ECC extends power, gas subsidies for export-oriented sectors

Hamza HabibOur Correspondent

16th Aug, 2021. 08:06 pm

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the continuation of electricity and gas subsidies for export-oriented sectors to support growth momentum in exports during the current financial year.

This decision was taken during the meeting of the ECC, which was presided over by Federal Minister for Finance and Revenue Shaukat Tarin.

Earlier, the Ministry of Commerce presented a summary regarding continuation of concessional rates of electricity and regasified liquefied natural gas (RLNG) to the export-oriented sectors.

The Commerce secretary briefed the committee that the extension of concessional rates of electricity and RLNG is important for enhancing exports by providing energy at regionally competitive rates. After due deliberations, the committee approved the summary.

In his remarks, the finance minister emphasised the need to incentivise the export-oriented sectors to take exports to the next level.

At the same time, Tarin stressed the need to rationalise the usage of energy inputs. For this purpose, the ECC constituted a sub-committee, comprising ministers for energy, industries and production, adviser on commerce, deputy chairman of the Planning Commission, additional secretary Finance Division and other relevant officials for presenting a plan to resolve the issue of continued use of gas by some units for power generation and non-cooperation in the audit.

The sub-committee was directed to present its recommendations before the ECC within 30 days for further deliberation.

The ECC also considered and approved a summary presented by the Power Division for extension in incremental consumption package for K-Electric industrial consumers of X-Wapda distribution companies and K-Electric and application of incremental consumption package for BI (Non ToU) consumers of X-Wapda distribution companies and K-Electric at the rate of Rs12.96/kWh from July 1, 2021 to December 31, 2021.

The ECC gave green signal to another summary by the Petroleum Division regarding the No objection Certificate for the issuance of the parent company guarantees/corporate guarantees by each of the consortium companies, on a joint and several basis, in favour of Adnoc and SCFEA to pursue international exploration and production opportunity in Abu Dhabi, United Arab Emirates.

Federal Minister for Privatisation Muhammad Mian Soomro, Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Muhammad Hammad Azhar, Federal Minister for Economic Affairs Division Omar Ayub Khan, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Adviser to the Prime Minister on Institutional Reforms and Austerity Dr Ishrat Husain, Special Assistant to the Prime Minister on Finance and Revenue Dr Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, federal finance, industries and production, NFS&R, power and petroleum secretaries, FBR chairman and other senior officials participated in the meeting,

SBP Governor Dr Reza Baqir also participated through a video-link.

 

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