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Tag: Economic Coordination Committee

  • 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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  • Regulatory duty, additional customs duty withdrawn on various textile products

    Regulatory duty, additional customs duty withdrawn on various textile products

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved withdrawal of regulatory duty and additional customs duty on various textile products.

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  • ECC approves expanding duty free car import scheme for disabled persons

    ECC approves expanding duty free car import scheme for disabled persons

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday granted approval to expand the scheme of duty free car import by disabled persons.

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  • ECC decides to abolish regulatory duty on smuggling prone items

    ECC decides to abolish regulatory duty on smuggling prone items

    ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet has approved the abolition of regulatory duty on several items prone to smuggling, in a move aimed at discouraging illegal trade and enhancing legal imports.

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  • ECC extends SBP’s refinance scheme with additional benefits

    ECC extends SBP’s refinance scheme with additional benefits

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved extension to the refinancing scheme of the State Bank of Pakistan (SBP) up to September 30, 2020 from June 30, 2020.

    A statement said that the ECC approved the “Risk Sharing Facility for SBP Refinance Scheme to support employment and prevent layoff of workers.

    The scheme supports provision of credit at concessional rate to businesses that commit not to lay off workers till September 2020 (earlier the cutoff date was June 30, 2020), the loss coverage for SME sector has been increased to 60 percent from the existing 40 percent to promote greater take up at the smaller level of business.

    Under the new changes the borrowers having turnover up to Rs800 million can avail benefit of the scheme; earlier, for the eligibility of the scheme, the turnover limit was up to Rs 2 billion).

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

    ECC approved the following technical supplementary grants:

    1) Rs.3.2 billion for PIACL (Pakistan International Airline corporation Limited) to discharge the obligations on account of markup against GoP guaranteed loans.

    2) Rs25,206,953 in favor of Pakistan Academy for Rural Development (PARD) Peshawar for the current financial year.

    3) Rs. 1300 million to Pakistan Atomic Energy Commission to discharge its various liabilities

    4) Rs 235 million to Deputy Commissioner Islamabad for making payment of internal security duty allowance to troops of Pakistan Rangers (Punjab) deployed in Islamabad

    5) Rs 500 million to the Ministry of Information and Broadcasting to meet the expenditure of media campaign on Covid-19

    6) Rs 100 million for National Disaster Management Authority (NDMF) for procuring equipment for locust control in Punjab

    7) Rs 7.947 billion to NDMA on account of procurement of emergency equipment through Pakistan Foreign Mission in China (Ex-post Facto approval on account of Pakistan National Emergency Preparedness and Response for Covid-19, procurement of equipment and transfer of funds)

    8) Rs.4.5 billion for the capacity building of Civil Armed forces as requested by the Ministry of Interior

    9) Rs.80 million for Competition Commission of Pakistan for different expenses

    10) Rs 100 million for the purchase of kerosene oil by Head Quarters Frontier Corps KP (North) to be used in different locations posts (8000 feet and above)

    11) Rs.8.093 million for the Privatization Division for employee related expenditure

    12) Two TSGs amounting to Rs 1192.325 million and Rs 358.506 million for Ministry of Federal Education and Professional Training for the Award of Scholarships to Afghan students ECC also granted approval for book value adjustment of overdue amount of loans amounting to Rs 30.807 billion to Earth Quake Reconstruction and Rehabilitation Authority over and above its allocated development and non-development budget.

    It also allowed, on the recommendation of the committee earlier constituted by ECC, to convert two relent Chinese loans in to Government loans keeping in view the subsuming of ERRA into NDMA and ERRA being non-profit/ non revenue generating entity. ECC also approved the “handing over of Pakistan Machine Tool Factory to Strategic Plans Division.

    For the purpose of operationalization of PMTF, Rs 500 million shall be provided to SPD as a loan.

    The Federal Government shall pay all the liabilities accrued till the transfer of management control of PMTF to SPD, after partial settlement of liabilities of Rs 1.78 billion.

