ECC approves release of 40pc amount to IPPs

ISLAMABAD: Federal Minister for Economic Affairs Omar Ayub on Thursday chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet here in Islamabad, ARY News reported.

The ECC after deliberation approved the summary presented by the Ministry of Energy on retargeting of power sector subsidies – Phase –II, which included removal of one slab benefit (Incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross-subsidies.

The committee also recommended the summary tabled by Finance Division for enhancement of Ways and Means Limit of Khyber Pakhtunkhwa Government from Rs 27.0 billion to Rs. 31.3 billion due to the impact of wage bill of erstwhile FATA.

The ECC discussed and approved the summary presented by Ministry of Industries and Production for endorsement on decision of the committee constituted by the ECC of the Cabinet on scrapping of the tenders floated by TCP in respect of import of sugar.

On the recommendation of the technical advisory sub-committee, the ECC also approved the summary tabled by Ministry of Industries and Production on revised gas supply priority order to fertilizer sector.

The ECC after deliberation approved the summary presented by Ministry of Commerce on Textile and Apparel Policy 2020-25 with directions to incorporate inputs of FBR and Finance Division and meet the observations of Power Division.

After detailed discussion, ECC also approved the summary tabled by Ministry of Industry & Production on Auto Industry Development and Export Policy (AIDEP) 2021-26, with the directions that export targets given in the Policy may be reviewed every year and updated accordingly and proposed tariff structure to be presented separately to the ECC.

On the recommendations of technical advisory sub-committee, ECC also approved the following technical supplementary grants:

• Technical supplementary grant for amount Rs 2,656mn in favour of Ministry of Housing and Works for execution of development schemes in the province of Sindh and Balochistan under SAP.
• Supplementary grant in favour of Ministry of Energy for payment of First Installment (40%) to IPPS of 2002 underpayment mechanism.
• Supplementary Grant to Ministry of Information & Broadcasting amounting to Rs. 2 billion for launching comprehensive media campaign on Government initiatives, Programmes and Projects.

The ECC, after detailed discussion, deferred a summary tabled by Ministry of National Food Security & Research for notification of minimum indicative price of Tobacco Crop 2022 with the directions that a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after detail revision.

The ECC meeting was attended by Adviser to the PM on Finance & Revenue Mr. Shaukat Tarin, Minister for Industries & Production Makhdum Khusro Bakhtyar, Minister for Energy Mr. Hammad Azhar, Minister for Railways Mr. Muhammad Azam Khan Swati, Minister for Interior Sheikh Rashid Ahmed, Federal Minister for National Food Security & Research Syed Fakhar Imam, Adviser to the PM on Commerce & Investment Mr. Abdul Razak Dawood , Minister of State for Information & Broadcasting Mr. Farrukh Habib, Governor SBP, respective federal secretaries and other senior government officers.