ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the revised Textiles and Apparel Policy (2020-25) with certain amendments.
Federal Minister for Finance and Revenue Shaukat Tarin presided over meeting of Economic Coordination Committee (ECC) of the Cabinet. Ministry of Commerce submitted revised Textiles and Apparel Policy, 2020-25 after incorporating few changes along-with implementation report. The ECC after deliberation approved the policy with certain amendments.
Under the Policy, Ministry of Commerce has proposed to set an export target of $20 billion for textile and apparel industry during FY 2021-22. The export target for FY 2021-22 is further cascaded till 2024-25 with a projection to double textile and apparel exports to $40 billion. According to the revised policy, supply of energy (electricity and RLNG) to export oriented units/ sectors of textile industry would be at regionally competitive rates throughout the policy years without any disparity among provinces. Earlier, it was recommended that electricity will be provided at Cents 9/kWh all-inclusive and RLNG at $ 6.5/ MMBTU all-inclusive for the FY 2021-22 and concessionary regime will be continued at regional competitive energy rates for five years after deliberation with the stakeholders.
ECC discussed in details and approved summary submitted by Ministry of Communication for issuance of sovereign guarantee or SBLC worth of Rs. 6944.0 million against Operational Viability Gap Funding (VGF) for the construction of Sialkot (Sambrial) – Kharian Motorway project on BOT basis.
Ministry of Energy, Petroleum Division submitted a summary on 15 years’ extension of lease contract between Saindak Metals Limited and MCC China for Saindak Copper Gold Project. ECC after detailed discussion allowed the extension of lease contract and recommended to review financial aspect of the project annually by the professional expertises. Metallurgical Corporation of China (MCC) and state-owned Saindak Metals Ltd (SML) signed an agreement in 2017 under which the Chinese firm kept on operating the Saindak copper-gold project for five years. The lease is set to expire on Oct 30. The two companies had originally signed in 2002 a 10-year contract, which was extended for five years in 2012. The terms of contract have been kept confidential all along.
The ECC also approved Ministry of Energy, Petroleum Division’s summary on determination of RLNG sale price for PLL’s supply to K-Electric (KE).
On another summary of Ministry of Energy, Petroleum Division, for revision of gas price of Mazarani Gas field held by M/s PPL and GHPL, the ECC approved the proposal of revision of gas price applicable to Mazarani Gas Field from US$ 1.75/MMBTU to US$ 3.75MMBTU from 1st September 2021.
The ECC also considered and approved Technical Supplementary Grants submitted by different Ministries/Divisions. The ECC deferred Power Division’s two summaries on settlement of payables to government owned power plants and reinstatement of tax on dividend for investors/shareholders of IPPs.
Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Energy Hammad Azhar, Federal Minister for Privatization Muhammedmian Soomro, Adviser to the PM on Commerce and Investment Abdul Razak Dawood, federal secretaries and senior officers attended the meeting.