ECC approves over Rs300bn for relief subsidies

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday doled out over Rs300 billion in the name of various relief schemes including Ramzan Relief Package for selling 19 items at Utility Stores Corporation (USC) with an estimated subsidy of Rs8.28 billion.

The ECC granted its nod for allocating Rs135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.

The ECC granted approval to Rs136 billion subsidies for the provision of PM’s Relief Package to reduce electricity prices by Rs5/unit from March 1, 2022, to June 30, 2022. For a decrease in diesel and petrol prices by Rs10/liter each, the government approved Rs20 billion for payment of Price Differential Claims (PDCs).

According to an official announcement, Federal Minister for Finance and Revenue Shaukat Tarin charied the ECC meeting. The ECC approved Kamyab Overseas Programme (KOP) as a new component of the Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement, valid travel documents, and registration with NSER to avail interest free loans under KPP. Maximum amount of loan would be Rs300,000 to be returned in easy installments starting after three months of departure.

The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs3 billion for the fourth quarter of 2021-22. ECC also greenlighted a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022 with the total subsidy of Rs8.280 billion.

ECC gave go-ahead to a summary by Ministry of Commerce on proposed amendments in import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

Ministry of Energy (Petroleum Division) submitted a summary for allocation of gas from Togh Field on commercial basis. The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy.

Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna, and Pesu block of OGDCL. The ECC allowed the ministry to amend the respective concession agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 percent being state participator in aforementioned blocks.

The ECC considered and approved a reduction of Rs5/unit in electricity charges base rate for the period of four months (March 2022 to June 2022) under PM’s relief package. The relief is applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding lifeline consumers. The cash flow requirement for the relief package is Rs136 billion.

Ministry of Energy (Petroleum Division) submitted another summary on reimbursement of price differential claims of oil marketing companies and refineries, for reducing prices of petrol and diesel by Rs10/litre each. The price differential would be paid to oil sector by the government as a subsidy to avert any shortage in the market. The ECC also approved special PDC disbursement mechanism to pay the PDC speedily within 15 days.