Import of 200,000 MT of urea fertiliser allowed: ECC approves increase in gas tariff

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved increase in gas tariff for the ongoing fiscal year and allowed import of 200,000 metric tonnes of urea fertiliser for the Rabi season.

The ECC meeting presided over by the caretaker Finance Minister, Dr Shamshad Akhtar, on Monday, was submitted a summary by the Ministry of Energy (Petroleum Division) regarding the revision of the natural gas sale pricing for the fiscal year 2023-24.

The meeting, after deliberation, approved the summary as per the tariff schedule submitted by the ministry, prospectively w.e.f. 1st November 2023, instead of 1st October 2023.

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An official, on condition of anonymity, said that schedule moved by the Ministry of Energy was approved by the ECC.

As per schedule, proposed increase in local gas tariff was up to 173 per cent for non-protected domestic consumers, over 136 per cent for commercial, 86 per cent for export, and 117 per cent for the non-export industry.

The ECC meeting also considered a summary submitted by the Ministry of Industries and Production regarding the measures to meet the requirements of urea for Rabi season 2023-24.

The ECC discussed the proposal in detail and approved immediate import of 200,000 MT of urea fertilisers. The meeting also directed that uninterrupted supply of gas for the fertiliser industry to be ensured. It was also decided that the provinces will be asked to act more proactively to bear the importation cost.

The ECC also discussed and approved the summary submitted by the Ministry of National Food Security and Research regarding the cost efficient import of 01 MMT of milling wheat for the year 2023-24 through TCP through open tendering process, to maintain the strategic reserves.

The ECC also approved the proposal for encouraging the private sector to import specified milling wheat under Ministry of Finance notification of 14th November 2008, while meeting the criteria envisaged in the Import Policy Order, 2022. The ECC also directed the ministry to conduct a third-party verification of the wheat stock in the country.

The meeting also deliberated over a summary submitted by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for approval of a technical supplementary grant of Rs484 million to meet critical expenditure on pay and allowances of 415 contract and project employees from July 2023 onwards. The ECC directed the Ministry of Planning, Development and Special Initiatives to identify the savings to finance the salaries of the ERRA employees.

The ECC meeting also considered and approved a summary of Ministry of Finance regarding the establishment of the National Credit Guarantee Company Limited to support the credit enhancement of the small and medium enterprises (SMEs).

The meeting was attended by the Minister for Commerce, Industries and Production, Gohar Ijaz, Minister for Communications, Railways, and Maritime Affairs, Shahid Ashraf Tarar, Minister for Planning, Development and Special Initiatives Sami Saeed, Minister for Power and Petroleum, Muhammad Ali, Minister for IT and Telecom Dr Umar Saif, Advisor to the PM on Finance Dr Waqar Masood, Deputy Chairman Planning Commission, Muhammad Jahanzaib Khan, Chairman SECP, federal secretaries, and other senior government officials of the relevant ministries.

Copyright Business Recorder, 2023