Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the weekly meeting of the National Price Monitoring Committee (NPMC) held at the Finance Division today.

Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Industries & Production Mr. Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, Member CCP, Member PBS, MD PASSCO, MD USC, representatives of the Provincial Governments and senior officials of the Finance Division also participated in the meeting.

NPMC reviewed the price trend of essential commodities especially wheat flour, sugar, vegetable ghee, chicken and eggs during the last week. The weekly SPI recorded a slight increase of 0.55% whereas prices of 08 basic items registered a decline and 18 commodities remained stable during the week under review.

The Secretary, Ministry of Industries and Production briefed NPMC about 11 most essential commodities being offered by the Utility Stores Corporation (USC) at subsidized prices across Pakistan. The network of Utility Stores Corporation is playing an important role in providing essential items at discounted prices to the masses as the prices of USC are significantly low as compared to the prices prevailing in domestic markets, he added.

Minister for Industries & Production Mr. Hammad Azhar updated the Committee that the Ministry is closely monitoring the current price trend of vegetable ghee/cooking oil and taking corrective measures to ensure fair price for the consumers.

Speaking on the occasion, the Minister for Industries & Production directed the Provinces to expedite provision of estimates regarding sugar stock needed during the current year. The USC has already made an arrangement for import of 50,000 ton of sugar to ensure its availability at a discounted price, he stated.

Secretary, Ministry of NFS&R apprised NPMC about the sufficient stock of wheat across the country. The NPMC noted price disparity in prices of wheat flour among Provinces and directed the Secretary Food to coordinate with representatives of the Provincial Governments to ensure smooth supply of wheat at fair prices across the board.

The NPMC also directed Member, PBS to give detailed briefing to the Chief Secretaries about the methodology of data collection across different markets in respective Provinces. The underlying rationale is to work out a national average of prices of basic commodities which reflects the situation on ground accurately.

The representatives of the Punjab and Sindh Governments informed the NPMC about the increase in prices of chicken and eggs mainly due to seasonal factors. The NPMC directed the Provincial Governments to take corrective measures and ensure supply of chicken and eggs at affordable prices throughout the country.

The Finance Minister reiterated the firm commitment of the Government to ensure Provision of essential commodities at affordable prices across the board. He urged the Provincial Governments and Departments concerned to make coordinated efforts to keep prices of basic commodities in check, he concluded.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the inaugural meeting of the 10th National Finance Commission (NFC) today at the Finance Division. Chief Minister Sindh Syed Murad Ali Shah, Finance Minister Punjab Makhdoom Hashim Jawan Bakht, Finance Minister KP Taimur Saleem Khan Jhagra, Finance Minister Balochistan Mr. Zahoor Ahmed Buledi and non ex-officio members including Tariq Bajwa (Punjab), Musharaf Rasul Cyan (KP), Dr. Kasier Bengali (Balochistan), Dr. Asad Sayeed (Sindh) and senior officials of the Ministry of Finance/ Finance Departments of provinces participated in the meeting.

The Finance Minister welcomed all the participants. While speaking on the occasion, the Finance Minister stated that NFC has been mandated by the Constitution to recommend to the President for amicable distribution of financial resources between the Federation and the Provinces of the net proceeds of the taxes. NFC is a forum to develop harmony between the Federal and the Provinces and to work out a sustainable resource sharing formula with mutual consensus, he added.

Federal Secretary Finance outlined the Terms of Reference (TORs) of the NFC and the main tasks before the NFC which includes developing of a sustainable macroeconomic framework for the 10th NFC Award, vertical revenue sharing, selection of indicators for horizontal distribution formula, simplification of taxes to facilitate businesses and bringing erstwhile FATA at par with the rest of the country.

During the deliberations, members of the Commission highlighted emergent financial issues, including the need to increase the size of the pie for everyone, rising burden of pension payments and need for closer coordination between federal and provincial revenue collecting agencies. The participants discussed the need for harmonization of revenue collection operations at respective levels of the federal and provincial governments to broaden fiscal space and streamline revenue collection.

The meeting formulated seven sub-groups with specific tasks on the basis of TORs of the Commission with the direction to present recommendations before the august forum in due course of time.

The Finance Minister called upon all the members to do their best to come up with focussed and workable recommendations to make the 10th NFC Award successful.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the weekly meeting of National Price Monitoring Committee (NPMC) held at the Finance Division today.

Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Razak Dawood, SAPM on Revenue Dr. Waqar Masood, Secretary M/o National Food Security and Research, Secretary M/o Industries and Production, Chairman FBR, Member CCP, Member PBS, MD PASSCO, MD USC, Chairman TCP and senior officials of the Finance Division participated in the meeting.

NPMC reviewed the price trend of essential commodities especially wheat flour, eggs, chicken, sugar and edible oil during the week. Secretary Finance briefed the Committee about weekly SPI that recorded a slight increase of 0.81%, whereas prices of 06 items decreased and 21 items remained stable during the last week.

Secretary, M/o NFS&R updated NPMC about availability of sufficient stock of wheat across the country. He expressed satisfaction over the average per day releases by the Provinces which was stable throughout the country. Secretary Food, Government of Balochistan apprised the Committee about the arrangements being made for immediate lifting of 20,000 MT wheat from PASSCO.

Ministry of Industries and Production briefed the Committee that approx. 80% crushing of sugarcane has been completed during the current season. The carryover stocks plus the latest crushing would ensure sufficient availability of sugar in the coming months. The Ministry further requested the respective Provincial governments to provide projections regarding the future sugar requirement for effective planning during the year. Minister for Industries and Production Hammad Azhar lauded the Utility Stores Corporations (USCs) for covering more than 5 % of the consumer demand for essential items at subsidized rates across the country.

The NPMC directed PBS to workout ranking of the districts with reference to price control so that Provincial Governments can take necessary actions accordingly.

Finance Minister urged the Provincial Governments and Departments concerned to take all necessary administrative measures to ensure uninterrupted supply of regulated wheat flour throughout the country. He further directed the Provincial and District administrations to proactively monitor the prices of essential commodities to avoid hoarding and black marketing effectively.

In accordance with the agreement reached between the Special Committee constituted by the Prime Minister Imran Khan comprising Federal Minister for Defence Pervez Khattak, Federal Minister for Interior Sheikh Rashid Ahmed and Minister of State for Parliamentary Affairs Ali Muhammad Khan and representatives of the Federal Government Employees, the Finance Division has agreed to the following, in principle: -

1. Disparity Reduction Allowance @ 25% of the basic pay of BPS-2017 shall be allowed to those civil employees in BPS (1-19) of the Federal Government (including employees of Federal Secretariat and attached departments) who have never been allowed additional salary equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance w.e.f. 01 March, 2021.
2. The posts BPS (1-16) or equivalent will be upgraded on the pattern of Government of Khyber Pakhtunkhwa w.e.f. 01 March, 2021.
3. The grant of time-scale will also be considered for adoption on the same pattern in the next budget.
4. Adhoc Relief will also be considered to be made part of the basic salary w.e.f. July, 2021.
5. The provinces will be recommended for adoption of above from their own resources.

A summary to the effect is being placed before the Cabinet for requisite approval.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the 5th meeting of the FBR Policy Board at FBR HQs today.

Federal Minister for Privatization Mohammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Adviser to the PM on Institutional Reforms & Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, Chairman FBR, senior members of FBR and representatives of private sector participated in the meeting.

FBR made a presentation regarding establishment of Tax Policy Unit in accordance with the decision of the Cabinet dated 29 November, 2018. Members of the Policy Board gave a valuable input highlighting the advantages of keeping tax policy function independent of administrative function.

After due deliberation, the Chair accorded approval for the establishment of ‘Tax Policy Unit’ under the administrative control of the Finance Division. A new setup would be created that will include members from FBR and also engage fiscal and economic experts from academia, think tanks and private sector to present holistic proposals for mobilising revenue generation with greater autonomy. Tax Policy Unit would work out policy recommendations for domestic tax collection on the lines of the National Tariff Commission which operates under the Ministry of Commerce.

FBR’s Technical Committee apprised the Policy Board about the measures taken to identify anomalies and simplify the taxation system for better understanding of the business community. FBR requested to include senior representatives from the Ministry of Commerce and Ministry of Industries & Production for better coordination and effective policy making in this regard.

Chairman, Complaint Oversight Committee (COC) briefed the Policy Board about the working of a newly developed complaint portal which is currently running on trial basis. The complaint resolution system is designed to facilitate businessmen, traders, Small and Medium Enterprises (SMEs) and large tax payers. All complaints can be filed at one place. SOPs for complaint resolution and oversight by COC are being finalized and system would be formally launched soon. The Chair directed to disseminate relevant information about the working of complaint registration mechanism and ensure the contact details are readily available for public consumption.

The Finance Minister further directed FBR to expedite the process of Income Tax refunds of less than Rs.50 million to uphold commitment of the government to facilitate tax payers.

A meeting of National Price Monitoring Committee (NPMC) was held at the Finance Division to review the price trend of essential commodities especially wheat flour, eggs, chicken, sugar and edible oil during the last week.

The meeting was attended by the representatives of the Ministry of Industries and Production, Ministry of Commerce, Ministry of National Food Security & Research, Provincial Administrations, PASSCO, PBS, CCP, FBR and senior officers of the Finance Division.

Secretary, Ministry of Finance briefed NPMC about weekly SPI that increased by 0.5 percent. NPMC noted decline in prices of wheat, sugar, tomatoes, onion, eggs and potatoes during the week. The Chief Secretaries from respective Provincial Governments updated NPMC about availability of sufficient stocks of wheat and average per day release by the Provinces which was stable throughout the country.

The NPMC directed the Provincial and District Administrations to proactively monitor the prices of chicken and edible oil in order to ensure smooth supply at fair prices across the country.

The NPMC directed Secretary Food, Balochistan and MD, PASSCO to make an immediate arrangement for lifting 20,000MT wheat from PASSCO to ensure steady supply of wheat flour in the Province.

The NPMC urged the Provincial Governments and departments concerned for making consolidated and coordinated efforts to avoid hoarding, black marketing and smuggling to ensure uninterrupted supply of basic commodities at affordable prices across the country.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Federal Minister for Energy Omar Ayub Khan participated in the meeting.

On the recommendation of the Ministry of Housing and Works, the ECC allowed the Ministry to utilize its own funds equal to Rs. 377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.

Petroleum Division placed a summary before ECC regarding renewal of Gas supply Agreement (GAS) between Sui Southern Gas Company Limited and Fauji Fertilizer Bin Qasim Limited. After detailed discussion, the ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of 05 years. SSGCL may restore the gas supplies to M/S Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).

The ECC considered and approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.

Petroleum Division also moved a summary for removal of Dividend Distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatization. After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the Government. The Committee further decided that MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.

The following Technical Supplementary Grants (TSGs) were approved by the ECC:

1. Rs. 141.308 million to Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic.
2. Rs. 9.025 million to Ministry of Information and Broadcasting for a media campaign on occasion of Kashmir Solidarity Day – 05 Feb. 2021.
3. Rs. 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab).
4. Rs. 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South).
5. Rs. 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D.I.Khan.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Shaikh, chaired a weekly meeting of the National Price Monitoring Committee (NPMC) today.

Federal Minister for National Food Security and Research Syed Fakhar Imam, SAPM on Revenue Dr. Waqar Masood, Provincial Chief Secretaries, Secretary M/o Industries & Production, Secretary M/o National Food Security and Research, Additional Secretary M/o Planning, Development & Special Initiatives, Chairman FBR, Member CCP, Member PBS, MD USC, MD PASSCO, Member National Accounts PBS and senior officers of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat flour, eggs, chicken, sugar and edible oil during the last week. Finance Secretary outlined the significant decline in year-on-year CPI to 5.7% in January 2021 as compared to 14.6% in January last year.

The NPMC lauded the efforts of the concerned Ministries / Departments and Provincial governments for vigilant monitoring of the prices of essential commodities and urged to continue the momentum to provide maximum relief to the general public.

The Finance Minister reiterated the firm commitment of the Government to ensure provision of essential commodities at affordable prices across the board.

The Secretary, M/o NFS&R updated NPMC about the current status of wheat stocks. The wheat stock position is sufficient for the domestic consumption and average per day release by the Provinces is also stable. The NPMC directed the Provincial governments to keep close watch on the prices of wheat and sugar in the market to avoid hoarding, black marketing and smuggling to ensure uninterrupted supply at affordable prices.

The Secretary, Ministry of Industries and Production updated NPMC about the fluctuation in international prices of Palm and Soyabean oils which in turn, drives the prices of edible oil in the domestic market. The Ministry is closely monitoring the situation to minimize its impact on domestic prices, he stated.

The Secretary further apprised NPMC that arrangements are underway to import sugar which will ensure its smooth supply in the domestic market. There would be increased production of sugar during the current crushing season as per latest estimates, he added.

The Finance Minister directed M/o Industries and Production to continuously monitor stocks of sugar, its supply position and prices in the market.

