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  • Exporters welcome duty withdrawal on cotton, yarn import

    Exporters welcome duty withdrawal on cotton, yarn import

    KARACHI: Value-added textile exporters have welcomed the decision of the Economic Coordination Committee (ECC) of the cabinet to remove customs duty on import of cotton and yarn.

    Value-Added Textile Exporters convey sincere gratitude and thanks to Prime Minister Imran Khan, Adviser Commerce Razak Dawood and Federal Cabinet on the ECC for according genuine consideration to the demand of Value Added Textile Export Sector to allow duty free import of cotton yarn till June 30, 2021 which exporters were demanding since October 2020 due to unavailability of cotton yarn in the local market.

    The belated decision, however, shall provide only partial relief in the wake of sea trade congestion as the shipments are taking more than two months time to reach Pakistani ports.

    Therefore, textile exporters are of the opinion and appeal the Government to allow duty free import of cotton yarn till time the government achieves its set cotton production target of 10.5 million bales.

    To ease down the cotton yarn availability crisis, it is also imperative that to also place ban on export of cotton yarn from Pakistan or impose 10 percent duty on export of cotton yarn from Pakistan and take necessary steps and measures to import cotton yarn safely from Central Asian Republics through land route by activating all the transit trade agreements signed with regional countries as the sea route is taking prolong duration due to shortage of containers and vessels.

    The textile exporters once again request the Government to take cognizance over hoarding of cotton yarn and cartelization by concerned which are actionable as per law under the Price Control and Prevention of Profiteering & Hoarding Act 1977 and Competition Act of Pakistan 2010.

    According to the said Act of 1977 cotton yarn is included in the schedule of essential commodities like sugar, wheat, edible oil etc. Therefore, the Government must immediately take action as per the law against spinning mills and  yarn traders involved in monopoly, abusive dominance for exorbitant pricing and hoarding and immediately conduct raids by arresting the culprits and seize the hoarded cotton yarn and also conduct Forensic Audit on the pattern of sugar crisis that will prove it many times bigger scam than the sugar scam as it is learned that approx. 2 million bales have been sold without sales tax and invoices in the local market.

    This joint statement was issued by the Value Added Textile Sector Associations: Jawed Bilwani, Chairman, Pakistan Apparel Forum, Waheed Khaliq Ramay of Power Looms Owners Association, Ijaz Khokhar, Chief Coordinator & Ex-Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association, Riaz Ahmed, Central Chairman Mian Farrukh  Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Syed Aasim Shah, Former Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Rafiq Godil Chairman, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Dr. Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparels Mfrs. & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers Association of Pakistan, Abdus Samad, Chairman, Pakistan Cloth Merchants’ Association.

    In another statement Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association(PYMA) and Vice Chairman Farhan Ashrafi & convener FPCCI’s Central Standing Committee on Yarn Trading, have lauded ECC decision to withdraw customs duty on cotton yarns, and said that ECC of the Cabinet withdrew customs duty on import of cotton yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.

    However, both officials called for the abolition of additional customs duties & regulatory duty on synthetic yarns for countering the negative effects of the Corona epidemic and to continue the production activities. They also reiterated demand to allow import cotton & cotton yarn from India

    In a statement, Hanif Lakhany & Farhan Ashrafi said the ECC was commendable but the removal of additional customs duty & regulatory duty on synthetic yarns should also be abolished to support the textile industry, which is facing hurdles due to unavailability of raw materials and high prices. So immediate permission should be given for cotton & cotton yarn import from India.

    “Due to low production of cotton in the country and huge increase in the price of cotton yarn in the local market, the cost of industrial production has gone up significantly. On the contrary, it is becoming more and more difficult to run industries, which may affect the delivery of export orders”, they pointed out.

    Hanif Lakhany and Farhan Ashrafi requested the government to allow import of cotton & cotton yarn from India in the best interest of the economy to ensure timely fulfilment of export orders. Which will be warmly welcomed by the business and industrial community across the country.

  • ECC approves customs duty withdrawal on cotton, yarn import

    ECC approves customs duty withdrawal on cotton, yarn import

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the withdrawal of customs duty to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.

    Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the ECC meeting.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for Energy Omar Ayub Khan, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, Federal Secretaries, senior representatives of Provincial governments, Chairman BOI and other senior officers participated in the meeting. Governor State Bank of Pakistan joined through a video link.

