- Economic Coordination Committee (ECC) allows release of Rs. 10 billion budgeted subsidy to Petroleum ..
Economic Coordination Committee (ECC) Allows Release Of Rs. 10 Billion Budgeted Subsidy To Petroleum Division
Fahad Shabbir (@FahadShabbir) Published January 04, 2023 | 05:16 PM
In order to enable PSO to remain current in its payment obligations to LNG suppliers as well as to maintain LNG supply chain, the Economic Coordination Committee (ECC) allowed release of Rs. 10 billion budgeted subsidy to Petroleum Division and allowed GoP guarantee against bank financing upto Rs. 50 billion
ISLAMABAD (UrduPoint / Pakistan Point News - 4th Jan, 2023 ):In order to enable PSO to remain current in its payment obligations to LNG suppliers as well as to maintain LNG supply chain, the Economic Coordination Committee (ECC) allowed release of Rs. 10 billion budgeted subsidy to Petroleum Division and allowed GoP guarantee against bank financing upto Rs. 50 billion.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC of the Cabinet, said a press release issued here.
Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for National food Security and Research Tariq Bashir Cheema, Shahid Khaqan Abbasi MNA/Ex-PM, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, Coordinator to PM on Commerce and Industry Rana Ihsan Afzal, Federal Secretaries, senior officers attended the meeting.
Petroleum Division tabled a summary on liquidity requirement of PSO for import of LNG and petroleum products in the country.
It was submitted that PSO has been engaged in import of LNG in the country to meet the deficit in gas demand and supply and is obliged to clear its financial obligations of supplier within stipulated period.
Ministry of National Health Services, Regulation and Coordination submitted a summary regarding transfer of amount to Government of Afghanistan for functioning /maintenance/equipments/salaries of three Pakistani hospitals in Afghanistan. The ECC after discussion approved the revised mechanism/modalities for transfer of funds to Afghanistan as proposed by the Afghanistan Inter-Ministerial Coordination Cell (AICC) with direction to attempt to release the amount in Pak rupees.
As per revised mechanism, the total amount already approved by the Cabinet for salaries i.e. Rs. 1.009 billion would be transferred to Afghanistan in four tranches.
The first tranche to be transferred by Ministry of Finance to Ministry of NHSR&C account. These funds would be transferred through MoFA and sent to Pakistan Embassy Kabul.
The remaining three tranches would be transferred through banking channels to the Embassy account opened for the purpose of disbursement of salaries for doctors and other staff working in hospitals in Afghanistan constructed and operated by Pakistan.
Petroleum Division presented a summary for extended well testing (EWT) over Wali-1 Discovery Wali (E.L) and submitted that an exploration licence (EL) was granted over Wali Block to OGDCL and company drilled an exploration well named Wali-1 and made a gas/condensate discovery in Lockhart Hangu and Kawagarh Formations.
Extended Well Testing is a technical requirement to appraise the said discovery over Wali-1 exploration well drilled in Wali Block.
The ECC after discussion allowed one-year EWT over the aid discovery w.e.f. start of production under EWT arrangements with condition that OGDCL will submit Declaration of Commerciality (DoC) and Field Development Plan (FDP) over the Wali-1 discovery before expiry of allowed EWT period.
Ministry of National Food Security and Research submitted a summary on export of sugar during the year 2022-23 and presented the recommendations of 4th meeting of Sugar Advisory Board (SAB).
The ECC after detailed discussions on the recommendation of SAB, allowed 250,000 tons of sugar for export inclusive of previous permitted 100,000 tons by the ECC on fist come first basis.
The ECC further decided that the total quantity of export may be distributed among provinces based on their installed crushing capacity to be determined by PSMA. The ECC further decided that dollar proceeds of exports will be recovered with sixty days of LC opening.
Ministry of Industry and Production submitted a summary on diversion of RLNG to Urea fertilizer plants upto 31st Jan, 2023.
The ECC after deliberation decided to reject the proposal of Ministry of NFS&R and Ministry of I & P and decided that the RLNG supply to these plants would be discontinued with effect from mid night of 3rd January, 2023.
The ECC deferred a summary submitted by Ministry of Industries and Production tabled on price fixation of imported Urea with direction to work out and submit detailed mechanism of sharing of subsidy by provincial governments.