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Press Releases/Media
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January 14, 2021 (PR No. 435) |
Minister
for Finance & Revenue chaired the meeting of
Advisory Committee |
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. |
|
January 11, 2021 (PR No. 434) |
Minister for Finance & Revenue chaired
the meeting of NPMC |
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. |
|
January 06,
2021 (PR No. 433) |
Minister for Finance & Revenue chaired
the meeting of ECC |
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. |
|
January 04,
2021 (PR No. 432) |
Minister for Finance & Revenue chaired
the meeting of Cabinet Committee on Privatization (CCoP) |
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. |
|
January 04,
2021 (PR No. 431) |
Minister for Finance & Revenue chaired
the meeting of the NPMC |
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. |
|
January 01,
2021 (PR No. 430) |
Chairperson Pay and Pension Commission
called on the Minister for Finance and Revenue |
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. |
|
December 28,
2020 (PR No. 429) |
Minister for Finance and Revenue chaired
the meeting of NPMC |
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. |
|
December 24, 2020 |
 |
Ministry of Finance hosted a farewell
reception in honour of the outgoing Secretary Finance
Mr. Naveed Kamran Baloch. The honourable Minister for
Finance and Revenue, Dr. Abdul Hafeez Shaikh, graced the
occasion. Adviser on Commerce and Investment Abdul Razak
Dawood, Adviser on Institutional Reforms and Austerity
Dr. Ishrat Hussain, Minister for Industries and Production
Hammad Azhar, Minister for Economic Affairs Khusro Bakhtiar,
SAPM on Petroleum Nadeem Babar, Ms. Teresa Daban Sanchez
Resident Representative, IMF Najay Benhassine, Country
Director World Bank and Ms. Xiaohang Yang, Country Director
Asian Development Bank were also present on the occasion. |
|
December 24,
2020 (PR No. 428) |
Minister for Finance & Revenue chaired
the meeting of CCoP |
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”. |
|
December 24,
2020 (PR No. 427) |
Minister for Finance & Revenue chaired
the meeting of ECC |
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. |
|
December 24,
2020 (PR No. 426) |
Meeting of the MFPC Board held under
the chairmanship of the Minister for Finance & Revenue |
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. |
|
December 23,
2020 (PR No. 425) |
Australian High Commissioner to Pakistan
called on the Minister for Finance and Revenue |
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. |
|
December 21,
2020 (PR No. 424) |
Minister for Finance and Revenue chaired
a meeting of NPMC |
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.
|
|
December 21,
2020 (PR No. 423) |
Minister for Finance and Revenue addressed
a webinar titled “Making Pakistan Prosper: Strategy
for Economic Growth and Development” |
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. |
|
December 16,
2020 (PR No. 422) |
Minister for Finance and Revenue chaired
a meeting of ECC |
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:
- Rs.219.300 million for the operationalization of
the newly established Isolation Hospital and Infections
Treatment Centre, Islamabad.
- Rs.305.462 million to payoff Pakistan’s annual
contribution to World Health Organization (WHO).
- Rs.106.775 million to the ICT Administration for
various projects
- Rs.706.82 million for FATA, temporary displaced
persons, Emergency Recovery Project, NADRA.
- Rs.278.091 million for Annual Contribution of Pakistan
to UNFA, PPD & IPPF-FPAP for FY-2018-19, 2019-20
& 2020-21.
- 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. |
|
December 14,
2020 (PR No. 421) |
Minister for Finance and Revenue chaired
a meeting of National Price Monitoring Committee (NPMC) |
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. |
|
 |
|
December 09, 2020 (PR No. 418) |
Adviser to PM on Finance and Revenue
addressed the Plenary Meeting of the Global Forum |
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. |
|
December 07,
2020 (PR No. 417) |
Adviser to PM on Finance and Revenue
chaired a meeting of National Price Monitoring Committee
(NPMC) |
Adviser to the Prime
Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh
chaired a meeting of National Price Monitoring Committee
(NPMC) today at the Finance Division to discuss the prices
and supply position of essential food items. The meeting
was attended by Minister Industries & Production,
Special Assistant to the Prime Minister on Revenue, Provincial
Chief Secretaries, Secretary NFS&R, Secretary Industries
& Production, Chairman FBR, Chairperson CCP, Executive
Director Commerce, Chairman TCP, Manager Coordination
Utility Store Corporation (USC), Member PBS, Deputy Commissioner
ICT Administration and senior officers of Finance Division.
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. |
|
December 03, 2020 (PR No. 416) |
Press Release |
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. |
|
December 03,
2020 (PR No. 415) |
Adviser to PM on Finance and Revenue
chaired the 4th Meeting of FBR Policy Board |
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. |
|
December 03,
2020 (PR No. 414) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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. |
|
December 02,
2020 (PR No. 413) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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. |
|
November 30,
2020 (PR No. 412) |
POL Prices |
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)
Products |
Existing Prices w.e.f.
16-11-2020 |
New Prices
w.e.f.
