ISLAMABAD, July 3: The Economic Coordination Committee (ECC) of the cabinet on Tuesday approved Rs2.5 billion relief package on essential items for Ramazan and decided to divert natural gas from the fertiliser industry to the power generation sector to reduce electricity loadshedding.

Having far-reaching economic consequences, the decision to give priority to the power sector over fertiliser and industrial consumers would, however, be cleared by the prime minister and perhaps by the federal cabinet before implementation.

A meeting of the ECC presided over by Finance Minister Dr Abdul Hafeez Shaikh could not take a decision on pricing of liquefied petroleum gas (LPG) airmix with natural gas even though it allowed in principle import of 250 million tons of LPG subject to clearance of bidding process by the ECC.

A scathing criticism by PM’s Adviser on Petroleum Dr Asim Hussain against Oil and Gas Regulatory Authority (Ogra) chairman Saeed Ahmad Khan marred the otherwise smooth proceedings of the meeting. Sources said as the Ogra chairman started critical examination of the LPG airmix in the natural gas transmission system, he came under severe attack from the adviser for entering into the government’s domain of policy-making.

“He (Saeed) is telling lies. Ogra should not interfere in policy-making and instead should limit itself to regulate and monitor the oil and gas sector,” Dr Asim was quoted as saying. He was, however, advised by the finance minister to let the Ogra chairman speak his mind as one of the major stakeholders.

Petroleum secretary Mohammad Ejaz Chaudhry informed the meeting that mixing of about 10 mmcfd (million cubic feet per day) of LPG into the natural gas system would increase the weighted average cost of gas by about 6 per cent while mixing of 150mmcfd of LPG would increase the cost of gas by 27 per cent.

An official statement said the ECC approved import of LPG equivalent to 250 mmcfd with the condition that procurement methodology and tendering would be brought to the ECC through a detailed presentation in its next meeting. The meeting directed the law ministry to look into the question of price determination of LPG on a monthly or six monthly basis.

An equally important question brought before the ECC was the continued default of the only private sector joint venture partner of Pakistan Railways. The meeting constituted a committee to look into the matter.

The ministry of railways had requested the ECC to allow railways to take over ‘Business Train’ for its failure to comply with contractual obligations.