ECC approves reduction in gas price for industries

ISLAMABAD: Economic Coordination Committee has on Friday approved the reduction of gas prices for industries by Rs 200 per MMBTU (British Thermal Unit).

Finance Minister Ishaq Dar chaired the committee meeting which approved to reduce the gas price for industries from Rs. 600 to 400 per MMBTU.

In accordance with Fertilizer Policy 2001, the industrial sector gas sale price will also be applicable to fertilizer sector only for fuel stock.

Tax Exemption for ERRA

The ECC also approved the summary presented by Earthquake Reconstruction and Rehabilitation Authority (ERRA) seeking exemption of taxes on procurement of furniture and supplies of 15 District Health Units (DHU) and three colleges located in the 2005 earthquake affected areas in the Azad Jammu and Kashmir and Khyber Pakhtunkhwa.

The exemption is limited to the grant by Saudi Fund for Development (SDF) who provided funds and mandated UNICEF to procure furniture and supplies for the reconstruction of these educational institutions.

The exemption was obtained from the ECC as the powers to grant exemption through self-regulatory organization (SRO) have been taken away from FBR Revenue Division through Finance Act 2015.

Extension in Export period

ECC also approved the proposal of the Ministry of National Food Security and Research to extend the export period of thirty days to balance the quantity already approved for export for Sindh and Punjab.

The ministry apprised the ECC that the food departments of the governments of Sindh and Punjab and All Pakistan Flour Mills Associations and exporters have pleaded for extension as the specified quantity of wheat/wheat flour could not be exported within the specified period due to Eid holidays and transportation problems.

Electricity dues by government of Sindh

ECC also approved the settlement reached between the Ministry of Water and Power and the Government of Sindh to resolve the issue of outstanding bills of government departments and HESCO, SEPCO for the period of July 2010 to July 2016.

The Government of Sindh will clear the outstanding amount of Rs. 27.398 billion in six equal monthly installments starting from September 2016.

The Ministry of Water and Power was directed to install AMR meters (smart meters) in the area within four months, and fifty percent of the cost of installation to be borne by the government of Sindh.