ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved funds of Rs 23.309 million for Heavy Electrical Complex (HEC) to pay liabilities on account of markup to a private bank.

Ministry of Industries and Production submitted another summary on provision of funds to HEC to pay liabilities on account of markup to Bank of Khyber (BoK). The ECC approved Rs. 23.309 million as markup for the period of October 2021 to March 2022.

The incumbent government had privatized the HEC at Rs99.999/share or Rs1.41 billion. As per the transaction structure approved by Federal Cabinet in December 2020, all 96.6% government shares in HEC were offered for sale. This was the fifth attempt at privatizing HEC with prior unsuccessful efforts in 2006, 2011, 2013 and 2015. HEC was the second public sector entity of which privatization has completed in so far tenure of the incumbent government. Earlier, the government had privatized only entity Services International Hotel besides selling few government owned properties in last three years.

Federal Minister for Finance and Revenue Shaukat Tarin presided over a meeting on Economic Coordination Committee (ECC) of the Cabinet. Ministry of Industries and Production submitted a summary on operation of Fatima Fertilizer (Sheikhupura Plant) and Agritech. The ECC after discussion approved the proposal for provision of indigenous gas to two SNGPL based urea plants latest by March 31st, 2022, resulting in saving of funds to be utilized on provision of RLNG to both these plants and continued operation throughout the year. The ECC further directed to expedite the process of shifting the plants on system gas within one month. The ECC also approved technical supplementary grant of Rs. 16 billion for payment of SNGPL dues for the month of February and expected claims for the remaining months of March, April and May during the CFY 2021-22. Ministry of Commerce presented a summary on Drawback of Local Taxes Scheme (DLTS) for the period 2021-26. The ECC after detailed discussion approved revised/rationalized Drawback of Local Taxes Scheme (DLTS) for the period of five financial years from 1st July, 2021to 30th June 2026. The scheme will be subject to quarterly/periodic reviews to gauge its impact on export performance of sectors as well as exporting firms. The estimated financial impact will be Rs. 79.27 billion for FY 2021-22, however, actual claims till 30th June, 2022 are estimated to be around 50 billion.

The ECC has approved supplementary grants of Rs. 500 million in favour of Ministry of Federal Education and Professional Training for National Commission for Human Development (NCHD). The ECC has also approved supplementary grant of Rs. 681.046 million in favour of Ministry of Housing and Works. It has approved supplementary grant of Rs. 116.467 million in favour of Interior Division. Federal Minister for Planning, Development & Special Initiatives Asad Umar, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to PM on Commerce and Investment Abdul Razak Dawood, federal secretaries, governor SBP, chairman Planning Commission and other senior officials attended the meeting.