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  • ECC approves removal of additional customs duty on 152 tariff lines

    ECC approves removal of additional customs duty on 152 tariff lines

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of additional customs duty at 2 percent on import of raw material of 152 tariff lines.

    Dr. Abdul Hafeez Shaikh Federal Minister for Finance and Revenue chaired the ECC meeting. Federal Minister for Interior Sheikh Rasheed Ahmed, Minister for Privatization Mohammad Mian Soomro, Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Babar and Minister for National Food Security and Research Syed Fakhar Imam participated in the meeting.

    Governor State Bank of Pakistan Reza Baqir also participated through video link.

    Ministry of Commerce presented a summary regarding removal of additional 2 percent customs duties on 152 tariff lines, mostly raw material, on horizontal basis under National Tariff Policy 2019-2024.

    The ECC approved the summary with a direction that budget cycle must be observed while planning important incentives for businesses and industries for smooth planning and subsequent implementation during the financial year.

    Ministry of Maritime Affairs tabled a summary for awarding contract regarding infrastructure facilities, sewerage system and water supply system in Gulshan-e-Benazir Township Scheme (GBTS) at Port Qasim Authority, Karachi. The ECC approved the projects in conformity with the PQA Act-1973, in principle, and directed Ministry of Maritime Affairs to settle the modalities for the award of contracts as per rules.

    Ministry of National Food Security and Research presented a detailed summary regarding provision of additional quantities of wheat to KPK, AJ&K and Utility Stores Corporations (USC). The Additional Secretary, M/o NFS&R gave a detailed presentation regarding availability of wheat stocks across the country. The ECC approved additional wheat allocation of 200,000 MT for KPK 80,000 MT to AJ&K and 220,000 MT to USC from PASSCO as requested. ECC also approved the import of additional wheat to buffer up stocks till the arrival of fresh crop after seeking detailed input from all concerned.

    The summaries related to the Textile and Apparel Policy (2020-25) and National Freight and Logistics Policy (NFLP) were deferred to next ECC for comprehensive consultation process with key stakeholders.

    ECC approved the following Technical Supplementary Grants during the meeting: a) Rs. 30 million for the Ministry of Defence for the purchase of spare parts for Helicopters for the government of Khyber Pakhtunkhwa (KPK). b) Rs. 400.020 million for the Ministry of Law and Justice to establish additional courts in compliance with the orders of the Supreme Court. c) Rs. 2.268 billion for the Higher Education Commission for completion of various Disbursement linked Indicators (DLIs) under the IDA credit facility.

  • ECC approves issuance of $500 million Eurobonds

    ECC approves issuance of $500 million Eurobonds

    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.

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  • Taxes removed on locally manufactured mobile phones; ECC accords approval

    Taxes removed on locally manufactured mobile phones; ECC accords approval

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of taxes on locally manufactured mobile phones.

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  • ECC abolishes peak-hour electricity tariff

    ECC abolishes peak-hour electricity tariff

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Thursday approved abolishment of higher electricity tariff for peak hours.

    Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet.

    Minister for Privatization Muhammad Mian Soomro, Minister for Economic Affairs Makhdoom Khusro Bakhtiar, Minister for Railways Sheikh Rashid Ahmed, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain participated in the meeting.

    Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.

    The Power Division presented the case for abolishment of Time-of-Use tariff scheme for Industrial consumers to spur industrial activity amid COVID-19 pandemic by removing the distinction between the current system of peak and off-peak hours as a part of Industrial support package.

    The underlying rationale is to incentivize industrial units to operate round the clock and produce greater output during testing times.

    Consequently, ECC accorded approval, in principle, to the proposal regarding amendment in the respective SROs both for the XWDISCOS and K-Electric to charge the off-peak rates against the peak hours.

    The abolishment of peak and off-peak tariff structure would be implemented with effect from November 01, 2020 till April 30, 2021.

  • ECC withdraws regulatory duty on cotton yarn import

    ECC withdraws regulatory duty on cotton yarn import

    ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approval removal of 5 percent regulatory duty on import of cotton yarn.

    The Ministry of Commerce presented a proposal before the ECC regarding removal of 5 percent regulatory duty on import of cotton yarn till June 30, 2021. After detailed discussion, the chair approved the removal of regulatory duty on import of cotton yarn to enhance value-added exports.

    Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of the ECC of the Cabinet in Islamabad.

    Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Production and Industries Hammad Azhar, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Power Omar Ayub Khan, Minister for Maritime Affairs Syed Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, SAPM on Revenue Dr. Waqar Masood and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain also participated in the meeting. Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.

    The Ministry of Commerce submitted another summary to re-consider the earlier decision taken by ECC dated October 19, 2020 regarding procedure for registration under concessionary regime of electricity, RLNG and Gas in export oriented sectors (erstwhile zero-rated sectors). After due deliberation, the chair directed to maintain status quo with a condition that FBR may register new manufacturers or exporters in five export oriented sectors (erstwhile five zero-rated sectors) in coordination with the Ministry of Commerce till June, 2021.

    Communication Division requested ECC for conversion of National Highways Authority loans into Government Grant or grant a waive-off for a much needed fiscal space. A detailed presentation was made before the forum to remodel NHA as a self-sustaining and performance based organization. ECC directed to constitute a sub-committee under the Chairmanship of Minister for Planning, Development and Special Initiatives and would include SAPM Nadeem Babar, Minister for Maritime Affairs Ali Zaidi, Secretary Finance and Secretary Communications to prepare a holistic proposal suggesting revenue generation roadmap for NHA within a month.

    NHA was also granted a one-month moratorium to work out details and present recommendations regarding financial viability of NHA before the forum.

    The ECC recommended a summary presented by the Industries and Production Division to approve release of funds to PSM for payment in lieu of gas supply to SSGC through a Technical Supplementary Grant (TSG).

    ECC approved allocation of upto 9.5 MMCFD gas from M/s PPL’s Benari X-I discovery to SSGCL. Similarly, allocation of 10 MMCFD gas from PPL’s Hadaf X-I to SSGCL was also approved during the meeting. Federal Minister for Maritime Affairs raised the matter of priority berthing for wheat and sugar.

    The ECC directed the Logistics Committee to ensure berthing of wheat and sugar vessels on priority, keeping in view, that other imports are not affected.

    The ECC also accorded approval for allocation of additional funds for maintenance of Islamabad High Court Building and Judges Residences through TSG as requested by the Ministry of Housing and Works.

    The agenda item on Karachi Transformation Plan, presented by the Ministry of Planning, Development and Special Initiatives was deferred to the next ECC meeting for a detailed discussion.

  • ECC approves $150 million for COVID vaccine purchase

    ECC approves $150 million for COVID vaccine purchase

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved an amount of $150 million for the purchase of the COVID-19 vaccine.

    Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee of the Cabinet here at Islamabad.

    Minister for Industries and Production Hammad Azhar, Minister for Economic Affairs Khusro Bakhtiar, Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain, SAPM on Petroleum Nadeem Babar and SAPM on Revenue Dr. Waqar Masood, also participated in the meeting.

    The ECC evaluated a proposal submitted by the Ministry of National Health Services, Regulations & Coordination and approved, in principle, the provision of technical supplementary grant of $150 million for the purchase of the COVID-19 vaccine.

    Ministry of Health briefed the ECC that this shall be the first phase of procurement and the amount of vaccine will suffice for the most vulnerable 5 percent of the population i.e. the health workers and the population above the age of 65 years; around 10 million people would be provided a vaccine cover under the above arrangement.

    The ECC further directed the Ministry of National Health Services to discuss the proposal with WB and other donors in coordination with Economic Affairs Division so that they could assist in providing financial facility for the procurement of the vaccine during the first phase and for the procurement of additional quantities in future as needed.

    The forum also directed the Ministry of NHS to draw a holistic proposal regarding the pricing and risk mitigation mechanism for the procurement of the COVID-19 vaccine for provision on a wider scale, in consultation with the relevant stake holders.

    The ECC approved the request of the Economic Affairs Division to proceed with the formal request for availing the G-20 Debt Relief for the extended period i.e January-June 2021; approval of the Federal Cabinet would be required for signing of the bilateral debt service suspension agreements.

    The ECC also approved two technical supplementary grants for “Initiating the Process of Retrenchment of Pakistan Steel Mills Employees (PSM)” for an amount of Rs.19.656 billion and “Prime Minister’s Special Package to Implement SKILLS FOR ALL Strategy as Catalyst for TVET Sector Development in Pakistan for Rs. 500 million.

