Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division, today.
Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Division Mr. Musadik Masood Malik, Federal Secretaries, Chairman FBR, Chairman OGRA and senior officers attended the meeting.
Ministry of Industries and Production submitted a summary for extension of Prime Minister’s Relief Package-2020 and fixation of Ghee prices at Utility Stores Corporation.
The ECC approved extension in the Prime Minister’s Relief Package-2020 up to 30th June, 2022 on all five essential items and allowed that Ghee shall be sold on all USC outlets throughout the country @ Rs. 300/kg from 9th June, 2022 irrespective of the higher market prices. The ECC further approved allocation of funds Rs. 3,447.60 million in favor of USC through Supplementary Grant.
Ministry of Aviation submitted a summary for payment of Sales Tax for leased aircrafts on installments basis. It was informed that Pakistan International Airline Corporation Limited (PIACL) is going to induct four (04) A320 Aircrafts on dry lease basis for the period of 72 months. Due to financial constraints, PIACL is not in a position to pay GST on the total rental value in lump sum. The ECC after considering incoming Haj 2022 and financial constraints of PIACL approved payment of GST @ 17 % i.e Rs. 1.596 billion approximately on total rental value of Rs. 9.388 billion of four (04) A320 leased aircrafts on monthly installments over the lease term starting from the date of arrival of aircrafts, including 01 already arrived.
Ministry of Communications presented a summary on requirement of additional funds for construction of Gilgit-Shandoor road, N-140. Rs. 2000 million were allocated in the Federal Budget 2021-22, whereas actual requirement of funds to acquire land and make payments of certified liabilities is Rs. 6,000 million. The ECC accorded approval of Rs. 4,000 million as additional funds for the project “Construction of Gilgit- Shandoor Road, N-140.”
Petroleum Division submitted a summary for enhancement of Oil and Gas production from TAL blocks vis-a-vis provisional allocation of gas price. Keeping in view the shortage of gas in the country, the ECC conditionally allowed M/s MOL to commence production from Tal block namely Mamikhel South. TAL JV was given the 2012 Policy Price on provisional basis till further decision of the Govt.
Ministry of Energy, Power Division submitted a summary on tariff rationalization for power sector. The ECC after detailed discussion approved the annual rebasing plan with certain modifications. The ECC also directed Power Division to recommend subsidy reform adjustment for unprotected consumers which was approved in December 2021 but not implemented.
The ECC also considered and approved revised Ex-officio Steering Committee of the Targeted Commodity Subsidy Program (TCSP) to oversee the implementation of Commodity Subsidy Program with Minister of Poverty Alleviation and social Safety as chairperson.
The ECC also approved following Supplementary/Technical Supplementary Grants.
i. Rs. 25.61 billion for Petroleum Division for the disbursement of Price Differential Claims (PDCs) to OMCs/Refineries for the first fortnight of June, 2022 and additional requirements of previous fortnight.
ii. Rs. 36 billion in favor of Petroleum Division to maintain the sustainability of the LNG supply chain as well as import of petroleum products. The allocated amount shall be released to SNGL against its pending claims in respect of cost of RLNG diversion to domestic sector for setting off the payable of PSO and PPL against RLNG supply.
iii. Rs. 50 billion for Power Division as advance against future subsidy claims of Power Sector.
iv. Rs. 130 billion for ways and means advances availed by provincial governments.
v. Rs. 162 million in favor of Department of Auditor General of Pakistan.
vi. Rs. 3.5 billion to Govt. of Sindh to offset losses of abolition of Octri and Zila Tax.
vii. Rs. 1,520 million to FBR for the project titled “Development of Integrated Transit Trade Management System (ITTMS).
viii. Rs. 1.5 billion and Rs. 709 million in favor of Ministry of Interior.
ix. Rs. 535.8 million in favor of Ministry of Information and Broadcasting.
x. Rs. 300 million in favor of Ministry of Information Technology and Telecommunication.
xi. Rs. 7.4 million for Ministry of Law and Justice.
xii. Rs. 1.5 billion for National Poverty Graduation Program (NPGP).
xiii. Rs. 668.7 million for Ministry of States and Frontier Regions.
xiv. Rs. 26 Million to Civil Services Academy, Lahore.
xv. Rs. 181.495 Million to pay off the pending liabilities of advertising agencies against media campaign of Kamyab Pakistan Program (KPP).