01-12-2020 |
Increase/
(-)Decrease |
MS (Petrol) |
100.69 |
100.69 |
+0.00 |
HSD |
101.43 |
105.43 |
+4.00 |
Kerosene (SKO) |
65.29 |
65.29 |
+0.00 |
LDO |
62.86 |
62.86 |
+0.00 |
|
|
November 30,
2020 (PR No. 411) |
Adviser to PM on Finance and Revenue
chaired a meeting of National Price Monitoring Committee
(NPMC) |
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. |
|
November 26,
2020 (PR No. 410) |
Adviser to PM on Finance and Revenue
addressed the inaugural meeting of the Pay and Pension
Commission 2020 |
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. |
|
November 26,
2020 (PR No. 409) |
British High Commissioner called on
the Adviser to PM on Finance and Revenue |
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. |
|
November 25,
2020 (PR No. 408) |
Adviser to PM on Finance and Revenue
addressed "Annual Microfinance Conference" |
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. |
|
November 25,
2020 (PR No. 407) |
Adviser to PM on Finance and Revenue
addressed the plenary session of the WEF |
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. |
|
November 23,
2020 (PR No. 406) |
Adviser to PM on Finance and Revenue
chaired a meeting of National Price Monitoring Committee
(NPMC) |
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. |
|
November 20,
2020 (PR No. 405) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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. |
|
November 18, 2020 (PR No. 404) |
Adviser to PM on Finance and Revenue
addressed “THE FUTURE SUMMIT” through video link |
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.
|
|
 |
|
November 16,
2020 (PR No. 403) |
Adviser to PM on Finance and Revenue
chaired the meeting of CCoP |
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.
|
|
November 16,
2020 (PR No. 402) |
Adviser to PM on Finance and Revenue
chaired the meeting of ECC |
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. |
|
November 15,
2020 (PR No. 401) |
POL Prices |
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. |
|
November 13,
2020 (PR No. 400) |
Adviser to PM on Finance and Revenue
chaired a virtual meeting of FBR Technical Committee |
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. |
|
November 12,
2020 (PR No. 399) |
Adviser to PM on Finance and Revenue
chaired the meeting of Advisory Committee |
 |
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. |
|
November 11,
2020 (PR No. 398) |
Adviser to PM on Finance and Revenue
chaired a meeting with Country Director, World Bank |
 |
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. |
|
November 09,
2020 (PR No. 397) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
 |
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. |
|
November 06,
2020 (PR No. 396) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
 |
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. |
|
November 05,
2020 (PR No. 395) |
Chinese Ambassador called on Adviser
to PM on Finance and Revenue |
 |
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. |
|
November 04,
2020 (PR No. 394) |
Adviser to PM on Finance and Revenue
held a virtual meeting with the Chief Minister Sindh |
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. |
|
November 04,
2020 (PR No. 393) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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.
|
|
October 31,
2020 (PR No. 392) |
POL Prices |
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. |
|
October 29,
2020 (PR No. 391) |
ECC approves the "PM's Package for
Rabi Crops-Specially wheat" |
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. |
|
October 28,
2020 (PR No. 390) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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.
|
|
October 28,
2020 (PR No. 389) |
Adviser to the PM on Finance & Revenue
held a virtual meeting with Vice President, ADB |
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. |
|
October 26,
2020 (PR No. 388) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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 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. |
|
October 23,
2020 (PR No. 387) |
Financial Action Task Force (FATF)
has reviewed Pakistan’s progress on FATF action plan
in its Plenary meeting |
Financial Action Task
Force (FATF) has reviewed Pakistan’s progress on
FATF action plan in its Plenary meeting on 23rd October
2020, and has acknowledged that Pakistan has made progress
across all action plan items and has now “largely
addressed”21 of the 27 action items. The FATF has
taken note of the significant progress made by Pakistan
on a number of action plan items. Recognizing Pakistan’s
sustained and irreversible efforts on implementation of
FATF Action Plan, the FATF has upgraded overall 9 Action
Plan items in its October 2020 Plenary. There is no item
remaining in the "incomplete" category. It is pertinent
to mention here, prior to this plenary, Pakistan had addressed
14 out of 27 items and now FATF reviewed compliance of
remaining 13 Action Plan Items during current plenary.
The action plan items that have been addressed by Pakistan
include highly important areas of Financial Sector, illegal
Hawala/Hundi, cross-border currency regime, international
cooperation in terrorist financing cases, amendments to
the Anti-Terrorism Act, implementation of targeted financial
sanctions by financial institutions, applying sanctions
for AML/CFT violations, and controlling facilities and
services owned or controlled by designated persons and
entities. This is indicative of the confidence of FATF
on the efforts of Pakistani Government.
However, in view of the 6 items in “Partially Addressed”
category, the plenary meeting decided to maintain status
quo with respect to classification of Pakistan, for the
time being. Considerable work has already been carried-out
on these six items. Pakistan shall continue to make efforts
to complete the remaining items in line with its strategy
by February 2021. FATF will undertake the next review
of Pakistan’s Progress in February 2021.
