Islamabad October 23 2023: Economic Coordination Committee approved hike in consumer gas prices to stop pile up of circular debt in gas sector before the IMF review.
A summary submitted by the Ministry of Energy (Petroleum Division) regarding the revision of the natural gas sale pricing for the FY 2023-24, was considered by the forum. The ECC, after detailed discussion and deliberation, approved the summary as per the tariff schedule submitted by the Ministry, prospectively w.e.f. 1st November, 2023, instead of 1st October, 2023
The Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet, today.
The meeting considered various agenda points and summaries submitted by the Ministries of Industries and Production, Ministry of Energy and Petroleum, Ministry of National Food Security and Research, Earthquake Reconstruction and Rehabilitation Authority (ERRA), and the Ministry of Finance.
The Ministry of Industries and Production submitted a summary regarding the measures to meet the requirements of urea for Rabi season 2023-24. The ECC discussed the proposal in detail and approved immediate import of 200,000 MT of Urea fertilizers. The meeting also directed that uninterrupted supply of gas for the fertilizer industry to be ensured. It was also decided that the provinces will be asked to act more proactively to bear the importation cost.
The ECC also discussed and approved the summary submitted by the Ministry of National Food Security and Research regarding the cost efficient import of 1.00 MMT of milling wheat for the year 2023-24, through TCP under through open tendering process, to maintain the strategic reserves. The ECC also approved the proposal for encouraging the private sector to import specified milling wheat under Ministry of Finance Notification of 14th November 2008, while meeting the criteria envisaged in the import policy order 2022. The ECC also directed the Ministry to conduct a third party verification of the wheat stock in the country.
The meeting also deliberated over a summary submitted by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for approval of the Technical supplementary Grant of Rs. 484 Million to meet critical expenditure on pay and allowances of 415 contract and project employees from July 2023 onwards. The ECC directed the Ministry of Planning, Development and Special Initiatives to identify the savings to finance the salaries of the ERRA employees.
A summary of Ministry of Finance regarding the establishment of the National Credit Guarantee Company Limited to support the credit enhancement of the Small and medium enterprises (SMEs) was also considered and approved by the forum.
The meeting was attended by the Minister for Commerce, Industries, & Production, Mr. Gohar Ijaz, Minister for Communications, Railways, & Maritime Affairs, Mr. Shahid Ashraf Tarar, Minister of Planning, Development and Special Initiatives Mr. Sami Saeed, Minister for Power & Petroleum, Mr. Muhammad Ali, Minister for IT & Telecom, Dr. Umar Saif, Advisor to PM on Finance, Dr. Waqar Masood, Deputy Chairman Planning Commission, Mr Muhammad Jahanzaib Khan, Chairman SECP, Federal Secretaries, and other senior government officials of the relevant ministries.