News Desk
ISLAMABAD: Senator Mohammad Ishaq Dar, Federal Minister for Finance and Revenue, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday, discussing various important matters.
Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Planning and Special Initiatives Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Shahid Khaqan Abbasi MNA/Ex-PM, Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Finance and Revenue Dr Aysha Ghous Pasha,
SAPM on Revenue Tariq Mehmood Pasha, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, SAPM on Finance Mr. Tariq Bajwa, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal and other senior officers attended the meeting.
In the meeting, Ministry of Commerce presented a summary of the import of agriculture tractors under the Kissan package announced by Prime Minister Shehbaz Sharif last year. It proposed an amendment in Import Policy 2022 to reduce the tractors’ cost. The ECC approved the proposal and greenlit the amendment in the relevant clause for the import of up to five-year-old tractors.
Economic Coordination Committee on other summaries
Finance Division tabled a summary of proposals of SBP regarding equity investment of 4.9 million dollars by Fauji Foundation for acquisition of shares in Daharki Power Holding Limited and submitted that the government allowed Fauji Foundation to make equity investment abroad of 12 million dollar in ‘Daharki Power Holdings Limited’ in 2008.
Fauji Foundation, Asian Development Bank, and Daharki Power Holdings Limited, BVI entered inked an agreement in 2008, which provided ADB the right to exercise put option with respect to 2,750,000 shares subscribed by it.
The ECC considered the proposals of SBP and allowed equity investment of 4.9 million dollars by Fauji Foundation for acquisition of 2,750,000 shares (18.64% 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.
Ministry of Energy (Petroleum Division) presented a summary for assignment of working interest in exploration licenses/Blocks. The ECC after discussion approved assignment of 34 percent working interest of M/s Pakistan Oilfields Limited (POL) and 6 percent of M/s Attock Oil Company Limited (AOC) to M/s Polskie Gornictwo Naftowe I Gazowinictwo S.A (Polish Oil and Gas Company) (POGC) in Kirthar South Block (Sindh).
Ministry of Energy (Power Division) submitted a summary regarding amendments in the Standardized Security Package Documents 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 nodded over the proposals that indexation of tariff in the SPDs be on annual basis and payment mechanism for settlement of invoices as per Framework Guidelines.
The Ministry of Energy (Petroleum Division) tabled another summary regarding the Enhancement of Oil and Gas production from Tal Block proposing sale of gas from Mamikhel South discovery to third party in accordance with Petroleum Concessions Agreement. It was also submitted that the State-Owned Entities (SOEs) have around 70 percent working interest in TAL Exploration License.
This arrangement will benefit the Government of Pakistan in the form of increased taxes and dividends and it will be an opportunity to enhance private sector participation. The ECC considered and approved the proposal.
The committee considered and approved a summary submitted by Ministry of Commerce on policy regarding B2B barter trade mechanism, particularly where there is absence of banking channels and generally to make easy trade with other countries.
It also approved Supplementary Grants/ Technical Supplementary Grants. it approved 300 million rupees in favor of 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 (2022-23).
the committee approved 12.462 million rupees in favor of Ministry of Housing and Works for the urgent repair and maintenance expenditures during current fiscal year 2022-23.
The committee also approved 1,000 million rupees for the project Rehabilitation/Construction of Roads in SITE Industrial Estate Karachi.
