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Tag: ECC

  • 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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  • 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.

    (more…)
  • 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.

    (more…)
  • 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.