ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Tuesday allowed clearance of about 900 used vehicles imported in violation of import policy.

It also ordered purchase of 75,000 tonnes of sugar from the mills in the first month and 50,000 tonnes per month subsequently with the condition to update the ECC on its progress by the end of February.

Two special units were also created in the energy ministries to monitor the performance of their respective companies under a condition of the International Monetary Fund (IMF).

The meeting of the committee, presided over by Finance Minister Ishaq Dar, was informed that around 900 vehicles of 2009 model were stuck at the ports due to confusion caused by misinterpretation of some clauses of the import policy.

An official statement said the finance minister had been informed recently by the FBR about the issue and then was given a representation by importers last week.

He had directed the commerce ministry to immediately submit a summary to the ECC on urgent basis.

As a consequence, secretary of commerce Qasim Niaz prepared the summary on Tuesday morning, took it to the ECC without circulation to the stakeholders concerned, and the ECC led by finance minister approved all the recommendations the same day.

As a result, the ECC allowed one-time waiver for clearance of cars, where date of export general manifest (EGM) was prior to Dec 31, 2013, subject to payment of surcharge.

The surcharge for the first eight months beyond the prescribed age limit of three years shall be calculated on rates stipulated in commerce ministry’s office order of Feb 25, 2013, with an additional surcharge for the additional period (maximum four months) beyond three years and eight months at a flat rate of 20 per cent of the C&F (cost and freight) value.

The ECC also withdrew from collectors customs the powers to condone age beyond prescribed limit under commerce ministry’s order of Feb 25, 2013 and June 15, 2012 with a two-month public notice to clear all cars stuck at Karachi.

The ECC, however, permitted the relevant Customs Collectorate to continue with authority for condoning delay in shipment by 30 days beyond the prescribed 120 days (para 4(1)(b) and 4(3)(c) of the Appendix-E of IPO-2013, against an additional surcharge of 5pc.

PIA: The ECC also extended a fresh guarantee of the federal government worth Rs2 billion to Faysal Bank Limited to provide loan to PIA.

The loan would be utilized to pay installment to Exim Bank as well as partial overdues of Pakistan State Oil. The ECC also noted that PIA was obtaining another loan of Rs3.40bn from National Bank of Pakistan by pledging its domestic cash flow.

The committee directed the secretary of aviation to submit the latest financial position of PIA and the progress on acquisition of 10 aircraft within one month.

SUGAR: The decision about sugar purchase was taken in view of expected very good sugarcane production to facilitate its lifting by the mills.

The Trading Corporation of Pakistan (TCP) was allowed to purchase sugar from the mills.

Under a benchmark of the IMF programme, the ECC also decided to set up two monitoring units in the ministries of petroleum and water and power to keep a constant check on performance of all oil, gas and power companies and submit quarterly evaluation reports to the ECC.

The monitoring units would oversee the setting up of benchmarks and keep performance indicators for distribution companies (DISCOs), generation companies (GENCOs), gas companies and oil companies.

The units would ensure monthly monitoring of the benchmarks, periodic dissemination and public reporting of the data relating to financials and key performance indicators of the entities in the power sector.

The ECC also approved the National Power Tariff and Subsidy Policy Guideline 2014.

The meeting was informed that bagasse produced by sugar mills in the country had the potential to generate over 2000MW of electricity. Therefore, the committee approved the Standardized Security Agreements (Project Agreements) for Up-front Tariff regime projects under Framework for Power Co-Generation 2013 (bagasse/biomass).

It authorised the Alternate Energy Development Board and Central Power Purchase Agency to approve any project specific amendments in standardised security agreements (project agreements) for up-front tariff regime projects under the said framework but with prior legal opinion of the law minister to ensure that it did not increase government obligations beyond the provisions of the Framework for power co-generation 2013 (bagasse/biomass) and the policy for development of renewable energy for power generation 2006.