The following will be new prices of petroleum products w.e.f February 1st 2021:-

Ms petrol RS.111.90/liter
HSD. RS.116.07/ liter
LDO Rs.79.23/liter
Kerosene oil Rs.80.19/ liter

Increase in Prices:

Ms petrol Rs.02.70/liter
HSD. Rs.02.88/ liter
LDO Rs.03.00/liter
Kerosene oil Rs.03.54/ liter

Old Prices:

Ms petrol Rs.109.20/liter
HSD. Rs.113.19/ liter
LDO Rs.76.23/liter
Kerosene oil Rs.76.65/ liter

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of Economic Coordination Committee (ECC) of the Cabinet today.

Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Railways Azam Khan Swati, Federal Minister for Industries and Production Hammad Azhar , Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Maritime Affairs Ali Haider Zaidi, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, Federal Minister for National Food Security and Research Syed Fakhar Imam, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar and Governor State Bank Dr. Reza Baqir participated in the meeting.

Ministry of Industries and Production presented three proposals related to the Utility Stores Corporation (USC) before the ECC. The ECC considered and approved the first proposal regarding continuation of general subsidy on five essential items through Utility Stores Corporation (USC) from 01.01.2021 to 30.06.2021 out of funds allocated under Prime Minister’s Relief Package-2020 in the backdrop of COVID-19 pandemic. Secondly, Ministry of Industries and Production proposed to approve re-allocation of Rs. 2.332 billion for ERP procurement and IT infrastructure for automation of stock management throughout the network of USCs. ECC approved in principle, with a direction to hold further consultation with the Ministry of Information Technology and Ministry of Finance for smooth implementation. Furthermore, it was decided that the Utility Stores Corporation (USC) would present a revised proposal after working out a specific percentage range(s) of differential from market prices for subsidizing essential commodities through Ministry of Industries and Production before next ECC meeting. The percentage range(s) would serve as a benchmark for subsidizing the essential commodities through Utility Stores Corporations, keeping in view, fluctuations in international commodity prices.

On Textiles and Apparel Policy 2020-25 by the Ministry of Commerce, the ECC decided to include SAPM on Power Tabish Gauhar in the sub-committee for detailed consultation on proposals related to the power sector which fall under the ambit of the Textile Policy. The Textiles and Apparel Policy 2020-25 would be presented before ECC in a couple of weeks.

Petroleum Division presented a summary before ECC to review the Oil Marketing Companies (OMCs) and Dealers Margins on Petroleum Products. After due deliberation, the ECC decided that proposed rates for the increase would be considered after a detailed study by Pakistan Institute of Development Economics (PIDE). A sub-committee was constituted under the Chairmanship of SAPM on Revenue Dr. Waqar Masood including SAPM on Power Tabish Gauhar, Minister for Planning Asad Umar and SAPM on Petroleum Nadeem Babar as its members to evaluate outcome of the PIDE study and present a revised summary before ECC accordingly.

The ECC considered and approved another summary by the Power Division regarding Implementation Agreement, Supplemental Agreement and Power Purchase Agreement for 300 MW Cool Power Project at Gawadar.

On the recommendation of the Ministry of Energy (Petroleum Division), ECC approved allocation of 22MMCFD of gas to the SSGCL system from Sujjal-I, Sujawal-X-I and Aqeeq-I wells of Mari Petroleum Company Limited.

Secretary, Ministry of Religious Affairs and Interfaith Harmony presented the Zaireen Management Policy before ECC for consideration. The underlying rationale is to regulate, streamline and provide better facilities to Zaireen for performing religious obligations in an organized manner. The ECC approved the establishment of Ziarat Directorate Office at Quetta and Taftan at an estimated expenditure of Rs. 38.50 million. Moreover, ECC also considered the establishment of Ziarat Directorate Offices at Mashhad (Iran), Karbala and Baghdad (Iraq) and directed Ministry of Religious Affairs to seek formal consent / approval from the host countries through the Ministry of Foreign Affairs.

National Electricity Policy 2021 was placed before ECC by the Power Division. After detailed discussion, ECC referred the above policy to Cabinet Committee on Energy (CCOE) for consideration with the advice that the policy may be referred back to ECC (with recommendations) if the subject falls in the domain of the ECC. The Committee further directed to take all Provinces on board during consultative process.

ECC also approved a Technical Supplementary Grant of Rs. 42 million in favour of National Program for Enhancing Command Areas in BARANI Areas (ICT Component) surrendered by the Ministry of National Food Security & Research.

British High Commissioner His Excellency Christian Turner called on the Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, at the Finance Division today. H. E. High Commissioner was accompanied by the Head of Development Ms. Annabel Gerry on the occasion.
 
The Minister extended a warm welcome to the High Commissioner and commended the support extended by the Government and people of the United Kingdom to the Government of Pakistan and its people and hoped that economic relations would further strengthen between the two countries.
 
Minister for Finance briefed the High Commissioner that Government of Pakistan is pursuing a broad-based economic reform agenda to achieve export-led growth and would like to further deepen trade and economic linkages between the two countries.
 
Minister for Finance further apprised about the socio-economic measures taken by the Government of Pakistan to lessen the adverse impact of the COVID-19 pandemic on marginalized segments of the society and thanked the High Commissioner for the assistance and support extended to Pakistan in fighting the disease.
 
The Minister expressed condolences to the High Commissioner over loss of precious lives due to COVID-19 pandemic and wished speedy recovery and normalcy with reference to latest surge in coronavirus infections by the new variant in the UK.
 
Opportunities for green financing were also discussed during the meeting to promote collective efforts against the challenges posed by the climate change. The High Commissioner offered all possible help in strengthening efforts of the Government of Pakistan for development of green industry to alleviate negative environmental impact.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the National Price Monitoring Committee (NPMC) today.

Federal Minister for Industries & Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, Provincial Chief Secretaries, Secretary Commerce, Secretary M/o Industries & Production, Secretary National Food Security & Research, Additional Secretary M/o Planning Development & Special Initiatives, Chairman FBR, Member CCP, Chairman TCP, MD USC, Member PBS and senior officers of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat, sugar and edible oil during the week. Finance Secretary briefed the meeting about the weekly SPI and decline in prices of wheat flour, vegetables and eggs due to coordinated efforts of all the Provincial government across the country. On the whole, prices of 08 items registered decline whereas 24 items remained stable during the week.

The Secretary, M/o NFS&R briefed NPMC that the current stock of wheat is sufficient for the domestic consumption and average per day release by the provinces is also satisfactory. The prices of wheat flour registered a continuous decline due to improved release of wheat (per day) and its steady supply across the country, he outlined.

The Finance Minister lauded the coordinated and consolidated efforts of the Federal and Provincial governments for uninterrupted provision of wheat throughout the country.

Federal Minister for Industries & Production, Hammad Azhar updated NPMC about the significant decline in the international prices of Palm oil and Soyabean which will eventually reduce the recent upward pressure on the prices of edible oil in the domestic market. The Committee directed Ministry of Industries & Production to take necessary measures to ensure that the recent reduction in international prices of edible oil is passed on to the domestic consumers effectively.

Minister for Industries & Production further apprised NPMC that retail price of sugar has witnessed a decline during the week under review and would reduce further as imported sugar would be available soon in the domestic market. The NPMC appreciated efforts of all relevant authorities to ensure sufficient stock of sugar in coming months.

Member Pakistan Bureau of Statistics informed the Committee that Provinces are on board for smooth implementation of newly developed dashboard of prices of essential items. Steps are being taken to make the system fully functional for monitoring price disparity across the Provinces, he added.

The Finance Minister emphasized proactive role on behalf of all authorities concerned to ensure smooth provision of essential items at affordable rates to general public.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired a meeting of the Executive Committee of the National Economic Council (ECNEC) at Cabinet Division today. Federal Minister for Planning, Development Reforms and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, Adviser to the PM for Institutional Reforms and Austerity Dr. Ishrat Hussain and Minister for Economic Affairs Khusro Bakhtiar participated in the meeting.

ECNEC considered and approved a summary regarding construction of Gwadar-Ratodero Road Project (M-8) sponsored by the Ministry of Communication and executed by NHA at a rationalized cost of Rs. 38,026.28 million. The ECNEC approved the project in view of its strategic importance as it will facilitate connectivity for CPEC projects through improved road linkages.

A summary was presented before ECNEC regarding provision of Advanced Skills Development through International Scholarship Phase-1 for Master and PHD programs to be executed by the Higher Education Commission (HEC). The project is part of a Prime Minister Knowledge Economy Task Force Initiative which will enable our youth to access higher education opportunities in well-reputed international universities. ECNEC approved the project at a rationalized cost of Rs. 13.361 billion.

A summary regarding Greater Karachi Water Supply Scheme (K-IV) 260 MGD (phase-1) was presented before ECNEC. The project would provide additional 260 MGD water to Karachi at the total cost of Rs. 25,551.77 million. The expected period of completion is 04 years. ECNEC approved the project for provision of environment friendly water sanitation and waste management infrastructure / facilities to residents of Karachi.

Similarly, a project titled ‘Solid Waste Emergency and Efficiency Project (SWEEP)’ was presented before the Committee sponsored by the Local government, Housing and Town Planning Department, Government of Sindh with total cost of Rs. 16,800 million including IBRD-World Bank loan of Rs. 16,000 million. The project is designed to mitigate the risk of widespread flooding caused by inadequate solid and liquid waste management during monsoon season and to improve the Solid Waste Management (SWM) infrastructure and service delivery with a view to transform Karachi into an eco-friendly city in the long run.

ECNEC considered and approved the “Khyber Pakhtunkwa Human Capital Investment Project” (KPHCIP) (Education Component) at the total cost of Rs.18910.255 million ($115 million). The Project has been financed by the World Bank/IDA. The Project is envisioned to upgrade basic education infrastructure in the districts of Peshawar, Haripur, Noshera and Swabi of the Khyber Pakhtunkhwa Province.

The project for the “Construction of 100 Dams in Balochistan- Package IV (23 Dams)” was approved by ECNEC at the total cost of Rs.13,512.725 million. Irrigation Department, Government of Balochistan will execute the project and it will complete in 03 years. Realizing the water scarcity in the Province of Balochistan, the project is designed to harness flood flows for direct irrigation, ground water recharge and agricultural development through construction of small dams throughout the Province.

Phase-II of the “Pak-China Optical Fiber Cable (OFC) Project for Establishment of Cross-Border OFC Network (Khunjerab-Karachi) Along China Pakistan Economic Corridor (CPEC) Routes” was approved at the total cost of Rs.37,915.899 million. The project will provide alternate path for international connectivity through Northern Border of Pakistan with China and would transform Pakistan as a Digital Gateway of regional connectivity.

COVID-19 response and other Natural Calamities Control Program was approved by the ECNEC at the cost of Rs. 70 billion as federal share. The project includes National Health upgradation program, National program for Water and Sanitation and Hygiene (WASH), COVID-19 interventions for less developed areas etc.

ECNEC also approved the Project for “Dualization and Improvement of Old Bannu Road” at the total cost of Rs. 17,230 million from federal PSDP (2020-21). The project envisages dualization of existing 02-lane old Bannu road measuring 83 km in length from Gaandi Chowk to Sarai Naurang (8km) and Domail to Krapa on N-55 (75km) to 4 lanes with 7.3 m wide carriageway on either side. Scope of work also includes extension of existing culverts & bridges, construction of retaining walls along with drainage / erosion works and allied facilities. NHA shall execute the project.

Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of Economic Coordination Committee (ECC) of the Cabinet today.

Federal Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Mohammad Mian Soomro, Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Petroleum Omer Ayub, Minister for Maritime Affairs Ali Haider Zaidi, SAPM on Revenue Dr. Waqar Masood, SAPM on Energy Nadeem Babar, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain and Minister for National Food Security and Research Syed Fakhar Imam participated in the meeting. Governor State Bank of Pakistan Reza Baqir also participated through video link.

Ministry of Industries and Production presented a summary before ECC for import of sugar to reduce upward pressure on prices of sugar and to buffer up carry over stocks before the arrival of the fresh crop. The ECC approved reduction of Withholding Income Tax on commercial import of white sugar and raw sugar form 5.5% to 0.25% and removal of Value Added Sales Tax on import of white sugar. The reduction in taxes will incentivize the sugar mills for import of 300,000 MT Raw Sugar upto 30th June 2021. ECC further directed Trading Corporation of Pakistan (TCP) to import white sugar upto 500,000 MT if and when needed during the current season.

Ministry of Religions Affairs and Interfaith Harmony presented a summary for scaling up of ‘Road to Makkah Pilot Project’ from Islamabad airport to two more cities i.e. Karachi and Lahore to facilitate Hujjaj for performing Hajj under Government Scheme. One of the pre-conditions for scaling up of Road to Makkah Project was grant of special exemption on the import of technical equipments in Pakistan by the Kingdom of Saudi Arabia (KSA). ECC decided that FBR will hold a separate consultation with the Ministry of Religions Affairs and Interfaith Harmony to workout details and matter would be placed before next ECC for approval.

Aviation Division presented a summary before ECC to reconstitute a high powered committee headed by the Deputy Chairman Planning Commission including Secretary Finance, Secretary Aviation and Secretary Law & justice Division to deliberate on financial challenges faced by the Roosevelt Hotel, New York, USA. The Committee approved the above request.