The Plenary meetings of FATF were held virtually from
18-23 October 2020, where its members discussed a variety
of topics including Pakistan’s progress. The Pakistan
team led by Mr. Muhammad Hammad Azhar, Federal Minister
of Industries and Production, attended these virtual meetings.
Pakistan presented its case in an effective manner and
also reaffirmed its political commitment to continue with
the efforts to complete the Action Plan. |
|
October 22,
2020 (PR No. 386) |
Adviser to the PM on Finance & Revenue
held a virtual meeting with Managing Director, World
Bank |
Adviser to the Prime Minister on Finance
Dr. Abdul Hafeez Shaikh held a virtual meeting with
Mr. Axel Van Trotsenburg, Managing Director, World Bank
and Mr. Hartwing Schafer, Vice President SAR, World
Bank as part of virtual annual meetings of the IMF and
World Bank 2020. The meeting was also attended by Federal
Minister for Economic Affairs, Mr. Khusro Bakhtiar and
SAPM on Petroleum, Mr. Nadeem Babar. Governor State
Bank, Dr. Reza Baqar also participated in the meeting
through video link.
Adviser Finance appreciated the role
of the World Bank in extending assistance to Pakistan
to provide much-needed fiscal space to fight COVID-19
pandemic effectively. World Bank is our long-running
development partner, he added.
In his remarks, Adviser Finance gave
an overview of the current economic situation and highlighted
reforms for sustainable economic growth. The Government
of Pakistan has followed an aggressive policy for curtailing
Govt expenditure and focused on raising revenus by mobilizing
internal resources. Tax collection increased by 17%
before COVID-19 crisis. The primary deficit was in surplus
in March 2020 which was a great achievement. Unfortunately,
the unprecedented COVID-19 crisis has reversed the economic
gains, he stated.
Adviser Finance underlined that Govt
of Pakistan devised a mechanism for cash transfer to
support 16 million deserving families during testing
times. The Ehsaas Program was acknowledged due to its
transparency and in-time facilitation during the pandemic.
Likewise, Government took numbers of steps to keep small
businesses afloat by sharing the load through subsidies
on pay rolls etc.
On the occasion, SAPM on Petroleum
and Minister for Economic Affairs briefed about the
efforts underway in the energy sector for bringing efficiency
into the system by streamlining ageing power plants
in the Government sector and commitment to resort to
renewable energy in future.
The World Bank appreciated the reform agenda of the
present Government and reiterated commitment to support
Pakistan through IDA 2020 during COVID-19 crisis. |
|
October 22, 2020 (PR No. 385) |
Chairman Complaint Oversight Committee
of the FBR called on Adviser to the PM on Finance &
Revenue |
Mr. Mussadaq Zulqarnain- Chairman
Complaint Oversight Committee of the FBR called on the
Adviser to the Prime Minister on Finance Dr. Abdul Hafeez
Shaikh at the FBR Headquarters today. Special Assistant
to the Prime Minister on Revenue, Dr. Waqar Masood also
attended the meeting.
The members of the Complaint oversight
Committee sought guidance from the Adviser Finance and
Adviser Revenue on the mechanism for setting up an efficient
complaint resolution system with cooperation from the
tax authorities.
Adviser Finance directed that
the Committee shall design a system for complaint registration
and will work on establishing links with the tax authorities
for their timely resolution. The Committee will devise
a mechanism to ensure genuine grievances are amicably
resolved in a timely manner. Adviser Finance directed
Chairman FBR to collaborate with the Committee for better
service delivery to the people and enhancing people
friendly image of the FBR. |
|
October 22, 2020 (PR No. 384) |
Co-CEO VEON & CEO Jazz called on Adviser
to the PM on Finance & Revenue |
Mr. Sergi Herrero, Co-Chief Executive
Officer VEON, along with Mr. Aamir Ibrahim, Chief Executive
Officer Jazz and Syed Fakhar Ahmad, Chief Corporate
& Regulatory Affairs Jazz, called on the Adviser
to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh
at the FBR Headquarters, Islamabad today.
After exchanging pleasantries, Mr.
Herrero shared with the Adviser Finance that he greatly
admired the warmth and hospitality of the people of
Pakistan. He also briefed the Adviser on the operations
of the company across the world and their future business
plans during the meeting.
The Adviser Finance welcomed Mr. Herrero
and commended the efforts of the telecommunication industry
during the Pandemic for providing access to data / information
and helping in transfer of funds to the poor who needed
assistance from the government.
The CEO also discussed with the Adviser certain issues
related to taxation and requested for facilitation.
The CEO also requested for an amicable solution on matters
pending in the court of law. The Adviser Finance assured
all possible cooperation to the company. |
|
October 22, 2020 (PR No. 383) |
Adviser to the PM on Finance & Revenue
chaired the 3rd meeting of the FBR Policy Board |
Adviser to the Prime Minister on Finance
Dr. Abdul Hafeez Shaikh chaired the 3rd meeting of the
FBR Policy Board at the FBR Headquarters today.
