The Economic Coordination Committee of the Cabinet (ECC) on Tuesday deferred the proposal regarding tariff rationalization for power sector and approved the proposal for a Sovereign Guarantee to back the export of JF-17 Thunder Aircrafts.
Finance Minister, Asad Umar chaired meeting of the Economic Coordination Committee of the Cabinet (ECC) on Tuesday.
At the outset, the consideration of proposal regarding tariff rationalization for power sector was deferred on the request from the Finance and Power Divisions who asked for further time to deliberate the proposed revisions.
ECC approved, after detailed discussion, the proposal from the Commerce Division for export of one million metric ton (1-MMT) surplus sugar. No freight or financial support will be provided to millers/exporters by the Federal/Provincial Governments in this regard. Only those Sugar Mills will be allowed to export sugar which have paid arrears to farmers for all the crops up to 2017-18. Moreover an inter-ministerial committee will have fortnightly meetings to review sugar stock, export and price situation.
On another proposal of Ministry of Commerce, the ECC accorded approval for revision of cess rates of tobacco for the year 2018-19 as determined by the Pakistan Tobacco Board. It may be added that prices of various types of tobacco are fixed every year and cess rates are also revised.
In consideration of proposal submitted by the Ministry of Privatization, ECC approved disbursement of Rs. 375 million on account of net salary for the employees of Pakistan Steel Mill for the month of August 2018.
ECC directed the immediate formation of a special committee comprising representatives from Finance, Power Division, Auditor General of Pakistan, Ministry of Petroleum, FBR to address various issues relating to transfer of shares of K-Electric. It may be mentioned ECC earlier on 3rd September had directed Privatization Division to deliberate upon the issues relating to the sale of K-Electric in consultation with Petroleum and Power Divisions. In order to further facilitate resolution of various issues, formation of the special committee has now been ordered.
ECC was given a detailed briefing by Ministry of Petroleum relating to the LNG Terminals. The Committee directed Ministry of Law to examine the legal agreements relating to the terminals to see whether the government could revisit the terms and conditions contained therein.
ECC taking notice of the sudden hike in cement price directed the Adviser on Industries to have meeting with representatives of the industry, apprise the Committee of the causes of price increase and also suggest possible remedies.
ECC also approved proposal from the Ministry of Defence Production for a Sovereign Guarantee to back the export of JF-17 Thunder Aircrafts by PAC Kamra.