The Economic Coordination Committee (ECC) of the Cabinet approved a payment of Rs. 16 billion of Sui Northern Gas Pipelines Limited (SNGPL) dues for February to May 2022. The ECC met under the chairmanship of the Minister of Finance, Shaukat Tarin, in Islamabad today.
This payment was approved as a Technical Supplementary Grant (TSG) for the dues of four months from February and expected claims for the remaining months of March, April, and May of the current fiscal year 2021-22.
Shifting of Urea Plants on Domestic Gas:
Furthermore, the Ministry of Industries and Production submitted a summary of the operation of Fatima Fertilizer (Sheikhupura Plant) and Agritech. The ECC, after discussion, approved the proposal for the provision of indigenous gas to two SNGPL-based Urea plants latest by 31 March 2022, resulting in the saving of funds to be utilized on the 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.
Rs. 23 Million HEC Mark-up Liabilities:
Ministry of Industries and Production submitted another summary on the provision of funds to Heavy Electrical Complex (HEC) to pay liabilities on account of markup to the Bank of Khyber (BoK). The ECC approved Rs. 23.309 million as markup for the period of October 2021 to March 2022.
Rs. 50 Billion Duty Drawback of Local Taxes Scheme:
Ministry of Commerce presented a summary of the Drawback of Local Taxes Scheme (DLTS) for the period 2021-26. The ECC after detailed discussion approved the revised/rationalized Drawback of Local Taxes Scheme (DLTS) for the period of five financial years from 1 July 2021 to 30 June 2026.
The scheme will be subject to quarterly/periodic reviews to gauge its impact on the 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 30 June 2022 are estimated to be around Rs. 50 billion.
Rs. 1.2 Billion for Three Technical Grants:
The ECC also approved a Rs. 500 million Supplementary Grant in favor of the Ministry of Federal Education and Professional Training for the National Commission for Human Development (NCHD), funds to the tune of Rs. 681.046 million in favor of the Ministry of Housing and Works, and Rs. 116.467 million in favor of the Interior Division.