After the approval of the minutes
of the previous meeting, the members proceeded with
the discussion on the proposed ToRs of the Policy Board;
prepared by the Minister for Industries and Production,
Hammad Azhar and Mr. Abdullah Yousaf, former Chairman
FBR. The Subcommittee presented the proposed ToRs before
Policy Board for discussion. The members of the Board
gave their valuable input to fine tune the same. There
was extensive discussion on the task assigned to another
sub-committee which included Mr. Hammad Azhar and Faiz-ullah-
Kamoka for designing a mechanism of data sharing between
FBR and NADRA. During the meeting, the Chair also inquired
on the progress of clearance of containers on the Torkham
Borders.
The Chair was briefed that the situation
is back to normal at the Torkham Border and the trade
is business as usual. The current situation, due to
the COVID-19, is no longer the cause of concern for
the traders.
On the proposed ToRs, the Chair, after
detailed discussion with all the members of the Board,
gave certain guidelines to refine the proposed ToRs
under the supervision of the Special Assistant to PM
on Revenue Dr. Waqar Masood Khan. Adviser Finance Hafeez
Shaikh reiterated the need to broaden the tax net through
the use of data, already available with FBR, without
burdening the existing tax payers and advised Special
Assistant to PM on Revenue, Dr. Waqar Masood Khan to
formulate a proposal for liaison between NADRA and FBR
for data analysis to fulfill the requirements of FBR
and ensure all stakeholders are on board.
Adviser Finance directed that the Policy Board may also
look into important issues that need special attention
of the Government regarding tax collection and trade
management. He further directed that the next meeting
of the Board may be convened after 2 weeks. |
|
October 21,
2020 (PR No. 382) |
Adviser to PM on Finance and Revenue
addressed the MENAP |
Adviser
to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh
addressed the Ministers and Governors of Middle East,
North Africa, Afghanistan and Pakistan (MENAP) Region
of the IMF on the occasion of MD IMF’s interaction
with Ministers and Governors of the Region through video
link.
The discussion focused on the impact
of Corona Virus on the economies of the region, lessons
learnt through the experiences and policy guidelines
to be adopted to deal with the crisis of such magnitude
which has caught the world by surprise.
The participants thanked the MD IMF
Kristalina Georgieva and her team for arranging the
discussion and highlighted the need to play a more effective
role as a multilateral development partner whose advice
would be of much value and importance according to the
needs of the changing times. The participants agreed
that the virus has exposed the world’s need for
health spending and to focus more on technological solutions
to various problems. It was observed that after the
first wave of the pandemic almost all the countries
have lost a significant share of their GDP and unemployment
has become the biggest challenge. It was agreed if the
second wave comes, losses will be massive and the achievement
made by some countries during the crisis will be lost
if the preventive measures are not adopted as a part
of their everyday life. The participants praised the
Debt Suspension Initiative of the G-20 and said that
there is also a need to provide more finances to the
vulnerable economies. It was a consensus that employment
generation, equality and inclusion will be the new challenges
from the perspective of women and youth and new strategies
will be needed to help the women and youth in the region.
The Adviser to the Prime Minister
on Finance said that the Pandemic has undone a considerable
share of the achievements of the Government in Pakistan.
Though there were fiscal constraints, after the Pandemic,
the Government has devised a strategy to provide whatever
it can to its people and businesses by direct cash transfers
and sharing the load of various expenditures of the
small businesses. “The Government is determined
to provide employment and fight in-equality”.
He reiterated that if the government wants to continue
economic reforms, there are two real challenges; arranging
funding for pro-poor expenditures and prioritizing the
need for development spending. The Adviser observed
that incurring more expenditure to provide for the people
at or below the poverty line will require more borrowing
as it would not be possible to increase taxes at a time
of declining growth in the economy. Adviser Finance
said that there was a need to adopt a coherent strategy
with the partner countries in the region for development.
He added no matter how fair or transparent the Governments
are in their intentions and operations this unusual
situation has made them realize that there is a need
for taking support from their friends and development
partners in the form of technical advice and financial
support and for that all must contribute.
|
|
October 21,
2020 (PR No. 381) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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 two Technical Supplementary
Grants for the Ministry of Defence for Rs.17 billion
during the current financial year.
ECC also approved the request of the
Ministry of Commerce for the inclusion of radiation
apparatus in annex-B-1 of the Import Policy Order, 2020.
On the summary moved by the Ministry of Industries and
Production for ensuring the supply of RLNG to fulfill
the requirements of two fertilizer plants namely Agritech
and Fatima Fertilizer for the Rabi Season 2020-21, ECC
decided that the supply of RLNG shall continue till
the end of November 2020. The three member committee,
which was constituted earlier by ECC, under the chairmanship
of Minister for Industries and Production and having
members from Ministries of Finance and NFS&R shall
prepare a proposal for the further operation of these
plants after the said period and then bring it to the
ECC for further decision. |
|
October 19,
2020 (PR No. 380) |
ECC forms a committee to suggest MSP
of Wheat |
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 in principle, the procedure
for registration under the concessionary regime of electricity,
RLNG and gas under the export oriented sectors (erstwhile
zero-rated sectors) with instructions to ensure better
targeting of the recipients of this subsidy . ECC decided
that the previous list of manufacturers or exporters
declared zero-rated by FBR (under condition (xii) of
the SRO 1125) may be adopted in export oriented sectors.
