ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh Wednesday said Pakistan had no intention to seek any kind of relief against repayment of its commercial loans or borrowings.
“Pakistan has the means and will honor its commercial commitments,” Shaikh said while chairing a meeting of the Economic Coordination Committee (ECC) of the cabinet here.
The committee allowed the Economic Affairs Division (EAD) to sign a Memorandum of Understanding (MoU) for availing itself of the G-20 relief initiative. However, this would be subject to the cabinet approval.
Pakistan is required to enter into this MoU with all official bilateral creditors, including the Paris Club creditors, to implement the debt relief initiative of G-20. On the recommendations of the committee formed under the chairmanship of adviser to the PM on institutional reforms and austerityand comprising secretary Finance Division and secretary Power Division to look into the issues of servicing of power sector loans and stock handling in a holistic manner, the ECC allowed allocation of Rs10 billion from Stimulus Package as a stop-gap arrangement for the payment of interest on the Pakistan Energy Sukuk-II for a period of six months or amendment to the Nepra Act, whichever was earlier.
The ECC also approved a proposal of the Revenue Division for declaration of multi-modal transit hub Jia Bagga NLC Transit Port as customs clearance port under Section 9 of the Customs Act 1969.
In order to reduce the capacity charges of power generation companies through synthetic financing, the ECC approved the ToRs for negotiations with IPPs/Gencos as recommended by a committee constituted by the CCOE vide its decision dated April 2nd 2020 under the Chairmanship of Minister for Power and comprising SAPM on Mineral Resources, Secretary Finance Division, Secretary Power and Secretary Law and Justice Division. The committee will submit its report in due course, the statement added.
In order to manage and operate the Prime Minister’s COVID-19 Relief Fund 2020, the ECC approved the constitution of Policy Committee under the chairmanship of prime minister.
The 8-member committee would comprise members including minister for planning, development and special initiatives; adviser to the PM on finance and revenue; adviser to the PM on commerce and investment; SAPM on poverty alleviation and social safety; prime minister’s focal person for corona philanthropy drive, and secretary Finance Division, while secretary Poverty Alleviation and Social Safety would be secretary of the committee.
Terms of reference for the proposed committee would be 1) to decide on the appropriate usage of the proceeds deposited in the fund including means of identification of the beneficiaries of the fund and the parameters of their selection; 2) to decide about the means of disbursement of assistance to the beneficiaries; and 3) to take any appropriate decisions for collection of donations, maintenance and administration of the fund and related matters.
In order to devise a comprehensive policy to incentivize smart phone manufacturing in Pakistan, the ECC constituted a committee under the chairmanship of federal minister for industries and production and with members from the ministries of IT and industries, Board of Investment and Engineering Development Board.
The committee would bring its proposals after consultation with all the relevant stakeholders in due course. The ECC also assigned the role of chairman to Hammad Azhar, being federal minister for industries and production, of the committee to oversee the effective utilization of subsidies, Ramazan relief package and PM’s relief package of Rs50 billion by the Utility Stores Corporation.