ISLAMABAD: Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Engineer Khurram Dastgir Khan, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Finance and Revenue Dr. Aysha Ghous Pasha, Shahid Khaqan Abbasi MNA/Ex-PM, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Federal Secretaries and other senior officers attended the meeting.
Ministry of Commerce tabled a summary on Import of Agricultural tractors under the Kissan package 2022 and proposed amendments in Import Policy Order 2022 to reduce cost of tractors. The ECC after deliberation approved the proposals of the Commerce Ministry and allowed amendment in the relevant clause of the IPO 2022 for import of upto 5 year old tractors. Regarding ‘Duty Reduction’ for import of secondhand tractors, the ECC allowed depreciation in value at 2% per month up to maximum of 60% as already provided under CGO no. 14 of 2005.
Finance Division presented a summary on proposals of State Bank of Pakistan (SBP) regarding equity investment of USD 4.9 million by Fauji Foundation for acquisition of shares of Daharki Power Holding Limited and submitted that the Government allowed Fauji Foundation to make equity investment abroad of US$ 12 million in ‘Daharki Power Holdings Limited’ in 2008. Fauji Foundation, Asian Development Bank and Daharki Power Holdings Limited, BVI entered into an agreement in 2008, which provided ADB the right to exercise put option in respect 2,750,000 shares subscribed by it. The ECC considered the proposals of SBP and allowed equity investment of US$ 4.9 million by Fauji Foundation for acquisition of 2,750,000 shares (18.64% stake) of Daharki Power Holdings Limited and granted waiver/exemption to Fauji Foundation from the policy enumerated in Foreign Exchange Manual being incorporated as a trust under Charitable Endowment Act 1980.
Ministry of Energy (Petroleum Division) presented a summary for assignment of working interest in exploration licenses/Blocks. The ECC after discussion approved assignment of 34% working interest of M/s Pakistan Oilfields Limited (POL) and 6% of M/s Attock Oil Company Limited (AOC) to M/s Polskie Gornictwo Naftowe I Gazowinictwo S.A (Polish Oil and Gas Company) (POGC) in Kirthar South Block (Sindh).
Ministry of Energy (Power Division) submitted a summary regarding amendments in the Standardized Security Package Documents (SPDs) for the large solar PV projects, based on the market response on the earlier modifications by the competent forum and in order to ensure the viability of the project. The ECC after discussion approved the proposals that indexation of tariff in the SPDs be on annual basis and payment mechanism for settlement of invoices as per Framework Guidelines.
The Ministry of Energy (Petroleum Division) submitted another summary regarding the Enhancement of Oil and Gas production from Tal Block (KPK) proposing sale of gas from Mamikhel South discovery to third party in accordance with Petroleum Concessions Agreement (PCA). It was also submitted that the State Owned Entities (SOEs) have around 70% working interest in TAL exploration License. This arrangement will be to the benefit of Government of Pakistan in the form of increased dividends and taxes and it will be an opportunity to enhance private sector participation. The ECC considered and approved the proposal.
The ECC considered and approved a summary submitted by Ministry of Commerce on policy regarding B2B barter trade mechanism specially where there is absence of banking channels and generally to facilitate trade with other countries.
The ECC also approved following Supplementary Grants/ Technical Supplementary Grants:
i. Rs. 300 million in favour of Ministry of Energy (Power Division) for expenditures on development projects under PSDP being executed by Peshawar Electric Supply Company (PESCO) during the current financial year (2022-23).
ii. Rs. 12.462 million in favour of Ministry of Housing and Works for the urgent repair and maintenance expenditures during current fiscal year 2022-23.
iii. Rs. 1000 million for the project “Rehabilitation/Construction of Roads in SITE Industrial Estate Karachi”.