ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved in principle the Ramzan Relief Package -2022, involving subsidy of Rs8.2 billion.
The relief package, presented by Ministry of National Food Security & Research (MNFS&R) has been approved for the whole population of the country rather than only 20 million households registered with Ehsaas Rashan Riyat Programme with directions to frame procedural mechanism for limiting the interventions by each family.
The ECC meeting was presided over by Federal Minister for Finance and Revenue, Shaukat Tarin, according to press statement issued by the Finance Ministry.
The MNFS&R submitted another summary regarding intervention price for Cotton Crop (2022-23). In order to revive cotton production in the country, bring stability in domestic market and assure fair return to the farmers, the ECC allowed Rs. 5,700/40 kg threshold intervention price of seed-cotton.
The ECC further allowed to initially procuring two million bales of cotton at intervention price with direction that quantity would be reviewed on monthly basis.
The ECC allowed Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).
The committee also approved the proposal of Petroleum Division regarding issuance of sovereign guarantee amounting to Rs 21,000 million in favour of M/s Faysal Bank Limited at considerably lower markup rate for the remaining tenor of the loan i.e four and half years along with issuance of letter of comfort for new finance agreement with respect to pipeline infrastructure development project LNG-II.
On a proposal of Petroleum Division for re-allocation of OGDCL’s Jhal Magsi gas to SSGCL, the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL.
The SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.
On a proposal of Petroleum Division for allocation of gas from Mari (Deep) gas reservoir to M/s SNGPL, the ECC approved in principle upto 110 MMCFD gas from Mari deep (Goru-B) gas reservoir allocation to SNGPL till 30-06-2024 on firm basis with direction for the determination of price mechanism of gas.
Meanwhile the Petroleum Division for addressing PSO and other Oil Marketing Companies (OMCs) concerns over mechanism of payment of Price Differential Claims (PDC) submitted a summary on revised mechanism with the change to the previously approved mechanism that the PDC will be applicable on sale of petroleum products rather than on procurement of products.
The ECC approved the proposal with allocation of additional Rs. 11.73 billion as supplementary grant to meet the expenditure on payment of PDC up to 31st March 2022.
ECC also approved Technical Supplementary Grant amounting to Rs. 200 million to Pakistan Military Accounts Department (PMAD) for conversion of Pensioners to Direct Credit System.
ECC also approved Technical Supplementary Grant of Rs. 3500 Million in favour of Higher Education Commission for the Project titled “Pak University of Engineering and Emerging Technologies (PUEET).
Among others, the meeting was attended by Federal Minister for National Food Security and Research, Syed Fakhar Imam; Federal Minister for Planning, Development and Special Initiatives, Asad Umar; Federal Minister for Economic Affairs, Omar Ayub Khan; Federal Minister for Industries and Production, Makhdoom Khusro Bakhtiar; Federal Minister for Energy, Hammad Azhar; Adviser to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, federal secretaries and senior officials.