  • ECC forms body for hedging prices of imported petroleum products

    ECC forms body for hedging prices of imported petroleum products

    ISLAMABAD: The government on Wednesday constituted a committee for hedging prices of imported petroleum products. The formation of the committee was approved by Economic Coordination Committee (ECC) of the Cabinet, chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh.

    The ECC set up a body headed by Special Assistant to Prime Minister for Petroleum Nadeem Babar to explore various call options for hedging prices for the petroleum products imported by Pakistan.

    The ECC also gave go-ahead to a “full and final” human resource rationalisation plan for the Pakistan Steel Mills employees in accordance with the judgements and observations of the Supreme Court of Pakistan and other courts hearing the cases involving the PSM.

    The ECC took up the proposal prepared by the Ministry of Energy in consultation with various international institutions and local partners for hedging prices for petroleum products being imported and decided to set up a Committee headed by Special Assistant to Prime Minister for Petroleum Nadeem Babar and including representation from SBP, PSO, Finance Division, Petroleum Division, Law Division and Planning Division to explore call option for 15 million barrels of oil for one or two years divided in 12 equal monthly amounts for different stock price above current Brent as long as fee is within acceptable range.

    Under the TOR which can be readjusted by the Committee in the light of future developments, PSO will act as the counterparty while the Ministry of Finance shall give a guarantee of performance by the PSO.

    OGRA would also be given the policy direction to include the monthly price of the Option in the cost of LNG or any other oil product chosen in announcing the monthly prices.

    The ECC also discussed the reported shortage of petrol in some cities and asked the Ministry of Energy, Competition Commission of Pakistan and the OGRA to ensure the requisite stocks were maintained by the OMCs and the supply to the fuel stations across the country was regular and intact throughout the month.

    Chairman ECC while taking a stern view of the reported petrol shortage directed all the relevant Government Ministries /Departments to immediately inform him if situation worsens any further.

    On another proposal by the Ministry of Energy, the ECC considered and approved reimbursement of operational cost of Single Point mooring (SPM) installed by M/s Byco.

    Under the decision BYCO would submit actual audited operating cost of the SPM (excluding Wharfage/FOTCO charges/crude saving) to OGRA for inclusion in IFEM subject to a cap of PARCO rate while OGRA shall determine the actual impact for inclusion in the IFEM on the ongoing basis.

    Consequently with the implementation of the above decision, BYCO will withdraw its case from the Supreme Court of Pakistan and would also provide an undertaking that the ECC decision conclusively closes the pending matter of SPM’s costs.

    On another proposal by the Ministry of Energy, the ECC asked the Finance Division to release an amount of Rs 1 billion to meet the cost over and above the criteria for supply of gas to villages and localities falling within 5 kilometres radius of gas producing fields as per instructions of the Supreme Court of Pakistan to implement an announcement of the Prime Minister made in September 2003 for supply of gas to villages and localities falling within 5 kilometres radius of gas producing fields.

    The ECC also took up a proposal by the Ministry of Energy for payment of unrecovered fixed costs of Rs.43.7 billion to the IPPs and asked the Finance Division to release Rs 23 billion while the issue of remaining payments would be resolved by all the stakeholders within one week and would be taken up in the next ECC meeting.

    During the meeting, the ECC also took up and approved 12 separate proposals for technical supplementary grants of various amounts from different divisions and departments, including Interior Division, NAB, Revenue Division, Cabinet Division, National Heritage and Culture Division, Finance Division, Federal Education and Professional Training, Communications Division and Religious Affairs and Interfaith Harmony Division.

  • ECC okays mobile device manufacturing policy

    ECC okays mobile device manufacturing policy

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved mobile device manufacturing policy.

    The policy is aimed at to promote local manufacturing and assembly of mobile phone handsets.

    The policy approved in a meeting of the ECC chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh is aimed at ensuring localisation and indigenization of the parts of the mobile phones.

