ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved up to 150 per cent increase in gas prices and directed the Trading Corporation of Pakistan (TCP) to float fresh tender for import of 300,000 MT of wheat. Petroleum Division submitted a summary on the natural gas sale pricing for FY2022-23. It was submitted that since FY2015-16, the gas prices were not revised in line with revenue requirements determined by OGRA. This resulted in accumulation of revenue shortfall/tariff differential amounting to Rs. 547 billion as of March 2022. Similarly, gas sector circular debt remained at Rs. 299 billion in June, 2018 and increased to Rs. 1232 billion on 31st March 2022. To overcome revenue losses, contain gas sector circular debt, to sustain the supply chain and invest in exploration and production, Petroleum Division placed broad principles/parameters for revision of the category – wise consumer gas sale prices. The ECC approved the proposed revision in consumer gas sale prices with direction to further reduce the gas rates for export and non-export industry/ captive power. According to the officials, gas pricss have been increased by up to 150 percent. Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of second international wheat tender 2022 opened on 1st July, 2022 for 500,000 MT. The ECC after discussion scrapped the tenders and directed TCP to float fresh tender for import of 300,000 MT of wheat. Further, a committee has been formed on the directions of the Prime Minister comprising of Ministers of Commerce, National Food Security & Research and Finance to ascertain the actual wheat requirement for the country. Earlier, TCP has already given contracts for the first tender of 500,000 tonnes at the rate of $515.5 a tonne for delivery windows of July to August.
ECC approves proposed revision in consumer gas sale prices with direction to further reduce gas rates for export and non-export industry/captive power
The second tender for another 500,000 tonnes had fetched almost 15pc lower rates at about $440 per tonne compared to the first tender, which had a $76 per tonne higher price. The ECC, considering the lower trend of wheat in the international market, approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan at the rate of $439.40 per tonne for 110,000 tonnes with plus-minus 5pc [more or less seller option] to the extent of 500,000 tonnes. However, the ECC scrapped the tenders and directed TCP to float fresh tender for import of 300,000 MT of wheat. Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division. Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan. The ECC approved the continuity of distribution of subsidized Atta under Prime Minister’s Sasta Atta Initiative on 1200 additional sale points in KP for the two months from 1st July to 31st August, 2022 with further directions to submit in the next meeting of ECC complete mechanism on distribution of subsidy packages through USC. Ministry of Industries and Production submitted another summary on provision of funds to HEC to release markup amount. The ECC allowed funds in the form of grant amounting to Rs. 96.873 million already released as loan to HEC in pursuance of ECC’s decision dated 22nd November 2021. The ECC also approved funds amounting to Rs. 20.085 million in the form of Grant and allowed its allocation through Technical Supplementary Grant to Ministry of Industries and Production. The funds have already been approved by the ECC in its decision dated 30th March 2022. Further the ECC directed the Privatization Commission that in future all liabilities may be mentioned in contracts between buyer and seller of privatized entities. On a summary of Power Division, the ECC granted approval for issuance of GoP sovereign guarantee of Rs. 10 billion for construction of two units of 660 MW Super Coal Power Projects, Jamshoro, that is 90 % compete, in favour of local banks/financial Institutions under Syndicated Term Finance Facility (STFF) agreed with M/s Faysal Bank Limited. Ministry of Economic Affairs submitted a summary on tax exemption from the payment of GST for Japan International Cooperation Agency (JICA). In order to support the development activities carried out by JICA, the ECC allowed blanket exemption from the payment of GST by JICA in respect of goods purchased by JICA. This exemption shall also be available on procurement of services by JICA received in Islamabad Capital Territory under ICT ordinance, 2001.
ECC approves proposed revision in consumer gas sale prices with direction to further reduce gas rates for export and non-export industry/captive power
The second tender for another 500,000 tonnes had fetched almost 15pc lower rates at about $440 per tonne compared to the first tender, which had a $76 per tonne higher price. The ECC, considering the lower trend of wheat in the international market, approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan at the rate of $439.40 per tonne for 110,000 tonnes with plus-minus 5pc [more or less seller option] to the extent of 500,000 tonnes. However, the ECC scrapped the tenders and directed TCP to float fresh tender for import of 300,000 MT of wheat. Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division. Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan. The ECC approved the continuity of distribution of subsidized Atta under Prime Minister’s Sasta Atta Initiative on 1200 additional sale points in KP for the two months from 1st July to 31st August, 2022 with further directions to submit in the next meeting of ECC complete mechanism on distribution of subsidy packages through USC. Ministry of Industries and Production submitted another summary on provision of funds to HEC to release markup amount. The ECC allowed funds in the form of grant amounting to Rs. 96.873 million already released as loan to HEC in pursuance of ECC’s decision dated 22nd November 2021. The ECC also approved funds amounting to Rs. 20.085 million in the form of Grant and allowed its allocation through Technical Supplementary Grant to Ministry of Industries and Production. The funds have already been approved by the ECC in its decision dated 30th March 2022. Further the ECC directed the Privatization Commission that in future all liabilities may be mentioned in contracts between buyer and seller of privatized entities. On a summary of Power Division, the ECC granted approval for issuance of GoP sovereign guarantee of Rs. 10 billion for construction of two units of 660 MW Super Coal Power Projects, Jamshoro, that is 90 % compete, in favour of local banks/financial Institutions under Syndicated Term Finance Facility (STFF) agreed with M/s Faysal Bank Limited. Ministry of Economic Affairs submitted a summary on tax exemption from the payment of GST for Japan International Cooperation Agency (JICA). In order to support the development activities carried out by JICA, the ECC allowed blanket exemption from the payment of GST by JICA in respect of goods purchased by JICA. This exemption shall also be available on procurement of services by JICA received in Islamabad Capital Territory under ICT ordinance, 2001.
