The Economic Coordination Committee (ECC) on Monday allowed premium on high-speed diesel (HSD) subject to maximum capping at $16.75 per barrel for importing oil marketing companies (OMCs) other than Pakistan State Oil (PSO) for the month of November.
The meeting, presided over by Finance Minister Ishaq Dar, considered a summary of the Ministry of Energy (Petroleum Division) on HSD/Gas Oil premium.
The summary highlighted that the demand for HSD has substantially increased due to the ongoing sowing season and rehabilitation efforts after the floods in the country. The meeting approved the summary and allowed premium on HSD subject to a maximum capping at 16.75 per barrel.
The ECC also considered the summary of the Ministry of Energy (Power Division) on standardized security package agreements for large-scale solar PV projects for substitution of expensive imported fossil fuel-based power generation under the framework and approved the summary except for special payment mechanism and quarterly indexation as was proposed in the summary.
The ECC also authorized Boards of Alternative Energy Development Board (AEDB) and CPPA-G to approve any amendments in the IA (Implementation Agreement) and EPA (Energy Purchase Agreement), as the case may be, that are project specific and may be required to comply with NEPRA’s Tariff Approval and/or Generation License for specific projects, subject to the condition that such amendments will not increase government’s obligations as contemplated and stipulated in the standard security package documents.
It was shared that the government plans to develop large-scale solar PV projects for substitution of existing imported fossil fuel-based thermal power plants within their technical and contractual limits through the private sector on a Built Own Operate and Transfer (BOOT) basis.
The ECC discussed and approved a summary submitted by the Ministry of National Food Security on the Kissan Package 2022. The package includes enhancement of agriculture loan disbursement from Rs. 1,419 billion to Rs. 1,802 billion, reduction in DAP price to Rs. 11,250 per bag from Rs. 13,750, and interest-free loans to convert 0.3 million tube wells to solar.
The ECC after discussion approved the proposal of the Finance Division for revision and renaming of Prime Minister’s Kamyab Jawan – Youth Entrepreneurship Scheme (PMKJ-YES) as Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) with a view to making it more purposeful and beneficial for small businesses and agriculture.
The Strategic Plans Division tabled a summary regarding the transfer of Heavy Electrical Complex (HEC) and State Engineering Corporation (SEC) Land to Heavy Mechanical Complex (HMC) and HMC-3. It was informed that the decision is needed to settle the land issue of HEC for completion of its privatization. The ECC after deliberation approved that the lands under consideration may be transferred from State Engineering Corporation and HEC to HMC and HMC-3 respectively along with liabilities and subject to payment of requisites dues.
The ECC approved the summary of the ministry of the Health Ministry for a technical supplementary grant as rupee cover for the remaining amount of the Asian Development Bank (ADB) Financing Agreement of $12.20 million equivalent to Rs. 2,928 million (out of $500 million committed by ADB), for procurement of COVID-19 vaccine and discharging liability of COVID-19 campaign during the current financial year 2022-23.
Federal Minister for Power Khurram Dastgir, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Malik, SAPM on Finance Tariq Bajwa, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Federal Secretaries, Chairman FBR, and other senior officers attended the meeting.
