News
Wednesday, July 04, 2012
ECC approves Rs 2.5bn Ramazan relief package* Subsidy on food items will be extended to common people through 5,700 utility stores
Staff Report
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a subsidy of Rs 2.5 billion on food items during the holy month of Ramazan.
The subsidy will be available on flour, ghee, oil, pulses, dates, rice and other commodities through 5,700 outlets of the Utility Store Corporation across the country with effect from July 15 as Ramazan is to commence from July 20.
The decision was taken in the ECC meeting chaired by Finance Minister Dr Abdul Hafeez Shaikh.
On a summary moved by the Ministry of Petroleum and Natural Resources regarding policy guideline on “LPG air mix, CNG or LNG based pipeline distribution projects undertaken by Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited”, the ECC approved import of LPG equivalent to 250 tonnes at a cost computed on the basis of weighted average cost of gas. However, the key decision of procurement methodology and tendering will be brought before the ECC next meeting through a detailed presentation. The ECC also requested the Law Ministry to look into the matter of price determination of LPG on monthly or six monthly basis.
The summary regarding deregulation of high octane blending component (HOBC) by removal of inland freight equalisation margin (IFEM) proposed by the Ministry of Petroleum and Natural Resources was deferred until the next meeting.
On a summary regarding donation of wheat to the poor and malnourished people of Pakistan through the World Food Programme (WFP) on cost-sharing basis proposed by the Ministry of National Food Security and Research, the ECC decided that the Ministry of National Food Security and Research will come up in the next meeting after having due consultation with the WFP on the said matter.
There has been a lengthy discussion on the proposal of “Changes in Composition of Business Express” moved by the Ministry of Railways, in which the ministry contented that JV Partners had from the very outset failed to meet the most of the contractual obligations like guaranteed revenue of Rs 3.19 million was to be paid in advance, a commitment that has never been fulfilled. In the same way, guaranteed revenue was to be paid in full whereas the JV Partners have been making part payments and so on. After detailed discussion, the ECC chairman constituted a committee comprising information minister, Board of Investment chairman, railways secretary and the Planning Commission deputy chairman, to look into the matter.
The committee also approved the summary for the increase in the amount of GOP sovereign guarantee from Rs 5.3 billion to Rs 19.15 billion in favour of local banks syndicate as a time gap arrangement until extension/effectiveness of foreign loans and additional wavier of demurrage and detention charges regarding Rs 856.591 million 425MW Nandipur Power Project.Courtesy www.dailytimes.com.pk