ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Wednesday decided to enhance the petroleum dealers’ margins on petrol & HSD by Rs. 1.64/liter in four fortnightly instalments of Rs. 0.41/liter w.e.f. from 15th September, 2023. A summary of Ministry of Energy (Petroleum Division) regarding “Revision of OMCs and Dealers Margins on Petroleum Product: MS & HSD” was also considered. The ECC decided to enhance the petroleum dealers margins on MS & HSD by Rs. 1.64/ liter in four fortnightly instalments of Rs. 0.41/ liter w.e.f. from 15th September, 2023. Moreover, OMCs margin on MS & HSD was decided to be enhanced by Rs. 1.87/liter in four fortnightly instalments of Rs. 0.47/ liter w.e.f 15th September, 2023.
Furthermore, after a detailed discussion, it was also decided by the ECC that in order to ensure efficiency and timeliness these margins shall be determined by OGRA on the basis of a systematic mechanism to be developed by OGRA after considering PSO’s operating cost for OMC and dealers
Caretaker Federal Minister for Finance, Revenue, Economic Affairs and Privatization Dr. Shamshad Akhtar chaired the meeting of the ECC of the Cabinet.
The Ministry of Aviation submitted a summary regarding “Financial support for PIACL & its Restructuring”. Secretary Aviation gave a detailed briefing to the chair about the financial burdens, liabilities of PIA and the need for restructuring of the organization. The ECC discussed and reviewed the timelines and costs of the restructuring plan. After detailed discussion and deliberation, it was decided to constitute a separate committee for assessment of the restructuring plan of PIA. The ECC also rejected the request for deferment of the payments of Rs. 1.3 billion per month which PIA pays to FBR against FED and Rs. 0.7 billion per month which PIA pays to CAA against embarking charges. It was also decided that Finance Division and the State Bank of Pakistan will support PIA to tackle its financial challenges after a concrete plan of restructuring of PIA has been finalized and submitted to the satisfaction of the Committee.
Lastly, the ECC approved Technical Supplementary Grant worth Rs. 40 billion against various approved projects of Defense Services and for subsidies & miscellaneous expenditures during FY 2023-24. However, the amount will not be released at once, but on case to case basis only as it has already budgeted for the current FY.
Meanwhile, Caretaker Federal Minister for Finance, Revenue, Economic Affairs and Privatization Dr. Shamshad Akhtar chaired the inaugural meeting of the Cabinet Committee on Privatization (CCoP). Secretary Privatization Commission (PC) presented a detailed briefing on the status of active privatization programme for the reaffirmation by the newly constituted CCoP.
The secretary updated the meeting on the issues related to the privatization of loss making SOEs including Heavy Electrical Complex, Services International Hotel, Pakistan Steel Mills, HBFCL, Roosevel Hotel, NY, Pakistan International Airlines (PIA), RLNG Power Plants, 10 Discos, etc.
The chair underscored the need of accelerating the process of privatization of loss making SOEs to foster great efficiency, productivity and enhancing the overall revenue of the country.
Regarding privatization and restructuring of PIA, the CCoP decided to form a technical committee for resolutions of bottlenecks and directed the Aviation Ministry to work with Privatization Commission to present a detailed action plan with clear time framework in a sequence. Similarly the CCoP constituted a committee led by caretaker Minister for Energy to present a viable plan with timeline regarding private sector participation in the management of Discos. The Committee comprised of Secretary Privatization Commission, Special Secretary Finance and member from NEPRA. The Committee shall submit its recommendations within shortest possible time
