Prime Minister
Shahid Khaqan Abbasi today chaired a meeting of the Economic Coordination
Committee (ECC) of the Cabinet at the Prime Minister’s office today.
The meeting
approved a proposal submitted by the Commerce Ministry to allocate additional
quantity of 12 million kilograms of surplus tobacco to all the tobacco
companies and dealers on pro-rata basis.
The ECC also
approved a proposal to deregulate the margins on High-Speed Diesel for the Oil
Marketing Companies (OMC) and dealers under the policy of liberalization and
deregulation. The impact of the policy would be reviewed after three months.
It was also
decided that OMCs would add Fuel Marker in HSD within six
months at depot stage to avoid adulteration.
It was decided
that OGRA would develop a mechanism to monitor the OMCs commercial stock
position, the dealers inventory system and Fuel Marker System.
The ECC
provided a provisional approval of the issuance of Government of Pakistan’s
sovereign guarantee for Rs. 39,000 million for construction of 2X660MW Coal
Power Project Jamshoro, subject a third part evaluation especially pertaining
to demand and supply situation.
The ECC also
extended the period of provision of subsidy to agricultural tube-well consumers
in Balochistan till 31 December 2017 subject
to commitment of past payments by all concerned/stakeholders on same terms and
conditions as approved earlier by the ECC on 17.06.2015. The approval is linked
with a comprehensive review of solarization of the tube-wells to be undertaken
on a priority basis in order to save electricity bills and the subsidy being
provided by the federal and the provincial governments. The need to put in
place efficient irrigation methods likes drip-irrigation were also emphasized
by the meeting.
The ECC
approved a summary for extending the period of applicability of reduced rate of
0.4% advance income tax on banking transactions of non-filers under section
236P of the Income Tax Ordinance 2001 upto December 2017.
In order to
promote exports, the ECC approved a proposal that 50% of the export package
incentive for eligible textile and non-textile sectors, announced in Prime
Minister’s Export Package, be provided on the same terms as for the period
January to June 2017 without condition of increment. Remaining 50% of the
rate of incentive would be provided if the exporter achieves an increase of 10%
or more in exports as compared to the corresponding period of the last year. It
was also approved that an additional 2% drawback would be provided for export
to non-traditional markets. Besides, expeditious settlement of payments claims
by the State Bank of Pakistan was also approved.
Various
measures for rationalization of imports and reducing the import bill were also
suggested by Commerce division and Federal Board of Revenue. The detailed lists
of import items would be reviewed and finalized.
