ECC okays Rs8.2bn Ramazan package through Utility Stores

ISLAMABAD: While approving Ramazan Package for reducing prices of 19 items with a subsidy of Rs 8.2 billion through Utility Stores Corporation (USC), the ECC has allowed the entire country to avail of the relief package.

The ECC brought major changes to the Ramazan Package as earlier it was allowed for 20 million households registered with the Ehsas programme only but now the ECC granted permission to avail this relief package for the whole country. The Ramazan Package will be available with effect from April 1, 2022, up till the last day of Ramazan. The Finance Ministry was directed to release the required funds.

According to an official announcement made after the ECC meeting stating that Federal Minister for Finance and Revenue Shaukat Tarin presided over the Economic Coordination Committee (ECC), on Tuesday. Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Economic Affairs Omar Ayub Khan, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Adviser to the Prime Minister on Commerce & Investment Abdul Razak Dawood, Federal Secretaries and senior officials participated in the meeting.

Ministry of Industries and Production presented a summary for Ramzan Relief Package. The ECC approved in principle the Ramzan Relief Package 2022, involving a subsidy of 8.2 billion for the whole country rather than only 20 million households registered with Ehsaas Rashan Riyat programme with directions to frame procedural mechanism for limiting the interventions by each family.

The ECC allowed the signing of 15 debt suspension agreements with G-20 countries worth $396 million out of total debt stocks of $9.36 billion. Under G-20 Debt Service Suspension Initiatives (DSSI), the Finance Minister of G-20 countries announced a relief package for IDA eligible countries in the wake of the Covid-19 pandemic in April 2020. To date under DSSI-I, a total of 31 debt rescheduling agreements with 19 countries have been signed. The negotiation for the finalization of the debt rescheduling agreement with the UAE is underway. The DSSI-I so far provided debt relief of $1.068 billion for Pakistan.’ For DSSI-II from January-June 2021, so far 29 debt rescheduling agreements with 13 countries have been signed. Pakistan is negotiating debt rescheduling agreements with Russia, UAE and USA and so far, it provided debt relief to the tune of $1.13 billion under DSSI-II. The G-20 Finance Minister extended debt relief for July-Dec 2021 known as DSSI-III and so far 19 debt rescheduling agreements with five countries have been signed. The negotiation for the finalization of the debt rescheduling agreement with Belgium, Italy, Japan, Russia, Spain, the UK and the USA are ongoing. The DSSI-III relief is expected to the tune of $950 million.

Ministry of Economic Affairs submitted a summary on G-20 Debt Service Suspension Initiative (DSSI). The ECC allowed the Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).

ECC approved the proposal of the Petroleum Division for issuance of a sovereign guarantee amounting to Rs. 21,000 million in favour of M/s Faysal Bank Limited at a considerably lower mark-up rate for the remaining tenor of the loan i.e 4 and ½ years along with the issuance of letter of comfort for new finance agreement w.r.t pipeline infrastructure development project LNG-II.

On a proposal of Petroleum Division for re-allocation of OGDCL’s Jhal Magsi gas to SSGCL, the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL. The SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.

On a proposal of Petroleum Division for allocation of gas from Mari (Deep) gas reservoir to M/s SNGPL, the ECC approved in principle up to 110 MMCFD gas from Mari deep (Goru-B) gas reservoir allocation to SNGPL till 30-06-2024 on a firm basis with direction for the determination of price mechanism of gas.

The Ministry of National Food Security & Research submitted a summary regarding intervention price for cotton 2022-23 crop. To revive cotton production in the country, bring stability to domestic market and assure a fair return to the farmers, the ECC allowed Rs. 5,700/40 kg threshold intervention price of seed cotton. The ECC further allowed to initially procuring two million bales of cotton at intervention price with the direction that quantity would be reviewed on monthly basis.

The ECC also approved a Technical Supplementary Grant amounting to Rs. 200 million to the Pakistan Military Accounts Department for conversion of Pensioners to Direct Credit System for the current financial year. The ECC also approved a Technical Supplementary Grant of Rs. 3500 Million in favour of Higher Education Commission for the Project titled “The Pak University of Engineering and Emerging Technologies.