV water project and security requirements for Reko Diq.
The measures reflect the government’s efforts to address immediate supply requirements while supporting major energy, infrastructure and strategic projects.