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Sunday August 07, 2022

ECC defers settlement of payables to govt-owned power plants

Federal Minister for Finance and Revenue Shaukat Tarin chaired ECC meeting today

By Web Desk
February 10, 2022
Shaukat Tarin gestures during a pre-budget press conference in Islamabad on June 10, 2021. — AFP/File
Shaukat Tarin gestures during a pre-budget press conference in Islamabad on June 10, 2021. — AFP/File

The Economic Coordination Committee (ECC) on Wednesday agreed to delay Power Division’s two summaries on the settlement of payables to government-owned power plants and reinstatement of taxes on dividends for independent power producers (IPPs) investors and shareholders.

According to a statement issued by the Power Division, Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting today.

Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Energy Hammad Azhar, Federal Minister for Privatisation Muhammed Mian Soomro, Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood, federal secretaries and senior officers attended the meeting.

The Ministry of Commerce submitted revised the Textiles and Apparel Policy, 2020-25 after incorporating a few changes along with the implementation report. The ECC, after deliberation, approved the policy with certain amendments.

The ECC discussed in detail and approved the summary submitted by the Ministry of Communication for the issuance of sovereign guarantee or SBLC worth Rs6,944.0 million against Operational Viability Gap Funding (VGF) for the construction of the Sialkot (Sambrial) – Kharian Motorway project on a BOT basis.

Ministry of Energy, Petroleum Division submitted a summary on 15 years’ extension of the lease contract between Saindak Metals Limited and MCC China for the Saindak Copper-Gold Project. The ECC, after a detailed discussion, allowed the extension of the lease contract and recommended reviewing the financial aspect of the project annually by professional expertise.

The ECC also approved the Ministry of Energy, Petroleum Division’s summary on the determination of RLNG sale price for PLL’s supply to K-Electric (KE).

On another summary of Ministry of Energy, Petroleum Division, for revision of gas price of Mazarani Gas field held by M/s PPL and GHPL, the ECC approved the proposal of revision of gas price applicable to Mazarani Gas Field from US$ 1.75/MMBTU to US$ 3.75MMBTU from September 1, 2021.

The ECC also considered and approved technical supplementary grants submitted by different ministries and divisions.