Islamabad: The Economic Coordination Committee of the Cabinet (ECC) has taken a significant step towards providing relief to the masses by approving a reduction of sales tax by five percent.
This decision, aimed at alleviating the financial burden on consumers, was made during a meeting chaired by Dr. Abdul Hafeez Shaikh, the Adviser to the Prime Minister on Finance, Revenue, and Economic Affairs.
The ECC convened on Friday to deliberate on various proposals submitted by Ministries and Divisions, with a focus on addressing pressing economic concerns and streamlining policy measures. One of the key decisions taken during the meeting was the partial approval of adjustments in petroleum products, as proposed by the Oil and Gas Regulatory Authority (OGRA).
In a move aimed at easing the burden on consumers, the ECC decided to reduce the sales tax on petrol by five percent. This decision is expected to provide much-needed relief to consumers while acknowledging the challenges posed by rising fuel prices. However, it is important to note that this reduction in sales tax will result in an estimated revenue loss of approximately Rs5 billion for the government.
Furthermore, the Industries & Production Division presented findings and recommendations from an Expert Group tasked with devising an operationalization plan for the revival of Pakistan Steel Mills (PSM). The ECC approved the recommendations of the Ministry and directed the initiation of due processes for the privatization of PSM, with the aim of implementing a revival plan based on private sector inputs and collaboration.
Additionally, the ECC approved a proposal from the Petroleum Division to allocate gas from Thal East, Bhambhra, and Thal West Fields to M/s Sui Southern Gas Company Limited (SSGCL), further bolstering efforts to optimize resource allocation in the energy sector.
The Industries Division provided an update on the Ramazan Relief Package, highlighting preparations underway at Utility Stores across the country to accommodate increased demand during the holy month of Ramazan. These measures aim to ensure that essential commodities are readily available to citizens during this period of heightened consumption.
Moreover, the ECC approved Supplementary Grants and Technical Supplementary Grants for various Ministries and Divisions, underscoring the government’s commitment to addressing fiscal requirements across different sectors. Additionally, the committee approved the payment of salaries to Khassadars of South Waziristan, further underscoring the government’s commitment to supporting regional development initiatives.
Overall, the decisions taken during the ECC meeting reflect the government’s proactive approach towards addressing economic challenges and ensuring the well-being of its citizens. With measures aimed at providing relief to consumers, revitalizing key industries, and supporting regional development, the ECC continues to play a pivotal role in steering Pakistan towards economic stability and prosperity.