    Power Division presented a summary regarding waiver of minimum 66% Take-or-Pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based Public Sector Power Plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant.

    These amendments would envisage submission of a Monthly Production Plan (MPP) as a binding on the Power Purchaser and the Power Seller wherein the Power Purchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which will be finalized by the System Operator and Operating Committee under the PPA.

    The concept of a Monthly Delivery Plan (MDP) for deliveries of Gas under the GSA, has been paired with the Monthly Schedule as provided under PPA. The MPP will come into effect from the year 2022.

    After seeking input from relevant stakeholders, the Committee approved the summary and appreciated the concept of Monthly Production Plan (MPP) as a cost-effective solution, enabling the Power and Gas purchasers to make requisite purchases in line with actual requirements instead of following a fixed arrangement.

    Power Division also presented another summary proposing amendment to the Facilitation Agreement and Amendment to the GoP Guarantee Agreement with KAPCO. It included the proposal that the project may be withdrawn from the Privatization Commission and entrusted to Private Power and Infrastructure Board (PPIB).

    After due deliberation, the Committee approved the summary, in principle, subject to formal vetting by the Law Division. Secretary, M/o Commerce presented a summary before the ECC for withdrawal of Customs Duty on import of Cotton Yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.

    The ECC also approved a Technical Supplementary Grant for Finance division amounting to Rs.11.7 billion as the share of the Federal Government for the establishment of 4 mother and child hospitals in Punjab.

  • PIA restructuring plan to be presented before federal cabinet after tax liability reconciliation

    PIA restructuring plan to be presented before federal cabinet after tax liability reconciliation

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday recommended to present restructuring plan of Pakistan International Airlines Corporation Limited (PIACL) before the federal cabinet after reconciliation of tax liabilities.

    Sources in Large Taxpayers Office (LTO) Karachi said that billions of rupee as tax liability was pending against the PIACL.

    Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the meeting of the ECC.

    After detailed consultation, the ECC recommended the restructuring plan of PIACL for onward submission before the Cabinet, after reconciliation of tax liability figures, with a direction to place a cap on future debt which PIACL could take against its improved balance sheet, once restructuring plan is implemented.

    Earlier, the Aviation Division submitted a summary before the ECC regarding restructuring plan of the Pakistan International Airlines Corporation Ltd (PIACL).

    The Adviser to the Prime Minister for Institutional Reforms and Austerity made a detailed presentation on human resource and operational restructuring of the PIACL.

    He drew attention to the various options for restructuring and outlined measures to minimize losses and transform PIACL into a financially viable entity.

    It included human resource restructuring through Voluntary Separation Scheme (VSS), hiring Aviation experts, fleet modernization, routes rationalization, product development and revenue enhancement measures.

    Power Division presented a summary for a one-time grant to GENCOs for onward payment to DISCOs regarding the actuarial value of pension and pensionary benefits of surplus employees and also taking over the liability for payment of pension to existing pensioners of power plants which are decided to be closed immediately by the Cabinet Committee on Energy (CCOE).

    After seeking detailed input from relevant stakeholders, the Committee directed the Power Division to deliberate further and present options for cost optimization regarding pension liabilities.

    The Following Technical Supplementary Grants were approved by the ECC: –

    • Rs.330 million for the Ministry of Defence for the maintenance of aircrafts.

    • Rs.2382 million for the Ministry of Federal Education and Professional Training for the Prime Minister’s Special Package to implement “Skill for All” strategy for TVET sector.

    • Rs.1 billion for the Finance Division to refund the balance amount of funds of Insaf Imdad Ehsas Program.

    • Rs.382.280 million for the Ministry of Energy for completion of development schemes of Sindh and Balochistan provinces under PSDP.

    • Rs.150 million for the Ministry of Housing and Works for funding civil works on different schemes in Balochistan, under PSDP.

    • Rs.30 million for the Board of Investment for different operational expenses.

    • Rs.280 million for the Ministry of Information Technology and Telecommunications for consultancy and implementation of Internet voting (I-voting).

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Privatization Muhammad Mian Soomro, Minister for National Food Security and Research Syed Fakhar Imam, Advisor to the Prime Minister for Institutional Reforms and Austerity Dr. Ishrat Hussain, Advisor to the Prime Minister for Commerce Abdul Razzak Dawood, SAPM on Power Tabish Gauhar, SAPM on Revenue Dr. Waqar Masood, Federal Secretaries, Governor State Bank of Pakistan Reza Baqir, Chairman BOI and other senior officials participated in the meeting.