Secretary, M/o Communication presented a detailed National Freight and Logistics Policy (NFLP) framework before ECC. Honourable members of the ECC appreciated the efforts made by the Ministry in drawing up a comprehensive draft policy and directed M/o Communications to identify and segregate actionable items which fall under its domain and place before next ECC for final approval. The proposals pertaining to other Ministries and Provinces would be considered separately under some institutional arrangement at an appropriate forum.

ECC also approved a draft policy on equity investment abroad by residents / firms, which caters to the needs of the business community and aims to improve the ease of doing business, promote exports, facilitate resident companies in raising capital from abroad. It will also fulfil legitimate investment needs of the individuals.

Ministry of National Food Security and Research presented a summary to authorize TCP to make immediate arrangements for import of 300,000 MT of wheat through tendering process as ratified by the Cabinet and nominate PASSCO as a recipient agency for the imported wheat to replenish its stock as needed. ECC accorded approval as requested by the Ministry. ECC also approved another summary by the Ministry of National Food Security and Research regarding allocation of 60,000 MT of wheat for Food Department, Balochistan from PASSCO’s existing stock on the subsidized rate as per previous practice.

ECC also decided that gas rate of PKR 772/MMBTU will be applicable to Agritech and Fatima Fertilizer post November 2020 till January 2021 as requested by the Ministry of Industries and Production.

ECC accorded approval for the exemption of Sales Tax @17% and additional sales tax @3% on the import of 52 fire fighting vehicles by Sindh Infrastructure Development Company Limited (SIDCL).

Ministry of Communications updated ECC regarding progress made in conversion of National Highway Authority (NHA) loans into Government loans as per last ECC held on 02 December 2020. NHA requested for a time period of 09 months to prepare a commercially viable business plan in consultation with other Ministries. NHA’s debt restructuring would be linked with the outcome of the said business plan. ECC also accorded approval of the proposal that outstanding mark-up accrued till date on all CDL/FRL on NHA would be capitalized as on 30 June 2020. There will be a moratorium on further accrual of mark-up till the finalization of the business plan.

The following technical supplementary grants were approved by the ECC:

a) Rs.10 million for the purchase of Spare Parts for the helicopter maintenance by HQ Frontier CORPS Balochistan.

b) Rs.67,459,100 to Ministry of Interior for the payment to hired solicitors for pursuing cases in the UK.

c) Rs.81.40 million to Ministry of Law and Justice for the establishment of 3 new Courts.

d) Rs.16.628 billion to the Ministry of Planning Development and Special Initiatives for the completion of 21 schemes of Sindh Infrastructure Development Company Limited.

e) Rs.82.5 million for the completion of the Project titled “1000 Industrial Stitching Units all over Pakistan” by Ministry of Industries and Production.

f) Rs.300 million for the completion of the Project titled “KA7151 Establishment of 132 KV Grid Station at Bin Qasim Industrial Park” by Ministry of Industries and Production.

A draft Textiles and Apparel Policy, 2020-25 by the Ministry of Commerce was postponed to the next ECC for a detailed discussion.

The Federal Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet Committee on State Owned Enterprises (CCoSOEs) here today.

Minister for Privatization Muhammad Mian Soomro, Adviser to Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain along with the senior officials from the Ministry of Finance and Ministry of Privatization participated in the meeting.

The Committee decided to delist the Pakistan Television Corporation (PTVC) from the list of State Owned Enterprises categorized for privatization. The decision was taken on the request of the Ministry of Information and Broadcasting. Secretary Information briefed the forum that PTVC is undergoing massive restructuring to make it a financially viable, professionally efficient and technically sound State Owned Enterprise (SOE) to amplify national narrative and formulate favourable public opinion.

Ministry of Finance presented a report on Triage of State Owned Enterprises (SOEs) before CCoSOEs. The Committee, after detailed discussion directed to streamline the existing categories for the Privatization of SOEs and present a roadmap before the Committee. The Committee further directed the concerned Ministers to utilize the interim period effectively and workout options for restructuring including possibility of management contracts, where applicable, and update CCoSOEs periodically.

The Committee decided that the forensic audit of major loss making State Owned Enterprises shall be conducted in accordance with the directives of the Prime Minister. Secretary Finance briefed the committee that Auditor General’s Office is on board and has started collecting data whereas several private sector firms have also shown interest in this regard. The Committee decided that, keeping in view, the large number of entities, the forensic audit task may be distributed among the private firm(s) and the Auditor General of Pakistan as per rules.

Secretary Finance updated the Committee on the progress made on Draft SOE Bill 2020. After following due consultative process on the Draft SOE Bill 2020, the Finance Division has submitted the same to the Law and Justice Division. Once draft Bill is cleared, it would be presented before the Cabinet for approval, before bringing it in the Parliament.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting of the National Price Monitoring Committee (NPMC) today.

Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, Provincial Chief Secretaries, Secretary M/o Industries and Production, Additional Secretary M/o NFS&R, Additional Secretary Ministry of Planning, Development and Special Initiatives, Chairman FBR, Member CCP, Chairman TCP, MD USC, Member IT/HRM & Member National Accounts from PBS and senior officers of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat, sugar and edible oil during the week. Finance Secretary briefed the meeting that weekly SPI registered a decline of 0.22% and the main drivers behind decrease in SPI are falling prices of eggs, tomatoes, potatoes, onions and chicken. Prices of 21 basic items remained stable whereas 07 items registered a decline during the week.

M/o NFS&R apprised NPMC that all stakeholders are on board with reference to existing position of wheat stock in the country. Federal Minister for National Food Security and Research assured all possible measures would be taken to ensure smooth supply of wheat across the country.

The Finance Minister directed the Provincial governments to follow a self-sustaining model and streamline daily release of wheat to ensure steady supply in the provinces as well as districts.

Federal Minister for Industries and Production Hammad Azhar updated NPMC about the recent decline in international prices of palm oil which will eventually reduce the upward pressure on the prices of edible oil in the domestic market.

The Finance Minister directed Ministry of Industries and Production to continuously monitor stocks of sugar, its supply position in the market and prices throughout the country for the consumers.

Member PBS updated NPMC about the benefits of recently developed dashboard of prices of essential items and progress on its implementation in coordination with the provinces. NPMC directed PBS to provide necessary support to the provinces to make the system fully functional for vigilant monitoring of prices of essential commodities and to remove price disparity across the country.

The Finance Minister directed M/o NFS&R to chalk out a comprehensive strategy to ensure smooth supply of wheat flour at reasonable rates for the general public. He also urged the Provincial governments to continue taking necessary steps to ensure provision of basic items at affordable prices across the country.

The new prices of the petroleum products with effect from 16th January, 2021, are as under:

(Rs/Liter)

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Advisory Committee for the release of Next Generation Mobile Services (NGMS) spectrum in Pakistan held at the Finance Division today.

Federal Minister for Science and Technology Fawad Chaudhry, Federal Minister for Information Technology and Telecommunication Syed Amin ul Haque, Adviser to the PM on Commerce Abdul Razak Dawood, Chairman PTA Major General (R) Aamir Azeem Bajwa, Secretary Ministry of Information Technology and Telecommunication, Executive Director Frequency Allocation Board and other senior officials participated in the meeting.

The Chairman PTA briefed the Advisory Committee about the latest developments in the sale of available spectrum of next generation mobile services in the country.

While appreciating the sale of maximum possible spectrum, the Finance Minister stated that it will contribute towards overall economic growth through digitalization and improve the quality of broadband services in Pakistan, he added.

The Committee was also briefed that the hiring process for the consultants was completed in December 2020 as per procedure and newly hired consultants are on board for the sale of available spectrum within the current financial year.

The Finance Minister urged the consultants to follow a proactive approach and meet the given deadlines effectively. He emphasized that the time is of essence in the release of NGMS Spectrum and the whole process of auction must be transparent for strengthening and expanding communications / IT Services across the country.

The next follow-up meeting of the Advisory Committee is expected to take place in March, 2021.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting of the National Price Monitoring Committee (NPMC) today.

Minister for Industries & Production, Minister for National Food Security & Research, Special Assistant to the Prime Minister on Revenue, Provincial Chief Secretaries, Secretary M/o NFS&R, Secretary Industries & Production, Chairman FBR, Member CCP, Chairman TCP, MD PASSCO, MD USC, Member IT & Member National Accounts from PBS and senior officers of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat, sugar, eggs and edible oil. Secretary Finance briefed NPMC that prices of wheat and eggs have registered downward trend due to coordinated and consolidated efforts of the Provincial governments. The Finance Minister directed the Provincial governments and relevant departments to continue momentum of strict price monitoring for provision of basic items at affordable prices across the country.

Federal Minister for NFS&R briefed NPMC about the current status of wheat stock across the country and assured that all possible measures will be taken to ensure uninterrupted supply of wheat at affordable prices.

Minister for Industries & Production apprised NPMC that production of sugar is likely to increase this year due to improved sugarcane crushing activity and would eventually release pressure on upward price trend. Minister for Industries & Production Hammad Azhar also briefed NPMC about the steps being taken to control the prices of edible oil/ghee.

The representative from the Punjab government briefed that a strict action has been taken against the role of middlemen in sugarcane market as directed by NPMC. He informed that prices of sugar are currently stable in the Province, however, in some areas marginal hike is observed due to fog and weather conditions. Minister for Industries & Production appreciated the efforts of the Punjab Government in minimizing the role of middlemen.

Member PBS presented before NPMC a live dashboard of prices of essential items for comparative analysis which will be helpful in monitoring prices of essential items across major cities and markets in real time. The system is prepared by PBS to monitor food prices and figure out price fluctuations for timely decision making and smooth coordination among Provincial governments and departments concerned. The Finance Minister lauded the mechanism for effective price monitoring and sound decision making. NPMC directed PBS to hold a meeting with Provincial governments to remove price disparity in essential items and urged the Provinces to draw maximum benefit from the newly developed system.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

Federal Minister for Interior Sheikh Rasheed Ahmed, Minister for Privatization Mohammad Mian Soomro, Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Babar and Minister for National Food Security and Research Syed Fakhar Imam participated in the meeting. Governor State Bank of Pakistan Reza Baqir also participated through video link.

Ministry of Commerce presented a summary regarding removal of additional 2% customs duties on 152 tariff lines, mostly raw material, on horizontal basis under National Tariff Policy 2019-24. The ECC approved the summary with a direction that budget cycle must be observed while planning important incentives for businesses & industries for smooth planning and subsequent implementation during the financial year.

Ministry of Maritime Affairs tabled a summary for awarding contract regarding infrastructure facilities, sewerage system and water supply system in Gulshan-e-Benazir Township Scheme (GBTS) at Port Qasim Authority, Karachi. The ECC approved the projects in conformity with the PQA Act-1973, in principle, and directed Ministry of Maritime Affairs to settle the modalities for the award of contracts as per rules.

Ministry of National Food Security and Research presented a detailed summary regarding provision of additional quantities of wheat to KPK, AJ&K and Utility Stores Corporations (USC). The Additional Secretary, M/o NFS&R gave a detailed presentation regarding availability of wheat stocks across the country. The ECC approved additional wheat allocation of 200,000 MT for KPK 80,000 MT to AJ&K and 220,000 MT to USC from PASSCO as requested. ECC also approved the import of additional wheat to buffer up stocks till the arrival of fresh crop after seeking detailed input from all concerned.

The summaries related to the Textile and Apparel Policy (2020-25) and National Freight and Logistics Policy (NFLP) were deferred to next ECC for comprehensive consultation process with key stakeholders.

ECC approved the following Technical Supplementary Grants during the meeting:

a) Rs. 30 million for the Ministry of Defence for the purchase of spare parts for Helicopters for the government of Khyber Pakhtunkhwa (KPK).

b) Rs. 400.020 million for the Ministry of Law and Justice to establish additional courts in compliance with the orders of the Supreme Court.

c) Rs. 2.268 billion for the Higher Education Commission for completion of various Disbursement linked Indicators (DLIs) under the IDA credit facility.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Cabinet Committee on Privatization (CCoP) today.

Minister for Energy Omar Ayub, Advisor to Prime Minister on Institutional Reforms Dr. Ishrat Hussain, Advisor to Prime Minister on Commerce Abdul Razzaq Dawood, SAPM on Revenue Dr. Waqar Masood, Chairman Board of Investment Atif Bokhari, Governor State Bank of Pakistan Reza Baqir and other senior officials participated in the meeting.

Privatization Division presented a summary regarding privatization status of National Power Parks Management Company Limited (NPPMCL) before CCoP. Different scenarios were presented before the CCoP for changing the capital structure i.e debt-equity ratio of NPPMCL.

After detailed discussion, the Chair directed the Privatization Commission to accelerate the privatization/ management contracts of all entities and implementation plan may be presented before the CCoP within a week to proceed further. The Chair also directed the sub-committee constituted for the NPPMCL to finalize its recommendations and place before the CCoP accordingly.

