ECC Approves Amendments to Import Policy Order to Reduce Cost of Tractors

The Economic Coordination Committee (ECC) has approved amendments to Import Policy Order 2022 to reduce the cost of tractors in the country.

Federal Minister for Finance and Revenue Senator Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday.

The Ministry of Commerce tabled a summary on the import of agricultural tractors under the Kissan Package 2022 and proposed amendments in Import Policy Order 2022 to reduce the cost of tractors.

The ECC after deliberation approved the proposals of the ministry and allowed amendment in the relevant clause of the IPO 2022 for the import of up to 5-year-old tractors. Regarding duty reduction for the import of second-hand tractors, the ECC allowed depreciation in value at 2 percent per month up to a maximum of 60 percent as already provided under CGO no. 14 of 2005.

Equity Investment by Fauji Foundation

The Finance Division presented a summary on proposals of the State Bank of Pakistan (SBP) regarding equity investment of $4.9 million by the Fauji Foundation for the acquisition of shares of Daharki Power Holding Limited and submitted that the government allowed Fauji Foundation to make equity investment abroad of $12 million in Daharki Power Holdings Limited in 2008.

Fauji Foundation, Asian Development Bank, and Daharki Power Holdings Limited, BVI entered into an agreement in 2008, which provided ADB the right to exercise put option in respect of 2,750,000 shares subscribed by it.

The ECC considered the proposals of SBP and allowed equity investment of $4.9 million by Fauji Foundation for the acquisition of 2,750,000 shares (18.64 percent stake) of Daharki Power Holdings Limited and granted waiver/exemption to Fauji Foundation from the policy enumerated in Foreign Exchange Manual being incorporated as a trust under Charitable Endowment Act 1980.

Assignment of working interest in exploration blocks

The Ministry of Energy (Petroleum Division) presented a summary for the assignment of the working interest in exploration licenses/blocks. The committee after discussion approved the assignment of 34 percent working interest of Pakistan Oilfields Limited (POL) and 6 percent of Attock Oil Company Limited (AOC) to Polskie Górnictwo Naftowe i Gazownictwo S.A. (Polish Oil and Gas Company) (POGC) in Kirthar South Block, Sindh.

Standardized Security Package Documents for Solar PV projects

The Ministry of Energy (Power Division) submitted a summary regarding amendments in the Standardized Security Package Documents (SPDs) for the large solar PV projects, based on the market response to the earlier modifications by the competent forum and in order to ensure the viability of the project. The ECC after discussion approved the proposals that indexation of tariff in the SPDs be on an annual basis and payment mechanism for settlement of invoices as per Framework Guidelines.

Enhancing oil and gas production from Tal Block

The Ministry of Energy (Petroleum Division) submitted another summary regarding the enhancement of oil and gas production from Tal Block (KPK) proposing the sale of gas from the Mamikhel South discovery to a third party in accordance with the Petroleum Concessions Agreement (PCA). It was submitted that the State Owned Entities (SOEs) have around 70 percent working interest in TAL Exploration License. This arrangement will be to the benefit of the Government of Pakistan in the form of increased dividends and taxes and it will be an opportunity to enhance private sector participation. The meeting considered and approved the proposal.

B2B Barter Trade Mechanism

The meeting also considered and approved a summary submitted by the Ministry of Commerce on policy regarding B2B barter trade mechanism, especially where there is an absence of banking channels and generally to facilitate trade with other countries.

Grants

The committee also approved a number of supplementary grants and technical supplementary grants. It approved Rs. 300 million in favor of the Ministry of Energy (Power Division) for expenditures on development projects under PSDP being executed by Peshawar Electric Supply Company (PESCO) during the current fiscal year. An amount of Rs. 12.462 million in favor of the Ministry of Housing and Works for the urgent repair and maintenance expenditures during the current fiscal year. Moreover, Rs. 1,000 million for the project Rehabilitation/Construction of Roads in SITE Industrial Estate Karachi was also approved by the committee.

Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir, Federal Minister for Planning Ahsan Iqbal, Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Finance and Revenue Dr. Aysha Ghous Pasha, former prime minister Shahid Khaqan Abbasi, SAPMs Tariq Bajwa, Tariq Pasha, Dr. Muhammad Jehanzeb Khan, Coordinator to PM on Commerce Rana Ihsan Afzal, Federal Secretaries and other senior officers attended the meeting.



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