ECC Fixes Ghee Prices in Utility Stores at Rs. 300 per Kg

The Economic Coordination Committee (ECC) of the Cabinet has announced to fix ghee priced at Rs. 300 per kg in utility stores during a recent meeting at Finance Division, chaired by the Federal Minister for Finance and Revenue, Mr. Miftah Ismail.

Ministry of Industries and Production submitted a summary for extension of Prime Minister’s Relief Package-2020 and fixation of Ghee prices at Utility Stores Corporation (USC).

The ECC approved an extension in the Prime Minister’s Relief Package-2020 up to 30 June 2022 on all five essential items and allowed that Ghee shall be sold in all USC outlets throughout the country at Rs. 300 per kg from 9 June 2022 irrespective of the higher market prices. The ECC further approved the allocation of funds Rs. 3,447.60 million in favour of USC through Supplementary Grant.

Ministry of Aviation submitted a summary for payment of Sales Tax for leased aircraft on an installment basis. It was informed that Pakistan International Airline Corporation Limited (PIACL) is going to induct four A320 Aircraft on a dry lease basis for a period of 72 months.

Due to financial constraints, PIACL is not in a position to pay GST on the total rental value in a lump sum. The ECC after considering incoming Haj 2022 and financial constraints of PIACL approved payment of GST at 17 percent i.e Rs. 1.596 billion approximately on the total rental value of Rs. 9.388 billion of four A320 leased aircraft on monthly installments over the lease term starting from the date of arrival of aircraft, including one already arrived.

Ministry of Communications presented a summary of the requirement for additional funds for the construction of Gilgit-Shandoor road, N-140. Rs. 2000 million were allocated in the Federal Budget 2021-22, whereas the actual requirement of funds to acquire land and make payments of certified liabilities is Rs. 6,000 million. The ECC accorded approval of Rs. 4,000 million as additional funds for the project “Construction of Gilgit- Shandoor Road, N-140.”

Petroleum Division submitted a summary for enhancement of Oil and Gas production from TAL blocks vis-a-vis provisional allocation of gas price. Keeping in view the shortage of gas in the country, the ECC conditionally allowed M/s MOL to commence production from Tal block namely Mamikhel South. TAL JV was given the 2012 Policy Price on a provisional basis till the further decision of the Govt.

Ministry of Energy, Power Division submitted a summary on tariff rationalization for the power sector. The ECC after a detailed discussion approved the annual rebasing plan with certain modifications. The ECC also directed Power Division to recommend subsidy reform adjustment for unprotected consumers which was approved in December 2021 but not implemented.

The ECC also considered and approved the revised Ex-officio Steering Committee of the Targeted Commodity Subsidy Program (TCSP) to oversee the implementation of the Commodity Subsidy Program with the Minister of Poverty Alleviation and social Safety as chairperson.

The ECC also approved the following Supplementary/Technical Supplementary Grants.

1. Rs. 25.61 billion for the Petroleum Division for the disbursement of Price Differential Claims (PDCs) to OMCs/Refineries for the first fortnight of June 2022 and additional requirements of the previous fortnight.
2. Rs. 36 billion in favor of the Petroleum Division to maintain the sustainability of the LNG supply chain as well as the import of petroleum products. The allocated amount shall be released to SNGL against its pending claims in respect of the cost of RLNG diversion to the domestic sector for setting off the payable of PSO and PPL against RLNG supply.
3. Rs. 50 billion for the Power Division as an advance against future subsidy claims of the Power Sector.
4. Rs. 130 billion for ways and means advances availed by provincial governments.
5. Rs. 162 million in favour of the Department of Auditor General of Pakistan.
6. 3.5 billion to Govt. of Sindh to offset losses of the abolition of Octri and Zila Tax.
7. Rs. 1,520 million to FBR for the project titled “Development of Integrated Transit Trade Management System (ITTMS).
8. Rs. 1.5 billion and Rs. 709 million in favour of the Ministry of Interior.
9. Rs. 535.8 million in favour of the Ministry of Information and Broadcasting.
10. Rs. 300 million in favour of the Ministry of Information Technology and Telecommunication.
11. Rs. 7.4 million for the Ministry of Law and Justice.
12. Rs. 1.5 billion for National Poverty Graduation Program (NPGP).
13. Rs. 668.7 million for the Ministry of States and Frontier Regions.
14. 26 Million to Civil Services Academy, Lahore.
15. Rs. 181.495 Million to pay off the pending liabilities of advertising agencies against the media campaign of the Kamyab Pakistan Program (KPP).

Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Division Mr. Musadik Masood Malik, Federal Secretaries, Chairman FBR, Chairman OGRA and senior officers attended the meeting.