The Finance Division tabled a summary regarding shareholding structure of Pakistan Credit Guarantee Company (PCGC). The ECC had already endorsed the proposal dated 24th December 2020 regarding change in the shareholding structure of the PCGC. The subject matter was placed before CCoP for further deliberation prior to ratification by the Cabinet.

After due deliberation, the Chair directed the Law Division to provide its input in consultation with Finance, Economic Affairs Division (EAD) and State Bank of Pakistan for consideration in the next meeting.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting of the National Price Monitoring Committee (NPMC) today. Minister for Industries & Production, Adviser to the Prime Minister on Commerce, Textiles & Investment, Special Assistant to the Prime Minister on Revenue, Provincial Chief Secretaries, Secretary M/o NFS&R, Special Secretary Commerce, Chairman FBR, Additional Secretary Planning Development & Special Initiatives, Member CCP, Chairman TCP, MD PASSCO, MD Utility Store Corporation, Member National Accounts and senior officers of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat, sugar and edible oil. Finance Secretary briefed about the decline in Consumer Price Index recorded at 8% in December 2020 as compared to 12.6% in December 2019 as a positive outcome of vigilant monitoring under NPMC on regular basis. The NPMC noted significant decline in food inflation as urban food inflation declined by 2.1% and rural declined by 3.4% on Month-on-Month basis. NPMC was also informed that there is a decline in weekly Sensitive Price Index by 0.7%. Prices of 10 essential food commodities were reduced notably tomatoes, onions, potatoes and chicken.

The Chair noted that the prices of essential items have started showing declining trend which is a positive outcome of vigilant monitoring under NPMC on weekly basis. He emphasized an increased coordination among Federal and Provincial authorities to identify demand supply gaps and take immediate remedial measures to ensure uninterrupted supply of items of daily use at affordable prices.

The NPMC observed price variation in wheat flour in Sindh and Balochistan Provinces which was reflected in PBS data. The Finance Minister directed the Chief Secretaries to regulate smooth supply of wheat throughout the province by increasing daily release, if needed, and submit a comprehensive report in the next NPMC accordingly. The Chair urged the Provincial Secretaries to check the possibilities of hoarding and black marketing especially wheat and sugar to ensure uninterrupted provision at fair prices.

Federal Minister for Industries and Production, Hammad Azhar, updated the NPMC about measures being taken to further reduce the prices of sugar and edible oil in consultation with stakeholders. The Chair directed to constitute a Committee, headed by the Minister for Industries and Production, with Secretary MNFS&R and stakeholders concerned as its members to come up with a concerted course of action in this regard. The Adviser to the Prime Minister on Commerce, Textiles & Investment Abdul Razak Dawood also appreciated the measures being taken to further reduce the prices of sugar and edible oil.

The Chair stressed the need for effective functioning of all federal and provincial authorities to monitor the demand supply position across the country for provision of daily use items to general public at affordable rates.

Chairperson Pay and Pension Commission Ms. Nargis Sethi called on the Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, today. Ms. Sethi briefed the Finance Minister about the working of Pay and Pension Commission to resolve the issue of burgeoning expenditure as pensions on the government exchequer as well as anomalies in pay and pension structure.

The Finance Minister emphasized the importance of reviewing the existing pay and pension mechanism, allowances, perks and possibilities of monetization in order to have a financially viable solution for Government employees.

During the meeting, the Chairperson apprised the Finance Minister about the working of the sub-committees and reiterated her commitment for streamlining the prevailing system of pay and pension based on principles of fairness and transparency.

Federal Minister for Finance & Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting of the National Price Monitoring Committee (NPMC) today. The meeting was attended by Minister for Industries & Production, Special Assistant to the Prime Minister on Revenue, Provincial Chief Secretaries, Secretary Planning Development & Special Initiatives, Secretary Industries & Production, Chairman FBR, Additional Secretary M/o NFS&R, , Joint Secretary Commerce, Chairperson CCP, Chairman TCP, MD PASSCO, MD Utility Store Corporation, Member PBS and senior officers of the Finance Division.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities. The Finance Secretary briefed NPMC that there has been a nominal increase in weekly SPI by 0.11%. Prices of 10 basic items decreased notably onions, potatoes and chicken whereas eggs, wheat flour and tomatoes registered a slight increase during the week.

M/o NFS&R updated NPMC about the current status of wheat and sugar stocks. The improved availability has ensured steady supply of both commodities across the country. The wheat stock position is sufficient for the domestic consumption and average per day release to the provinces is also satisfactory. The Chair directed the Provincial governments to keep close watch on the prices of wheat in the market to avoid hoarding, black marketing and smuggling to ensure uninterrupted supply of wheat at affordable prices.

The Finance Minister noted the increase in prices of eggs, wheat flour & tomatoes and directed to take all possible measures to bring down the prices of these essential items. Hammad Azhar, Minister for Industries & Production apprised that they are closely monitoring the prices of sugar and edible oil to ensure uninterrupted supply at fair prices.

The Chair emphasized an increased coordination among all government functionaries for efficient monitoring of prices of essential items to provide maximum relief to the general public.

The Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Cabinet Committee on Privatization (CCoP) here today. Minister for Industries and Production Hammad Azhar, Minister for Maritime Affairs Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, Minister for Privatization Mohammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Energy Omar Ayub, SAPM on Power Tabish Gauhar and other senior officials of the Ministries of Finance, Industries & Production and Privatization Commission participated in the meeting.

On the recommendation of the Committee chaired by the Minister for Privatization, the CCoP approved the Transaction Structure for Pakistan Steel Mills Corporation.

The approved structure for Pakistan Steel Mills will allow for, “Transfer of indentified core operating assets into wholly owned subsidiary of PSMC through Scheme of Arrangement (as provided in the Companies Act 2017) followed by sale of majority shares of the newly formed subsidiary, without transferring full ownership to strategic private sector partner”.

Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, chaired the meeting of the Economic Coordination Committee (ECC) today. Minister for Privatization Mohammad Mian Soomro, Minister for Energy Omar Ayub, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razaq Dawood, Minister for Railways Azam Khan Swati, SAPM on Petroleum Nadeem Babar, SAPM on Power Tabish Gauhar, Minister for Maritime Affairs Ali Haider Zaidi, Minister for Water Resources Faisal Vawda and Governor State Bank Reza Baqir participated in the meeting.

Ministry of Water Resources presented a summary for issuance of WAPDA’s debut US$500 million Eurobonds to arrange finances for Diamer Basha and Mohmand Dams. The ECC approved the issuance of $500 million Eurobonds, in principle, and directed to work out modalities in consultation with the Finance Division and the State Bank of Pakistan.

Ministry of Planning, Development and Special Initiatives presented a detailed presentation on Karachi Transformation Plan (KTP) before ECC. The forum discussed the plan thoroughly and endorsed, in principle, with the direction to secure approval from all relevant quarters before submission to Cabinet. The Chair directed to follow all codal formalities with reference to various components of KTP.

Ministry of Maritime Affairs presented amendments in the Master Plan, originally formulated in 2001, regarding establishment of 05 terminals on BOT Basis. These terminals would fulfil increased demand for container handling capacity.

The ECC approved amendments in the Master Plan for establishing 05 terminals including two LNG terminals, two multipurpose cargo terminals and one integrated container terminal on BOT basis.

A detailed summary was placed before ECC by the Ministry of Energy (Petroleum Division) regarding shelving the LNG Air Mix Projects by Sui companies. After deliberation, the ECC decided that SNGPL may abandon the three projects namely Drosh, Ayun and Chitral Town and dispose off the land and equipment with minimal loss possible through an open transparent process.

Ministry of Energy also presented a summary regarding repayment of GHPL loan and future funding requirements for expenditure in relation to ISGSL gas import and infrastructure projects. GHPL had funded all the expenses of ISGSL through medium term loan as per ECC’s earlier decision dated 15 December, 2016. Various proposals were presented before the forum. The ECC approved the proposals in principle subject to clearance by the High Power Board.

The ECC also approved the summary by the Ministry of Industries and Production regarding duty and tax free import of cryogenic oxygen tanks for better handling of COVID-19 situation. The duty free import of cryogenic tanks would ensure uninterrupted supply of oxygen gas at competitive rates.

ECC also approved the change in the shareholding structure of the Pakistan Credit Guarantee Company (PCGC). According to the new structure, the shareholding of the Government of Pakistan in the Company has been reduced to 49% from the earlier 70%. Any dividends announced by PCGC against shares held by the State Bank of Pakistan or any proceeds from the sale of shares in PCGC, held by the SBP, shall be remitted in the Government treasury.

The Following Technical supplementary grants were approved by the ECC:

· The amount to the tune of Rs 757.100 million was approved for the completion of different projects under Sustainable Goals Achievement Program (SAP).

· Rs.500 million were approved for the reimbursement of fee for less developed areas as requested by the Higher Education Commission.

· Rs.500 million for the Ministry of Housing and Works to provide interest free loans to borrowers under Prime Minister’s Low Cost Housing Scheme.

· Rs.4,189 million for the execution of development schemes for Sindh and Balochistan provinces under PSDP being executed by the Ministry of Housing and Works/Pak PWD.

· Rs. 327 million were approved for Auditor General of Pakistan to sustain the World Bank’s public financial management and accountability service delivery project during FY 2020-21.

A meeting of the Monetary and Fiscal Policies Coordination Board was held under the chairmanship of the Minister for Finance & Revenue Dr. Abdul Hafeez Shaikh today. Adviser to PM on Commerce & Investment, Deputy Chairman Planning Commission, Governor SBP, Dr. Asad Zaman, member and other senior officials of the Finance Division participated in the meeting. Chairman FBR also attended the meeting on special invitation.

While presenting the current economic situation, the Finance Secretary apprised that the timely actions taken by the Government have mitigated the severe impact of pandemic on economy as compared to the other economies of the world. The economy has witnessed a considerable recovery during first five months of FY2021 as a result of continued domestic economic activity.

Governor SBP briefed that Monetary Policy is accommodative due to COVID-19 and has paved way for economic recovery during first quarter of FY2020-21. There is an improvement in the country’s external accounts. The steady worker remittance inflows and improved trade balance of goods and services were the notable developments, he added.

In his remarks, the Deputy Chairman Planning Commission stated that the first two quarters of the FY21 have been marked by a rebound in economic activities amid COVID-19. The economic recovery can be attributed to accommodative fiscal policy. He further stated that Large Scale Manufacturing and Housing Sectors have started showing signs of growth and improvement.

The Adviser for Commerce & Investment mentioned that during July-November FY2021, Pakistan’s trade deficit has registered modest improvement as exports increased by 2% (Y-o-Y) growth, while imports remained stagnant. He reiterated that the fiscal policy reforms being undertaken under the National Tariff Policy must continue. Adviser Commerce also added that domestic industry, especially export oriented, may be provided needed support to expand their operations. Similarly, the inflationary pressures must be kept in check to ensure competitiveness.

Dr. Asad Zaman, member appreciated the timely fiscal and monetary measures taken by the government during challenging times. He further mentioned that comprehensive data analysis is a key to rational decision making.

Minister for Finance & Revenue emphasized the active role of Monetary and Fiscal Policies Coordination Board for designing policies to address economic challenges. He directed to make this platform more effective for achieving better coordination among all concerned to attain desired macroeconomic goals. He also stressed the need for timely provision of economic data for effective policy making. The Board should be more proactive in reviewing the impact of Fiscal and Monetary Policies on economic growth, employment, investment and external sector of the economy, he concluded.

Australian High Commissioner to Pakistan, H.E. Dr. Geoffrey Shaw, called on the Federal Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh today.

The Minister extended a warm welcome to H.E. High Commissioner and commended the support extended by the Government and people of Australia to Government of Pakistan and its people and hoped that the positive sentiments will continue in future for the benefit of both the countries.

In his virtual remarks, the High Commissioner said Pakistan is at the heart of a regional market with a large population, diverse resources, and untapped potential for trade and would like to explore further opportunities for enhancing trade relations between the two countries. He said that the Australian Government invests in the people of Pakistan through Australian Aid Programs in the spheres of health and education. He reiterated to continue the cooperation especially when Pakistan is making efforts to successfully ward off the effects of the ongoing COVID-19 pandemic, the High Commissioner added.

The Minister thanked the High Commissioner for his cooperation and wished that the bilateral relations will further strengthen especially when the pandemic is over and the world trade will return to normalcy.

Federal Minister for Finance and Revenue Dr. Abdul Hafeez Sheikh chaired the meeting of the National Price Monitoring Committee (NPMC) today. Adviser to the PM on Commerce Abdul Razaq Dawood, SAPM on Revenue Dr. Waqar Masood, Secretary MNFS&R, Special Secretary Commerce, Additional Secretary Industries and Production, Chairman FBR, the Provincial Chief Secretaries, MD PASSCO, MD Utility Stores Corporation (USC), Chairperson CCP, Chairman TCP, Member PBS and senior officials of the Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities. The Finance Secretary apprised NPMC that there has been a consistent decline in the weekly SPI over the last four weeks. SPI registered a decline of 0.22%, notably in essential food commodities namely wheat, tomatoes, onions, potatoes and chicken.

