The Economic Coordination Committee (ECC) of the cabinet on Tuesday allowed a sovereign guarantee in favor of Sui Northern Gas Pipelines Limited (SNGPL) for commercial borrowing of Rs. 50 billion on an immediate basis for the liquidity requirement of Pakistan State Oil (PSO).
The meeting chaired by Finance Minister Ishaq Dar considered a summary tabled by the Ministry of Energy (Petroleum Division) on the liquidity requirement of PSO for the import of petroleum products in the country and argued that PSO is engaged in the import of Liquefied Natural Gas (LNG) to meet the energy requirement in terms of LNG and petroleum products.
Meeting of the ECC, chaired by Finance Minister Senator Mohammad Ishaq Dar, approved Cotton(Phutti) Intervention Price for the current sowing season at Rs. 8500/40kg. Extention in time limit in shipment period of sugar export from 45 days to 60 days from quota allocation(1/2).. pic.twitter.com/Rp7MYPGxuC
— Ministry of Finance (@FinMinistryPak) March 14, 2023
The summary highlighted that PSO is importing 8-9 LNG cargos per month whereas as per the contracts with LNG suppliers, PSO is obliged to clear the invoices within the time frame. To enable PSO to remain afloat in its payment obligations to LNG suppliers and to continue the LNG supply chain, the ECC allowed a sovereign guarantee in favor of SNGPL for commercial borrowing of Rs. 50 billion on an immediate basis.
Cotton Intervention Price
The Ministry of National Food Security and Research submitted a summary on Cotton Intervention Price (CIP) for 2023-24 Crop and argued that the announcement of CIP at this time, ahead of the main sowing season will help growers decide about the area and investment in cotton crop and expected to enhance yield and area by 10 to 15 percent.
To revive cotton production in the country, bring stability to the domestic market, and assure a fair return to the farmers, the ECC after a detailed discussion approved the proposal to fix Cotton Intervention Price at Rs. 8,500 per 40 kg for the current sowing season. The committee directed the ministry to constitute Cotton Price Review Committee (CPRC) with the mandate to review market prices. It also directed the ministry to proactively involve the cotton industry.
The ECC considered a summary of the Ministry of Commerce on the extension in the shipment period of sugar export and after detailed discussion allowed an extension from 45 days to 60 days time limit for shipment of sugar from the date of quota allocation.
Assistance to Turkey and Syria
The National Disaster Management Authority (NDMA) submitted a summary on the financial requirements for the NDMA execution plan regarding Pakistan’s assistance to Turkey and Syria for earthquake relief.
It was informed that the earthquake caused massive causalities in Turkey and Syria. To support the brotherly countries in their difficult time, NDMA was directed to maximize and extend full support from 6th February onwards. Considering timely help and support to brothers and sisters in Turkey and Syria, the ECC approved an immediate allocation of Rs. 10 billion to NDMA for payment for the procurement and transport of the goods to affected areas in both countries.
Federal Minister for Industries and Production Syed Murtaza Mahmud, Federal Minister for Commerce Syed Naveed Qamar, former prime minister Shahid Khaqan Abbasi, SAPMs Tariq Bajwa, Tariq Pasha, Dr. Jehanzeb Khan, Federal Secretaries, and other senior officers attended the meeting.