ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved Textile and Apparel Policy, 2020-25, and Auto Industry Development and Export Policy, 2021-26, with incentives to promote exports from the country.
The ECC meeting, presided over by Minister for Economic Affairs Omar Ayub Khan, directed relevant stakeholders to take the Federal Board of Revenue (FBR) and power division’s input before implementation of these policies.
Adviser to the Prime Minister on Finance Shaukat Tarin, Ministers for Industries Khusro Bakhtyar, Energy Minister Hammad Azhar, Railways Minister Azam Swat, Interior Minister Sheikh Rashid, Minister for Food Security Fakhar Imam, Adviser on Commerce Abdul Razak Dawood, Minister of State for Information Farrukh Habib and senior officials attended the meeting.
Summary on scrapping of tenders for sugar import also okayed
An official announcement said that the commerce ministry was directed to incorporate inputs of the FBR and the finance division and meet the observations of power division while finalising Textile and Apparel Policy, 2020-25. The textile policy is pending since 2019 and several drafts were submitted to the ECC for approval.
The ECC also approved the Auto Industry Development and Export Policy, 2021-26 policy with the directions that export targets given in the policy may be reviewed every year and updated accordingly. The ministry of industries was directed to propose tariff structure to be presented separately to the ECC.
After deliberation, the ECC approved a summary presented by the ministry of energy on retargeting of power sector subsidies - Phase –II, that included removal of one slab benefit (Incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross subsidies.
The ECC approved a summary presented by the ministry of industries for endorsement on a decision of the committee constituted by it on scrapping of the tenders floated by the Trading Corporation of Pakistan for import of sugar.
On the recommendation of Technical Advisory Sub-Committee, the ECC also approved another summary on revised gas supply priority order to the fertiliser sector. Gas supplies will be ensured to these plants during the current Rabi Session ensuring immediate availability of urea and saving of foreign exchange in case of import of this fertiliser.
The committee also recommended the summary tabled by the finance division for enhancement of Ways and Means Limit of the Khyber Pakhtunkhwa government from Rs27 billion to Rs31.3bn due to the impact of wage bill of erstwhile Fata.
On the recommendations of the Technical Advisory Sub-Committee, the ECC also approved the following technical supplementary grants. The ECC approved Rs2.650bn technical supplementary grant in favour of of the Ministry of Housing & Works for execution of development schemes in Sindh and Balochistan under SAP.
The meeting also approved supplementary grant / Technical Supplementary Grant in favour of the Ministry of Energy for payment of First Instalment (40pc) to IPPs of 2002 under payment mechanism and another Rs2bn supplementary grant to the Ministry of Information & Broadcasting for launching comprehensive media campaign on government initiatives, programmes and projects.
The ECC deferred a summary on minimum indicative price of Tobacco Crop, 2022. However, a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after revision.
Published in Dawn, December 17th, 2021