The Finance Minister noted the increase in prices of eggs and vegetable ghee and urged the Provincial governments to strictly monitor their prices. The Chair further directed the Secretary Commerce to call a meeting with representatives of the Provincial governments and FBR to take further steps in this regard.

During the meeting, the Secretary MNFS&R presented before NPMC the current status of wheat and sugar stocks. The improved availability of both commodities has resulted in significant decline in prices for the consumers.

Federal Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh addressed a webinar titled “Making Pakistan Prosper: Strategy for Economic Growth and Development” organized by the Institute of Policy Reforms.

In his online remarks, the Finance Minister stated that the global economy is passing through an unprecedented crisis. According to the IMF, there will be 4.4% contraction in global economy due to COVID-19 pandemic. Resurgence of COVID-19 cases in Pakistan and worldwide have posed new challenges, he added.

While speaking on the occasion, the Finance Minister observed that the current Government faced multiple fiscal, external and real sector challenges when it came into power in FY2018. As a result, the present Government had to impose strict financial discipline, curtail excessive government expenditure, increase revenue collection, introduce market driven exchange rate, remove large tax exemptions and discourage imports to put the economy back on track. Consequently, Pakistan witnessed remarkable improvement in fiscal and current account deficits. Tax Collection increased by 17%. Pakistan had successfully met performance criteria and benchmarks by IMF during the first review in pre-COVID-19 period.

The Finance Minister underscored the negative impact of COVID-19 pandemic and highlighted measures taken by the Government to mitigate sufferings of vulnerable groups. During COVID-19, Government of Pakistan introduced “Smart Lockdown” which allowed many businesses to re-open or continue operations on limited scale to lessen the adverse economic impact during testing times. The Smart Lockdown approach by the Government of Pakistan was acknowledged worldwide.

Despite COVID-19, Pakistan registered a primary surplus during first quarter of FY2020-21 which is a great achievement. Similarly, Pakistan witnessed an upward trend in remittances, FDI and exports. The Large Scale Manufacturing (LSM) grew by 6.7%, he outlined.

The Government of Pakistan has given unprecedented fiscal, monetary and construction stimulus to stimulate economic recovery amid COVID-19 and in post-COVID-19 scenario. Rs.1240 billion have been allocated to cover emergency response, support businesses and provide relief to citizens during the crisis. Similarly, a special package has been announced to boost the construction sector which includes tax exemptions and subsidies to reinforce economic growth. Fifteen million families received direct cash payments under EHSAAS program, the Finance Minister stated.

He emphasised the Government is firmly committed to correcting the fundamentals of the economy through effective policy making and targeted reforms with the objective to achieve sustainable and inclusive economic growth in the long run.

Federal Minister for Finance and Revenue Dr. Abdul Hafeez Sheikh chaired the meeting of the Economic Coordination Committee (ECC) today. Minister for Interior Sheikh Rashid Ahmed, Minister for Industries and Production Hammad Azhar, Minister for Economic Affairs Khusro Bakhtiar, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Babar, Federal Minister for Maritime Affairs Ali Haider Zaidi, SAPM on Poverty Alleviation and Social Safety Dr. Sania Nishtar, SAPM on Energy Tabish Gauhar, Federal Minister for Privatization Muhammad Mian Soomro and Federal Minister for Energy Omar Ayub Khan participated in the meeting. Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.

ECC approved Mobile Device Manufacturing and Electric Vehicles Policy (02-03 wheelers and HCVs {Heavy Commercial Vehicles}) presented by the Ministry of Industries and Production. After due deliberation, the forum approved removal of withholding tax of 4% on manufacturing to retailers of locally manufactured phones to incentivize the sector. Moreover, removal of Sales Tax on locally manufactured phones was also approved in principle and modalities would be worked out in consultation with the Finance Division.

ECC approved the following technical supplementary grants:

1. Rs.219.300 million for the operationalization of the newly established Isolation Hospital and Infections Treatment Centre, Islamabad.
2. Rs.305.462 million to payoff Pakistan’s annual contribution to World Health Organization (WHO).
3. Rs.106.775 million to the ICT Administration for various projects
4. Rs.706.82 million for FATA, temporary displaced persons, Emergency Recovery Project, NADRA.
5. Rs.278.091 million for Annual Contribution of Pakistan to UNFA, PPD & IPPF-FPAP for FY-2018-19, 2019-20 & 2020-21.
6. Rs.53.10 million for procurement of medical equipment, machinery and medicines to combat COVID-19.

The Finance Secretary briefed the forum about rationalization of subsidies (phase-I). A detailed presentation was given by SAPM on Revenue focusing on Electricity, Food and National Savings during the first phase. The Chair appreciated the detailed plan for rationalization of subsidies, its various components and directed to present a comprehensive summary with concrete proposals suggesting a way forward before ECC.

Priority Berthing for wheat and sugar imports was also discussed during the meeting. Minister for Maritime Affairs updated the forum about latest position of wheat vessels and operations of Karachi Port Trust (KPT) and Port Qasim Authority (PQA) accordingly. The Chair directed that the Logistic Committee of the ECC would be chaired by the Minister for Maritime Affairs to workout SOPs ensuring all stakeholders including private sector are onboard with reference to priority berthing.

Ministry of National Food Security and Research presented a summary for provision of additional quantities of wheat to the Government of AJ&K and Utility Stores Corporation. The Chair directed to provide first load of the additional quantities to both AJ&K and USC on priority as an interim arrangement to ensure smooth supply of wheat across the country. The detailed proposal would be discussed in the next ECC meeting.

ECC approved the new re-lending policy 2020 presented by Economic Affairs Division. The new re-lending policy will reflect the changes in the borrowing cost of the government, take into account variation in the exchange rate and pass on actual rates to the borrower for transparency. Other terms and stipulations, including with respect to recovery of commitment fee as in the policy in vogue, will continue to apply.

The ECC also accorded approval for issuance of offshore Pakistan Rupee (PKR) linked Bonds to the International Finance Corporation (IFC). This will help in availability of financing to priority sectors, promote private sector investments and bring foreign exchange liquidity in domestic foreign exchange market in the post-COVID-19 scenario.

The Karachi Transformation Plan was postponed to the next ECC meeting.

Finance Minister Dr. Abdul Hafeez Sheikh chaired a meeting of National Price Monitoring Committee (NPMC) today. Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, Secretary MNFS&R, Secretary Industries and Production, the Provincial Chief Secretaries, MD Utility Stores Corporation (USC) and representatives of ICT Administration, PBS, TCP and senior officers of Finance Division participated in the meeting.

The National Price Monitoring Committee (NPMC) reviewed the availability of essential commodities namely wheat, flour, sugar, tomatoes, onions, vegetable ghee and chicken. The Finance Secretary apprised NPMC that there has been a consistent decline in prices for the last three weeks. The weekly SPI data showed that prices declined by -0.3% in the last week, notably in essential food commodities including sugar, onions, potatoes, rice and pulses. This is due to improved availability of wheat, sugar, and vegetables due to imports by Government and private sector.

The Chair lauded the efforts of the concerned Ministries/Department and the Provincial Governments for keeping the prices of essential commodities in check.During the meeting, the Finance Minister urged the Provincial governments to strictly monitor the prices of chicken and ensure smooth supply to minimize the gap in supply and demand.

The Chair also held a detailed discussion with Secretary MNFS&R, and the Provincial Chief Secretaries regarding position of wheat and sugar stocks in the Provinces.

The Secretary MNFS&R briefed the NPMC that sufficient stocks of wheat are available across the country. The Azad Jammu & Kashmir (AJ&K) Government has demanded additional quantity of wheat which will be fulfilled in time, he assured. The Finance Minister also approved provision of wheat to USC, and the formal approval would be granted as per the summary moved by the MNFS&R in the next ECC meeting.

Secretary Industries and Production briefed that the slight increase in the price of vegetable ghee is due to spike in international prices. Finance Minister directed M/o Industries and Production to look into upward pricing trend in the international market and take necessary steps to minimize its impact on domestic prices, he concluded.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Sheikh addressed the Plenary Meeting of the Global Forum on “Transparency and Exchange of Information for Tax Purposes 2020”, organized by OECD.

In his online remarks, Adviser Finance stated that Pakistan has achieved important milestones in transparency and exchange of information. He appreciated the technical support extended by the Global Forum and the UK Government which was instrumental in implementing the Common Reporting Standard (CRS). At present, Pakistan is one of the few developing countries among the early adopters of the CRS and began exchanging data with partner jurisdictions in less than 02 years, he added.

While speaking on the occasion, the Adviser outlined that Tax Transparency and Exchange of Information (EOI) are powerful tools to enhance tax compliance. Pakistan is firmly committed to fighting tax evasion and other illicit financial flows and need more international cooperation for cross-border assistance in tax recovery, he stressed.

The Adviser also briefed the forum about the negative impact of COVID-19 pandemic and measures taken by the Government to mitigate sufferings of the vulnerable groups. During COVID-19, Government of Pakistan introduced “Smart Lockdown” to contain the spread of the disease with the need to keep the economy functional. The Smart Lockdown approach by the Government of Pakistan was acknowledged worldwide. The Smart Lockdown allowed many businesses to re-open or continue operations on limited scale to lessen the adverse economic impact during testing times. The Government of Pakistan gave cash payments to 15 million families under “Ehsaas Emergency Cash Payments”.

Amid COVID-19, Government has taken several initiatives to accelerate economic recovery. A relief package for Small Medium Enterprises (SMEs) shielded against insolvency and joblessness. Similarly, a special package was announced to boost Construction sector which included amnesty scheme, tax exemption and Rs.33 billion subsidy to stimulate economic growth. Pakistan has registered an upward trend in foreign remittances and FDI during first quarter of FY-2020-21. The Government is firmly committed to correct fundamentals of the economy through effective policy making and targeted reforms. The end goal is to achieve sustainable economic growth, he concluded.

The Finance Secretary while presenting the price trend of essential commodities informed that according to latest SPI released by PBS there is decline in the prices of 13 essential commodities for instance wheat flour, sugar, onions, tomatoes and potatoes, while the prices of 17 commodities have increased slightly. Price of 21 items remained stable. The Committee was also informed that profit margin between the prices of wholesale and retail consumers is also coming down.

The Chair held detailed discussions with the Provincial Chief Secretaries regarding position of wheat in the provinces and it was informed that at present sufficient quantities are available to meet existing demand. Further, the prices of perishable items as well as wheat and sugar are showing downward trend due to the improvement in their supply position and pricing mechanism. The Committee expressed satisfaction that prices of essential items getting down.

The Chair directed the M/o NFS&R to conduct an emergency meeting with TCP, Maritimes, KPT and other stakeholders to review the implementation of the schedule regarding offloading of wheat vessels as decided by the logistic committee. He further advised the Provincial governments to strictly monitor the prices of Chicken and ensure smooth supply to minimize the demand supply gap. M/o Industries & Production was also directed to take necessary measures to control rising prices of edible oil.

In response to media reports claiming that the National Accountability Bureau has issued a notice to Dr Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance and Revenue, it is clarified that the Advisor has so far not received any notice.

The Advisor stands ready to extend full cooperation to the NAB according with the law in any matter.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the fourth meeting of the FBR Policy Board held at the FBR Headquarters, Islamabad today. Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Minister for Privatization Mian Mohammad Soomro, SAPM on Revenue Dr. Waqar Masood, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain and Minister for Industries and Production Hammad Azhar participated in the meeting.

Member Customs Operations made a detailed presentation on Customs Valuation (Under-invoicing) and highlighted measures to be taken to plug in gaps and enhance custom revenues in future. FBR has issued Valuation Rulings and entered into Electronic Data Exchange (EDE) Agreements with China, Iran, Afghanistan etc to address the issue of under-invoicing of imports effectively. These agreements have yielded positive results.

The Adviser stressed the need to evaluate the clearance time with reference to our regional trading partners in order to make FBR more competitive.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad today. Minister for Privatization Muhammad Mian Soomro, Minister for Economic Affairs Makhdoom Khusro Bakhtiar, Minister for Railways Sheikh Rashid Ahmed, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain participated in the meeting. Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.

The Power Division presented the case for abolishment of Time-of-Use tariff scheme for Industrial consumers to spur industrial activity amid COVID-19 pandemic by removing the distinction between the current system of peak and off-peak hours as a part of Industrial support package. The underlying rationale is to incentivize industrial units to operate round the clock and produce greater output during testing times.

Consequently, ECC accorded approval, in principle, to the proposal regarding amendment in the respective SROs both for the XWDISCOS and K-Electric to charge the off-peak rates against the peak hours. The abolishment of peak and off-peak tariff structure would be implemented w.e.f. 01 November 2020 till 30 April 2021.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad today. Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Production and Industries Hammad Azhar, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Power Omar Ayub Khan, Minister for Maritime Affairs Syed Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, SAPM on Revenue Dr. Waqar Masood and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain also participated in the meeting. Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.
 
Ministry of Commerce presented a proposal before ECC regarding removal of 5% regulatory duty on import of cotton yarn till 30th June, 2021. After detailed discussion, the Chair approved the removal of regulatory duty on import of cotton yarn to enhance value-added exports.
 
