News
Friday, July 19, 2013
Government to relax rules for ‘quick’ import of LNG* ECC decides to approach Law Ministry for relaxation in PPRA rules to avoid ‘lengthy’ import procedures
* Import of 500 mmfcd LNG will be handled through public sector while private sector participation will not be allowed initially
Staff Report
ISLAMABAD: A meeting of the Economic Coordination Committee of the Cabinet (ECC) on Thursday approved import of 500 mmcfd liquefied natural gas from Qatar.
To avoid the lengthy procedure of Public Procurement Regulatory Authority (PPRA), the ECC has decided to approach the Law Ministry to seek relaxation in import-related rules from PPRA. The LNG import is to be handled through public sector, and the private sector’s participation would not be allowed initially. The SSGC would utilise the services of Engro Terminal for LNG import. The ECC meeting, which was held in the Cabinet Room of the Prime Minister’s Office under the chairmanship of Senator Ishaq Dar, federal minister for finance, revenue, economic affairs, statistics and privatisation, decided to approve three different projects for the construction of terminals at Port Qasim for receiving, storing and regasification of LNG. These include Fast Track Engro Terminal Project which is likely to be completed between six to eight months at an estimated cost of $30-$40 million and will have a capacity of 200 mmcfd. Modalities will be finalised between the finance secretary and petroleum secretary.
The ECC also decided to reaffirm its earlier approval for SSGC LPG Retrofit Project which is estimated to cost $175-$200 million, having capacity of 500 mmcfd, besides agreeing to start the process for launching of a and new LNG terminal project which is estimated to cost $200-$250 million, having a capacity of 500 to 1000 mmcfd. Both the projects would be completed within 18 to 22 months and 26 to 30 months, respectively.
The ECC decided to constitute a committee under the chairmanship of Federal Minister for Science and Technology Zahid Hamid and comprising State Minister for Information and Technology Anusha Rehman, SECP chairman, State Bank deputy governor, Economic Affairs Division secretary to streamline registration and regulation of non-governmental organisations/international non-governmental organisations and put up a comprehensive report for the consideration of ECC within two months.
The chairman of the committee has also been authorised to co-opt any person that he may deem necessary for the purpose. The ECC also rejected the Ministry of Railways request for conversion of $114 million debt in to public debt. Pakistan Railways had obtained $114 million from EXIM Bank China for import of around 200 rail coaches and payment of this debt has become due. The proposal sought payment of this loan by the federal government instead of Pakistan Railways. The ECC categorically decided that the Pakistan Railways should service its debt liability itself.
While reviewing the report on implementation of the decisions taken by the ECC, the members of the ECC expressed satisfaction over the pace of implementation of its decisions. While reviewing key economic indicators, the ECC was informed that the surge in the items included in the sensitive price index has been contained especially with respect to non-food items. The meeting expressed satisfaction over the present stock of sugar and was told that 100,000 tonnes of the commodity has been released to cater to the requirements of the month of July as well as Ramazan. As for the fuel position, it was informed that presently there is a stock for 21 days as compared to 12 days in the corresponding period last year (2011-12). The meeting was informed that a healthy growth of 4.2% was recorded in large scale manufacturing sector as compared to 1.3% during the corresponding period last year.
Courtesy www.dailytimes.com.pk