The Economic Coordination Committee (ECC) of the cabinet allowed import of cotton from Afghanistan and Central Asian Republics (CARs)as well as approved to revise oil marketing companies’ (OMCs) and dealers’ margins on the basis of 85 percent of the latest average core inflation with immediate effect.
Federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh chaired the ECC meeting on Wednesday.
The Ministry of Commerce tabled a summary before the ECC seeking permission for import of cotton from Afghanistan and Central Asian States through land route via Torkham border to bridge the gap between supply and demand and to ensure sufficient availability of cotton for promoting textile exports.
The ECC had granted such permission earlier to workout necessary arrangements with reference to Plant Quarantine Rules to meet Sanitary and Phytosanitary (SPS) requirements for import of cotton via land routes. Ministry of Commerce requested to extend the above permission for import of cotton via land route during the current financial year. The ECC approved the said request subject to fulfilment of codal formalities.
The Petroleum Division updated the ECC about the recommendations firmed up by a sub-committee established in line with the earlier decision of the ECC dated 28 Jan, 2021 regarding review of Oil Marketing Companies (OMCs) and Dealers Margins on Petroleum products. After detailed discussion, the ECC approved to revise OMCs and Dealers Margins on the basis of 85% of the latest average core inflation with immediate effect, and directed to expedite a study by PIDE.
The Power Division submitted another summary about re-targeting of the power sector subsidies (phase-I). The committee considered and approved the proposals recommending that Power Division will complete the analysis based on the listed principles and submit specific recommendations on thresholds and rates for the consumers before the ECC by 31st March, 2021.
The Ministry of Industries and Production presented a ‘Ramzan Relief Package-2021’. The Utility Stores Corporation would subsidize 19 essential items under the proposed relief package entailing subsidy equivalent to approximately Rs7.8 billion including wheat flour, sugar and ghee which have significant differential vis-a-vis prevailing prices in the domestic markets.
The committee directed MD USC to coordinate with the Finance Division for timely release of funds to ensure well-timed procurement and other contingent arrangements.
The Ministry of Industries and Production presented another summary seeking permission regarding operation of two plants namely Agritech and Fatima Fertilizer from March till November, 2021 to produce urea from SNGPL-based plants. The committee approved the summary with a direction that the ministry may closely monitor the demand-supply situation and take decisions to import urea, if needed, as per requirement during the current year.
The secretary health tabled a summary for exemption of taxes and duties on import of auto disable syringes and raw material needed for local manufacturing of auto disable syringes in the country. The ECC approved the summary, in principle, and directed the Ministry of Health to hold a follow-up meeting with the Law Division to fine tune details.
The ECC also considered a summary regarding exemption of Federal Excise Duty for 10 soft-skin vehicles imported by the Food and Agriculture Organization (FAO) to be used by the Department of Plant Protection (DPP) for locust control operations. Ministry of NFS&R requested for a one-time exemption of Federal Excise Duty amounting to Rs.10.3 million for 10 vehicles. After due deliberation, the ECC constituted a committee with representatives from Law Division, FBR and Ministry of National Food Security and Research for further discussion and submission of updated proposals before the committee.
The secretary communications updated the ECC on National Freight and Logistics Policy (NFLP) discussed in an earlier meeting held on 20th January, 2021. The Ministry of Communications has segregated the proposals into two broad categories in line with the earlier directive of the committee.
The ECC directed to discuss the proposals involving multiple stakeholders as envisaged under the NFLP, through an institutional framework, steered by the deputy chairman Planning for evolving consensus among all stakeholders including provincial representatives for a way forward.
Seven technical supplementary grants were also approved by the ECC.
Minister for Food Syed Fakhar Imam, Minister for Energy Omar Ayub, Minister for Planning Asad Umar, Minister for Industries Hammad Azhar, Railways Minister Azam Khan Swati, Privatisation Minister Muhammad Mian Soomro, Adviser to PM on Commerce Abdul Razak Dawood, Governor State Bank of Pakistan Reza Baqir, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, federal secretaries, chairman Board of Investment, deputy chairman Planning Commission, MD Utility Stores Corporation and other senior officials participated in the meeting.