    Earlier, the ECC was told that under the Mobile Device Manufacturing Policy, parts of mobile phone handsets will be used for the entire range of mobile phone handsets produced in Pakistan instead of limited to a particular model.

    The policy will have a positive impact on allied industry including packaging and plasting.

    The expected arrival of high end brands will give local industry an opportunity to become part of the global value chain.

    In addition, setting up of R&D centres and an ecosystem for software application is also visualised under the policy.

    The ECC discussed various recommendations proposed as part of the policy and approved the following:

    a. Removal of Regulatory Duty for CKD/SKD manufacturing by PTA approved manufactures under input/output Co-Efficient Organization (IOCO) approved import authorization.

    b. Removal of Fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category.

    c. Increase in Fixed Income Tax on USD 351-500 USD category by Rs 2000 and>USD 500 by Rs.6300 on CKD/SKD manufacturing only.

    d. Removal of Fixed Sales Tax on CKD/SKD manufacturing of mobile devices.

    e. PTA shall allow activation of handsets manufacturing in the country under import authorization of inputs by IOCO in CKS/SKD kit (8517.1211) and not under HS Code 8517.7000 i.e. parts. This will eliminate misdeclaration in parts category at the import stage. Activation of CBUs imported through notified routes after payment of all levied duties and taxes as fixed by government from time to time shall continue till further amendment.

    f. In up to USD 30 category, words “except smart phones” to be inserted for CBU imports under 8517.1219 to avoid misdeclaration.

    g. R&D allowance of 3 percent to be given to local manufactures for exports of mobile phones.

    h. Locally assembled / manufactured phones to be exempted from 4 percent of withholding tax on domestic sales.

    i. Government to commit maintaining tariff differential between CBU imports and CKS/SKD manufacturing till the expiry of the policy.

    j. Local industry to ensure localization of parts and components as per roadmap included in draft policy.

    k. EDB to act as Secretariat of Mobile Phone Manufacturing Policy and ensure development of allied parts, components and devices.

    Meanwhile, the ECC also considered a proposal brought forward by the Ministry of National Food Security and Research for an intervention price for cotton 2020-21 crop by rationalising earlier proposals after fresh consultation with the stakeholders.

    The members of the ECC had an in-depth discussion on the matter and maintained that an effective and sustained support to the cotton growers was vital and necessary due to the importance of cotton for the local as well as export industry.

    However, such a support should be extended in the form of direct targeted subsidy to the formers.

    ECC further directed the Ministry of National Food Security and Research to bring up to ECC proposals, for promoting research and development and to improve seed quality and yield per acre.

    The ECC decided that since the matter was not federal in nature, a mechanism should also be adopted by the Ministry of National Food Security and Research to engage with the provincial governments, particularly Punjab, at the higher government level for introducing some intervention with regard to ensuring better price to the cotton growers.

  • ECC discusses arrest of PNSC ship by South Africa

    ECC discusses arrest of PNSC ship by South Africa

    ISLAMABAD: South Africa has arrested a ship of Pakistan National Shipping Company (PNSC) for alleged payment default by Pakistan Steel Mills.

    The issue was discussed at the Economic Coordination Committee (ECC) of the Cabinet on Wednesday which was chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.

    A statement said that the ECC considered a proposal by the Ministry of Maritime Affairs regarding arrest of PNSC ships in South Africa on account of alleged claims of M/s Coniston against Pakistan Steel Mills Ltd and asked the Finance Secretary to engage with the PNSC and PSM and seek opinion of the Law Division, if necessary, to resolve the issue having ended up in litigation.

    The ECC approved release of Rs 75 billion from PM’s Relief Package of Rs 200 billion for targeted payments to the low-income groups, especially labourers and daily wagers most severely affected by the lockdown situation in the country.

    Under the decision, disbursement of Rs 12,000/- per selected person would be made using the Ehsaas disbursement mechanisms under a programme called “Mazdoor Ka Ehsaas Programme”.

