ECC decides to adjust loans through subsidy to industrial sector

ISLAMABAD: The Economic Coordination Committee (ECC) has decided to adjust payable loans of the industrial sector on power distribution companies (DISCOs) through the subsidy granted by the federal government, ARY News reported on Wednesday.

The Economic Coordination Committee of the federal cabinet made a series of decisions during the high-level session chaired by Advisor to Prime Minister Imran Khan on Finance, Revenue and Economic Affairs, Abdul Hafeez Shaikh.

The committee decided to adjust payable loans of the industrial sector against the subsidy after a briefing given by officials of the Power Division regarding financial matters of the power sector.

Read More: Hafeez Shaikh to chair ECC meeting today

A committee comprising officials of Power Division and Finance Ministry will also be formed to handle matters relating to Industrial Support Package.

ECC members have sought recommendations for reviewing Rs30 billion claim of K-Electric, whereas, the dispute emerged over electricity dues of Azad Jammu and Kashmir (AJK) in term of subsidy. Sources said that the dispute was resolved without increasing an additional financial burden on the AJK government.

Moreover, it was decided to slash taxation on imports of ships over the request of the Ministry of Ports and Shipping. The committee also approved supplementary grants to different ministries and divisions.

Read More: ECC okays Rs.20 bn sovereign guarantee to stabilize stock market

A declaration issued by the Finance Ministry stated that the committee reviewed requirements of wheat consumption of the country.

According to details, the country has storage of approximately 28 million tons of wheat, whereas, its demand stands at 25.804 million tons.

A special committee was also constituted to make decisions regarding the imports of wheat. The committee will forward its recommendations to the government for wheat imports.

Read More: ECC approves additional supply of 150 MW electricity to K-Electric

In the previous meeting, the ECC approved the proposal of Finance Division authorizing the government to issue sovereign guarantee amounting to Rs.20 bn for investment in National Investment Trust’s (NIT) State Enterprise Fund.

Ministry of National Food Security and Research secretary updated the committee about the wheat situation in the country. He informed that the country was in a comfortable position with having 7.257 million tons of wheat available in the stock.

The ECC acceded to the proposal of Ministry of States, Frontier Regions to grant Rs.781,591,000 for arranging 20,000 metric tons of wheat for temporarily displaced persons of tribal districts of former FATA region.