  • ECC approves cotton, yarn import from India

    ECC approves cotton, yarn import from India

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved import of cotton and yarn from India.

    This was disclosed by Abdul Razak Dawood, Adviser to Prime Minister of Pakistan for Commerce and Investment, in a tweet.

    “To keep the momentum of our value-added exports, ECC in its meeting held today approved import of Cotton and Cotton Yarn from India, including land route,” he said, adding that this would now be placed before the Cabinet for approval, after which it will be notified.

    The adviser said that the ECCP also approved the formation of a National Export Development Board (NEDB).

    The board will be chaired by the Prime Minister Imran Khan and will also include ministers, exporters, investors and the business community, the adviser said this on his official twitter account.

    He said the NEDB became the main forum to discuss the strategy, incentives and removal of business hurdles.

  • ECC approves cotton import through land route

    ECC approves cotton import through land route

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved import of cotton through land route subject to fulfillment of codal formalities.

    Federal minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    The ministry of commerce tabled a summary before the ECC seeking permission for import of cotton from Afghanistan and Central Asian States through land route via Torkham border to bridge the gap between supply and demand and to ensure sufficient availability of cotton for promoting textile exports.

    The ECC had granted such permission earlier to workout necessary arrangements with reference to Plant Quarantine Rules to meet Sanitary and Phytosanitary (SPS) requirements for import of cotton via land routes.

    The ministry of commerce requested to extend the above permission for import of cotton via land route during the current financial year. The ECC approved the said request subject to fulfillment of codal formalities.

    Ministry of Industries and Production presented a ‘Ramadan Relief Package-2021’ in accordance with the directive of the Prime Minister to provide maximum relief to the marginalized segments of the society during the holy month of Ramadan.

    The Utility Stores Corporation would subsidize 19 essential items under the proposed relief package entailing subsidy equivalent to approx. Rs. 7.8 billion including wheat flour, sugar and ghee which have significant differential vis-a-vis prevailing prices in the domestic markets.

    The MD, USC briefed the forum that procurement would start from 01 April, 2021 to ensure availability of basic items at discounted prices across 4000 outlets of USCs throughout the country. The Committee directed MD USC to coordinate with Finance Division for timely release of funds to ensure well-timed procurement and other contingent arrangements.

    The ministry of industries and production presented another summary seeking permission regarding operation of two plants namely Agritech and Fatima Fertilizer from March till November, 2021 to produce urea from SNGPL based plants.

    The underlying rationale is to bridge the gap between estimated demand and actual domestic production of urea in the country.

    The Committee approved operations of the above-mentioned plants with a direction that the Ministry may closely monitor the demand-supply situation and take decision to import urea, if needed, as per requirement during the current year.

    Secretary, Ministry of National Health Services, Regulation and Coordination tabled a summary for exemption of taxes and duties on import of auto disable syringes and raw material needed for local manufacturing of auto disable syringes in the country.

    The Secretary Health briefed the forum about efforts underway to switch from conventional syringes to auto disable syringes as reuse of conventional syringes leads to blood borne diseases in Pakistan such as hepatitis, HIV etc.

    The ECC approved the summary, in principle, and directed the Ministry of Health to hold a follow-up meeting with the Law Division to fine tune details.

    The ECC also considered a summary regarding exemption of Federal Excise Duty for 10 soft-skin vehicles imported by Food and Agriculture Organization (FAO) to be used by the Department of Plant Protection (DPP) for locust control operations. Ministry of NFS&R requested for a one-time exemption of Federal Excise Duty amounting to Rs.10.3 million for 10 vehicles.

    After due deliberation, the ECC constituted a Committee with representatives from Law Division, FBR and Ministry of National Food Security and Research for further discussion and submission of updated proposal before the Committee.

    Secretary, Ministry of the Information Technology and Telecommunication presented a summary before the Committee based on recommendations by a Cross-stakeholder Committee for addressing critical issues of Cellular Mobile Industry for digital enablement such as reduction in NADRA Biometric Verification Charges (BVC), License renewal under further Spectrum Price etc.

    After detailed discussion, the ECC constituted a sub-committee under the Chairmanship of the Adviser to the Prime Minister on Institutional Reforms and Austerity Ishrat Hussain with Secretary IT, Secretary Finance and a representative from PTA as its members to deliberate further and present before the ECC accordingly.