Ministry of Commerce submitted another summary to re-consider the earlier decision taken by ECC dated 19 Oct 2020 regarding procedure for registration under concessionary regime of electricity, RLNG and Gas in export oriented sectors (erstwhile zero-rated sectors). After due deliberation, the Chair directed to maintain status quo with a condition that FBR may register new manufacturers or exporters in five export oriented sectors (erstwhile five zero-rated sectors) in coordination with the Ministry of Commerce till June, 2020.
 
Communication Division requested ECC for conversion of National Highways Authority loans into Government Grant or grant a waive-off for a much needed fiscal space. A detailed presentation was made before the forum to remodel NHA as a self-sustaining and performance based organization. ECC directed to constitute a sub-committee under the Chairmanship of Minister for Planning, Development and Special Initiatives and would include SAPM Nadeem Babar, Minister for Maritime Affairs Ali Zaidi, Secretary Finance and Secretary Communications to prepare a holistic proposal suggesting revenue generation roadmap for NHA within a month. NHA was also granted a one-month moratorium to work out details and present recommendations regarding financial viability of NHA before the forum.
 
ECC recommended a summary presented by the Industries and Production Division to approve release of funds to PSM for payment in lieu of gas supply to SSGC through a Technical Supplementary Grant (TSG).
 
ECC approved allocation of upto 9.5 MMCFD gas from M/s PPL’s Benari X-I discovery to SSGCL. Similarly, allocation of 10 MMCFD gas from PPL’s Hadaf X-I to SSGCL was also approved during the meeting.
 
Federal Minister for Maritime Affairs raised the matter of priority berthing for wheat and sugar. ECC directed the Logistics Committee to ensure berthing of wheat and sugar vessels on priority, keeping in view, that other imports are not affected.
 
ECC also accorded approval for allocation of additional funds for maintenance of Islamabad High Court Building and Judges Residences through TSG as requested by the Ministry of Housing and Works.
 
The agenda item on Karachi Transformation Plan, presented by the Ministry of Planning, Development and Special Initiatives was deferred to the next ECC meeting for a detailed discussion. 

The Government of Pakistan in its endeavour to provide maximum relief to the public has decided to absorb most of the increase in international prices of petroleum products. The prices of MS (Petrol), Kerosene (SKO) and Light Diesel Oil would remain the same w.e.f. 01 December 2020 for the next fifteen days. However, due to significant increase in the international price of High Speed Diesel (HSD), the price of High Speed Diesel has been increased by Rs. 4.00 per liter for the same period.

The following new prices would be effective from 01 December 2020 onwards: (Rs/Liter)

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired a meeting of National Price Monitoring Committee (NPMC) today. Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, Federal Secretary Finance, Federal Secretary National Food Security and Research, Secretary Industries and Production, Secretary Commerce, Chairman TCP, MD PASSCO, Chairperson CCP and Manager Utility Stores Corporation also participated in the meeting. The Provincial Chief Secretaries joined the meeting through video link.

The National Price Monitoring Committee (NPMC) reviewed the price trend of the essential commodities namely wheat flour, sugar, tomatoes, onions, vegetable ghee, potatoes and chicken on weekly basis. The Finance Secretary while presenting the price trend of essential commodities informed that according to latest SPI released by PBS, there is decline in the prices of 10 essential commodities for instance wheat flour, sugar, onions, tomatoes and chicken while the prices of 11 commodities have increased slightly. Price of 30 items remained stable. Adviser Finance expressed satisfaction over declining price trend in wheat flour, sugar, onion and tomatoes as compared to October 2020.

During the meeting, Adviser Finance urged the need to take necessary administrative measures to reduce high profit margin between Wholesale and Retail levels. It is our responsibility to ensure availability of the essential items for the consumers at affordable prices, he stressed.

The Chair held a detailed discussion with the Provincial Chief Secretaries regarding position of wheat and Sugar stocks in the Provinces and it was informed that at present, sufficient quantities are available to meet existing demand. Adviser Finance emphasized the provincial governments to ensure smooth supply of essential items.

Secretary National Food Security and Research presented a brief update on import of wheat during the meeting. The Logistics Committee played a key role in resolving issues related to wheat and sugar stocks among provinces, he underlined.

Provincial governments and USC should reassess their import requirements for wheat and sugar and take up with the Ministry of NFS&R accordingly and the matter may be placed before ECC for approval. M/o Industries & Production will take up the requirement of wheat and sugar for USC with PASSCO & TCP immediately.

The Chair appreciated the efforts being taken by all the Federal Ministries, Provincial Governments and other relevant stakeholders for price control. He added that the same momentum must be maintained to provide maximum relief to the general public. He also stressed that Provincial governments should workout plan to ensure smooth supply of perishable items to avoid any undue price hike.

Advisor to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Sheikh addressed the inaugural meeting of the Pay and Pension Commission 2020. The Commission is headed by Ms. Nargis Sethi and is composed of senior professionals from the Public and Private sectors as well as serving Federal and Provincial Secretaries, AJK and GB and other senior officials of all the governments, who were also in attendance.

Speaking on the occasion, the Advisor Finance expressed confidence that the Pay and Pension Commission will come up with a financially viable solution to streamline the basic pay scales of Government employees, admissible allowances and pensions. The Commission would follow a consultative process to resolve the burgeoning expenditure on the Government exchequer. The current model for disbursement of pay and pensions is not sustainable, he added. While assuring the Commission his full support, the Advisor recommended to the Commission that the government is willing to consider Commission’s recommendation even prior to the finalisation of the Report.

Ms. Nargis Sethi, Chairperson of the Pay & Pension Commission briefed about the rationale and mandate of the P & P Commission. She explained that the Commission would review the existing pay and pension structures, allowances, perks & facilities and also to evaluate possibilities of their monetization.

The Chairperson outlined formation of sub-committees which have been assigned terms of reference to deliberate on prevailing pay and pension system across the country. The success of the P & P Commission is dependent on provision of reliable & authentic data in a timely manner from all concerned, she stressed.

British High Commissioner, H.E Dr. Christian Turner called on the Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh in Islamabad today.

The Adviser exchanged views with the High Commissioner on matters of common interest. The Adviser briefed him about the measures taken by the Government to lessen the adverse economic impact and protect vulnerable segments of the society during the coronavirus pandemic. The Adviser shared the economic outlook for Pakistan with the High Commissioner and highlighted that Pakistan has registered an upward trend in foreign remittances, FDI, tax collection and had a current account surplus during the first quarter of FY 2020-21. He also explained that owing to the strategy of smart lockdown, the economy has started to recover pace.

The High commissioner offered to provide all possible help from the British Government for the people of Pakistan in mitigating the socio-economic impact of the pandemic. The Adviser thanked the High Commissioner for his assistance.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh addressed “Annual Microfinance Conference (AMC)” as a guest of honor, held in Islamabad today.

While speaking on the occasion, Adviser Finance outlined National Financial Inclusion Strategy (NFIS) which aims at achieving inclusive economic growth through promotion of small and medium enterprises, easy and affordable access to finance for farmers, facilitation in low-cost housing finance and provision of Shariah compliant banking solutions.

Adviser Finance highlighted the proactive measures taken by the Government to lessen the adverse economic impact of COVID-19 including loans deferred for one year and Rozgar Scheme (payroll Protection). Over 03 million borrowers benefitted with approx. Rs.140 bn loans rescheduled or deferred during the current crisis. The Rozgar Scheme has proved to be highly effective in improving liquidity position and saving millions of jobs, he added.

Due to prudent and timely policies of the Government, Adviser Finance highlighted that economic revival is taking place as Large Scale Manufacturing (LSM) registered 4.8% growth, cement sector 20% growth with 100% capacity utilization and significant increase in sale of cars, motorbikes and tractors during July to October 2020. Moody’s upgraded Pakistan’s economic outlook to ‘stable’ in August 2020. Pakistan is heading in the right direction, he concluded.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh addressed the second segment of the plenary session of the World Economic Forum (WEF) on Country Strategy Dialogue (CSD) through video link today.

During his virtual address, Adviser Finance briefed the forum that the current Government inherited a very precarious economic situation in 2018 and therefore, had to introduce strict financial discipline to curtail excessive Government expenditure, increase revenue collection, introduce market driven exchange rate, remove large tax exemptions and discourage imports. As a consequence, Pakistan witnessed remarkable improvement in fiscal and current account deficits. Similarly, Pakistan had a primary balance surplus which is unprecedented. All fundamental economic indicators reflected significant improvement before COVID-19.

During COVID-19, Government of Pakistan introduced “Smart Lockdown” to balance the imperative to contain the spread of the disease with the need to keep the economy functional. The Smart lockdown allowed many businesses to re-open or continue operations on limited scale to lessen the adverse economic impact and support the vulnerable segment of the society. To provide relief to vulnerable groups especially daily wage earners, Government of Pakistan gave cash payments to 15 million families under “Ehsaas Emergency Cash Program”.

Adviser Finance outlined that amid COVID-19, Government has taken several initiatives to facilitate agriculture and construction sectors to accelerate economic recovery. A relief package for Small Medium Enterprises (SMEs) shielded against insolvency and joblessness. The recent data complements the strengthening and expansion of the economy in ’’recovery’’ mode. Despite COVID-19, Pakistan has registered an upward trend in foreign remittances and FDI which is a clear reflection of confidence in Pakistan’s economy.

Adviser Finance reiterated that the Government firmly supports private sector as an engine of growth and believes in building institutional capacity for sustainable and inclusive economic growth. “We followed a liberal foreign investment regime and introduced measures to promote ease of doing business in the country”, he stated.

He said that the current leadership welcomes foreign investors and believes in transparency, accountability and openness. Our agenda is to empower people with key focus on human resource development, Adviser Finance concluded.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired a meeting of National Price Monitoring Committee (NPMC) today. Minister for Industries and Production Hammad Azhar, Adviser to PM on Commerce Abdul Razaq Dawood, SAPM on Revenue Dr. Waqar Masood, Federal Secretary Finance, Federal Secretary National Food Security and Research, Secretary Industries and Production, Secretary Commerce, Chairman TCP, Chairperson CCP and Managing Director Utility Stores Corporation also participated in the meeting. The Provincial Chief Secretaries joined the meeting through video link.

The National Price Monitoring Committee (NPMC) reviewed the price trend of the essential commodities namely wheat flour, Sugar, Tomatoes, Onions, Vegetable Ghee, Potatoes and Chicken on weekly basis. The Finance Secretary while presenting the price trend of essential commodities informed that according to latest SPI released by PBS, there is decline in the prices of wheat flour, sugar, onions while the prices of tomatoes, potatoes and chicken have slightly increased. It was informed that prices of vegetable ghee have remained unchanged. The committee was also informed about the price variation among the Provinces and the profit margin between wholesale and the retail.

The Chair held a detailed discussion with the Provincial Chief Secretaries regarding position of wheat and Sugar stocks in the Provinces. NPMC was briefed that sufficient quantities are available across the country. Adviser Finance emphasized that the provincial governments and all other concerned authorities take immediate proactive measures to control increase in prices.

During the meeting, Adviser Finance urged the representatives of the Provincial Governments to strictly monitor the difference between Retail and Wholesale prices in various commodities to ensure availability of the essential items for the consumers at affordable price.

Chief Secretary Sindh informed that Atta and sugar prices have declined in the province which will further stabilize in coming weeks. He also briefed that the Sindh government has established fair price shops to provide relief to general public. However, the chicken prices are slightly increasing and they are taking corrective measures accordingly.

Additional Chief Secretary Punjab informed that the prices of tomatoes are fluctuating due to seasonal factors but it will stabilize in coming weeks. He further briefed that the prices in the 360 sahulat bazar are low as compared to open market. He also informed that government of Punjab is releasing wheat as per policy as a result the atta prices have stabilized.

The Chief Secretary Khyber Pakhtunkhwa informed that they are releasing five thousand tons wheat daily as a result the prices of wheat flour bag have came down Rs. 20 to 30 in the market. It was also informed that local production of tomatoes in KP has started coming in the market; it is expected that in coming weeks the supply of tomatoes will increase significantly which will bring major decline in the price.

The Punjab and the Sindh Governments also briefed about the new crushing season of sugarcane and underlined that price of sugar would be reduced further due to availability of the local produce in the coming months.

MD, USC apprised NPMC about the sufficient stocks of sugar and wheat at the Utility Stores across Pakistan at subsidized price.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee of the Cabinet here at Islamabad. Minister for Industries and Production Hammad Azhar, Minister for Economic Affairs Khusro Bakhtiar, Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain, SAPM on Petroleum Nadeem Babar and SAPM on Revenue Dr. Waqar Masood, also participated in the meeting.

