ECC directs Finance Division to release Rs355mn to PSM

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday  directed the Finance Division to release one month salary amounting to Rs 355 million for the month of June to the employees of Pakistan Steel Mills.

The ECC met here with Adviser to Prime Minister on Finance and Revenue  Dr Abdul Hafeez Shaikh to further authorize the Finance Division to arrange  for payment of projected net salary of Rs4,097 million to the PSM employees  for the Financial Year 2019-20 to be disbursed every month to PSM.

The ECC has approved proposals submitted by the Ministry of Industries  and Production for payment of salaries to the employees of Pakistan Machine  Tool Factory (PMTF) and Pakistan Steel Mills (PSM).

The proposal of the Power Division for payment of electricity charges by  the Government of Sindh as Thar subsidy for 4,514 domestic consumers of  Taluka Islamkot also got approval of the ECC.

Similarly, the ECC approved a proposal for payment of Rs128 million for the salaries for the month of February to May 2019 to the employees of the  Pakistan Machine Tool Factory and directed the Ministry of Industries and  Production to hold a meeting with the Strategic Plan Division, Commerce  Division, Sindh Building Control and Sindh Revenue Control to finalize a  plan to hand over the PMTF to the SPD after clearance of all liabilities.

On another summary submitted by the Power Division, the ECC approved  the proposal for reflection in electricity bills of a subsidy by the Government  of Sindh for 4,514 consumers of Taluka Islamkot in terms of payment of all  charges of consumers using 100 or lesser units of electricity on actual  charges as well as a flat subsidy of Rs 800 to be given to domestic  consumers using more than 100 units.

The meeting decided that in case the Government of Sindh failed to  pay the subsidy in any future situation for a period of three months, the  same amount be deducted at source by the federal government.

The ECC, on a summary submitted by the Ministry of Energy, also  approved a proposal for budgetary allocation on annual basis for payment  to Asia Petroleum Limited (APL) through Pakistan State Oil under a  technical supplementary grant from the current financial year and onwards  against accumulating shortfall in guaranteed throughput due to reduced  demand in refined furnace oil by HUBCO.

The meeting asked the Ministry of Energy to take quick remedial measures  for offsetting the accumulating shortfall by engaging local refineries for using  APL’s network as reverse pipeline until the contractual obligation ending in  2027.

The ECC, on a summary submitted by the Ministry of Maritime Affairs,  also approved a proposal regarding necessary amendments and exemptions  in Income Tax Ordinance, Sales Tax Act and Custom Act for the Gwadar  Port and Gwadar Free Zone.

It asked the Law Division to suggest a way forward for their implementation  and bring it up in the next Cabinet meeting in consultation with the Commerce Division, Planning Division, Maritime Division, Federal Board of Revenue and  Board of Investment.

The ECC was also briefed by the Ministry of National Food Security and  Research on the wheat situation in the country with the prices of wheat  showing a slight drop in recent days.

The ECC was told that the wheat stocks in the country were 7.516 million  tons as on 16-08-2019 as compared to 10.950 million tons of the  corresponding period of last year.

Similarly, around 0.369 million tons of wheat and 0.198 million tons of  wheat flour had been exported through sea and land route from the period  01-07-2018 to 16-08-2019.     Later, Dr Abdul Hafeez Shaikh also chaired a meeting of the Cabinet  Committee on Energy (CCoE).

The meeting discussed a proposal submitted by the Power Division and  approved settlement of liquidated damages with Rousch Power (Pakistan)  Limited on the principles that the period during which the operation of the  power plant remained suspended due to non-availability of fuel would be  declared as ‘Other Force Majeure Event (OMFE)’ and the term of the  PPA would be extended correspondingly to OMFE period; the capacity  payments paid during the period shall be recovered through adjustment  against the late payment interest invoices of the Company along with  the late payment interest at the rate of 50% of the total interest worked  out up to the date of settlement agreement in lieu of waiving off right  of the Company to claim interest; and the period during which the IPP  was unable to make available the capacity and net electrical output on  account of non-supply of gas/ shall be treated as an ‘Other Force  Majeure Event (OFME)’ under the PPA.

Accordingly, the company would not be entitled to Capacity Payments  during such period and the power purchaser would not be entitled to  impose LDs on the Company.

On a summary submitted by the Ministry of Water Resources, the  CCoE approved a report of the Ministry of Water Resources for  mitigating adverse effects on the river water quality because of  less flows and reduction in water supply for Muzaffarabad city due  to Neelum Jhehlum Hydropower Project.

The CCoE further approved amendments to decisions of the  Cabinet Committee on Energy held on February 27, 2019.