FBR may register new manufacturers or exporters of five
export oriented sectors (erstwhile five zero rated sectors),
in accordance with past precedents of STGO-117, under
Commerce Division’s O.M No.1 (18)/2019 in manner
specified by FBR. FBR, Petroleum Division and Power
Division may formulate periodic rechecking/monitoring/withdrawal
strategy for previous and newly registered units along
with procedure to penalize in case of misrepresentation
and misuse.
ECC had a detailed discussion on the
Minimum Support Price (MSP) of Wheat in today’s
session. The Ministry of National Food Security and
Research briefed the ECC on different estimates gathered
from Punjab, KP, Balcohistan and the Federal Capital.
During the discussion, it also came to the fore that
there was a need to increase the MSP to support the
farmer and to grow enough quantities in the next sowing
season. The forum also discussed the need to rationalize
the prices of inputs for making them more affordable
to the farmers, to support the rural economy through
various measures and to increase the supply of wheat
in the market so that the flour prices are brought down.
It was also discussed to have a better system for gathering
data regarding the agriculture sector. ECC decided to
form a committee with Syed Fakhar Imam, Dr. Hafeez Shaikh,
Dr. Ishrat Hussain.Dr. Waqar Masood, Nadeem Baber, Abdul
Razzaq Dawood, Asad Umar and Khusroo Bakhtiar as members,
to thoroughly evaluate the proposal for the increase
in the Minimum Support Price of wheat for the 20-21
crops. The committee shall also prepare a proposal on
subsidy on fertilizers mainly DAP which may be offered
as a part of the package for the farmers so that their
input cost is reasonable/ reduced. It was also decided
that the provinces should increase the wheat releases
to stabilize/reduce the price of flour in the market.
It was decided that the local governments will also
be directed to specially monitor the prices of wheat
and flour in the markets so that its prices may not
be allowed to escalate for the common man. The committee
shall present its proposal in the next meeting of ECC. |
|
October 14,
2020 (PR No. 379) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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. The meeting was attended by Minister
for Food Security, Syed Fakhar Imam, Minister for Planning,
Development and Special Initiatives Asad Umar, Federal
Minister for Industries and Production, Hammad Azhar,
Adviser for Commerce, Abdul Razaq Dawood, Minister for
Railways Sheikh Rashid Ahmed, Adviser to the PM on Institutional
Reforms and Austerity Dr. Ishrat Hussain, Special Assistant
to the Prime Minister on Revenue Dr. Waqar Masood Khan
and Minister for Power Omar Ayub Khan. The SAPM on Petroleum
Nadeem Babar and Governor State Bank, Syed Baqar Raza
participated through video link.
On the summary moved by the Ministry
of Information and Broadcasting for allocation of additional
funds for the payment of media campaigns launched on
5th August (Kashmir Siege Day), ECC decided that Ministry
of Information and Broadcasting may meet the immediate
fund requirement through re-appropriation from its budget
allocated for the financial year 2021 and any shortfall
due to re-appropriation of the funds would be met through
technical supplementary grant towards the end of the
current financial year.
Ministry of Energy requested ECC to
give directions for the settlement of a loan of about
Rs. 7.6 billion and its associated costs from NBP in
relation to advance payment for Karkey Karandeniz Elektrik
Uretim (KARKEY). ECC decided that Finance division should
engage with the National Bank of Pakistan for the settlement
of the loan. It was decided that a well-rounded proposal
with all stakeholders on board would be presented before
ECC for the final approval.
ECC in principle approved technical
supplementary grant amounting to Rs.72.635 billion to
Power Holding Limited (PHL) for onward disbursements
to respective banks or through financial instruments
as and when due during the current financial year. In
an earlier decision, ECC had decided to shift the power
sector debt stock of Rs.804 billion to public debt.
As per debt repayment schedule agreed between PHL and
lending institutions, an amount of Rs 72.635 billion
were required to be paid partially during the FY 2019-20
and remaining is payable in 2020-21 as principal repayments
to lenders. Furthermore, the loan amounting to Rs. 82
billion taken from OGDCL and included in the total of
Rs.804 billion is required to be considered separately
through non-cash/cash settlements. ECC also formed a
committee headed by Adviser to the PM on Institutional
Reforms and Austerity Dr. Ishrat Hussain, Dr. Waqar
Masood Khan, representatives of Finance and Power Divisions
to prepare a proposal for the settlement of dues of
power sector and other related issues in a holistic
manner for onward submission in ECC.
ECC allocated Rs.10 billion from Stimulus
Package for the payment of 1st installment of interest/
profit for the period of 21-05-2020 to 20-11-2020 in
respect of Pakistan Energy Sukuk-II (amounting Rs.200
billion).