    For this purpose, a fourth category in addition to already existing three categories in “Ehsaas Kifalat”, would be created and standard filters/checks of Ehsaas Program would be applied for identification of the beneficiaries.

    Earlier, the ECC was told that after the usual filters and checks, up to 6 million low-income people were expected to benefit under the planned 4th category in addition to the 12 million labour population already targeted through category 1-3 of Kifalat.

    “Mazdoor Ka Ehsaas Programme” was aimed at extending much-needed support in the current situation to the low-income labour/daily wagers mostly involved in activities such as loaders, cleaning staff, contract employees, piece rate workers, self-employed street vendors, construction workers, painters, welders, mechanics, carpenters, domestic help, drivers, etc.

    The ECC also asked the Ministry of Industries and Production and the Poverty Alleviation and Social Sector Development Division (PASSD) to jointly work out comprehensive mechanism and modalities to ensure a transparent and efficient disbursement of the support to the deserving people.

    During the meeting, the ECC on two separate proposals approved a technical supplementary grant of Rs 606 million for 19 projects to be implemented by the Government of Balochistan for FY 2019-20 and another technical supplementary grant amounting to Rs 7 million for purchase of spare parts for helicopter maintenance by Frontier Corps Balochistan (North).

    The ECC also approved release as government loan of Rs 1.30 billion in the current financial year and Rs 3.85 billion per annum during the next three years for settlement of the outstanding liabilities of litigants in the case involving Pakistan Steel Mills (PSM).

    On a proposal by the Ministry of Commerce, the ECC approved notification of the Export Policy Order, 2020 and Import Policy Order, 2020 in consolidated form as per the Law Division’s recommendations for the convenience of the business community.

    The ECC also approved a proposal by the Ministry of Overseas Pakistanis and HRD for approval of the budget proposal for the year 2019-20 & revised budget estimate for 2018-19 of EOBI.

    The ECC, on a proposal by the Ministry of Climate Change, approved exemption from the Re-lending Policy of the Government in respect of a USD 188 million World Bank IDA for the Pakistan Hydromet and Ecosystem Restoration Services Project.

    The ECC also accorded principled approval to a proposal by the Ministry of National Health Services for provision of Rs 150 million funds as grant in aid/seed money for Islamabad Healthcare Regulatory Authority, the ECC asked the Secretary Finance and Secretary Health to jointly to work out modalities for the arrangement of funds.

    On a proposal by the Ministry of Industries and Production seeking a supplementary grant of Rs 288 million for payment of salaries to the employees of Pakistan Machine Tool Factory, the ECC asked the Finance Division and the Industries and Production Division to sit together and resolve the issue.

  • ECC approves electricity subsidy package for export sector

    ECC approves electricity subsidy package for export sector

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has approved a special relief package for export sector in shape of subsidized electricity.

    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 on Wednesday at the Cabinet Division.

    The ECC approved a proposal by Power Division for a special relief package to further continue provision of subsidized electricity until June 2020 to five export oriented sectors.

    ECC has discussed proposal to increase wheat support price to Rs 1400 per 40 kg and will convene a special session tomorrow afternoon to discuss a detailed plan to keep the flour prices at the lowest possible level throughout the year in view of any increase in support price and incidental charges for supply of PASSCO procured wheat to provinces and allied issues related to procurement of wheat by provinces and the private sector.

    ECC also approved a proposal by Ministry of Energy (Power Division) for two amendments aimed at providing ease of doing business to upstream Petroleum sector.

    The amendments are related to extension of exploration licences beyond two years by ECC rather than the Minister in Charge of Petroleum Division and creation of a new Zone-1 (F) for onshore licensing regime and consequent revision in the Zonal Map.

    The ECC also approved National Telecommunication Corporation’s revised budget estimates for 2018-19 and 2019-2020.

    The ECC also gave an in principal approval for a proposal for SAR 22.5 million equity investment abroad by Eastern Products Pvt (Ltd) Pakistan.