The meeting of the Economic Coordination Committee (ECC) of the Cabinet was held under the chairmanship of Federal Minister for Finance Senator Mohammad Ishaq Dar at the Prime Minister’s Office here this afternoon.
The meeting which lasted for nearly three hours decided that both imported and locally manufactured urea would be sold to farmers at a uniform price of Rs.1786 per bag with immediate effect.
To ensure the uniformity of prices the government will bear a subsidy of Rs.741 per bag as the present estimated cost of imported urea is Rs.2527/- per bag.
The decision has been made to remove corruption due to differential in prices of imported and local urea and end exploitation. This will not only eliminate a source of corruption but also save farmers from exploitation of middlemen,besides relief to the common man.
The meeting was told that the average cost of 150,000 tons presently being unloaded at the port and another 100,000 tons expected to dock on January 19/20 is estimated at Rs.2527 per bag.
The ECC in its last meeting had deferred the decision on concessionary gas sale price to Engro Fertilizer by Sui Northern Gas due to absence of opinion of Law Division.
The matter after examination of Law Division and its advice was submitted before the ECC by the Ministry of Petroleum.
In light of the recommendations of the Law Division and recommendations of the Ministry of Petroleum and Natural Resources it was decided that the concessionary period of 10 years be extended by the number of days for which SNGPL could not supply gas for operation of the plant.
The ECC reviewed the present policy of exports to Afghanistan wherein facility of exports to Afghanistan was allowed in Rupee.
The Ministry of Commercewith the concurrence of FBR and President Khyber Paktunkhwa Chamber of Commerce recommended that this facility be discontinued since it is resulting in Pakistan being deprived of foreign exchange of around US $ one billion.
The ECC confirmed the decision of the Finance Minister taken on Januarry 8th,2014 that after 17th March, 2014 payments against exports to Afghanistan will no longer be possible in Pakistan Rupees and the normal trading regime will apply. This two month period is being given to allow Pakistani exporters to fulfill any existing export contract on ligations.
The current restriction (of allowing export of cement only) to Afghanistan from Ghulam Khan Customs Check Post will be removed thereby enabling export of all permissible items through this Check Post.The facility is being provided to encourage exports and encourage economic activity in backward areas of Khyber Pakhtunkhwa.
The ECC considered the summary submitted by the Revenue Division on “Withdrawal of Concession of Custom Duty on import of BOPET Film-SRO 565(1)/2006” by a committee constituted under the Chairmanship of the Secretary, Ministry of Industries and Production with Secretary, Commerce and Chairman FBR as members to carry out a comprehensive study in the matter and bring a proposal based on consensus among all concerned before the ECC.
The ECC decided that concessionary rate of customs duty provided toi Flexible Packaging industry and Gypsum board industry to import BOPET film at 5% m ay be withdrawn. Withdrawal of concessionary rate of duty will mean that the customs duty on import of BOPET film by these industries will be 20%;l and concessions available to metallic yarn industry and magnetic strip/scratch cards industry should continue as it is, because withdrawal of concession for these industries will adversely affect cascading of the tariff structure. However, misuse of concession to metallic yarn and magnetic cards industries be avoided by observing strict allocation of quota based on survey of the registered manufacturers and post import performance verification through sales tax returns.
The ECC on a summary moved by the Ministry of Defence approved providing of sovereign guarantee of US $26,805,444 in favour of M/s China Electronics and Technology Corporation (CWTC) Beijing, China to pay back loan in seven years, including two years grace period.
The guarantee is being provided in terms of a decision made by the Government of Pakistan for Establishment of National Electronic Complex of Pakistan (NECOP) between National Engineering and Scientific Commission (NESCOM) of Pakistan and CETC.
The Secretary Water and Power informed the ECC that CDWP has approved the proposal for Jamshoro Power Plant to be fueled by coal and construction of Power Project which will be presented before the ECNEC in its next meeting for its approval.
The ECC decided to approve the Standardized Security Agreements (Project Agreements) for Up-Front Tariff regime based Wing Energy projects under Policy for Development of Renewable Energy for Power generation 2006 following NEPRA’s Upfront Tariff Determination. AEDB was also authorized to approve any project specific amendments, in the Standardized Security Agreement (Project Agreements) for Up-Front Tariff regime based Wind Energy projects which do not increase GoPs financial and contingent liability beyond those stipulated in the Project Agreements.
The Ministry of Water and Power placed a summary before the ECC for Gas pricing issues of the Liberty Power Limited (TNB) 235 (MW).
The ECC decided that original decision of ECC be amended as under:
“The Qadirpur Gas Price for sale to Liberty Power Plant Limited be fixed equal to 67.50% of the weighted average of a basket of crude oil import during the 6 months period which shall be notified on 6 monthly basis as per mechanism prevalent for fixation of well head gas price of other fields”.
This will remove discrimination towards TNB. The decision has been taken after consultation with all stakeholders.
The Ministry of Finance in a summary placed before the ECC stated that after having taking cognizance of increase in prices in Urea in it, a meeting was held with manufacturers of local fertilizer companies in which Minister for National Food, Security and Research, Minister for Petroleum and Natural Resources assisted the Finance Minister. After discussing various options and extensive deliberations the price of urea was reduced from Rs.1900/- per bag to Rs.1786/- per bag. The manufacturers agreed to the price.
The present state of affairs of Pakistan Steel Mills (PSM) came under threadbare discussion during the meeting.
The Finance Minister gave a categorical assurance that the interest of workers shall be protected in any future arrangement and at all costs.
The Finance Minister said that the case of the revival of Pakistan Steel Mills is a serious issue.
The ECC directed the Finance Ministry to release 45 days salaries of workers of Pakistan Steel Mills.
The ECC decided that the Chairman Privatization Commission and the Ministry of Industries should work together and come out with a reasonable proposal for consideration of ECC.
The Secretary of Industries and Production gave a detailed briefing on the present state of affairs of PSM.
ECC expressed its condolences over the passing away of father of Ms. Anusha Rehman, Minister of State for Information Technology and offered Fateha for the departed soul
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