ECC approved the allocation of funds
for implementation of the Interest Free Loans (IFL)
program by Pakistan Poverty alleviation fund. BISP has
surrendered funds amounting to Rs.4.98 billion in favor
of Pakistan Poverty Alleviation Fund during the financial
year 2020-21 which shall be used for the purpose of
the IFL program. |
|
October 12,
2020 (PR No. 378) |
Adviser to PM on Finance and Revenue
chaired a meeting of National Price Monitoring Committee
(NPMC) |
 |
Adviser Finance, Dr. Abdul Hafeez
Shaikh, chaired a meeting of National Price Monitoring
Committee (NPMC) to review the prices of essential perishable
commodities, held in Finance Division, Islamabad today.
The meeting was attended by Minister for Food Security
Syed Fakhar Imam, Adviser for Commerce Abdul Razaq Dawood,
Adviser to PM on Institutional reforms Dr. Ishrat Hussain,
Special Assistant to the Prime Minister on Revenue Dr.
Waqar Masood, Secretary NFS&R, Secretary Planning,
Secretary Ministry of Industries & Production, Chief
Secretaries from Punjab, Sindh, KPK and Balochistan,
Chairperson, Competition Commission of Pakistan and
representatives from Utility Stores and Pakistan Bureau
of Statistics.
The NPMC deliberated upon increase in the prices of
wheat, sugar and perishable items namely Tomatoes, Onions,
Potatoes and Chicken and discussed corrective measures
to provide relief to the end consumers. It was stated
by the concerned Ministries that the reasons behind
the price hike include gap in supply and demand due
to climatic factors, upward trend in international prices
and increased profit margin between wholesale &
retailers particularly in metropolitan areas. There
was a general consensus that recent rains and COVID-19
have further aggravated the situation.
Adviser Finance, Abdul Hafeez Shaikh, urged all the
stakeholders to take drastic measures to curb inflation.
In this regard, the role of district market committees
was emphasised to curb price variation effectively.
The Chief Secretaries were directed to minimize price
disparity by streamlining the release of wheat at regular
intervals to avoid profiteering.
NPMC also reviewed the timeline for import of wheat
and sugar to meet domestic demand for the same. Adviser
Finance was briefed that the total public sector procurement
for wheat through G2G and TCP is equal to 1.8 MT based
on the demand estimates provided by the Provinces and
PASSCO. It was also stated that sufficient sugar stocks
are available in the country till Nov., 2020.
Adviser Finance also directed Utility Stores to streamline
the availability of essential items in order to provide
maximum relief to the lowest strata of the society.
Advisor Finance expressed confidence that effective
and well-concerted actions by the Provincial Governments
and the concerned Ministries will help in controlling
the menace of inflation.
|
|
October 12,
2020 (PR No. 377) |
Delegation of SUPARCO called on Adviser
to PM on Finance and Revenue |
A delegation of Pakistan Space and
Upper Atmosphere Research Commission (SUPARCO) called
on Prime Minister’s Adviser on Finance, Dr. Abdul
Hafeez Shaikh at Finance Division today. The meeting
was also attended by Federal Minister for Industries
and Production, Mr. Hammad Azhar. The delegation of
SUPARCO comprised of Major General Amer Nadeem, Chairman
SUPARCO, Major General Abid Mumtaz DG CoP, SPD and other
members.
The delegation made a detailed presentation about working
of SUPARCO and outlined latest initiatives / projects
to be undertaken in near future. Adviser Finance was
also briefed about working of satellite services in
Pakistan.
In his remarks, Adviser Finance Hafeez Shaikh greatly
appreciated the contribution of National Space Agency
in promoting new technologies in space and atmospheric
sciences in the country and ensured full support in
making SUPARCO a commercially viable entity. |
|
October 07,
2020 (PR No. 376) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
 |
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 here at the Cabinet Division.
ECC allowed SNGPL for the recovery of previous revenue
shortfall as well as enabling SNGPL to manage the load
of the domestic/ commercial sectors by diversion of
RLNG in the approaching winter.
ECC constituted a three member committee consisting
of Secretary Finance, Secretary Commerce and Secretary
National Food Security (as the chairman of the committee)
to negotiate the price of wheat with the Russian Government
for the further procurement of wheat. Besides, 330,000
MT of wheat when imported by TCP shall be distributed
equally among 3 recipient agencies i.e. PASSCO, Punjab
and KP (110,000 MT each).
ECC allowed allocation of 8 MMCFD gas from Mangrio discovery
and 4 MMCFD of gas from Mithri gas discovery for M/s
SSGCL.
ECC also allowed OGRA to issue new CNG Licenses to RLNG
based CNG stations with the provision that the Licensee
would neither receive indigenous gas or can claim for
its conversion to indigenous gas. The ban on the issuance
of new licenses was imposed since 2008. |
|
October 05,
2020 (PR No. 375) |
Meeting of National Price Monitoring
Committee (NPMC) was held under the Chairmanship of
the Special Secretary Finance |
The meeting of National Price Monitoring
Committee (NPMC) was held under the Chairmanship of
the Special Secretary Finance to discuss / evaluate
the reasons for increase in prices of essential commodities
with particular focus on perishable items. The meeting
was convened on the directions of the Prime Minister’s
office to discuss the abnormal variation in the prices
of perishable items such as tomatoes, potatoes, onions
as well as other essential items like wheat, sugar and
chicken. The meeting was attended by the representatives
from the Provincial Governments, Islamabad Capital Territory,
Ministries of Industries, Commerce and National Food
Security & Research, along with Competition Commission
of Pakistan and Pakistan Bureau of Statistics.