ECC evaluated a proposal submitted by the Ministry of National Health Services, Regulations & Coordination and approved, in principle, the provision of technical supplementary grant of US$ 150 million for the purchase of the COVID-19 vaccine. Ministry of Health briefed the ECC that this shall be the first phase of procurement and the amount of vaccine will suffice for the most vulnerable 5% of the population i.e the health workers and the population above the age of 65 years; around 10 million people would be provided a vaccine cover under the above arrangement. ECC further directed the Ministry of National Health Services to discuss the proposal with WB and other donors in coordination with Economic Affairs Division so that they could assist in providing financial facility for the procurement of the vaccine during the first phase and for the procurement of additional quantities in future as needed. The forum also directed the Ministry of NHS to draw a holistic proposal regarding the pricing and risk mitigation mechanism for the procurement of the COVID-19 vaccine for provision on a wider scale, in consultation with the relevant stake holders.

ECC approved the request of the Economic Affairs Division to proceed with the formal request for availing the G-20 Debt Relief for the extended period i.e January-June 2021; approval of the Federal Cabinet would be required for signing of the bilateral debt service suspension agreements.

ECC also approved two technical supplementary grants for “Initiating the Process of Retrenchment of Pakistan Steel Mills Employees (PSM)” for an amount of Rs.19.656 billion and “Prime Minister’s Special Package to Implement SKILLS FOR ALL Strategy as Catalyst for TVET Sector Development in Pakistan for Rs. 500 million. Rs. 689.3 million were also approved as budget re-appropriation for National Information Technology Board (NITB) for fulfilling its various requirements during the meeting.

ECC also approved the proposal by the Ministry of Energy/ Petroleum Division for the allocation of 2.25 MMCFD gas from Umair -1 to M/s OGDCL for sale to M/s Engro at a mutually agreed and negotiated price, under a Gas Sale and Purchase Agreement subject to initiation of Field Development Plan and Development and Production Lease.

ECC was also briefed on the status of wheat import through Trade Corporation of Pakistan. Ministry of National Food Security and Research briefed the forum on the provision of additional 340,000 MT of Wheat, a tender was floated on 11-10-2020; the bids were opened on 18-10-2020 and lowest bid was accepted. The total quantity to be imported is now 2.248 MMT.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh addressed “THE FUTURE SUMMIT” today through video link. He shared his thoughts on the topic titled “The Future of Pakistan”.

Addressing the Summit, the Adviser Finance stated that Pakistan enjoys natural advantage to its strategic location, agricultural potential, mineral resources, vast coastlines and close proximity to resource rich Central and South Asian States. He said that economic prosperity cannot be achieved without transferring benefits of growth to the masses; an inclusive growth is the key to sustainable economic development which has far reaching benefits for all, he added. The Adviser also outlined Government’s policy of opening up local markets for foreign investors and facilitating them for business development and employment generation in the country.

The Adviser said that the focus of the present government is on building institutions and streamlining procedures for sustainable economic growth. He shared the details regarding unprecedented reforms introduced by the present Government. He further said that the Primary and Current Account Balance are positive for the first time. The government has returned Rs. 5000 billion of foreign loans in 2 years; has given Rs. 250 billion in tax refunds to businesses allowing more liquidity, lucrative packages have been introduced for Export promotion and special package introduced for SMEs. He said the Rs. 1.2 trillion package given by the Government during COVID-19 pandemic is an example of government being sensitive to the sufferings of the people during testing times.

Private sector has to take lead role in providing services and employment in the markets. This is the way to sustainable development, Adviser concluded.

The Adviser thanked the CEO Nutshell for arranging the seminar and inviting him for sharing his views.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet Committee on Privatization (CCoP) here at the Cabinet Division.

The committee considered and approved the “Transaction Structure” for the divestment of 96.6% shares of Heavy Electrical Complex (HEC). CCoP also directed the Ministry of Industries and Production for the amicable and earliest resolution of issues related to regular employees of HEC. CCoP also instructed the Power Division (Ministry of Energy) to consider extending the validity of Type Testing License of Heavy Mechanical Complex.

CCoP also constituted a committee, chaired by Minister for Industries and Production, its members include Chairman Board of Investment, Chairman Privatization Commission, Secretary Finance, Adviser to PM on Austerity and Institutional Reforms and SAPM on Energy, to improve upon the transaction structure for Pakistan Steel Mills Corporation in consultation with the appointed Financial/Transaction Adviser for further incorporation of market requirements.

CCoP also approved the recommendation of the Privatization Commission Board to authorize the Chairman/Secretary of the Privatization Commission to inturn, authorize officers of the Commission to open, operate and close accounts in scheduled banks for the execution of privatization transactions including other operations in compliance with SBP guidelines.

The Financial Adviser appointed by the Privatization Commission (PC) for the sale of properties owned or controlled by the Federal Government briefed the CCoP on the Bid Price for the auctioned properties and sought guidelines for the remaining part of the transactions. ECC was briefed that out of the 27 properties, the bid price for 23 has been received. CCoP directed the FA to recommend a way forward on 2 unsold properties in Multan and Rahim Yar Khan. The committee also directed to engage the Chief Secretaries of KP and Punjab to resolve pending issues relating to 2 properties in Swat and Lahore.

In order to smoothly conduct the process of privatization, CCoP approved a Model questionnaire that would help in gathering all the relevant information regarding the entity that has been approved for privatization. The committee also directed that all Ministries/Divisions and SOEs (having assets in the privatization list) will provide information required in the model questionnaire to the Privatization Commission within 30 days from the date such request reaches the Ministry/ Division/SOE.

CCoP also constituted a Committee to look into various sectoral issues related to the Privatization of National Power Parks Management Company Limited. The Committee will include Adviser Finance and Revenue, Minister for Privatization, Secretaries of Finance, Power & Petroleum Divisions, SAPM on Energy and representatives of NEPRA as members and will meet within week to deliberate on the way forward. This Committee will specify issues and set up guidelines for addressing all the pending issues with relevant quarters.

CCoP approved the Transaction Structure for the Privatization of the House Building Finance Company Limited. The decision was already taken in CCoP of August 21st 2020 but not ratified by the cabinet (for the want of some additional information regarding the profitability and other issues of the entity). The Privatization Commission briefed the CCoP that if the transaction proceeds ahead, the new investor can bring in capital, operational expertise, capacity enhancement of HBFCL and new product development, which would eventually enhance its profitability and market share in housing mortgage for middle and low income groups of the society. CCoP accepted the proposal for moving ahead with the transaction structure for divestment.

In order to fully comply with the requirements of section 35 of the Privatization Commission Ordinance, 2000, CCoP approved the guidelines for all concerned Ministries/ Divisions to ensure that the management of Public Sector Enterprises, falling under the domain of the Privatization Commission, runs smoothly. The guidelines direct all concerned to comply with the model checklist of the actions that may be taken/ should not be taken by an Enterprise on the Privatization list, as well as other instructions issued by the Privatization Commission for each transaction from time to time. The CCoP directed to resolve all the issues concerning a PSE before the initiation of its privatization process and fully cooperate with the PC during the process and inclusion of the members of the Privatization Commission Board and other officers on the Boards of representative PSEs borne on the privatization list, as deemed appropriate on recommendations of the PC Board.

Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Sheikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Cabinet Division today. Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Baber and Advisor to the PM for Institutional Reforms and Austerity Dr. Ishrat Hussain attended the meeting. Governor State Bank of Pakistan Dr. Reza Baqir also participated through video link.

ECC approved budgetary allocation in favour of NITB for provision of ICT services at the Prime Minister’s Office for Prime Minister’s Kamyab Jawan Programme for FY/2020-21 to the tune of Rs.53 million as requested by the Ministry of Information Technology and Telecommunication.

In light of a summary presented by the Ministry of IT and Telecommunication regarding manufacturing of SIMs/Smart-cards in Pakistan, after due deliberation, the Chair directed to constitute a Committee to examine the proposal and present a report for a way forward within two weeks. The Committee would be chaired by the Minister of Industries and Production Hammad Azhar and would include representatives from the Ministry of IT & Telecom., FBR and Board of Investment (BOI).

Likewise, ECC recommended to form a Committee consisting of representatives from the Ministry of Commerce and Ministry of National Food Security and Research (MNFS&R) to decide a timeline for export of Mango and Kinnow as deemed suitable by the aforesaid committee after due consultation with the stakeholders.

ECC gave concurrence to the proposal by the Petroleum Division, in principal, regarding allocation of gas from Bashar X-IST to third party up to 1.0 MMCFD.

Lastly, a summary was presented by the PIACL, Aviation Division before ECC regarding GOP cash support for the Voluntary Separation Scheme (VSS). After through discussion, it was decided to approve, in principal, the voluntary separation from service scheme for PIA.

ECC also approved four separate Technical Supplementary Grants for the Ministry of Defence and Ministry of Interior for various projects during current FY 2020-21.

The Government has decided to reduce the prices of Ms petrol by Rs 1.71 and high speed diesel by Rs.1.79. The new prices of petroleum products will be as under:

Ms petrol Rs. 100.69 / litre
High speed diesel Rs.101.43
Kerosene oil Rs. 65.29
Light diesel oil Rs.62.86.

These prices will be applicable from 16 November 2020.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired a virtual meeting of FBR Technical Committee today. Chairman FBR Muhammad Javed Ghani and other senior officials participated in the meeting. Mr. Abid Shaban, Chairman of the Committee gave a detailed presentation during the meeting.

After due deliberation, it was decided to engage experts as co-opted members to streamline the working of the Technical Committee. Representatives of the Commerce and Industries Divisions would also be included to further strengthen the Technical Committee.

During the meeting, ‘FASTER’ system of Sales Tax Refund for exporters was appreciated. It was agreed that both FASTER and Rebates Systems would be fine-tuned for more efficient results on priority basis.

Technical Committee directed the Ministry of Commerce to clear the backlog with reference to DLTL refunds expeditiously.

FBR would devise a strategy for liquidation of pending income tax returns. Adviser Finance urged the Technical Committee to simplify relevant procedures ensuring clarity and transparency in revenue collection.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Advisory Committee for the release of unsold spectrum of next generation mobile services (NGMS) today at the Finance Division. Minister for Science and Technology, Fawad Chaudhry also participated in the meeting.

The Committee was briefed by Chairman PTA and Secretary, Ministry of Information Technology about the latest developments on the sale of available spectrum of next generation mobile services. The members of Frequency Allocation Board also shared their input on the subject. The Committee was briefed that the process for hiring of the consultant for the sale of available spectrum would be completed within 60 days and report will be prepared and submitted before the Committee accordingly. It is expected that the initial report will be ready by December 2020. The process for the sale of spectrum will follow after the hiring of the consultant and tentatively would be completed within current financial year.

Adviser Finance, as Chairman of the Committee, directed to complete the task of the hiring of the consultant at the earliest. He also stated that the whole process of auction must be transparent and an officer may be designated to apprise the public about the progress regarding sale of spectrum on regular basis. The whole process would contribute towards strengthening and expanding communications / IT Services across the country, would create more job opportunities, and improve the ease of doing business.

The next meeting of the Advisory Committee is expected to take place in December 2020.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired a meeting here at the Finance Division with Country Director World Bank (WB) Mr. Najy Benhassine, Ms. Melinda Good, Operations Manager WB, Mr Rikard Liden, Lead Energy Specialist (joined through video conferencing) and Mr. Shabih participated from the World Bank while Mr. Tabish Gohar SAPM on Power, Mr. Kamran Ali Afzal Special Secretary Finance and Chairman FBR participated as government’s management team.

While welcoming the Country Director, Advisor Finance outlined that the World Bank team has always been a source of support in pursuing Pakistan’s reform agenda and implementing various development projects for Pakistan. The Country Director thanked the Advisor for streamlining processes for the completion of various projects which are of bilateral interest.

The Adviser and the World Bank discussed a range of initiatives being undertaken in various areas, including energy, debt management, GST harmonisation and strengthening financial management.

The Country Director appreciated the efforts made by the Government on various fronts and offered all possible assistance in preparing an “Immunization program against COVID-19” if the test results of the vaccines are successful and approved for administration. The Adviser thanked the WB team and assured all possible synergy in various ongoing projects.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Cabinet Division.

In light of the recommendations of the meeting of the Coordination Committee of the ECC on wheat, held on 8th November 2020, it was decided that a subcommittee under the guidance of SAPM on Revenue would be constituted in consultation with the Ministries of Finance, Ministry of National Food Security and Research (NFS&R) and the provincial governments to work out the total volume of subsidy involved on imported and local wheat.

ECC also discussed the issues related to demand and supply of wheat in the country. The Ministry of National Food Security and Research reported that the wheat imported under the G2G arrangement from Russia will reach the country within this month and there will be no shortage of the commodity in the country. 

It was also decided to form a Logistics Committee in order to resolve the day-to-day logistic issues of wheat import. The Committee comprises of Secretary NFS&R (Convener), Secretaries/representatives of Finance, communication, Maritime Affairs, Commerce, Industries and Production, Railways and MD PASSCO, Chairman TCP, DG NLC, Port Authority, Provincial Governments and Private Transporters. The Committee will deal with day-to-day interagency issues and matters related to priority berthing, axle load, lifting of cargo and any other ancillary matter.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired Economic Coordination Committee (ECC) of the Cabinet at Cabinet Division, Islamabad today.

