The Economic Coordination Committee of the Cabinet on Wednesday approved the provision of a government guarantee by the Ministry of Finance for repayment of a loan as well as interest, for a syndicated term finance facility for the power sector amounting to Rs41 billion.

The amount will be utilised for the purposes of funding the repayment liabilities of the Distribution Companies (Discos), through an arrangement between Power Holding (Private) Limited and Discos.

The ECC discussed and approved proposals from different ministries on Wednesday in a meeting at the Prime Minister’s Office, with Finance Minister Ishaq Dar in the chair.

The ECC approved the proposal of Cabinet Division for the provision of bridge financing to the tune of Rs864 million for facilitating the Printing Corporation of Pakistan in procuring new printing machines for meeting the requirement of the Election Commission of Pakistan, including with respect to the general elections in 2018.

ECC also approved the proposal of Ministry of Commerce for extending the deadline for export of sugar from May 31, 2017 to July 31, 2017. The ECC directed the relevant ministries to ensure price stability especially during the holy month of Ramazan.

While considering a proposal of the Economic Affairs Division, the ECC approved exemption from the payment of General Sales Tax (GST) for the German Development Agency – GIZ, in respect of goods purchased by GIZ. This exemption shall also be available on the procurement of services by GIZ received in Islamabad Capital Territory. This decision has been made to support the development activities carried out by GIZ in Pakistan.

The ECC also considered and approved a proposal of Ministry of Industries and Production, finalised with consensus, for not deregulating the price of sugarcane.

The ECC accorded approval to the proposal of the Ministry of Petroleum and Natural Resources that up to 10 MMCFD gas from Tolanj field may be allocated to Sui Northern Gas Pipelines Limites (SNGPL). The price of gas will be as per the applicable petroleum policy.

ECC approved another proposal from the petroleum ministry for allocation of 2.9 MMCFD gas from Khamiso-01 well, located in Ghotki district, to Engro Fertilizer during the Extended Well Testing (EWT) period and post-approval of commerciality/development and production (D&P) lease of the field.

On a proposal moved by the Privatization Division, the ECC granted post-facto approval for payment of one month’s salary to the employees of Pakistan Steel Mills Corporation (PSMC) for the month of February 2017. As Ramzan was to begin in the last week of May 2017, Chairman ECC had previously accorded anticipatory approval in this regard.

Also, keeping in view the fact that Eidul Fitr will fall in the last week of June, the ECC also directed that the salary of PSMC employees for the month of March 2017 may be disbursed before the last week of June.