ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved Rs1.31 billion worth of supplementary grants for power and infrastructure projects besides allowing the import of five-year-old agriculture tractors under the Kissan Package.

The meeting chaired by Finance Minister Ishaq Dar on Tuesday also approved Fauji Foundation equity investments in Daharki Power Holdings.

The ECC approved a policy summary of the commerce ministry regarding B2B barter trade mechanism, especially where banking channels are absent and generally facilitate trade with other countries. The ECC approved a grant of Rs300 million for expenditures on development projects under PSDP being executed by Peshawar Electric Supply Company (Pesco) during 2022-23.

Moreover, another Rs12.462m was approved for the urgent repair and maintenance expenditures during FY23. It approved Rs1bn for the rehabilitation and construction of roads in SITE Industrial Estate in Karachi.

Regarding duty reduction for the import of used tractors, the ECC allowed depreciation at 2pc per month up to a maximum of 60pc. The meeting also considered the proposals of the State Bank of Pakistan and allowed equity investment of $4.9 million by Fauji Foundation for the acquisition of 2,750,000 shares (18.64pc stake) of Daharki Power Holdings Ltd.

Approves project grants worth Rs1.31bn

The meeting also granted waiver/exemption to Fauji Foundation from the policy enumerated in Foreign Exchange Manual being incorporated as a trust under Charitable Endowment Act 1980.

For the assignment of working interests in exploration licences/blocks, the ECC approved the assignment of 34pc working interests of Pakistan Oilfields Ltd (POL) and 6pc of Attock Oil Company Ltd to Polskie Gornictwo Naftowe I Gazowinictwo S.A (Polish Oil and Gas Company) (POGC) in Kirthar South Block (Sindh).

The ECC after discussion approved the proposals of the Power Division that indexation of tariff in the Standardised Security Package Documents (SPDs) be on an annual basis and payment mechanism for settlement of invoices as per framework guidelines.

The Ministry of Energy submitted another summary regarding the Enhancement of Oil and Gas production from Tal Block in Khyber Pakhtunkhwa proposing the sale of gas from Mamikhel South discovery to a third party under the Petroleum Concessions Agreement. It was also submitted that the state-owned entities have around 70pc working interests in the TAL exploration licence.

The ECC considered and approved the proposal.

Published in Dawn, January 18th, 2023

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