Minister for National Food Security and Research Syed Fakhar Imam, Adviser to PM on Commerce Abdul Razaq Dawood, SAPM on Revenue Dr. Waqar Masood, Minister for Industries and Production Hammad Azhar, Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar and Advisor to the PM for Institutional Reforms & Austerity Dr. Ishrat Hussain attended the ECC. Governor State Bank of Pakistan Dr. Reza Baqir and Provincial Chief Secretaries also participated through video link.

After due deliberation, ECC took key decisions with reference to demand and supply of wheat to stabilize local market and to reduce the wheat flour prices across the country.

As directed by the Prime Minister, a Coordination Committee was constituted to deal with import of wheat and its logistics and distribution to the recipient agencies. The Committee will be chaired by the Adviser Finance and would include Advisor to the PM for Institutional Reforms & Austerity Dr. Ishrat Hussain, Minister for Industries and Production Mr. Hammad Azhar, SAPM on Revenue Dr. Waqar Masood, Federal Minister for National Food Security & Research Syed Fakhar Imam and Governor State Bank of Pakistan Dr. Reza Baqir. It would also include Secretaries Finance, NFS&R, Communications, Commerce, Maritime Affairs, Railways and Chief Secretaries of Balochistan, KPK, Punjab and Sindh for smooth coordination.

After detailed discussion, the ECC approved Minimum Support-Price (MSP) for the wheat crop as Rs.1650 per 40kg. At the same time, current release price was maintained at Rs.1475 per 40kg.

After thorough consultation, ECC also approved grinding ratio of wheat at the base level of 70:30. It was further decided that ratio for the refined varieties of wheat flour would be decided by the Coordination Committee later.

The ECC also approved aggregate release of wheat @38,000 MT per day to the flour mills. Representatives of all the Provincial Governments were on board. This included 25,000 MT by Punjab, 8,000 MT by Sindh, 4,000 MT by KPK and 1,000 MT by Balochistan.

ECC also approved the request by the Government of Punjab to provide additional 0.7 MMT of wheat, out of which 0.4 MMT of wheat will be imported by TCP for Punjab.

Lastly, technical supplementary grant for the settlement of outstanding dues of non-litigant retired employees of Pakistan Steel Mills (PSM) amounting to Rs.11.680 billion was also approved by the ECC.

The Chinese Ambassador to Pakistan, Mr. Nong Rong called on the Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh at the Finance Division in Islamabad.
Dr. Abdul Hafeez Shaikh warmly welcomed the new Ambassador and exchanged views on matters of mutual interest during the meeting.

Adviser Finance briefed the Chinese envoy on enhancement of economic cooperation under the umbrella of CPEC, the fragile economy inherited by the present Government, the remarkable economic stability achieved in the pre-COVID-19 period especially in the external sector, the adverse socio-economic impact of the COVID-19 pandemic and the fiscal relief initiatives taken by the Government during the coronavirus crisis. He appreciated the continuous and unwavering support that China has always extended to Pakistan during testing times.

His Excellency Mr. Nong Rong stressed that the China-Pakistan bilateral relationship is an epitome of enduring friendship and brotherhood. While discussing progress on CPEC projects, the Ambassador said that collaboration between the peoples and the Governments of China and Pakistan would continue to expand and strengthen for achieving common objectives and guarantee a prosperous future for both the nations.

Adviser Finance expressed confidence that H.E. Mr. Nong Rong’s tenure would further solidify the friendship between the two brotherly countries. He assured his full cooperation during Mr. Rong’s diplomatic assignment in Pakistan.

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh held a virtual meeting with the Chief Minister Sindh Murad Ali Shah to discuss an optimum support price for the wheat crop during FY-2020-21. Federal Minister for National Food Security and Research Syed Fakhar Imam, Secretary Finance and Secretary NFS&R also participated in the meeting.

Adviser Finance exchanged views with the Chief Minister Sindh for a coherent wheat support price across Pakistan. During the meeting, Adviser Finance stressed the need for agreeing upon a well-coordinated support price to strike a balance between producers and consumers and ensure maximum productivity during the FY 2020-21. Adviser Finance concluded that there is a need to look at a holistic picture for determining a minimum support price for wheat crop, keeping in view, its financial implications in the long run.

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet here today.

ECC approved technical supplementary grants for NAB, Ministry of Health for immunization program, Ministry of Religious Affairs on account of Hajj Expenses and for Anti-Narcotics Force.

ECC formed a committee with all the relevant stakeholders (Finance Division, Power and Petroleum Division, Planning Division, SECP, OGRA, OGDCL, PSO, SNGPL, PPL, GHPL, PLL) to prepare a proposal on modalities for clearing the circular debt of the Petroleum Division. The committee will prepare a well-rounded proposal in a month and submit before the ECC. ECC also decided that the issue of circular debt may be considered holistically and a solution may be worked out to resolve the issue.

The Ministry of National Food Security and Research updated the ECC on the situation of wheat import in the country. The Ministry briefed ECC that TCP has opened the 6th tender for 110,000MT of wheat and after price matching the total picked up quantity would be 320,000MT. MNFS&R also informed that there will be sufficient availability of wheat in the country by January 2021 and with the increase in supply, the prices would be lowered eventually. ECC also enhanced the quota of Gilgit Baltistan by another 10,000 MT as per their request (from 150,000 MT to 160,000 MT). The modalities for increased quota for GB shall be decided later.

The Government decided to reduce prices of Ms Petrol by Rs1.57/litter and High Speed Diesel by Rs0.84/litter.

New prices will be as under:
Ms Petrol Rs 102.40/ltr
High Speed Diesel Rs 103.22/ltr
Kerosene Oil Rs 65.29/ltr
Light Diesel Oil Rs.62.86/ltr

New prices will be applicable from 1st November 2020.

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the special meeting of the ECC today to approve the “PM’s Package for Rabi Crops-Specially wheat".

In order to give the incentives to the farmers for the upcoming Rabi season, the Federal Cabinet in its meeting held on 27-10-2020 constituted a special committee to design the package to reduce the input cost for the farmers with the special intent to increase the production of wheat in the country.

According to the package Rs.1000/per 50 kg bag will be given as subsidy on fertilizers; DAP, P and K fertilizers. The Federal and Provincial government will share the subsidy in 70% and 30% ratio. On weedicides @ Rs. 250 per acre and fungicides @ Rs.150 will be given by the Federal Government as subsidy. The provinces will distribute the subsidy in their already prevalent manner but will be responsible for ensuring transparency. The Federal funds for the subsidy will be directly disbursed to the provinces by the Finance Division on the basis of their share, keeping in view their system strength and overall outreach. The Ministry of National Food Security would examine the provinces’ demand for funds and after its recommendation Finance Division shall transfer the funds to the provinces. It was also decided that the provinces will expand, improve and up-grade their subsidy disbursement systems. The package will be presented in the next Cabinet meeting on Tuesday for approval by the Federal Cabinet.

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet here at the Cabinet Division.

ECC approved the Technical Supplementary Grant of Rs. 109.47 million to the Ministry of Defence for the survey of the coastal areas. The amount was surrendered by the Ministry of Maritime Affairs as the Pakistan Army has offered to assist in the survey.

The Ministry of Maritime Affairs also presented another summary for the waiver of demurrage charges on Afghan Transit Cargo/ Afghan bound containers stranded at Karachi ports. Earlier the government had decided to ask the terminal operators to waive of 75% of the demurrage charges on Afghan Transit containers / cargo landing at ports from 22nd March to 30th September 2020(Covid-19 period) including refund of demurrage charges already recovered from such importers of Afghan bound transit container/cargoes. The Minister for Maritime Affairs advised TO’s to approach their principals for approval of 75% of demurrage charges by 5-10-2020. After the Terminal Operators showed their inability to accede to the Ministry’s request, the matter was brought to the ECC for guidance. ECC directed that the same committee that has been engaged with the terminal operators should again negotiate with the operators to reach an amicable solution to the issue.

In order to facilitate the Telecom sector by the waiver of certain taxes, ECC decided that the proposal may be granted approval in Principle. ECC further directed that a subcommittee may be constituted, consisting of Adviser to the PM on Revenue, Adviser to PM on Institutional Reforms & Austerity, Minister for Industries & production and Adviser Commerce, to prepare a modified proposal in view of the FBR’s response for final approval.

ECC also approved the summary moved by the Ministry of Energy (Petroleum Division) for the allocation of another 38 MMCFD gas from 3 new wells REHMAN 6,7 and 8 to M/S SSGCL, subject to all regulatory approvals. The price of gas will be as per the applicable petroleum Policy. (The gas will be provided as per availability in the winter months).

ECC granted approval for the renewal of the contract with TAVANIR Iran for the purchase of 104MW of electricity subject to vetting by the Ministry of Law & Justice. The contract, if approved by the Ministry of Law and Justice will be valid till 31st December 2021.

The meeting was attended by Minister for Railways, SAPM on Petroleum, Adviser Commerce, Adviser to PM on Revenue and Adviser to PM on Institutional Reforms and Austerity.

The Adviser to the Prime Minister on Finance, Dr. Abdul Hafeez Shaikh, held a virtual meeting with Mr. Shixin Chen, Vice President of the Asian Development Bank today. The Federal Minister for Economic Affairs Division, Mr. Khusro Bakhtiar, Country Director ADB, Ms. Xiaohang Yang, and the Executive Director, ADB, Mr. Shahid Mahmood also attended the meeting.

In his opening remarks, the Adviser Finance appreciated the strong support extended by the ADB for fight against Covid-19. The Adviser acknowledged ADB’s long standing partnership and firm commitment towards Pakistan to bring about essential reforms in priority areas like energy, transport, water and urban services, and the social sector.

The Adviser Finance shared a brief overview on the current economic situation and highlighted the measures taken by the Government to protect the vulnerable from the pandemic. The Government had to shift from its pre-Covid fiscal tightening in order to provide relief to the masses and businesses during these testing times. ADB’s support to the Ehsaas Program was appreciated and areas of mutual interest, like effective resource mobilization and enhancing domestic productivity, were discussed for future collaboration.

Mr. Shixin Chen commended the Prime Minister’s smart lockdown strategy as being ideal in striking a balance between lives and livelihoods. He also lauded the socioeconomic coverage extended to the marginalized section of the society and shared ADB’s commitment to continue its support in the future.

ECC decided to propose to the cabinet Rs 1600 as minimum support price (MSP) for wheat crop 2020-2021. It was briefed to the ECC that the support price mechanism plays a pivotal role in boosting wheat production as it stabilizes market and increases profitability of the farmers. Since 2010-2011, MSP for wheat has been revised 4 times. The new price which has been decided by the ECC is close to the price recommended by Punjab, which is the largest producer of wheat in the country.

ECC was also apprised of the Status of wheat import by the Trading Corporation of Pakistan (TCP). ECC was briefed that till January 2021 TCP shall be able to secure 1 million metric tons of wheat through international bidding. On the request of MNFS&R, ECC decided that the initial allocation of TCP for the import of 1.50 MMT of wheat may be enhanced to 1.80 MMT to cater for the additional requirement of 0.30 MMT demanded by the KP and Sindh for shipment by mid-February. It was also decided that 300,000 MT of wheat shall be imported on G2G basis from the Russian Federation by PASSCO. ECC endorsed the request of Ministry of Food to import another 320,000 from Russia under the G2G arrangement but constituted a Committee of Secretaries of Finance, Commerce and Food Ministry to look into the possibility of import of wheat either by PASSCO or TCP. It was also decided that further tendering of wheat may be stopped and TCP may resort to GTG arrangement for additional procurement of wheat. Keeping in view the arrival of the new crop in March 2021, the forum decided that no vessel of imported wheat should be arranged either in public or private sector beyond February 2021.

ECC also decided to release 50% of the tariff differential subsidy to the Power Division. Finance Division has earmarked Rs.140 billion for 2020-21 as Power Division subsidy. The release of Rs.65.8 billion demanded by the Power Division will be used for payments to the power producers in order to maintain adequate liquidity.

On the summary moved by the Ministry of Industries and Production for the determination of Gas rate for operations of Fatima fertilizer and Agritech, ECC decided that gas rate of PKR 772/MMBTU with Variable contribution margin@ 186 per bag may be offered to both the units for the period 3rd November 2020 onwards. It was briefed to the ECC that GoP’s share at this gas rate has been estimated by NFDC on the basis of RLNG’s last notified rate for July by OGRA, which is approximately 0.42 Billion. Further, actual payment by GoP for price differential sum to SNGPL may vary due to difference in monthly rate of RLNG.

ECC granted approval for the sale of surplus power available at the incremental rate of Rs. 12.96/kwh to all industrial consumer categories, excluding zero-rated industrial consumers, on the incremental consumption over their respective historical consumption or established benchmark. ECC also formed a committee consisting of Dr. Ishrat Hussain, Dr. Waqar Masood, Federal Minister for Industries and Production, Hammad Azhar, Federal Minister for Power, Omer Ayub, SAPM Nadeem Babar and SAPM Tabish Gohar to prepare a proposal to include K-Electric in the package. The Committee will also propose whether the package shall continue for one year or three years. The Committee will also analyze the need for any subsidy that will be involved in the package and source for arranging the same and all the issues that may come up in the calculation and distribution of that subsidy.