ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved release of funds amounting to Rs1.258 billion to the Pakistan Steel Mills (PSM) for payment of gas supply bills to the Sui Southern Gas Company (SSGC) and approved continuation of the RLNG supply to Fatimafert and Agritech till December 2022.
The ECC meeting was presided over by Finance Minister Ishaq Dar on Tuesday. On a summary moved by the Ministry of Industries and Production for release of funds for the SSGC for gas supply to the PSM, the ECC, after deliberation, approved Rs1.258 billion for 16 months gas bills from the already approved budgetary allocation of Rs10 billion to PSM for fiscal year 2022-23 and releasing of an amount Rs298.248 million for the period from March to June 2022.
The meeting was informed that the production of the PSM has been at a halt since 2015 and low flame gas of two million cubic feet per day (MMCFD) is being supplied to the PSM primarily to preserve the Coke Oven Batteries and refractory kilns.
The ECC considered a summary of Ministry of Energy, Petroleum Division on continuation of subsidised RLNG supply to Fatimafert and Agritech Ltd and allowed operations of the plants on subsidised RLNG from October 2022 to December 2022.
Sources said that the ECC was requested that the Finance Division may earmark an estimated subsidy of Rs31 billion for the operation of these fertiliser plants for a period of six months – October 22 to March 23.
However, the Finance Division did not support the proposals of the summary due to a lack of fiscal space and agreement with the International Monetary Fund (IMF) on the overall quantum of subsidies for the current financial year.
MoI&P seeks Rs623m to clear SSGS bill of PSM
The Finance Division advise was that the Ministry of Industries and Production in consultation with the Petroleum Division to develop alternate proposals for the supply of system gas on full cost recovery basis to two plants or import of fertilizer with provincial financing of subsidies.
The ECC also approved continuation of Prime Minister’s Relief Package (PMRP) and Sasta Atta initiative for Khyber-Pakhtunkhwa beyond 31st August 2022.
The meeting approved continuation of PMRP and Khyber-Pakhtunkhwa Sasta Atta initiative from 1st September till 15th November 2022 on the existing model of untargeted subsidy at the prevailing rates and allocation of additional funds amounting to Rs4,908 million over and above the regular budgetary allocation through supplementary/ technical supplementary grant to recoup the amount already spent by the USC.
The ECC also allowed continuation of PMRP on hybrid model for a period, w.e.f., 16th November to 30th June 2023 (excluding Ramzan) and allocation of funds to the tune of Rs10,755 million through supplementary/ technical supplementary grant and continuation of Khyber-Pakhtunkhwa Sasta Atta initiative and provision of subsidised Atta from 16th November 2022 to 30th June 2023, after rationalising number of stores, with allocation of funds of Rs1,560.68 million through supplementary/ technical supplementary grant.
The ECC also approved technical supplementary grants; (i) Rs100 million in favour of Ministry of Information and Broadcasting for creation of Film and Drama Finance Fund for promotion and support of film industry in Pakistan; (ii) Rs9,767 million including FEC USD 12.667 million for Ministry of Defence against various approved projects during fiscal year 2022-23; and (iii) Rs60.606 million to the National Commission for Human Rights (NCHR).
The ECC deferred the summary presented by the Ministry of Energy, Petroleum Division on deregulation of superior kerosene oil/ light diesel oil, and E-10.
Copyright Business Recorder, 2022
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