The Economic Coordination Committee of the Cabinet has given approval for the removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross-subsidies under Retargeting of Power Sector Subsidies Phase –II.
The ECC meeting chaired by Federal Minister for Economic Affairs, Omar Ayub Khan, on Thursday also approved various Technical Supplementary Grants in favor of different Ministries.
ECC also held detailed discussions on various other summaries, including summaries pertaining to Auto Industry Development and Export Policy (AIDEP) 2021-26, Retargeting of Power Sector Subsidies (Phase-II), enhancement of Ways and Means Limit of Khyber Pakhtunkhwa (KP) government, scrapping of the tenders on sugar import, and gas supply to fertilizer sector.
After deliberation, ECC approved the Ministry of Commerce’s summary on the Textile and Apparel Policy 2020-25 with directions to include the input from FBR and the Division while addressing the observations made by the Power Division.
It also approved the summary tabled by the Ministry of Industry & Production on Auto Industry Development and Export Policy (AIDEP) 2021-26, directing the Ministry to review the export targets given in the policy every year and update accordingly. It also directed the Ministry to separately present the proposed tariff structure.
The committee approved the summary about ‘Retargeting of Power Sector Subsidies (Phase-II), which included removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross-subsidies. Ministry of Energy had submitted the summary.
ECC also recommended the summary tabled by Finance Division seeking enhancement of Ways and Means Limit of KP government from Rs. 27.0 billion to Rs. 31.3 billion due to the impact of the wage bill of erstwhile FATA [Federally Administered Tribal Areas].
The Ministry of Industries & Production has submitted a summary for endorsement on the decision of the committee constituted by ECC on scrapping of the tenders floated by the Trading Corporation of Pakistan in respect of the import of sugar. The ECC discussed and approved the summary.
On the recommendation of the Technical Advisory Sub-Committee, ECC also approved the summary tabled by the Ministry of Industries & Production on the revised gas supply priority order to the fertilizer sector. System gas supplies will be ensured to these plants during the current Rabi Season 2021-22 ensuring immediate availability of urea and saving of foreign exchange in case of import of urea from abroad.
On the recommendations of the Technical Advisory Sub-Committee, ECC also approved the following Technical Supplementary Grants:
i. Technical Supplementary Grant for amount Rs. 2,650.968 million in favor of the Ministry of Housing & Works for the execution of development schemes in the province of Sindh and Balochistan under SAP
ii. Supplementary Grant/Technical Supplementary Grant in favor of Ministry of Energy for payment of First Installment (40%) to IPPS of 2002 underpayment mechanism
iii. Supplementary Grant to Ministry of Information & Broadcasting amounting to Rs. 2 billion for launching comprehensive media campaign on government initiatives, programs, and projects
It is pertinent to note that ECC on 23 September 2021 also approved a supplementary grant of Rs 52.432 billion in respect of 11 IPPs under the 2002 policy to be released in accordance with the payment mechanism. Notably, the Committee on September 30 approved a supplementary grant of Rs. 14.52 billion payment to an IPP (TNB Liberty) under 1994 policy in accordance with the same payment mechanism.
The ECC deferred a summary tabled by the Ministry of National Food Security & Research for notification of minimum indicative price of tobacco crop 2022 with the directions that a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after detail revision.
The ECC meeting was attended by Advisor to the Prime Minister on Finance & Revenue, Shaukat Tarin, Minister for Industries & Production, Makhdum Khusro Bakhtyar, Minister for Energy, Hammad Azhar, Minister for Railways, Muhammad Azam Khan Swati, Minister for Interior, Sheikh Rashid Ahmed, Federal Minister for National Food Security & Research, Syed Fakhar Imam, Advisor to the Prime Minister on Commerce & Investment, Abdul Razak Dawood, Minister of State for Information & Broadcasting, Farrukh Habib, Governor State Bank of Pakistan, respective federal secretaries and other senior government officers.
Earlier, Advisor on Finance & Revenue, Shaukat Tarin, presided over a meeting of the Technical Advisory Sub-Committee, wherein the summaries were reviewed in detail and, subsequently, recommendations were made to ECC.
Source: Pro Pakistani