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Tag: federal cabinet

  • Electricity tariff reduced up to 50pc on additional usage to promote industries

    Electricity tariff reduced up to 50pc on additional usage to promote industries

    ISLAMABAD: The government on Tuesday announced up to 50 percent reduction in electricity tariff on additional usage to promote industries in the country.

    Prime Minister Imran Khan announced a relief package for industrial sector with 50 percent reduction in rate of commercial electricity on additional usage by Small and Medium Enterprises.

    The announcement was made after the federal cabinet gave approval to the package.

    The Prime Minister said for next three years, all industries on additional usage of electricity would be provided 25 percent relief considering their previous bills.

    He also announced an end to peak-hour system for commercial electricity users, with provision of uniform electricity rates round the clock.

    Imran Khan said a strong infrastructure of energy was vital to help industries grow and compete with international market.

    He pointed that with 25 percent expensive electricity rates, Pakistan lagged behind India and Bangladesh in terms of exports.

    “It is extremely important for Pakistan to strengthen industrialization, which will lead to wealth creation and thus help pay off the debt,” he said.

    Imran Khan regretted that the contracts signed with power generation companies during previous tenures resulted in production of high-cost electricity, which remained unaffordable for industrial sector.

    During 2013-18, he mentioned that the country’s exports dipped from Rs 25 billion to Rs 20 billion as many industries were shut down due to high cost of electricity.

    The Prime Minister said soon after assuming the government, his team focused on increasing exports as “higher the exports, stronger the economy”.

    He expressed satisfaction that Pakistan ranked high among the countries of sub-continent in growth of exports during the pandemic of COVID-19.

    In view of the second wave of coronavirus, the Prime Minister appealed to the nation to continue wearing face masks to avert the risks and dangers of the disease.

    Minister for Industries and Production Hammad Azhar on the occasion said under the package, which was prepared on the special instructions of Prime Minister Imran Khan and approved by the cabinet today, the industries would be provided electricity at off-peak hours’ rate for 24 hours for next three years.

    The Small and Medium Enterprises (SMEs), he said, would be getting 50 percent tariff relief on the use of additional electricity, considering their bills of November 2019, during next six months, while all the industries would be provided with additional electricity on 25 percent reduced rates for next three years.

    Hammar Azhar said the decision would help boost economic growth, strengthen industry, increase exports, and create employment opportunities.

  • Cabinet allows export of all PPE items

    Cabinet allows export of all PPE items

    ISLAMABAD: The federal cabinet in its meeting held on Tuesday allowed export of all Personal Protective Equipment (PPE) items. The cabinet approved to lift the ban on export of Tyvek Suits and the anti-malarial drugs, including Chloroquine and Hydroxychloroquine.

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  • OMCs must have 21 days stock of POL products, federal cabinet decides

    OMCs must have 21 days stock of POL products, federal cabinet decides

    ISLAMABAD: Authorities to enforce license condition that Oil Marketing Companies (OMCs) must have 21 days stock in order to ensure availability of petroleum products.

    Prime Minister Imran khan chaired the meeting of the federal cabinet held on Tuesday. The prime minister directed the Minister of Petroleum and Oil and Gas Regulatory Authority (OGRA) to ensure that every OMC maintains 21 days stock to meet its license conditions.

    The cabinet took serious note of the artificial shortage of petrol in the country. The Prime Minister directed that maximum punitive action must be taken against all those responsible for this.

    The following specific directions were given:

    a. The Cabinet noted that OGRA and Petroleum Division have legal authority to physically enter and inspect oil companies storage facilities. The Cabinet directed Petroleum Ministry to form joint raiding teams comprising of representatives of Petroleum Division, OGRA, FIA and District administrations. The teams shall inspect all petrol depots/storage. They have all authority to enter any site. Anyone found involved in hoarding shall face full force of law, including arrest and forced release of such stores.

    b. Any company found not maintaining the mandatory stocks and supply to its outlets, as per their license, shall face punitive actions, including suspension and cancellation of license and heavy fines.

    c. The Prime Minister directed that the Petroleum Division and OGRA take all actions necessary to ensure regular supplies within 48-72 hours.

    d. Ministry of Energy informed the cabinet that while June 2019 total supplies were 650,000 metric tons while supplies arranged for June 2020 are 850,000 metric tons. The cabinet urged the public not to engage in panic buying. The stocks that are being hoarded will be identified and ensured to be available in the market and action taken against hoarders.

  • State-owned land in major cities to be offered for sale to overseas Pakistanis

    State-owned land in major cities to be offered for sale to overseas Pakistanis

    Prime Minister Imran Khan announced on Tuesday that the government plans to sell state-owned land in major cities to overseas Pakistanis. This move aims to generate essential financial resources for the country.

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  • Cabinet to announce major relief in prices

    Cabinet to announce major relief in prices

    ISLAMABAD: The federal cabinet in its meeting scheduled for Tuesday, February 12, 2020 will announce major relief in prices of basic food items, Prime Minister Imran Khan announced on Sunday.

    The prime minister in its tweet message said that the government would come up with various measures to reduce the prices of basic food items in the upcoming federal cabinet meeting scheduled on Tuesday.

    “I understand the difficulties ordinary people including salaried class are confronting and have decided, come what may, my government will be announcing various measures that will be taken to reduce prices of basic food items for the common man in Cabinet on Tuesday,” the prime minister tweeted.

    He said at the same time all the relevant government agencies had launched an in-depth probe into the flour and sugar price hikes.

    “The nation should rest assured that all those responsible will be held accountable and penalized,” the prime minister remarked.

  • Cabinet approves gradual reduction in regulatory duty

    Cabinet approves gradual reduction in regulatory duty

    ISLAMABAD: The Federal Cabinet has approved gradual reduction in regulatory duty and additional customs duty under first-ever National Tariff Policy (NTP).