The meeting was informed that CPI
inflation year on year is recorded at 9.0 % in September
2020 as against 11.4 percent during the same month last
year. The meeting also noted that average inflation
during July-September FY 2020-21 also showed a declining
trend and recorded at 8.8 percent as compared to 10.1
percent same period last year. It was, however, noted
that the profit margin between wholesale and retail
has risen especially in potatoes, tomatoes and onions
which are affecting the common man.
It was observed during the meeting
that an upward trend was witnessed in prices of perishable
commodities during Sept-October 2020. The reason cited
for the upward pricing trend was unprecedented rainfall
which adversely affected the local produce. The price
hike is likely to stabilize by November, 2020 onwards
when local produce would be available in the markets.
It was observed with concern that the difference between
wholesale and retail prices of the essential commodities
is becoming a serious challenge for the Provinces.
The representative from M/o NFS&R
has informed that seven vessels carrying 0.433 million
MT of wheat from the private sector have been arrived
in the country while TCP has been allowed to import
1.650 million tons. TCP has so far arranged 0.330 million
tons which is expected to be arrived in October (4 Ships)
and in January 2021(2 Ships).
The representative from Ministry of
Industries and Production informed that TCP will import
151,700 tons of sugar. He added that private dealers
stocks 0.445 million tons are available till 04th November
whereas Sindh Cane Commissioner reported total stock
of sugar is at 0.565 million tons which will be available
till 9th November 2020. The representative from Punjab
government has informed that crushing of sugarcane will
be started in the first week of November. Punjab government
has imposed heavy fine through legislation in order
to expedite the timely crushing of sugarcane whereas
the representative from Sindh government also informed
that crushing will start by mid of November, 2020.
The NPMC meeting Chaired by the Special
Secretary Finance, called upon the district administrations
to remain vigilant and control the prices of essential
commodities namely tomato, potato, wheat, sugar etc.
through strict price enforcement. The focus should be
to minimize price disparity between the wholesale and
retail prices of the essential commodities which leads
to inflation. The Chair urged the Provincial Governments
to take corrective measures to check undue profit margin
in basic commodities. It was further suggested that
Provincial Governments should provide support to market
committees in collaboration with district administration
to play proactive role by removing price disparity among
Provinces and also ensure the smooth supply of essential
items. |
|
October 02,
2020 (PR No. 374) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECC |
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 here at the Cabinet Division.
ECC considered and approved the import
of 180,000 MT of wheat from Russia on GTG basis waiving
off all taxes/levies duties on GTG import of wheat.
The forum was informed that about 5 million tons of
wheat was available with the public sector in stocks.
In terms of import 430,000 tons has already been imported
by the private sector and another 1.1 million ton was
expected to be imported by the end of December 2020.
In terms of wheat import by the public sector, TCP has
already opened an LC for importing 330, 0000 MT of wheat
while TCP is in the process of tendering another about
1.2 million tons. Another 180,000 tons are imported
through GTG arrangement from Russia.
ECC also allowed the exemption
from sales tax on supply of sugar imported through Trade
Corporation of Pakistan of upto 300,000 MT and allowed
the amendment of SRO 751(1)/2020 dated August 20, 2020
of the Revenue Division for the purpose.
|
|
October 02,
2020 (PR No. 373) |
Country Director SAP (software) called
on Adviser to PM on Finance and Revenue |
Adviser to the Prime Minister on Finance
and Revenue Dr. Abdul Hafeez Shaikh chaired a meeting
here at the Finance Division with the Country Director
SAP Mr. Saquib Ahmad and his team.
The country director briefed the Adviser
Finance on the operations of the Company and how it
is providing services in 180 countries of the world.
The country director gave proposals for the better use
of technology they have already provided to Pakistan
and suggested measures for better resource management
that require further investments in new technology.
The Country Director shared that the Enterprise Resource
Planning (ERP) software shall be of special use for
the organizations like CDNS, PWD, Railways and Pakistan
Post.
The Adviser said that the Finance
Division shall provide all possible help in this regard
and another meeting on the subject shall be shortly
held where sector specific proposals could be discussed. |
|
October 01,
2020 (PR No. 372) |
Adviser to PM on Finance and Revenue
chaired a meeting of ECNEC |
Adviser to the Prime Minister on Finance
and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting
of the Executive Committee of the National Economic
Council (ECNEC) here at the Cabinet Division.
