Export-oriented sectors: ECC decides continuation of concessionary energy rates

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has decided continuation of concessionary rates of electricity and RLNG for export-oriented sectors (erstwhile zero-rated sectors). For July-August 2020, the rate of electricity to export-oriented sectors would be US cents 7.5/kWh, all inclusive, and thereafter, US cents 9/kWh, all inclusive, for the rest of the financial year 2020-2021. This decision was taken in light of Power Division's calculations.

The ECC meeting presided over by the Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh, also decided that the Finance Division will continue with the existing guarantee of 31 billion for the power sector through the Power Holding Company (PHPL).

The ECC also approved formation of advisory committee for the release of unsold Next Generation Mobile Services (NGMS) Spectrum in Pakistan for the improvement of mobile broadband services.

The composition of the Committee included Adviser to Prime Minister on Finance and Revenue (chairman), Federal Minister for Information Technology and Telecommunication, Adviser to Prime Minister on Commerce, Minister for Industries and Production, Federal Minister for Planning, Development and Special Initiatives, besides other members.

Terms of Reference of the Committee (ToRs) would be; (i) to examine and evaluate the market assessment report and recommendations of PTA for release of maximum NGMS spectrum in Pakistan; (ii) to examine and finalize the policy directives for the Federal Government for the release of NGMS spectrum in Pakistan; and (iii) to oversee the release process to be conducted by PTA.

On the issue of imposing ban on export of potato, sources said that almost all the members of the ECC expressed surprise and wanted to know the basis for moving a summary to the ECC.

The adviser wondered how a summary was moved without any statistics of potato production and domestic requirement.

The adviser further stated that the ministry did not think about the farmers while preparing the summary to impose ban on export of potato, sources said.

The ECC also approved an amendment in the minutes of an earlier decision (based on the directives given in the meeting of 22 July 2020 related to subsidy of the Naya Pakistan Housing and Development Authority.

The amended and approved decision states: "approval of allocation of Rs33,095 million on account of 10 years markup subsidy on loans with tenor up to 20 years with supplementary grant of Rs4,774 million on account of markup payment during the current financial year (fiscal year 2020-2021)".

Copyright Business Recorder, 2020