ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved about Rs97 billion worth of supplementary grants including Rs16bn gas subsidy for fertilisers and over Rs79bn subsidy to export sectors.
The meeting of the ECC presided over by Minister for Finance and Revenue Shaukat Tarin was attended by only two other out of 14 members including Planning Minister Asad Umar and National Food Security & Research Minister Syed Fakhar Imam.
Adviser to PM on Commerce & Investment Abdul Razak Dawood, Federal Secretaries, Governor SBP, Chairman Planning Commission also attended the meeting.
Allows uninterrupted gas supply to two Punjab-based fertiliser plants
Ministry of Industries and Production submitted a summary on the uninterrupted operation of two Punjab-based fertiliser plants of Fatima Fertiliser Sheikhupura Plant and Agritech Mianwali and required additional local gas to meet domestic fertiliser needs.
The meeting after discussions approved the proposal for the provision of indigenous gas from Sui Northern Gas Pipelines Ltd (SNGPL) to these two urea plants latest by March 31, resulting in the saving of funds to be utilised on the provision of regasified liquefied natural gas (RLNG) to both these plants and continued operation throughout the year.
The ECC also directed to expedite the process of shifting the plants on local transmission system gas within one month. The meeting also approved a supplementary grant of Rs16bn for payment of due to SNGPL for the month of February and expected claims for the remaining months of March, April and May during the current fiscal year (2021-22).
Ministry of Industries and Production submitted another summary on the provision of funds to Heavy Electrical Complex (HEC) to pay liabilities on account of markup to the Bank of Khyber (BoK). The ECC approved Rs23.309 million as markup for the period of October 2021 to March.
The meeting also took up a summary of the Ministry of Commerce on Drawback of Local Taxes Scheme (DLTS) for the period 2021-26. The ECC approved the revised DLTS for the period of five financial years from July 1, 2021 to June 30, 2026.
The scheme will be subject to quarterly and periodic reviews to gauge its impact on the export performance of sectors as well as exporting firms. The estimated financial impact of the scheme will be Rs79.27bn for 2021-22. However, “actual claims till June 30 are estimated to be around Rs50bn,” said an official statement.
The ECC also approved three other supplementary grants worth Rs1.497bn. These included Rs500m to the Ministry of Federal Education and Professional Training for the National Commission for Human Development, Rs681.046m to the Ministry of Housing and Works and Rs116.467m to the Ministry of Interior.
Published in Dawn, March 31st, 2022
