ECC sets aside Rs10bn for Sukuk-II interest payment

A meeting of the Economic Coordin-ation Committee (ECC) of the Cabinet has set aside Rs10 billion from Corona Relief Package for power sector's energy Sukuk-II interest payment for a period of six months. It also decided before giving go ahead to availing the G20 countries debt relief that Pakistan will not go for commercial loans refinancing.

On Wednesday, the ECC meeting presided over by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh approved a proposal of the Economic Affairs Division (EAD), in principal, and allowed it to sign MoU for availing the G20 relief initiative.

The meeting was told that Pakistan is required to enter into this MoU with all official bilateral creditors including Paris Club creditors to implement the debt relief initiative of the G20.

The ECC approval is subject to ratification by the Cabinet.

Hafeez Shaikh as chairman of the ECC unequivocally informed the forum that Pakistan has no intension of seeking any kind of relief for repayment of its commercial loans/borrowings.

Pakistan has the means and will to honour its commercial commitments, the adviser added.

The ECC approved allocation of Rs10 billion from corona relief package as a stop-gap arrangement for the payment of interest on the Pakistan Energy Sukuk-II for a period of six months or amendment in NEPRA Act, whichever is earlier.

With the objective to reduce the capacity charges of power generation companies through synthetic financing, the ECC approved the terms of reference (ToRs) for negotiations with the IPPs/Gencos as recommended by a committee constituted by the Cabinet Committee on Energy (CCOE) on April 2, 2020 under the chairmanship of minister for power and comprising SAPM on Mineral Resources, secretary Finance Division, secretary Power, and secretary Law and Justice Division.

The committee will submit its report in due course.

The ECC also approved the proposal of the Revenue Division for declaration of multi-modal transit hub Jia Bagga NLC Transit Port as Customs Clearance port under Section 9 of the Customs Act, 1969.

The ECC also approved technical supplementary grants of Rs360.515 million for the repair and maintenance of the Supreme Court of Pakistan buildings in Islamabad and various cities, Rs3.836 billion in favour of the Ministry of Housing and Works to execute development schemes in Sindh as well as Rs291 million in favour of the Ministry of Housing and Works/Pak PWD for payment of salary of maintenance staff of Pak PWD.

In order to manage and operate the Prime Minister's COVID-19 Pandemic Relief Fund 2020, the ECC approved the constitution of the Policy Committee with the prime minister of Pakistan as chairman of the committee, and Minister for Planning Development and Special Initiatives, the adviser to the prime minister on Finance and Revenue, and adviser to the prime minister on Commerce and Investment as well as the SAPM on poverty alleviation and social safety, and the prime minister's focal person for Corona Philanthropy Drive and secretary Finance Division as members of the committee and secretary Poverty Alleviation and Social Safety as its secretary.

The terms of reference for the proposed committee included; (1) to decide on the appropriate usage of the proceeds deposited in the fund including means of identification of the beneficiaries of the fund and the parameters of their selection; (2) to decide about the means of disbursement of assistance to the beneficiaries; (3) to take any appropriate decisions for collection of donations, maintenance and administration of the fund and related matters.

Sources said that the Ministry of Poverty Alleviation Fund informed the meeting that the meeting was informed that the Government of Pakistan had set up the Prime Minister's Covid-19 Pandemic Relief Fund, 2020 through a letter of the Finance Division dated 30th March, 2020.

The National Bank of Pakistan has set up the account and the donations in the said account are being received from both domestic and international sources.

A head of account in Public Account of the Federal Government has also been specified for crediting the proceeds received in the name of the fund and it has been specified that the accounts of the fund will be maintained by the Accountant General of Pakistan Revenues.

The meeting was further informed that it has been specified through the above mentioned letter of the Finance Division that the fund will be administered by the Poverty Alleviation and Social Safety Division in consultation with the Finance Division.

The ECC constituted a committee under the chairmanship of Federal Minister for Industries and Production and with members from Ministries of IT and Industries, Board of Investment and Engineering Development Board.

The committee shall bring its proposals after consultation with all the relevant stakeholders in due course in order to devise a comprehensive policy to incentivise smart phone manufacturing in Pakistan. The ECC also assigned the role of chairman, Hammad Azhar, being the Federal Minister for Industries and production, of the committee to oversee the effective utilization of subsidies, Ramazan relief package and PM's relief Package of 50 billion by the Utility Stores Corporation.