    Secretary, Ministry of Communications updated ECC on National Freight and Logistics Policy (NFLP) discussed in earlier meeting held on 20th January, 2021.

    The Ministry of Communications has segregated the proposals into two broad categories in line with the earlier directive of the Committee.

    The ECC directed to discuss the proposals involving multiple stakeholders as envisaged under the NFLP, through an Institutional framework, steered by the Deputy Chairman Planning for evolving consensus among all stakeholders including provincial representatives for a way forward.

    Petroleum Division updated the ECC about the recommendations firmed up by a sub-committee established in line with the earlier decision of the ECC dated 28 Jan, 2021 regarding review of Oil Marketing Companies (OMCs) and Dealers Margins on Petroleum products.

    After detailed discussion, the ECC approved to revise OMCs and Dealers Margins on the basis of 85% of the latest average core inflation with immediate effect, and directed to expedite a study by PIDE.

    The Power Division submitted another summary about re-targeting of Power Sector subsidies (phase-I). The Committee considered and approved the proposals recommending that Power Division will complete the analysis based on the listed principles and submit specific recommendations on thresholds and rates for the consumers before the ECC by 31st March, 2021.

    The following Technical Supplementary Grants were also approved by the ECC:

    1. Rs. 1056 million for the Ministry of Federal Education and Professional Training for completion of Projects related to COVID-19.

    2. Rs. 1.5 billion for the Ministry of Housing and Works for disbursement of interest free loans to the borrowers under Prime Minister’s Low-Cost Housing Scheme.

    3. Rs.334.306 million for the Ministry of Interior for the payment of salaries / subsistence allowance to the Civil Armed Forces deployed in the Peacekeeping Missions.

    4. Rs.31.50 million for meeting expenses of Federal Insurance Ombudsman Secretariat working under the Ministry of Law and Justice.

    5. Rs. 9.685 million for Pakistan National Shipping Corporation, Karachi to clear the dues of M/s Coniston against PSM.

    6. Rs.67.358 million for the Cabinet Division for meeting various expenses.

    7. Rs. 419 million were approved to facilitate Pakistan Central Cotton Committee to carry out its research and development activities.

    Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Industries and Production Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Federal Minister for Privatization Muhammad Mian Soomro, Adviser to PM on Commerce Abdul Razak Dawood, Governor State Bank of Pakistan Reza Baqir, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Federal Secretaries from MNS&F, Ministry of Interior, Ministry of Maritime Affairs, National Health Services, Law and Justice Division, Ministry of Information Technology & Telecommunication, Chairman Board of Investment, Deputy Chairman Planning Commission, MD Utility Stores Corporation and other senior officials participated in the meeting.

  • ECC approves tax recommendations for telecom sector

    ECC approves tax recommendations for telecom sector

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved tax recommendations for telecom sector, which were already endorsed by the Federal Board of Revenue (FBR).

    Secretary, Ministry of Information Technology and Telecommunication presented a summary regarding taxation issues of the Telecom Sector.

    The ECC had earlier constituted a sub-committee dated October 20, 2020, under the Chairmanship of the Adviser to the PM Dr. Ishrat Hussain, for due deliberation.

    The sub-committee presented its recommendations before ECC. The Committee approved these recommendations as endorsed by FBR.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Friday.

    Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Chairman Board of Investment (BOI) Atif Bokhari participated in the meeting.

    Ministry of Industries and Production presented a summary before ECC regarding revision of subsidized prices of essential commodities by the Utility Stores Corporation of Pakistan, in accordance with the earlier directive of ECC dated 28 January, 2021.

    Secretary, M/o Industries and Production presented various proposals to rationalize prices of wheat flour, sugar and ghee in view of continuous fluctuations in international commodity prices.

    After detailed discussion, the ECC approved only partial rationalisation and directed to provide maximum relief to the consumers despite significant price differential between subsidized price offered by the USCs and the prevailing prices in the domestic markets.

    This is in compliance with the Prime Minister’s Relief Package-2020 to provide basic commodities at affordable rates through a network of Utility Stores across Pakistan.

    ECC also approved another summary by the Ministry of Industries and Production for outstanding payment to M/s Ocean Wide Shipping Services, amounting to USD 0.58 million from Pakistan Steel Mills to fulfill a contractual obligation for transportation of coal during the year 2010.

