ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the LPG (Production and Distribution) Policy Guidelines, 2012, that would allow the government to impose petroleum levy on LPG resulting in increase in its prices.The ECC, which met under the chairmanship of Federal Finance and Economic Affairs Minister Dr Abdul Hafeez Shaikh, approved the LPG (Production and Distribution) Policy Guidelines, 2012, submitted by the Ministry of Petroleum and Natural Resources. The approval of the summary is in continuation with the decision by the ECC, which considered the draft LPG (Production and Distribution) policy 2012 at its meeting held on October 23, 2012, asking the Ministry of Law and Justice to furnish its detailed comments on the draft. The Ministry of Law and Justice endorsed the draft which was subsequently placed before the ECC for approval. Sources said the government would be able to impose petroleum levy, a tax on locally produced liquefied petroleum gas under the approved LPG policy, which would increase its prices in the country. The government, in a bid to end cartelisation in LPG market and to promote LPG, prepared the LPG (Production & Distribution) Policy 2012. The sources further said that to incentivise the LPG industry for enhancing local LPG production as well as import of LPG and its utilisation in the automotive sector, the government had introduced this policy.The ECC also approved a summary of the Ministry of Railways for waiver of on-lending charges on Karachi Urban Transport Corporation for the project, ‘Revival of Karachi Circular Railways as Modern Commuter System’. The project is reportedly worth Rs 260 billion.Japan International Cooperation Agency (JICA) has already agreed to provide 93.5 per cent (US$2.4 billion) of the estimated cost through soft loan at a markup of 0.2 per cent payable in 40 years, including a 10-year grace period. The remaining 6.5 per cent (US$ 169.6 million) will be borne by the Ministry of Railway (60 per cent equity), the Sindh government (25 per cent equity) and the City District Government Karachi (15 per cent equity); the stakeholders of KUTC as per their share. The track of the KCR will be 86km long and 27 stations will be built around the city. This important project will be a milestone in improving the quality of the citizens’ life. The ECC also approved a summary by the Ministry of Railways, seeking changes in the composition of Business Express. The ministry submitted a summary for the ECC approval in July 2012. A committee comprising the minister for information and broadcasting, the Board of Investment chairman and the Planning Commission deputy chairman examined the matter and recommended minimum occupancy to be achieved at 65 per cent. Sharing ratio of gross revenue was recommended to be set at 80-20 between Pakistan Railways and joint venture partners up to the occupancy of 75 percent. For the occupancy achieved above 75 percent, the sharing ratio between Pakistan Railway and joint venture partners can be set at 75-25. The recommendations of the committee were approve by the ECC accordingly. The ECC accorded its approval to the summary of the Ministry of National Food Security and Research for sale of 12,000 MT of wheat to World Food Programme (WFP) from the PASSCO’s stocks at a price of US$ 300 per MT. The wheat procured by WFP will be provided to the IDPs of Khyber Pakhtunkhwa. Moreover, the ECC also agreed to the proposal of selling another 40,000 MT of wheat to WFP for consumption in Afghanistan.At the outset of the meeting, the ECC members offered special prayers for the departed soul of KPK Senior Minister Bashir Bilour who lost his life in a terrorist attack in Peshawar. The ECC prayed to Almighty Allah to rest his soul in eternal peace and grant courage to the bereaved family to bear the irreparable loss.