ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the renewal of an agreement between Sui Southern Gas Company (SSGC) and Fauji Fertilizer Bin Qasim (FFBL), which will lead to restoration of gas supply to the fertiliser maker. The petroleum division placed a summary before the ECC regarding renewal of gas supply agreement between SSGC and FFBL.
After a detailed discussion, the ECC approved with a condition that renewal would be allowed on as and when available basis for a period of five years.
“SSGC may restore the gas supplies to Fauji Fertilizer till December 2021 or until a uniform rate for the whole fertiliser sector is formulated after rationalisation of tariffs (whichever is earlier),” a statement said after a ECC meeting presided over by Minister for Finance and Revenue Hafeez Shaikh
The ECC considered and approved another summary by the petroleum division for re-allocation of gas from Saqib-1A well located in district Ghotki in Sindh to SSGC from its previous allocation to Sui Northern Gas Pipelines as approved earlier by the ECC in October 2009. The price of gas will be as per the applicable petroleum policy. The petroleum division also moved a summary for removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under gas pricing agreement as the company is considered for privatisation. After due deliberation, the ECC allowed that the dividend distribution cap might be removed to ensure that the divestment transaction generates optimum sale proceeds for the government. The committee further decided that MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act 2017 and the Companies (Distribution of Dividends) Regulations 2017. Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Privatisation Muhammad Mian Soomro, Adviser on Institutional Reforms and Austerity Ishrat Hussain, and PM aide on revenue Waqar Masood attended the meeting.
On the recommendation of the ministry of housing and works, the ECC allowed the ministry to utilise its own funds equal to Rs377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi. The ECC further approved technical supplementary grants of Rs141.3 million to ministry of information and broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic. Rs9 million was approved for the ministry of information and broadcasting for a media campaign on occasion of Kashmir Solidarity Day. The committee approved Rs5 million for purchase of spare parts for helicopter maintenance by HQs (headquarters) Pakistan Rangers (Punjab). Rs25 million was approved for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South). The ECC approved Rs10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), Dera Ismail Khan.