ECC once again defers increase in gas prices

The Economic Coordination Committee (ECC) of the Cabinet has once again deferred increase in gas prices from February 1, 2020 and wants commitment from the fertilizer industry that it would not increase urea prices.

Sources said Ministry of Energy submitted a summary to the ECC meeting chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh, seeking increase in gas prices to bridge Rs 33 billion gap. They maintained that the fertilizer industry knew the government would increase gas prices when the proposal for reduction of GIDC by Rs 400 per bag for fertilizer was being prepared.

The ECC instructed that an understanding should be solicited that the fertilizer sector would not increase prices of urea due to increase in gas prices. They added as the government has given understating to the International Monetary Fund (IMF), prices would have to be increased but the government, already under severe criticism owing to increase in utility prices and consequent inflation, wants the increase to be managed in a better way to lessen the pain on consumers. The ECC is likely to meet again on Thursday or Monday to consider the proposal, sources added.

The ECC also considered and approved a grant of Rs 153.25 million from the budget of the Ministry of Finance, as technical supplementary grant for the Ministry of Interior, to be given through the Office of the Deputy Commissioner Islamabad for compensation to the victims of suicide attack on District courts F-8 Islamabad on 03-3-2014. Finance Division supported the proposal in compliance with Supreme Court's orders.

The ECC, in order to register Postal Life Insurance as Public Limited Company, approved an amount of Rs 700 million as initial paid-up capital. The amount would be allocated by the Finance Division and transferred to the proposed Postal Life Insurance Company. After the approval, Postal Life Insurance will fall under the regulatory framework of the Securities and Exchange Commission of Pakistan.

The ECC also approved creation of Digital Media Wing at Ministry of Information and Broadcasting. The purpose of the wing would be to effectively counter the fake/libelous news and highlight the development agenda of the government. The ECC directed the Ministry of Industries and Production to move ahead for the creation of the wing by using its already available resources.

The meeting approved the amendment to SRO 192(1)/ 2019 dated 11-02-2019 extending exemption from regulatory duty to export oriented units and gave approval to the transfer of funds amounting to Rs 31.5 million in equivalent foreign exchange from the Ministry of Interior to the Ministry of Defence as technical supplementary grant for the logistic support for the maintenance of Cessna aircraft. Federal Ministers for National Food Security and Research, Railways, Energy, Privatization and other senior officials attended the meeting.