Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today at the Cabinet Division.
The following four technical supplementary grants were approved by the ECC the current financial year:
• For the Federal Public Service Commission amounting to Rs.160 million
• For the achievement of Sustainable Development Goal Program amounting to Rs 1700.00 million
• For Special Security Division (SSD) (South) Phase-I, Rs.11483 million
• For Special Communication Organization (SCO), Rs.468.212 million
A proposal was moved by the Power Division for funding to the Power sector from the economic relief package for mitigating the effect of shortfall in the recoveries due to reduced demand of energy and late recoveries amid COVID-19 outbreak. The funds are required for covering up the fixed costs of the sector. ECC set up a committee constituting of Secretary Finance, Secretary Power and Adviser to PM on Austerity and Institutional Reforms to see the impact of slowdown of economic activity on Power Sector and firm up the TORs and mechanism that will assist in providing relief to the sector.
ECC approved the appointment of valuator for Pakistan Energy Sukuk phase II (Rs.200 billion) as the company had already done an extensive exercise of valuation of multiple government assets.
On the request by the Power Division for a Syndicated Term Finance Facility of Rs 100 billion, the request was referred to Secretary Finance/ Chairman PPRA for facilitation on the matter.
ECC approved the deferment of monthly and quarterly fuel adjustments in the electricity bills of the consumers till June 2020. The whole exercise will have a total impact of Rs. 151 billion on the Government.
ECC also approved making MD SNGPL a member of Price Negotiation Committee for TAPI (Turkmenistan, Afghanistan, Pakistan, Iran Gas Pipeline).
In order to cover up the losses incurred by PSO and Oil Sector due to devaluation of Pakistani rupee, ECC in principal agreed to a maximum of 60 days period for the adjustment of exchange gain or loss w.e.f 1-3-2020 and directed the Power Division to resolve the issue in consultation with Finance Division.
On the proposal sent by the Ministry of Energy regarding liquidity requirements of Pakistan State Oil, which has huge outstanding receivables from different Government sector organizations and is experiencing slow recoveries due to the ongoing pandemic, ECC directed Secretary Finance to consult with Power Division and help in retirement of some of the liabilities of PSO for running its business in this difficult situation.
On the Proposal moved by the Ministry of Maritime Affairs, ECC approved the KPT Board Resolution for extension in existing free period from 5 working days to 15 working days for cargo/containers landing with effect from 25-3-2020 till 30-4-2020.