    Another Rs. 689.3 million were also approved as budget re-appropriation for National Information Technology Board (NITB) for fulfilling its various requirements during the meeting. ECC also approved the proposal by the Ministry of Energy/ Petroleum Division for the allocation of 2.25 MMCFD gas from Umair -1 to M/s OGDCL for sale to M/s Engro at a mutually agreed and negotiated price, under a Gas Sale and Purchase Agreement subject to initiation of Field Development Plan and Development and Production Lease.

    The ECC was also briefed on the status of wheat import through Trade Corporation of Pakistan. Ministry of National Food Security and Research briefed the forum on the provision of additional 340,000 MT of Wheat, a tender was floated on 11-10-2020; the bids were opened on 18-10-2020 and lowest bid was accepted. The total quantity to be imported is now 2.248 MMT.

  • ECC sets up committee to examine proposal of manufacturing SIM/smart cards

    ECC sets up committee to examine proposal of manufacturing SIM/smart cards

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday constituted a committee to examine a proposal for manufacturing of SIM/Smart-cards in the country.

    The meeting of the cabinet committee was chaired by Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Sheikh while among others it was attended by Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Baber and Advisor to the PM for Institutional Reforms and Austerity Dr. Ishrat Hussain attended the meeting. Governor State Bank of Pakistan Dr. Reza Baqir also participated through video link.

    In light of a summary presented by the Ministry of IT and Telecommunication regarding manufacturing of SIMs/Smart-cards in Pakistan, after due deliberation, the chair directed to constitute a Committee to examine the proposal and present a report for a way forward within two weeks.

    The Committee would be chaired by the Minister of Industries and Production Hammad Azhar and would include representatives from the Ministry of IT & Telecom., FBR and Board of Investment (BOI).

    The ECC constituted a committee to decide a timeline for export of mango and kinnow after due consultation with the stakeholders.

    The committee consisting of representatives from the Ministry of Commerce and Ministry of National Food Security and Research (MNFS&R), according to press statement issued by the Finance Ministry here.

    The ECC approved budgetary allocation in favour of NITB for provision of ICT services at the Prime Minister’s Office for Prime Minister’s Kamyab Jawan Programme for FY/2020-21 to the tune of Rs53 million as requested by the Ministry of Information Technology and Telecommunication.

    The ECC gave concurrence to the proposal by the Petroleum Division, in principal, regarding allocation of gas from Bashar X-IST to third party up to 1.0 MMCFD.

    A summary was presented by the PIACL, Aviation Division before ECC regarding GOP cash support for the Voluntary Separation Scheme (VSS). After thorough discussion, it was decided to approve, in principle, the voluntary separation from service scheme for PIA.

    The ECC also approved four separate Technical Supplementary Grants for the Ministry of Defence and Ministry of Interior for various projects during current FY 2020-21.

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    ECC decides to propose increase in wheat support price to Rs1600

    Reduced rates of electricity, gas: ECC approves procedure for registration

  • ECC decides to propose increase in wheat support price to Rs1600

    ECC decides to propose increase in wheat support price to Rs1600

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday decided to propose the federal cabinet to enhance support price of wheat to Rs1600 for the crop 2020-2021.

    It was briefed to the ECC that was chaired by Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue that the support price mechanism plays a pivotal role in boosting wheat production as it stabilizes market and increases profitability of the farmers, a statement said.

    The wheat support price has been decided to increase from Rs1200 to Rs1600.

    Since 2010-2011, MSP for wheat has been revised 4 times.

    The new price which has been decided by the ECC is close to the price recommended by Punjab, which is the largest producer of wheat in the country.

    ECC was also apprised of the Status of wheat import by the Trading Corporation of Pakistan (TCP).

    ECC was briefed that till January 2021 TCP shall be able to secure 1 million metric tons of wheat through international bidding.

    On the request of MNFS&R, ECC decided that the initial allocation of TCP for the import of 1.50 MMT of wheat may be enhanced to 1.80 MMT to cater for the additional requirement of 0.30 MMT demanded by the KP and Sindh for shipment by mid-February.

    It was also decided that 300,000 MT of wheat shall be imported on G2G basis from the Russian Federation by PASSCO.

    ECC endorsed the request of Ministry of Food to import another 320,000 from Russia under the G2G arrangement but constituted a Committee of Secretaries of Finance, Commerce and Food Ministry to look into the possibility of import of wheat either by PASSCO or TCP.

    It was also decided that further tendering of wheat may be stopped and TCP may resort to GTG arrangement for additional procurement of wheat.

    Keeping in view the arrival of the new crop in March 2021, the forum decided that no vessel of imported wheat should be arranged either in public or private sector beyond February 2021.

