Govt approves Rs2.532b for Ramzan Package

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) approved a relief package worth Rs2.532 billion for the Holy month of Ramazan to provide subsidy on various food items and edible commodities.

The subsidy on food items will be extended to the common people through 5700 outlets of Utility Store Corporations (USC) throughout the country.

The package will issue the provision of relief to low income people at the doorstep living in the remote and far flung areas of the country.

The relief package will be effective from July 15.

A subsidy of Rs6 per kilogram will be given on wheat flour of Atta, Rs15 on ghee, oil and Rs10 on each commodity of Dal Channa, Bason, Dates, Rice Baspati, Rice Sela, Rice Broken.

This decision was taken in the ECC meeting, which was chaired by Federal Minister for Finance Dr. Abdul Hafeez Shaikh here on Tuesday.

On a summary moved by Ministry of Petroleum and Natural Resources regarding policy guideline on "LPG air mix, CNG or LNG based pipeline distribution projects undertaken by the Sui Northern Gas Pipelines Limited & Sui Southern Gas Company Limited", the ECC approved import of LPG equivalent to 250 tonnes with a cost computed on the basis of Weighted Average Cost of Gas.

However, key decision of procurement methodology and tendering will be brought to the ECC through a detailed presentation in the next meeting.

The ECC also requested law ministry to look further into the matter regarding price determination of LPG on monthly or six monthly basis.

The summary regarding deregulation of High Octane Blending Component (HOBC) by removal of inland freight equalization margin (IFEM) proposed by Ministry of Petroleum and Natural Resources deferred by ECC for the next meeting.

On a summary regarding donation of wheat to the poor and malnourished people of the country through the World Food Programme (WFP) on cost-sharing basis proposed by Ministry of National Food Security and Research, the ECC decided that the ministry will come up in next meeting after having due consultation with the WFP on the said matter.

There has been a lengthy discussion on the proposal of "Changes in Composition of Business Express" moved by Ministry of Railways, in which Ministry contented that Joint Venture (JV) Partners have from the very outset failed to meet most of major contractual obligations like guaranteed revenue of Rs.3.19 million was to be paid in advance, a commitment that has never been fulfilled.

In the same way, guaranteed revenue was to be paid in full whereas the JV Partners have been making part payments and so on.

After detailed discussion, the Chairman ECC constituted a committee comprising Minister for Information, Chairman Board of Investment, Sectary Railways and Deputy Chairman Planning Commission, which will look further into the matter.

The ECC also approved the summary for the increase in the amount of GOP sovereign guarantee from Rs5.300 billion to Rs19.150 billion in favour of local Banks syndicate as a time gap arrangement till extension/effectiveness of Foreign Loans and additional wavier of demurrage & detention charges Rs856.591 million 425MW Nandipur Power Project.

A summary regarding protection to Motor Cycle Industry in Pakistan moved by Ministry of Commerce was also discussed in which the Ministry proposed recommendations that new eight digit tariff lines be created in Pakistan Custom Tariff for all the parts of 125CC motorcycles with 5 per cent tariff in case of new entrants.

In the same way the ministry proposed that while reducing the duty on Completely Build Unit (CBU) and Completely Knock Down (CKD) in case of non-assemblers from 65 per cent to 35 per cent, the duties on parts and components may also be reduced as recommended by National Tariff Commission to protect the minimum cascading needed by the local industry.

After due deliberation, ECC constituted a committee comprising Minister for Water & Power, Minister for Petroleum & Natural Resources, Minister for Information, Chairman BOI, Secretary Water & Power, DCPC and representatives from Ministry of Industries and FBR to look further into the matter.

ECC also approved Natural Gas Load Management plan proposed by Ministry of Petroleum & Natural Resources but subject to approval from the prime minister.

The Ministry of Petroleum proposed in the above mentioned summary that supply of natural gas to power sector should be prioritized over supply to fertilizer sector after domestic sector for in the wake of current loadshedding in the country.

ECC also approved a summary to re-constitute Pakistan Central Cotton Committee and increase in the rate of cotton cess with the provision that a functional re-structuring plan of Central Cotton Committee should be presented thoroughly in the next ECC meeting.

The other summaries which were approved by ECC include "Revised Draft Low BTU Gas Pricing Policy, 2012", " Policy Package for Establishment of Economic Zones Including China-Pakistan Economic Zone (CPEZ)" and "Approval for Opening of Branch at Colombo, Sri Lanka a Request by National Bank of Pakistan".