ECC decides not to increase prices of electricity, allows export of sugar
ISLAMABAD (92 News) – Finance Minister Asad Umar chaired a meeting of the Economic Coordination Committee of the federal cabinet (ECC) on Tuesday.
At the outset, the consideration of proposal regarding tariff rationalization for power sector was deferred on the request from the Finance and Power Divisions that asked for further time to deliberate the proposed revisions.
The ECC approved, after detailed discussion, the proposal from the Commerce Division for export of one million metric ton (1-MMT) surplus sugar. No freight or financial support will be provided to millers/exporters by the federal/provincial governments in this regard.
Only those sugar mills will be allowed to export sugar which have paid arrears to farmers for all the crops up to 2017-18. Moreover, an inter-ministerial committee will have fortnightly meetings to review sugar stock, export and price situation. On another proposal of Ministry of Commerce, the ECC accorded approval for revision of cess rates of tobacco for the year 2018-19 as determined by the Pakistan Tobacco Board.
The prices of various types of tobacco are fixed every year and cess rates are also revised. In consideration of proposal submitted by the Ministry of Privatization, ECC approved disbursement of Rs 375 million on account of net salary for the employees of Pakistan Steel Mill for the month of August 2018.
The ECC directed immediate formation of a special committee comprising representatives from Finance, Power Division, Auditor General of Pakistan, Ministry of Petroleum, FBR to address various issues relating to transfer of shares of K-Electric.
The ECC, earlier on September 3, had directed the Privatization Division to deliberate upon the issues relating to the sale of K-Electric in consultation with the Petroleum and Power divisions. In order to further facilitate resolution of various issues, formation of the special committee has now been ordered.
The ECC was given a detailed briefing by Ministry of Petroleum relating to the LNG terminals. The committee directed the Ministry of Law to examine the legal agreements relating to the terminals to see whether the government could revisit the terms and conditions contained therein.
The ECC taking notice of the sudden hike in the cement price directed the Adviser on Industries to have meeting with representatives of the industry, apprise the committee of the causes of price increase and also suggest possible remedies. The ECC also approved proposal from the Ministry of Defence Production for a Sovereign Guarantee to back the export of JF-17 Thunder Aircraft by PAC Kamra.