    ECC also decided to release 50 percent of the tariff differential subsidy to the Power Division.

    Finance Division has earmarked Rs.140 billion for 2020-21 as Power Division subsidy.

    The release of Rs.65.8 billion demanded by the Power Division will be used for payments to the power producers in order to maintain adequate liquidity.

    On the summary moved by the Ministry of Industries and Production for the determination of Gas rate for operations of Fatima fertilizer and Agritech, ECC decided that gas rate of Rs772/MMBTU with Variable contribution margin at 186 per bag may be offered to both the units for the period 3rd November 2020 onwards.

    It was briefed to the ECC that GoP’s share at this gas rate has been estimated by NFDC on the basis of RLNG’s last notified rate for July by OGRA, which is approximately 0.42 Billion.

    Further, actual payment by GoP for price differential sum to SNGPL may vary due to difference in monthly rate of RLNG.

    ECC granted approval for the sale of surplus power available at the incremental rate of Rs. 12.96/kwh to all industrial consumer categories, excluding zero-rated industrial consumers, on the incremental consumption over their respective historical consumption or established benchmark.

    ECC also formed a committee consisting of Dr. Ishrat Hussain, Dr. Waqar Masood, Federal Minister for Industries and Production, Hammad Azhar, Federal Minister for Power, Omer Ayub, SAPM Nadeem Babar and SAPM Tabish Gohar to prepare a proposal to include K-Electric in the package.

    The Committee will also propose whether the package shall continue for one year or three years.

    The Committee will also analyze the need for any subsidy that will be involved in the package and source for arranging the same and all the issues that may come up in the calculation and distribution of that subsidy.

  • Reduced rates of electricity, gas: ECC approves procedure for registration

    Reduced rates of electricity, gas: ECC approves procedure for registration

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the procedure of registration for availing reduced rate of electricity, RLNG and gas by manufacturers and industries.

    Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of ECC at the Cabinet Division.

    The ECC approved in principle, the procedure for registration under the concessionary regime of electricity, RLNG and gas under the export oriented sectors (erstwhile zero-rated sectors) with instructions to ensure better targeting of the recipients of this subsidy.

    The ECC decided that the previous list of manufacturers or exporters declared zero-rated by FBR (under condition (xii) of the SRO 1125) may be adopted in export oriented sectors. FBR may register new manufacturers or exporters of five export oriented sectors (erstwhile five zero rated sectors), in accordance with past precedents of STGO-117, under Commerce Division’s O.M No.1 (18)/2019 in manner specified by the FBR.

    The FBR, Petroleum Division and Power Division may formulate periodic rechecking/monitoring/withdrawal strategy for previous and newly registered units along with procedure to penalize in case of misrepresentation and misuse.

    The ECC discussed in detail on the Minimum Support Price (MSP) of Wheat in today’s session. The Ministry of National Food Security and Research briefed the ECC on different estimates gathered from Punjab, KP, Balcohistan and the Federal Capital.

    During the discussion, it also came to the fore that there was a need to increase the MSP to support the farmer and to grow enough quantities in the next sowing season.

    The forum also discussed the need to rationalize the prices of inputs for making them more affordable to the farmers, to support the rural economy through various measures and to increase the supply of wheat in the market so that the flour prices are brought down. It was also discussed to have a better system for gathering data regarding the agriculture sector.

    ECC decided to form a committee with Syed Fakhar Imam, Dr. Hafeez Shaikh, Dr. Ishrat Hussain.Dr. Waqar Masood, Nadeem Baber, Abdul Razzaq Dawood, Asad Umar and Khusroo Bakhtiar as members, to thoroughly evaluate the proposal for the increase in the Minimum Support Price of wheat for the 20-21 crops.

    The committee shall also prepare a proposal on subsidy on fertilizers mainly DAP which may be offered as a part of the package for the farmers so that their input cost is reasonable/ reduced.

    It was also decided that the provinces should increase the wheat releases to stabilize/reduce the price of flour in the market. It was decided that the local governments will also be directed to specially monitor the prices of wheat and flour in the markets so that its prices may not be allowed to escalate for the common man. The committee shall present its proposal in the next meeting of ECC.

  • ECC approves retrenchment plan of Pakistan Steel Mills

    ECC approves retrenchment plan of Pakistan Steel Mills

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the retrenchment plan of Pakistan Steel Mills (PSM). Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the ECC meeting at the Cabinet Division.

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