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Thursday March 28, 2024

Export of donkeys’ hides banned

ECC allows gas companies to arrange Rs101 billion loan with sovereign guarantee by govt

By our correspondents
September 04, 2015
ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday granted approval to import additional 50,000 metric tons of urea, allowed gas companies to raise Rs101 billion for North-South gas pipeline to ensure supply of re-gasified liquefied natural gas (RLNG) for 3,600 MW electricity generation and imposed ban on export of donkeys’ hides.
The ECC of the Cabinet under chairmanship of Finance Minister Ishaq Dar also accorded approval to continue purchase of 74 MW electricity from Iranian Company Tavanir.
The ECC allowed import of additional 50,000 metric ton (MT) urea to meet requirement for upcoming kharif season.
On a summary tabled by the Ministry of Industries and Production, the ECC accorded approval for allocation/release of foreign exchange by Ministry of Finance for import of another 50,000 MT urea out of the total quantity of 250,000 MT approved by the ECC earlier this year to guard against any shortage in the country. The import is being carried out by the Trading Corporation of Pakistan.
According to summary tabled by Ministry of Petroleum and Natural Resources before the ECC, in the wake of persistent gas shortages, the ministry was pursuing various LNG import of total 1200 mmcfd through state owned enterprises. The LNG storage and regasification terminal will be developed at Port Qasim and Gawadar Port and the gas has to be transported upcountry through transmission lines. The present pipeline capacity can only handle up to 400 mmcfd out of which 280 mmcfd gas can be transported through M/S SNGPL while 120 mmcfd can be consumed through M/S SSGC system. Accordingly both gas utilities have embarked upon pipe line infrastrcture development plan for upcoming LNG and anticipated indigenous supplies. The said infrastructure project of both the utilities will be undertaken in two phases. For undertaking phase-1, the gas utilities have arranged funding but second phase the required fund amount stood at Rs 58 billion by SNGPL and Rs 40 billion by SSGC. The companies have requested the fund arrangement through from Gas Infrastructure Development Cess (GIDC) currently being administered by Ministry of Finance as part of the consolidated fund. The Finance Ministry is ready to provide sovereign guarantee in favor of gas utility companies to arrange financing from commercial banks for phase-II of the project to the tune of Rs 101 billion.
On a proposal of the Ministry of Petroleum &Natural Resources (P&NR), the ECC allowed the gas companies to raise the necessary finances of Rs.101 billion for North-South Gas pipeline, for which government will provide sovereign guarantee. This project would ensure supplies of gas to the 3,600 MW RLNG based power plants planned to be set up in the country by 2017.
On a proposal submitted by the Ministry of Water and Power, the ECC accorded approval to continue purchase of 74 MW energy from Iranian Company Tavanir.
Accordingly the National Transmission & Dispatch Company limited (NTDCL) would approach Nepra for approval of extension of existing tariff from 1st of January 2015 to 31st December 2015 under which the purchase would be effected. It may be recalled that Wapda had entered an agreement with Tavanir in 2002 for procuring 32 MW electricity, which was later enhanced to 74MW. The Committee also directed the ministries concerned to make arrangements for export of rice to Iran in lieu of the dues payable for the imported electricity.
The ECC allowed Ministry of Petroleum and Natural Resources to allocate RLNG volumes based on availability and demand of RLNG and keeping in consideration the transportation infrastructure and allied matters. The decision thus removes any ambiguity about allocation of RLNG. The ECC had already decided that RLNG would be treated as a regular petroleum product.
The ECC clamped ban on export of donkey hides till such time that regulatory mechanism was put in place by the provinces for proper disposal of carcasses of the animals. The decision has been taken amid media reports that carcasses of the animals were being sold in the market for consumption as meat. The ECC asked the Ministry of Food Security to convey the decision to the provincial governments to ensure that proper mechanism for disposal of remains of the donkeys was enforced as early as possible.