The Economic Coordination Committee of the Cabinet has approved a special relief package of Rs. 20 billion to further continue the provision of subsidized electricity until June 2020 to five export-oriented sectors.
Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of ECC of the Cabinet on Wednesday.
ECC approved a proposal by Power Division for a special relief package of Rs. 20 billion to further continue the provision of subsidized electricity until June 2020 to five export-oriented sectors.
In order to promote five export sectors, namely textile, carpets, leather, sports, and surgical goods, the ECC of the Cabinet on October 24, 2018, decided to provide electricity @7.5 cents/Kwh to these exports oriented sectors from January 1, 2019.
Pursuant to that electricity tariff was reduced to 7.5 cents/ Kwh vide S.R.O 12(1)2019 dated 01.01.2019 issued by the Ministry of Energy (Power Division). However
Finance Division raised objections and asked to seek clarification from the ECC of the cabinet as there are no directions whether the tariff difference would be cross-subsidized or paid by GoP as a subsidy.
In order to implement the ECC of the Cabinet decisions, a high-level meeting was held on 26.2.2020 and it was decided that the five exports sectors will be provided electricity at an all-inclusive rate of US cents of 7.5 per unit (Kwh) from January 1, 2019, to June 30, 2020.
ECC also approved a proposal by the Ministry of Energy (Power Division) for two amendments aimed at providing ease of doing business to the upstream petroleum sector. The amendments are related to the extension of exploration licenses beyond two years by ECC rather than the Minister in Charge of Petroleum Division and creation of a new Zone-1 (F) for the onshore licensing regime and consequent revision in the Zonal Map.
ECC has discussed a proposal to increase wheat support prices to Rs. 1400 per 40 kg and will convene a special session tomorrow afternoon to discuss a detailed plan to keep the flour prices at the lowest possible level throughout the year in view of any increase in support price and incidental charges for supply of PASSCO procured wheat to provinces and allied issues related to the procurement of wheat by provinces and the private sector.
The ECC also okayed National Telecommunication Corporation’s revised budget estimates for 2018-19 and 2019-20.
The ECC also gave in-principal approval for a proposal for SAR 22.5 million equity investment abroad by Eastern Products Pvt (Ltd) Pakistan.