Staff Report
ISLAMABAD: In the wake of prevailing international economic conditions and the unprecedented price hike of RLNG in the international market and to optimize the utilization of RLNG for the continued operations of these Power Plants, the Economic Coordination Committee (ECC) considered and approved the proposal of the Power Division to fix the minimum take or pay commitment at 33% under the PPA and GSA to guard the interests of both buyers and suppliers.
Further, the ECC allowed the fixation of GSD under the GSA at Rs. 15 billion per power project.
Federal Minister for Finance and Revenue Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Syed Murtaza Mahmud, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha, Federal Secretaries and senior officers attended the meeting.
ECC approves summary to revise price of Urea
Petroleum Division tabled a summary on change in take-or-pay commitment in power purchase agreements & gas supply agreements of three RLNG public sector power plants, namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant, and Haveli Bahadur Shah Power Plant.
The ECC considered and approved a summary of the Ministry of Industries and Production on the revision of the price of imported Urea and allowed to fix the Dealer Transfer Price (DTP) of 50 kg imported Urea bag at Rs. 2340/bag by NFML and provisionally approved incidental charges from KPT at Rs. 594/bag and from Gwadar at Rs. 1008/bag respectively to bring stability in the prices of Urea in the market. The ECC further directed that the 50% of subsidy for imported Urea should be shared by the provinces.
The ECC considered another summary of the Ministry of Industries and Production on the provision of funds to the Heavy Electrical Complex (HEC) to release the markup amount to the Bank of Khyber (BoK).
After discussion, the ECC approved a Supplementary Technical Grant (TSG) amounting to Rs. 80.988 million to HEC for payment to Bank of Khyber for markup amount for the 2nd, 3rd, and 4th quarters of the calendar year 2022.
The ECC also gave approval in principle for the provision of funds with the direction that the transaction of HEC must be completed by 15th February 2023.
ECC constitutes inter-ministerial committee
Ministry of Railways submitted a summary of its business plan to generate a decent source of earnings to improve its financial health by laying fiber optic cable along its infrastructure.
After discussion, the ECC constituted an inter-ministerial committee comprised of federal secretaries of all relevant divisions, headed by the Federal Minister for Law & Justice, to prepare a draft Right of Way Policy on the issue.
The ECC also approved a Supplementary Technical Grant of Rs. 500 million in favour of the Ministry of Housing and Works for the execution of a development scheme for the construction/rehabilitation of flood-affected roads, District Muzafargarh-I.