    The federal cabinet, in its meeting chaired by the Prime Minister held on Tuesday November 19, 2019, approved the first-ever National Tariff Policy (NTP).

    The policy guidelines contained in the NTP, as approved by the Cabinet, provide that the tariff slabs will be simplified based on the principle of cascading; tariffs on raw materials, intermediate and capital goods will be gradually reduced; the additional customs duty and regulatory duties will be gradually reduced; the difference in the rates of tariff for the commercial importers and industrial users of raw materials, intermediate and capital goods will be eliminated to provide a level-playing field to the SMEs through competitive access to essential raw materials; the nascent industry will be provided time-bound protection, which will cover the payback period.

    The policy, developed by the commerce division after extensive consultations with the stakeholders, marks a milestone in the national economic policy paradigm by recognizing the importance of employing import tariffs for industrial development and export growth.

    The prime minister, in his remarks during the cabinet meeting, said that the import tariffs have been traditionally employed as a revenue generation tool, which has increased reliance on import tariffs for revenue collection. In accordance with the reform agenda of the government, the economic policy paradigm is now being realigned to leverage tariffs for industrial development.

    The National Tariff Policy aims at removing the anomalies in the tariff structure and making it a reflection of trade policy priorities and enhancement of competitiveness through duty-free access to imported raw materials and promotion of investment into efficient industries through a predictable tariff structure, decided through an institutional mechanism.

    The NTP is based on the principles of (i) employing tariffs as an instrument of trade policy rather than revenue generation, (ii) maintaining vertical consistency through cascading tariff structures (increasing tariff with stages of processing of a product), (iii) providing time-bound ‘strategic protection’ to the domestic industry during the infancy phase, and (iv) promoting competitive import substitution through time-bound protection, which will be phased out to make the industry eventually competitive for export-oriented production.

    The policy will be implemented through a Tariff Policy Board (TPB) chaired by the Commerce Minister/Advisor, with Minister for Industries & Production, Secretary Finance, Secretary Revenue, Chairman FBR, Secretary Commerce, Secretary Board of Investment, and Chairman NTC as its members.

    A Tariff Policy Centre shall be created in the Ministry of Commerce, which will serve as the Secretariat of the TPB.

    Abdul Razak Dawood, Commerce Advisor, stated that the NTP marks a watershed in the country’s economic policy making since it would energize export growth, lead to rapid industrialization, and import substitution through predictability in tariff framework.

  • Dr. Hafeez Shaikh entrusted for finance charge in major cabinet reshuffle

    Dr. Hafeez Shaikh entrusted for finance charge in major cabinet reshuffle

    ISLAMABAD: Dr. Hafeez Shaikh has been appointed as Advisor to Prime Minister on Finance following resignation of Asad Umar from the slot of finance minister.

    Asad Umar has resigned amid controversies on economic and policy decisions. Interestingly, Dr. Hafeez Shaikh, the nominated advisor to prime minister, was the finance minister during last tenure of Pakistan Peoples Party and he had also resigned in 2013, and the PPP government assigned Saleem Mandviwala for the post.

    Dr Abdul Hafeez Shaikh is an internationally renowned economist with more than 30 years of experience in economic policy making, management and implementation.

    Dr Shaikh has undergraduate and postgraduate degrees in economics from Boston University. He had worked at Harvard University and World Bank, where he was country head for Saudi Arabia and as a Senior Official advised 21 countries in Asia, Africa, Europe and Latin America.

    He served as the finance minister from 2010 to 2013 during the PPP government’s rule.

    During his tenure as federal minister, Dr Shaikh completed 34 sale transactions worth Rs300 billion in banking, telecom, electricity and manufacturing.

    In 2000-2002, he was minister of finance, planning and development of Sindh.

    He was then appointed as the minister for privatization and investment in the Pervez Musharraf administration.

    The government on Thursday announced major reshuffle in the federal cabinet and appointed Dr Abdul Hafeez Sheikh as Advisor on Finance and Senator Azam Swati as Minister for Parliamentary Affairs, besides re-allocation of some ministers’ portfolios.

    The PM Office issued relocation of ministries and advisories, revealing that Chaudhry Fawad Hussain has been made the Federal Minister for Science and Technology followed by Ghulam Sarwar (Federal Minister for Aviation); Ijaz Ahmed Shah (Federal Minister for Interior); and Shehryar Afridi (Minister of State for States and Frontier Regions).

    Federal Minister for Privatization Mohammad Mian Soomro would cease to hold additional portfolio of Aviation Division.

    Those who have been appointed as Special Assistants to the Prime Minister include:-

    Dr Zafar Ullah Mirza (National Health Services, Regulation and Coordination); Dr Firdous Ashiq Awan (Information and Broadcasting Division); and Nadeem Babar (Petroleum Division).

  • No decision on amnesty scheme, cabinet to consider tomorrow

    No decision on amnesty scheme, cabinet to consider tomorrow

    ISLAMABAD: The federal cabinet has discussed the planned tax amnesty scheme and it will decide in tomorrow’s meeting, sources said on Tuesday.

    The federal cabinet was met under the chair of Prime Minister Imran Khan. Finance Minister Asad Umar briefed the meeting about the proposed amnesty scheme.

    The sources said that the prime minister directed the ministry to take input from general public on such scheme besides before launching it there should be proper public awareness.

    In this regard a committee was formed headed by the finance minister. The committee will finalize the amnesty scheme.

    The sources said that the government was planning to introduce the amnesty scheme through promulgation of presidential ordinance.

    The sources said that the PTI government was in difficult situation regarding launching the amnesty scheme as the ruling party had taken mandate to bring tax evaders and looters behind the bar instead giving amnesty.