Dar-led ECC increases KE tariff by 51 paise

Published October 1, 2022
Finance Minister Ishaq Dar presides over an Economic Coordination Committee meeting in Islamabad on Friday. — PID website
Finance Minister Ishaq Dar presides over an Economic Coordination Committee meeting in Islamabad on Friday. — PID website

ISLAMABAD: The first meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Ishaq Dar on Friday approved 51 paise per unit increase in tariff for K-Electric consumers and allowed a clearance of import consignments during the banned period against payment of a surcharge.

The Power Division tabled a summary for tariff rationalisation for KE. It was reported that Nepra had determined on July 29 periodic adjustments in tariff for the third quarter of 2021-22 for ex-Wapda power distribution companies (Discos) and a uniform rate was charged to consumers.

Under the National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for KE and state-owned distribution companies. The ECC approved tariff rationalisation by way of adjustments at Rs0.5087 per unit with a recovery period of three months for KE to maintain the uniform tariff across the country.

Under the decision, the Power Division was allowed to approach Nepra to issue a revised schedule of tariffs for gazette notification. “Such adjustments shall be recovered in three months with effect from Oct 1,” official documents suggest.

Fixes transfer price for urea dealers at Rs2,150 per 50kg bag

The Ministry of Commerce presented a summary regarding the clearance of stuck import consignments in light of the Office Memoranda (OM) issued by the Ministry of Commerce from July 22 to Aug 19. The ECC after discussion allowed the release of consignments of previously banned items for which Goods Declaration (GDs) had been filed on or after Aug 22 at the rates of surcharges contained in the OMs of MOC of July 22, Aug 19 and Aug 23 or the new and enhanced rates of regulatory duties and additional customs duties of Aug 22 statutory regulator order, whichever is higher.

The Ministry of Industries and Production tabled a summary for fixing imported urea prices. It was submitted that the Trading Corporation of Pakistan (TCP) was allowed to import 200,000 tonnes of granular urea from Sinochem Fertiliser and CNAM PGC. The cost estimates for the import of urea would be Rs27.333bn.

The ECC after a detailed discussion approved the Dealer Transfer Price (DTP) of 50kg imported urea bag at Rs2,150 and incidental charges at Rs620.47 per bag by sharing half of the subsidy on imported urea with provinces.

On the proposal of the Petroleum Division, the ECC approved the request of Zaver Petroleum Corporation (Pvt) Ltd (ZPCL) for the assignment of its entire 10pc working interest in Bannu West Block to Orient Petroleum Inc (OPI) — both companies owned by Hashoo group.

Zamzama lease extension

The ECC also approved the summary of the Petroleum Division and granted five years extension from April 2 this year in the validity period of the development and production lease of Zamzama Development and Production Lease, on the existing terms and conditions, covering an area of 525.79 sq km located in district Dadu, Sindh taking into consideration the remaining recoverable reserves and the economic evaluation of the field. Earlier it was granted for 20 years w.e.f. April 2.

The ECC also considered another summary of the Petroleum Division and granted an extension in the validity period of the eighteen (18) exploration licenses. The ECC also approved a technical supplementary grant of Rs2bn in favour of the Ministry of Housing and works. The ECC also deferred summaries presented by the Ministry of National Food Security and Research, Petroleum Division and Ministry of Information Technology and Telecommunication.

The meeting was also attended by minister for commerce Syed Naveed Qamar, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Government Effective­ness Dr Muhammad Jehanzeb Khan, Coordinator to the PM on Economy Bilal Azhar Kayani, Coordinator to the PM on Commerce and Industry Rana Ihsan Afzal, the SBP governor and federal secretaries.

Published in Dawn, October 1st, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Good examples

Good examples

It is not impossible for female (or male) leaders to fulfil promises if they have the will and drive to do so.

Editorial

Democracy damaged
Updated 28 Feb, 2024

Democracy damaged

The reserved seats controversy could have been avoided had the ECP by now decided whether SIC deserves them or not.
Misplaced priorities
28 Feb, 2024

Misplaced priorities

THE federal government’s filing of a petition with the Supreme Court on Monday, seeking to overturn an Islamabad...
Killing jirgas
28 Feb, 2024

Killing jirgas

ANOTHER day and another chilling story unfolds in Kohistan. The jirga institution, declared illegal by the top ...
New funds
27 Feb, 2024

New funds

PAKISTAN plans to seek a new loan of $6bn from the IMF under its Extended Fund Facility for a period of three years,...
Missing link
27 Feb, 2024

Missing link

WITH most of Punjab and KP now accessible via motorways, which have greatly eased road travel for the bulk of the...
Tragedy averted
Updated 27 Feb, 2024

Tragedy averted

Pakistan must shed the layers of intolerance that have been allowed to permeate society.