Mohsin Siddiqui (Chief Reporter)
The Economic Coordination Committee (ECC) of the Cabinet made significant decisions affecting various sectors of the economy. Presided over by Finance Minister Muhammad Aurangzeb, the ECC approved several proposals, including the release of funds to clear outstanding claims and the export of surplus sugar.
One of the primary decisions was the approval of Rs9 billion for clearing the outstanding price differential claims of Oil Marketing Companies (OMCs), including the Pakistan State Oil (PSO). This move, proposed by the Petroleum Division, aims to address the financial issues faced by these companies, ensuring their smooth operation and stability in the market.
The ECC also approved the Ministry of Industries and Production’s proposal to export 0.15 million metric tons (MT) of surplus sugar. However, this approval comes with a critical condition: if there is a noticeable rise in the retail price of sugar, the export permission will be revoked. This measure is designed to prevent any adverse impact on domestic sugar prices. Additionally, it was mandated that the proceeds from these exports must be used by the mills to clear overdue payments to farmers, ensuring that the agricultural sector benefits directly from this decision.
In another key decision, the ECC approved a summary from the Power Division for the repayment of Rs82 billion finance facility extended to the Power Holding Limited (PHL) by the Oil and Gas Development Company Limited (OGDCL). This repayment is crucial for maintaining financial discipline and ensuring that OGDCL can meet its liabilities towards the government from the received funds.
The ECC meeting also addressed the proposal from the Ministry of Federal Education and Professional Training to exempt the Higher Education Commission (HEC) from the Relending Policy of Foreign Loans/Credits to autonomous bodies. This exemption is expected to facilitate the HEC in better managing its financial resources and enhancing the educational infrastructure.
The ECC approved Technical Supplementary Grants (TSGs) amounting to approximately Rs244 billion for various ministries and divisions. These grants are intended to meet specific financial requirements and support various initiatives across different sectors:
Cabinet Division: Rs126.848 million to clear outstanding custom duties and taxes. President Secretariat: Rs29 million to cover employee-related expenses. Ministry of National Health Services, Regulations and Coordination: Rs5,400 million for the Federal Directorate of Immunization (FDI) to support immunization activities. Ministry of Kashmir Affairs and Gilgit-Baltistan: Rs4.92 billion for salaries, allowances, family assistance packages, and social initiatives in the education and health sectors in Gilgit-Baltistan. Ministry of National Food Security and Research: Rs6,596 million for the payment of pending liabilities to the Pakistan Agricultural Storage and Services Corporation (PASSCO). Ministry of Housing and Works: Rs370 million to settle pending liabilities. Ministry of Economic Affairs: Rs332 million for the development of the Somali National Identification System by NADRA. Finance Division: Rs14,250 million as rupee cover for the successful implementation of the Women Inclusive Finance Project. Finance Division: Rs96.9 million for the implementation of the Audit Management Information System (AMIS). Defence Division: Rs5 billion as seed money for the Green Tourism Pakistan Project. Defence Division: Rs23.945 billion against pay shortfalls for the current fiscal year. Ministry of Interior: Rs10 billion for clearing pending liabilities of ration for the Headquarters Frontier Corps and Headquarters Gilgit-Baltistan Scouts. Ministry of Interior: Rs0.6 billion for raising three additional Corps Headquarters. Ministry of Interior: Rs5.986 million for additional fund requirements. Ministry of Interior: Rs9.576 million for the National Academy for Prison Administration. Ministry of Interior: Rs87 million for the Headquarters Frontier Corps KP. Ministry of Interior: Rs4,637 million for Civil Armed Forces to meet operational requirements and pending liabilities of ration. Economic Affairs Division: Rs168.834 billion for revised budget estimates for the fiscal year 2023-24.
The meeting saw the attendance of notable officials including the Minister for Industries and Production Rana Tanveer Hussain, Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance and Revenue Ali Pervez Malik, and various officials from relevant ministries.
