News
Saturday, April 07, 2012
ECC approves fortnightly revision of POL prices* Committee okays Rs 209 billion credit guarantee for provinces for procurement of wheat
By Sajid Chaudhry
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved adjustment of petroleum product prices on a fortnightly basis against the existing mechanism of reviewing them on a monthly basis.
The ECC met under Federal Finance and Economic Affairs Minister Abdul Hafeez Shaikh.
The decision to review POL prices every 15 days has been taken keeping in view rapid changes in oil prices in the international market, an official said.
The ECC discussed at length various summaries moved by different ministries. Seven of these summaries were approved. Extension in date of completion of BYCO Oil Pakistan Limited was also discussed.
About Public Sector Procurement of Wheat Crop 2011-12, the ECC was told that a wheat procurement target of 7.7 million tonnes for the ongoing fiscal year has been set and provinces would require credit guarantees to the tune of Rs 210 billion.
The committee approved the credit guarantee worth Rs 209.58 billion for all the four provinces and PASSCO.
Under the wheat procurement plan, PASSCO will procure two million tonnes of wheat, Punjab four million tonnes, Sindh 1.3 million tonnes, Khyber Pakhtunkhwa 0.32 million tonnes and Balochistan will procure 0.1 million tonnes of wheat.
After the process of devolution under the 18th Amendment, provinces were allowed to lift wheat to maintain strategic reserves.
The meeting agreed that provinces had the inalienable right to lift wheat. But there was a debate about extension of credit cash guarantees to provinces after an increase in the support price of wheat. The ECC, after long deliberations, agreed to approve the summary.
The ECC also approved a summary for an extension in date of completion of BYCO Oil Pakistan Limited. BYCO Petroleum Pakistan was given tax holiday for 7.6 years and it was to be completed by the end of 2011. However, the refinery could not be commissioned in the stipulated time.
The Ministry of Petroleum and National Recourses recommended that the company might be granted extension up to the end of 2012. The ECC approved this recommendation after a thorough discussion.
Another summary approved was related to the exemption of taxes and duties on gas input pipeline and LNG project. The summary was moved by the Ministry of Petroleum.
The ministry sought approval of the ECC for exemption of sales tax/federal excise duty (ST/FED) on imported natural gas.
Exemption on sales tax for EPC contractors, involved in gas import projects, was also discussed. The committee also took up the issue of exemption from custom duties on HR coils, line pipe and pylons. It said temporary import of plant, equipment, machinery, LNG terminals and peripheral infrastructures would be allowed.
Other two items that were approved by ECC are: Low BTU Gas Pricing Policy and fortnightly price adjustment for petroleum products.
Courtesy www.dailytimes.com.pk