Federal Minister for Finance and Revenue, Mr. Shaukat Tarin, presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet today.
Ministry of Commerce presented a summary regarding the continuation of concessional rates of electricity and RLNG to export-oriented sectors. Secretary Commerce briefed the Committee that extension of concessional rates of electricity and RLNG is important for a sustained increase in exports by providing energy at regionally competitive rates.
After due deliberations, the Committee approved the continuation of electricity and gas subsidy for export-oriented sectors to support the momentum of growth in exports during the FY 2021-22.
In his remarks, the Finance Minister emphasized the need to incentivize export-oriented sectors to take our exports to the next level. At the same time, the Finance Minister stressed the need to rationalize the usage of energy inputs. For this purpose, the ECC constituted a sub-committee comprising Minister for Energy, Minister for Industries & Production, Advisor on Commerce, Deputy Chairman Planning Commission, Additional Secretary (CF) Finance Division, and other relevant officials for presenting a plan to resolve the issue of continued use of gas by some units for power generation and non-cooperation in the audit of such use. The sub-committee was directed to present its recommendations before ECC within 30 days for further deliberation.
The ECC considered and approved a summary presented by the Power Division for extension of incremental consumption package for K-Electric industrial consumers of X-WAPDA DISCOs & K-Electric and application of incremental consumption package for BI(Non-ToU) consumers of X-WAPDA DISCOs and K-Electric at the rate of Rs. 12.96/kWh from 1st July 2021 to 31st December 2021.
The ECC also approved another summary by the Petroleum Division regarding NOC for issuance of the Parent Company Guarantees/Corporate Guarantees by each of the consortium companies on a joint and several bases, in favor of ADNOC and SCFEA to pursue international exploration and production opportunity in Abu-Dhabi, United Arab Emirates.
Federal Minister for Privatization, Muhammad Mian Soomro, Federal Minister for National Food Security & Research, Syed Fakhar Imam, Federal Minister for Industries and Production, Makhdoom Khusro Bakhtiar, Federal Minister for Energy, Muhammad Hammad Azhar, Federal Minister for Economic Affairs Division, Mr. Omar Ayub Khan, Adviser to the PM on Commerce, Mr. Abdul Razak Dawood, Adviser to the PM on Institutional Reforms and Austerity, Dr. Ishrat Hussain, SAPM on Finance and Revenue, Dr. Waqar Masood, SAPM on Power & Petroleum, Mr. Tabish Gauhar, Federal Secretary Finance, Secretary M/o Industries and Production, Secretary M/o NFS&R, Secretary Power, Secretary Petroleum, Chairman FBR and other senior officers participated in the meeting.
Governor SBP Dr. Reza Baqir also participated through a video link.