The Federal Minister for Finance Senator Mohammad Ishaq Dar chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet here at the Prime Minister’s Office this morning.
ECC approved reduction of gas price for Industry from Rs. 600 to 400 per MMBTU. In accordance with Fertilizer Policy 2001, the Industrial Sector gas sale price will also be applicable to Fertilizer sector only for fuel stock.
ECC considered and approved the Summary presented by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) regarding exemption of taxes on procurement of furniture and supplies of 15 District Health Units (DHU) and at three colleges located in the 2005 earthquake affected areas in the AJ&K and Khyber Pakhtunkhwa. The exemption is limited to the transaction SDF grant. Saudi Fund for Development has provided funds through a grant and mandated UNICEF for procurement of furniture and supplies for the reconstruction of these Educational institutions. The exemption has to be obtained from the ECC as the powers to grant exemption through SRO’s have been taken away from FBR/Revenue Division vide Finance Act, 2015.
ECC also accorded approval to the proposal of the Ministry of National Food Security and Research regarding extension in export period of thirty (30) days from the date of approval i.e. 15-06-2016 on the same terms and conditions already approved by the ECC in its meeting on 18 March 2016. The chairman said that the extension is limited for the balance quantity already approved for export for Sindh and Punjab. The Ministry apprised the ECC that the Food Departments of the governments of Sindh and Punjab and All Pakistan Flour Mills Associations and exporters have pleaded for extension as the specified quantity of wheat/wheat flour (Aata) could not be exported within the specified period due to Eid holidays and transportation problems etc.
ECC was also approached by the Ministry of National Food Security and Research to grant extension of thirty days to allow the rebate payment on export of wheat and wheat flour (Aata) i.e. 30thSeptember 2015 to 30 October 2015.
It was decided that the extension on payment of export rebate would only be available to those exports which have been shipped/transported (GD) on or till 30th September 2015 deadline. The ECC upheld the earlier decision that export of wheat and wheat flour (Aata) made during the period from 1st October,2015 to 12th January, 2016 shall not be entitled for any such support.
ECC also gave approval to the settlement reached between the Ministry of Water and Power and the Government of Sindh to resolve the issue of outstanding bills of Government of Sindh Departments and HESCO/SEPCO for the period of July 2010 to July 2016. The Government of Sindh will clear the outstanding amount of Rs. 27.398 billion in six equal monthly installments starting from September 2016. In the same decision, the Chair also directed Ministry of Water and Power for installing AMR meters (smart meters) in the area within four months, with 50% of the cost of the installation of meters to be borne by the Government of Sindh so that the issue may be settled on permanent basis.
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