ISLAMABAD: The federal cabinet which is scheduled to meet on Tuesday (today) with Prime Minister, Imran Khan, in the chair, will discuss current political situation, implications of recent statements of opposition leaders against institutions, economic situation, in addition to a reduction in power tariff for the industrial sector.
Well-informed sources told Business Recorder that the key agenda of the cabinet is the country's existing political situation, recent statement of former Speaker National Assembly, Sardar Ayaz Sadiq, with respect to a controversy about release of Indian pilot, Wing Commander Abhinandan Varthaman and in all likelihood the statement of Minister for Science and Technology, Chaudhry Fawad Hussain about the Pulwama attack which provided an opportunity to Indian leadership to accuse Pakistan of involvement in the incident.
A debate is also expected in the cabinet on Article 6 against former Speaker National Assembly as hawks maintain that action should be initiated against Ayaz Sadiq, however, saner elements in the cabinet like the Foreign Minister are expected to oppose it.
The Federal Cabinet is also expected to be briefed about the steps taken so far for deportation of PML (N) supremo, Mian Nawaz Sharif from London. Minister for Planning, Development and Special Initiatives, Asad Umar will brief the Cabinet about the rising number of Corona cases in the country.
The Cabinet will also discuss import, supply and availability of wheat and sugar in the country. Ministries of Commerce, National Food Security and Research will brief the cabinet about import of wheat and sugar.
The cabinet will ratify the decisions of the ECC held on November 3, 2020 according to which tariff for the industrial sector will be reduced to Rs 8 per unit for B1, B2, B3 and B4 categories for eight months i.e. from November 2020 to June 2021. The key beneficiaries of the scheme will be B3 and B4 categories, as these categories are operating round the clock. The rates of peak hours and off peak hours would be made at par.
Other agenda items of the meeting are as follows: (i) presentation on the Task Force on Austerity and Restructuring of the government; (ii) nomination/replacement of the Board of Directors of Postal Life Insurance Company Limited; (iii) approval of J&K State property budget for the Financial Year 2020-21; (iv) designating presiding officers of the Gilgit-Baltistan courts to try offences under section 44 of the Prevention of Electronic Crime Act, 2016; ( v) approval of Zaireen Management Policy- a regulatory framework; and (vi) ratification of the decisions taken by the ECC in its meeting held on October 21, 2020.
A meeting of the Economic Coordination Committee (ECC) of the Cabinet has left for the federal cabinet meeting today (Tuesday) to decide about the subsidy for industrial support package, and duration of the package, after a detailed discussion on providing electricity at Rs10 or Rs8/kWh to the industrial sector for consumption of surplus power, according to sources.
However, they said that it would require huge subsidy, the duration of the package may be one year and eight months, and package is expected to be announced after the cabinet meeting (today).
Sources said that a meeting of the ECC presided over by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh after a detailed discussion on the proposed tariff of industrial package of Rs10 or Rs8 per unit, and proposed duration of the package of one year and eight months.
The meeting decided that the federal cabinet would choose one of the proposed tariffs for industrial package and decide about the duration of the package as initially it was proposed for three years and Monday's ECC meeting reportedly discussed package duration of one year and eight months.
The Finance Ministry during the last meeting of the ECC on October 26, said to have not shown its inability to extend subsidy of Rs350 billion for the package for three years with a contention that international commitments do not allow this kind of concessions.
The sources said Dr Hafeez Shaikh observed that the proposal relating to the supply of power at lower prices to the industrial sector excluding K-Electric and zero-rated industries was 'indeed a good initiative. However, authentic analysis was required in terms of expected benefits.
The finance secretary, while endorsing the point of view, clarified that huge subsidy shall be involved in case of providing electricity at Rs8.00/kWh to the industrial sector. Moreover, international conditionality also had to be taken into account.
The deputy chairman Planning Commission stated that Karachi being the biggest city of the country was ignored in the proposed package. Therefore, the chairman ECC argued that there was a need to revise the proposal after carefully analysing the financial impact involved, international conditionalities, package for Karachi, and the conditions on which the foreign exchange could be available.
Copyright Business Recorder, 2020
Comments
Comments are closed.