    The ECC considered a summary by the Ministry of Energy (Petroleum Division) regarding tax on payments to the offshore supply contractor to meet the contractual obligation. The ECC established a sub-committee comprising SAPM on Petroleum, Secretary Law Division, Secretary Power Division and FBR with a direction to evaluate the proposal and present workable recommendations before the forum for consideration.

    Ministry of Energy presented another summary about revocation of Neelum Jhelum (NJ) surcharge @ Rs.0.10 per KWH electricity consumers. The ECC considered and approved the revocation of Neelum Jhelum surcharge (with immediate effect).

    Secretary, Ministry of National Food Security and Research placed a summary before ECC regarding a mechanism for disbursement of subsidies in line with the Prime Minister’s Fiscal Package for Agriculture in the backdrop of COVID-19 pandemic. The summary was approved by the ECC for timely disbursements of subsidies to the Provinces by the M/o NFS&R subject to clearance by the Finance Division.

    The ECC also considered and approved a summary regarding Government’s sovereign guarantee for a PSDP project titled National Electronics Complex of Pakistan (NECOP, executed by National Engineering and Scientific Commission.

    Following Technical Supplementary Grants were also approved:

    • Rs. 550 million for Special Communications Organization (SCO) from Ministry of Information and Technology during the FY 2020-21.

    • Rs. 200 million were approved (out of total allocation of RS. 362.239 million) to Special Technology Zones (STZA) during the current financial year.

    • Rs. 109 million to Ministry of Information and Broadcasting (MOIB) to clear outstanding Bills related to media campaigns on behalf of Ehsaas Program during FY 2019-20.

  • Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved Rs350 million for procurement of Video Analytics System (VAS) to monitor production of sugar mills.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    The Federal Board of Revenue (FBR) presented a summary regarding procurement of VAS for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister.

    “The ECC approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR,” a statement said.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Governor State Bank Reza Baqir, Chairman FBR and Chairman Board of Investment participated in the meeting.

    Secretary, Ministry of Energy briefed the ECC about the detailed report by the Implementation Committee regarding conversion of MOUs into Agreements with IPPs to devise a payment mechanism for clearing outstanding payables.

     The Implementation Committee has agreed the payment mechanism with the 46 IPPs to clear the outstanding dues as on 30th November, 2020.

    The ECC commended the efforts made by the Implementation Committee and acknowledged the input of all concerned including Federal Minister for Energy, Federal Minister for Planning, SAPM on Power, Finance Division, Chairman Federal Land Commission, SAPM on Revenue, Governor SBP etc in working out a viable payment mechanism with the IPPs which will eventually save approximately Rs836 billion for the government over the average life of the projects.

    The ECC approved the report of the Implementation Committee with a direction to present the same before Cabinet for final approval.

  • ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the renewal agreement of gas supply between Sui Southern Gas Company (SSGC) and Fauji Fertilizer Bin Qasim Limited.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC of the Cabinet.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Federal Minister for Energy Omar Ayub Khan participated in the meeting.

    Petroleum Division placed a summary before ECC regarding renewal of Gas supply Agreement (GAS) between Sui Southern Gas Company Limited and Fauji Fertilizer Bin Qasim Limited.

    After detailed discussion, the ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of 05 years. SSGCL may restore the gas supplies to M/S Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).

    The ECC considered and approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.

    Petroleum Division also moved a summary for removal of Dividend Distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatization.

    After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the Government.

    The Committee further decided that MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.

    On the recommendation of the Ministry of Housing and Works, the ECC allowed the Ministry to utilize its own funds equal to Rs. 377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.

    The following Technical Supplementary Grants (TSGs) were approved by the ECC:

    a) Rs. 141.308 million to Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic.

    b) Rs. 9.025 million to Ministry of Information and Broadcasting for a media campaign on occasion of Kashmir Solidarity Day – 05 Feb. 2021.

    c) Rs. 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab).

    d) Rs. 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South).

    e) Rs. 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D.I.Khan.

  • ECC approves continuation of general subsidy through Utility Stores

    ECC approves continuation of general subsidy through Utility Stores

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, in its meeting on Thursday, approved the continuation of general subsidies on five essential items provided to consumers through the Utility Stores Corporation (USC).

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  • ECC abolishes value added sales tax, reduces advance tax to 0.25pc on sugar import

    ECC abolishes value added sales tax, reduces advance tax to 0.25pc on sugar import

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of value added sales tax and reduction of withholding income tax to nominal 0.25 percent on import of white sugar.

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