The Cabinet’s Economic Coordination Committee (ECC) is ready to approve the extension in the lease agreement between Saindak Metals Limited for the Saindak Copper-Gold Project.
It is scheduled to meet on Wednesday to discuss the summary being prepared by the Petroleum Division to extend the existing lease agreement between the SML and MCC for another 15 years.
According to the eleven-point agenda available with ProPakistani, the Minister for Finance, Shaukat Tarin, will chair the meeting to approve various summaries from various ministries and divisions.
The Ministry of Petroleum has reportedly sought the approval of the ECC for the extension of the leasing agreement between Saindak Metals Limited and the Metallurgy Corporation of China (MCC) for the extraction of copper and gold deposits, along with the development of the mines.
The Chinese state-owned company, MCC, has been operating in the Chaghi district of Balochistan since 2002 and the project is bearing fruit for both the SML and MCC in terms of profitability and sustainability.
Another summary from the Petroleum Division seeks the approval of the committee regarding the determination of the RLNG sale price for Pakistan LNG Limited (PLL) supply to K-Electric.
In a meeting on 27 March 2020, the Cabinet Committee on Energy had considered a summary prepared by the Power Division and approved the allocation and firm supply of 150 million cubic feet of RLNG per day (mmcfd) according to the requirement shared by K-Electric through the Pakistan LNG Terminals Limited (PLTL) and PLL from January 2021 to December 2025 at the Oil & Gas Regulatory Authority’s (OGRA) notified rates.
Subsequently, PLL approached the OGRA for the determination of the RLNG sale price for its supply to K-Electric.
K-Electric constructed a power plant with a generation capacity of 900 MW which required gas supplies, and according to the Petroleum Division summary, all civil/electrical/ instrumentation works, the laying of pipelines, and the establishing of a metering station had been completed at the project site. The pipeline has connected the power plant with the Sui Southern Gas Company’s (SSGC) custody transfer station.
After the ECC’s approval, K-Electric will be able to operationalize the power plant to enhance its generation capacity for Karachi.
Another summary that needs the approval of the ECC is for the revision of the price of the gas from Mazarani Gas Field that is under Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL). Mazarani Gas Field in District Kamber-Shahdadkot, Sindh, produces 3.2 mmcfd gas and 7 bpd condensate.
The ECC will deliberate on the settlement of payables to government-owned power plants on par with the Independent Power Producers (IPPs), and the reinstatement of the Tax on Dividend to 7.5 percent as dull and final liability for investors and shareholders of IPPs.
It will also approve a technical supplementary grant for the Pakistan Army to meet pandemic-related requirements during the current fiscal year. The summary was moved by the Defense Division.
Furthermore, the committee will also approve a summary by Cabinet Division for the release of funds amounting to Rs. 555 million for the E-Procurement Project (PforR) in favor of the Public Procurement Regulatory Authority (PPRA).
Similarly, the Cabinet Division has sought approval for the Technical Supplementary Grant (TSG) against funds of Rs. 8.190 billion during the current fiscal year of 2021-22 under the Sustainable Development Goals Achievement Program (SAP).
Also under consideration will be the provision of additional funds of Rs. 250 million in Employee Related Expenditure (ERE) through Supplementary/Technical Supplementary Grant during FY-2021-22 for the Ministry of Human Rights.
The Ministry of Commerce is submitting the Implementation Report Regarding Textiles and Apparel Policy 2020-25 to the ECC for review.
The issuance of the Sovereign Guarantee or a Standby Letter of Credit (SBLC) amounting to Rs. 6.944 billion for the Construction of the Sialkot (Sambrial)—Kharian Motorway Project on a BOT basis in a summary moved by the Communications Division.
