ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet has scrapped tenders for 500,000 tonnes of wheat import allowed two days ago.

The meeting was chaired by Federal Minister for Finance and Revenue Miftah Ismail. The Ministry of National Food Security and Research submitted a summary relating to awarding the second international wheat tender 2022 opened on July 1 for 500,000 metric tonnes.

The ECC after discussion scrapped the tenders and directed Trading Corporation of Pakistan (TCP) to float fresh tender for importing of 300,000 MT of wheat. The tenders, earlier approved at $439.40 per tonne were cancelled due to continuously declining global wheat prices.

Further, a committee has been formed on the directions of the Prime Minister comprising of Ministers of Commerce, National Food Security and Research and Finance to ascertain the actual wheat requirement for the country.

Gas prices revised

The committee approved the proposed revision in consumer gas sale prices with direction to further reduce the gas rates for export and non-export industry/captive power.

Petroleum Division submitted a summary on the natural gas sale pricing FY 2022-23. It stated that since FY2015-16, the gas prices were not revised in line with revenue requirements determined by Oil and Gas Regulatory Authority (OGRA).

This resulted in accumulation of revenue shortfall/tariff differential amounting to Rs547 billion as of March 2022. Similarly, gas sector circular debt remained at Rs299 billion in June, 2018 and increased to Rs1,232 billion on March 31, 2022.

To overcome revenue losses, contain gas sector circular debt, to sustain the supply chain and invest in exploration and production, Petroleum Division placed broad principles/parameters for revision of the category – wise consumer gas sale prices.

Subsidized flour

Ministry of Industries and Production also submitted a summary on continuation of PM’s relief package ‘Sasta Atta’ initiative for Khyber Pakhtunkhwa and expansion of utility stores network across Pakistan.

The ECC approved the continuity of subsidized flour under Prime Minister’s Sasta Atta Initiative on 1,200 additional sale points in the province for the two months from July 1 to August 31.

It directed to submit a complete mechanism on distribution of subsidy packages through Utility Stores Coporation (USC).

Grants approved

Furthermore, the ECC directed the Privatization Commission that in future all liabilities may be mentioned in contracts between buyer and seller of privatized entities.

On a summary of Power Division, the ECC granted approval for issuance of sovereign guarantee of Rs10 billion for construction of two units of 660 MW Super coal power projects, Jamshoro, which is 90% compete, under Syndicated Term Finance Facility (STFF).

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