ECC approves Rs960m for two months salary of PSM workers

ISLAMABAD: The Economic Coordination Committee (ECC) under the chairmanship of Minister for Finance Ishaq Dar on Saturday approved a reduced amount of Rs960 million for the payment of two months salaries against the demand of over four months for workers of the Pakistan Steel Mills (PSM) on urgent basis.
On a proposal submitted by the commerce division, the meeting approved the disposal of 28,999 MT of unsold sugar stocks available with the TCP. the Utility Stores Corporation (USC) would procure sugar from the TCP and this being an arrangement between two government entities, transparency would be ensured. The chair remarked that USC would sell sugar to the customers at an appropriate price and would not receive any subsidy whatsoever. While announcing this decision the chair directed the authorities concerned to keep a vigil on the demand and supply situation of sugar and wheat in the country as these were important commodities of everyday use and their availability to the masses was to be accorded due care.
The ECC also accorded ex-post facto approval of Rs40 billion loans for the issuance of sovereign guarantee by the Ministry of Finance for the cash bleeding power sector.
On a proposal by the Ministry of Water and Power, the ECC accorded ex-post facto approval for the issuance of sovereign guarantee by the Ministry of Finance in respect to the syndicated term finance facility amounting to Rs40 billion for the power sector.
The loan has been arranged on behalf of the power distribution companies by Power Holding (Pvt) Limited from a consortium of local commercial banks, which was raised to tackle the monster of circular debt almost one month back on the eve of the recent severe petroleum crisis.
Finance Minister Ishaq Dar while approving the amount for payment of salaries, directed formation of a special committee with the finance secretary, Privatisation Commission chairman/secretary, industries secretary as members and headed by the Securities Exchange Commission of Pakistan (SECP) as chairman to look into the affairs of the PSM. He also asked the Privatisation Commission to table its proposal for the restructuring of the PSM at the next ECC meeting.
During the meeting of the ECC of the cabinet, the Pakistan Steel Mills chairman briefed the meeting about the current profile of the PSM and said that some difficulties were being faced in production due to the power and gas shortage.
He also requested the ECC’s approval for a specific amount for workers’ salaries. The chairman added that despite difficulties the PSM, boosted by the special Rs18.5 billion bailout package by the government last year, had achieved 50 percent production capacity, starting from a mere 1 percent. He said the PSM management eyed a 70 percent capacity target in March.
The Ministry of Petroleum and Natural Resources proposed that in view of the widening gap in natural gas demand and supply on the gas supply network, especially M/s SNGPL network, up to 12 MMCFD gas from Miano Tight Gas field may be allocated to M/s SNGPL through swapping arrangements. M/s SSGCL, having the nearest transmission network may take delivery in their system and supply to SNGPL. The ECC after due consideration approved the proposal.
The Ministry of Petroleum and Natural Resources also proposed that 3 MMCFD gas from Maru-East-1 Gas Field be allocated to M/s Engro fertiliser during the EWT (Extended Well Testing) period. Further, the commerciality/D&P lease of the field may also be approved. The proposal was accordingly approved by the ECC. M/s Engro Fertiliser expressed their interest to receive gas from Maru East-1 as it would help them produce 14,000 tons extra urea in the country.
The ECC also passed a resolution eulogising the services of Mr Sanaullah, Joint Secretary (Committee), Cabinet Division who is due to retire from government service. All participants of the meeting wished him well in his future endeavours.