A meeting of the Economic Coordination Committee (ECC) of the Cabinet has once again deferred the proposal of Ministry of Petroleum for increase in gas prices, apparently owing to further increase in inflation as well as gas and electricity charges due to this measure.
Sources said that matter was not taken up because the revised summary was in the system and Cabinet Division did not receive comments from different ministries; however, the advisor on finance wanted the ECC to take up the matter. Another official on condition of anonymity stated that the government's effort is to protect the domestic consumers or pass on minimum impact to them and Rs 33 billion impact on account of proposed increase in gas prices would be passed on to them who have been producing electricity from gas. The official said that there is proposed increase of 15 percent for both captive power and CNS stations in gas prices.
A statement issued here said that Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh considered and approved waiving off all port dues/charges amounting to Rs 194,951,059 on 31-1-2020 or till the vessels leave the port accruing against Karkey. The waiver was required as a consequence of the settlement agreement reached between the government of Pakistan and Karkey.
On the summary moved by the Ministry of Industries and Production for payment of outstanding liabilities of Pakistan Steel Mills (PSM) against Sui Southern Gas Company for non-payment of gas bills, the ECC approved the release of Rs 350 million for the partial settlement of the SSGC liability.
Establishment of Trust Fund to implement risk sharing facility under 3rd tranche of US $10 million of credit line of US $140 million obtained from World Bank for Pakistan Mortgage Refinance Company Limited (PMRCL) was also approved.
The purpose of the Trust will be to leverage the Trust Funds by issuing guarantees in favor of the mortgagors to cover possible losses from eligible mortgage loans. The Finance Division also sought approval for the demand of Rs 80 million as technical supplementary grant in the budget of the Finance Division for the financial year 2019-20 for providing assistance to families of the government employees who expired during service and provision of ad hoc relief allowance 2019. The ECC also approved the proposal sent by the Ministry of Finance for the issuance of direction of the federal government to the State Bank of Pakistan under sub-section 6(A) of the section 17 of the SBP Act 1956 to sell its shares in House Building Finance Company Limited (HBFCL). The ECC approved the technical supplementary grant amounting to Rs 100 million to National Information Technology Board (NITB) under the Ministry of IT & Telecommunication for centralized procurement of ICT infrastructure to ensure e-readiness of the federal government for the implementation of the e-governance programme.
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