ECC approves Textile and Apparel Policy 2020/25 with certain conditions

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved the summary presented by the Ministry of Commerce on Textile and Apparel Policy 2020/25 with the directives to incorporate inputs of the Federal Board of Revenue (FBR) and the Finance Division and meet the observations of the Power Division.

Federal Minister for Economic Affairs Omar Ayub Khan chaired the meeting of the ECC.

After detailed discussion, the ECC also approved the summary tabled by the Ministry of Industry and Production on Auto Industry Development and Export Policy (AIDEP) 2021/26, with the directives 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.

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

The committee also recommended the summary tabled by the Finance Division for the enhancement of ways and means of Khyber-Pakhtunkhwa government from Rs 27 billion to Rs31.3 billion due to the impact of wage bill of erstwhile Fata.

The ECC also discussed and approved the summary presented by the Ministry of Industries and Production to endorse the decision of the committee constituted by the ECC on scrapping of the tenders floated by the Trading Corporation of Pakistan (TCP) regarding sugar import.

On the recommendation of the Technical Advisory Sub-Committee, the ECC also approved the summary tabled by the Ministry of Industries and Production on the revised gas supply priority order to the fertiliser sector.

The system gas supplies will be ensured to these plants during the current Rabi season 2021/22 ensuring immediate availability of urea fertiliser and saving foreign exchange in case of urea import.

On the recommendations of Technical Advisory Sub-Committee, the ECC also approved the following technical supplementary grants:

Technical supplementary grant of Rs2.650 billion in favour of the Ministry of Housing and Works for the execution of development schemes in Sindh and Balochistan under SAP.

Supplementary grant/technical supplementary grant in favour of the Ministry of Energy for the payment of first installment (40 per cent) to the independent power producers (IPPs) of 2002 under the payment mechanism.

The supplementary grant of the Ministry of Information and Broadcasting, amounting to Rs2 billion for launching comprehensive media campaign on the government initiatives, programmes and projects.

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

Earlier, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin presided over the meeting of the Technical Advisory Sub-Committee.

The committee reviewed the summaries in detail and presented its recommendations to the ECC for its consideration.

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

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