ECNEC considered and approved the
“Simplification of Planning Commission/ Planning
Division Development Processes/ Procedure to improve
Project Management”(Guidelines). According to
the new procedures there are reforms in the following
six areas: a) Project Identification and Preparation
of PC I, b) processing and approval of PC I, c) Project
Management and Staffing, d) Opening of Project Assignment
Account, e) Procedure for release of funds, f) Monitoring
and Evaluation.
Indus Highway (N-55) Additional Carriageway
Project (Shikarpur-Rajanpur section) length: 221.95
KM was also approved by ECNEC. The project will be completed
at the total rationalized cost of Rs.44703.890 million.
(The Asian Development Bank will also share the cost;
Rs.40, 233.500 million). The project which will be completed
in 3 years time and envisages construction of additional
2-lanes and widening/ rehabilitation of existing 2-lane
carriageway of Shikarpur-Rajanpur section of Indus highway
N-55. The total length of Shikarpur- Rajanpur section
is 221.950 km that will be upgraded to a 4 lane dual
carriageway facility with each lane 3.65m wide. NHA
shall be responsible for the execution, operation and
maintenance of the project. Federal PSDP has allocated
Rs.1000 million for the completion of this project in
2020-2021.
Construction of Rajanpur-DG Khan Section
of N-55 as 4 Lane Highway 121.50 Km was approved by
ECNEC at the total rationalized cost of Rs.33,172.22
million with ADB share of Rs. 28,528.11 million. The
Project will be completed in 3 years by NHA. The project
road starts from Rajanpur and passes through Fazilpur,
Muhammad Pur Dewan, Jampur and terminates at Dera Ghazi
Khan. Federal PSDP has allocated Rs.500 million for
the completion of this project in 2020-2021.
Dualization and Rehabilitation of
DG Khan- DI Khan Section of N-55(208.19 Km) was approved
by ECNEC at the total rationalized cost of Rs.52, 276.53
million with ADB share of Rs. 44,957.82 million. The
Project will be completed in 3 years by NHA. The project
road starts from DG Khan then passes through Shah Sadar
Din, Kala, Shahdan Lund, Taunsa, Tibi Qasrani, Mahra,
Paroa and terminates at DI Khan. . Federal PSDP has
allocated Rs.500 million for the completion of this
project in 2020-2021.
Rehabilitation and upgradation of
79.890 km, Jhaljao- Bela Road at the total rationalized
cost of Rs.11, 118.123 million was approved by ECNEC
without any foreign exchange component. The project
will be completed in 3 years time by NHA . The project
road starts from Jhaljao and terminates at Bela, District
Awaran. The road traverses through towns of Augani,
Sipai sing, Chauki and finally terminates at Bela. It
is expected that the completion of the project will
save vehicle travel time and vehicle operating costs
of commuters. It will also contribute to ensure efficient
movement of trade, goods and traffic in relatively shorter
time.
Peshawar Northern Bypass Project-32.2
Km was also approved at the 2nd revised cost of Rs 21,338.005
million. The project envisages construction of 32.20
km, 4-lane bypass with service roads on either side,
on the northern side of Peshawar city. The total 32.2
Km distance of the Bypass has been divided into three
packages for construction purposes. Section I: M-1 Intersection-
Charsada Road Interchange (7.60 Km in length). Section
II: Charsada Road Interchange- Warsak Road Interchange
(11.6 Km). Section III: which has been subdivided in
Section 3A and 3B ; Warsak Road to Nasir Bagh Road (5.50
Km) – from Nasir Bagh to end point at Takhtabaig
Khwar check post (7.50 Km).
Construction of 157 MW Madian Hydropower
project, District Swat, under the World Bank assisted
Khyber Pakhtunkhwa Hydropower and Renewable Energy Development
Program was also approved by ECNEC at the total rationalized
cost of Rs.79, 374.85 million with FEC of 57,339.33.
ECNEC directed that the sponsors will adhere to the
IPP regime followed by NEPRA and all cost will be rationalized
as per NEPRA cost Structure. The sponsors will hire
financial consultants to negotiate tariff and ensure
least cost generation at affordable price/ tariff of
the Hydropower Project.
Construction of 88 MW Gabral Kalam
hydropower Project at an estimated cost of Rs.36,430.188
million including FEC of Rs. 8815.785 million was approved
by ECNEC with the following directions: the sponsors
will adhere to the IPP regime followed by NEPRA and
all cost will be rationalized as per NEPRA cost structure.
The sponsors will hire financial consultants to negotiate
tariff and ensure least cost generation at affordable
price/ tariff of the Hydropower Project. The sponsors
will share with CDWP the progress achieved on the milestones
given after six months of approval of project from ECNEC.
ECNEC also approved Evacuation
of Power from 2160 MW Dasu HPP stage I Dasu to Islamabad
via Mansehra at the total cost of Rs.132, 249.84 million
with foreign exchange component of Rs. 112,228.74 million.
The project is expected to complete in 5 years time
and is proposed to be financed by the World Bank. The
main objective of the project is the evacuation of power
from 2160 MW Dasu hydro power project to respective
load centers of DISCOs by construction of 765 kV double
circuit transmission line from Dasu Hydropower project
to Islamabad via Mansehra.
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