A meeting of the Economic Coordination Committee (ECC) of the Cabinet has formed a committee for continuation of subsidy of Rs 3 per unit under the Industrial Support Package (ISP). An official claimed that the committee would bring the issue of ISP in the next meeting of the ECC. The ECC meeting presided over by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh was briefed by the Power Division on cash and non-cash settlement for power sector. The ECC resolved the issue of ISP by adjusting it against the loans receivable from power sector entities and formed a committee, comprising senior representatives from Power, Finance & Economic Affairs Divisions, to address the issue of ISP.
Regarding K-Electric, the committee directed that the ISP claim of K-Electric, amounting to approximately Rs 30 billion, may be looked into and solid recommendations be made. The ECC also resolved the long standing issue with regard to payment of subsidised power supply to AJK by way of cash and non-cash settlement with no financial impact on the AJK.
Power Division has reportedly proposed that ISP claims of Discos payable by Ministry of Finance as of May 31, 2019 of Rs 87.26 billion be allowed as non-cash adjustment. The ISP claims of KE be treated separately through cash settlement.
An official said that Power Division wanted the government to earmark Rs 80 billion for continuation of Industrial Support Package of Rs 3 per unit for the next fiscal year.
The secretary Ministry of National Food Security & Research updated the meeting about the availability of wheat stock in the country. He said that 28 million tonnes of wheat stock is available against the total national requirement of 25.84 million tonnes.
The committee deliberated upon the proposal of the ministry to impose a ban on export of wheat and referred the matter to the constituted committee of the ECC to make its recommendations in this regard. Power Division briefed the committee about cash and non-cash settlement for power sector.
In order to revive and strengthen the shipping sector of Pakistan, the ECC approved, in principle, the proposal of Ministry of Maritime Affairs to provide tax relief on import of ships. The committee directed the ministry to make substantial changes in the proposals before submitting them to the cabinet for final approval. The committee also approved technical supplementary and supplementary grants for different ministries/divisions.
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