The Meeting of the Economic Coordination Committee of the Cabinet (ECC) was held under the chairmanship of Asad Umar Federal Minister for Finance, Revenue, and Economic Affairs today at the Prime Minister’s Secretariat.
Chairman ECC expressed displeasure on the issue of Fertilizer pricing and its export, taken by the previous government which was totally against the interests of the farmer community. He said that the interest of the poor farmer should be the supreme motivation for taking such decisions. The ECC was informed that the total requirement of fertilizer for the country for this sowing season would be around 600,000 tons. The ECC directed that a committee will be formed under the chairmanship of Advisor Industry and Production Mr.Abdul Razak Dawood to hold discussions with the local fertilizer industry to ascertain the total domestic production. The committee will present its recommendations in next ECC meeting following which the decision will be made regarding import of urea.
Ministry of Energy, Power Division gave a detailed presentation on the amount of piled up Circular Debt. According to the data compiled up to 31st July 2018 by the Ministry, It was brought to the notice of the ECC, that the amount of Circular debt is standing at Rs.596 billion with an increase of Rs. 30 billion in the last month (i.e. July), another Rs. 582 billion are parked with the Power Holding companies under the STFF arrangements. The total liability currently stands at Rs.1188 billion. The ECC identified the 5-6 key areas that accounted for the pile up of these liabilities and formed different committees to work upon the reasons and formulate their suggestions to be presented in the next ECC meeting that is to be scheduled in the next week. ECC will later present its suggestions to the Cabinet for the approval and decision on the future course of action. Chairman ECC stated that all facts will be shared with the public to make decision making a transparent and inclusive exercise.
The summary for Pakistan State Oil Financial health and Liquidity position was deferred as the issue is closely linked with Circular Debt therefore the matter would be considered subsequently.