Rs 50 billion grant for USC approved by ECC

The Economic Coordination Committee (ECC) of the Cabinet has decided to approve Rs50 billion for the Utility Stores Corporation (USC) as part of the government relief package announced subsequent to coronavirus pandemic in the country. An official said that Rs 50 billion approved for USC also included Rs 2.5 billion Ramazan package. On Wednesday, the ECC meeting chaired by the Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh approved Rs50 billion as technical supplementary grant for the USC and directed the managing director for ensuring the availability of essential commodities at lower price to the people ensuing situation following the COVID-19 and in the approaching month of Ramazan.

The ECC was also informed that Rs21 billion by already been disbursed to the USC after December 2019 for the procurement of essential items.

Sources said the meeting also discussed proposal to provide relief to electricity consumers and deferment of bills of those consumers using up to 300 units for a period of three months, and quarterly adjustment of fuel surcharge.

However, they added that the proposal has been deferred and would now be considered for approval today (Thursday).

The ECC also approved six technical supplementary grants and these included; (i) Rs842 million for paying off the executing agencies of the prime minister's youth loan scheme during the current financial year; (ii) Rs90.459 million for Pakistan Nuclear Regulatory Authority (PNRP) to help it meet obligations; (iii) Rs5 million in respect of Punjab Rangers to enable Ministry of Defence to purchase spare parts for the maintenance of helicopter during the current financial year; (iv) Rs2.074 million received as grant from the US Embassy in favor of Head Quarter Frontier Constabulary Peshawar for the construction of Frontier Constabulary Training Center at Michni Shabqadar; (v) $1.5 million for the Ministry of Energy to pay the legal counsels hired on behalf of the state in the international litigation case against Ms Karkey; (vi) Rs300 million in favour of Ministry of Information and Broadcasting to execute the communication campaign for the Ehsaas Programme in the next three months.

On the summary moved by the Economic Affairs Division (EAD) for the recovery of foreign currency loans from the private sector borrowers, Gladari Cement Limited, the ECC decided that the EAD should resubmit the proposal after consultation with State Bank of Pakistan (SBP).

On the proposal by the Ministry of Energy for allowing foreign exchange gains/losses in excess of seven percent on delayed payment for Kohala Hydropower Project, the ECC directed the SBP to negotiate with all relevant stakeholders and come up with a viable and practical solution to the issue.

INP adds: The ECC also approved tax-free transactions of government's flagship welfare project Ehsaas Program till June 30.

The PTI government through its Ehsaas Emergency Cash Programme will distribute Rs 150 billion among 12 million deserving families affected by the economic downturn caused by the coronavirus pandemic.

For the payment of legal fees in court cases, the ECC approved $1.5 million supplementary grants. The meeting also approved the Rs84 million subsidy charges for Prime Minister Youth Loan Scheme.

The ECC also proved Rs 90 million supplementary grants for Pakistan Nuclear Regulatory Authority. However, the ECC deferred the Rs185 billion Ramazan relief package to electricity consumers. The summary was moved by the Power Division.