The Economic Coordination Committee (ECC) of the Cabinet authorized Rs 28 billion in supplemental funding to the Ministry of Defense and around Rs 44 billion to Pakistan International Airlines in the first quarter of the new fiscal year on Wednesday (15 September).
The ECC presided over by Finance Minister Shaukat Tarin, also approved 70 million cubic feet of imported gas for two Punjab-based fertilizer factories for the forthcoming Rabi season and ordered an assessment of total requirements to see whether urea imports would be necessary.
The Ministry of Defense had requested two technical extra grants:
- Rs 18bn for Special Security.
- Rs 22bn of additional funds for Pak-Iran Border Fencing.
The Ministry of Finance, at a pre-ECC meeting, agreed to grand Rs 10bn in place of Rs 22bn at the current stage of border fencing.
The ECC took up additional three demands worth Rs 28bn for the current fiscal year and got all of them approved which include:
- Rs 12bn release for recurring cost of Special Security Division-South.
- Rs 6bn for recurring cost of Special Security Division-South.
- Rs 10bn for Fencing along Pak-Iran Border during current fiscal year.
The ECC also authorized an additional Rs44 billion in financial support for PIA. This includes a financial agreement worth $130 million (about Rs22 billion) to cover its immediate liabilities. Along with this, the committee, in hopes to raise finances from commercial banks enhanced the guarantee limit of PIA by Rs 22bn.
According to the finance ministry, the ECC authorized a summary presented by the Aviation Division for GOP (Government of Pakistan) cash support as requested by PIAC. Due to pandemic and unprecedented travel bans and lockdowns enforced by many countries, the airline has seen a major drop in sales and financial flows. Furthermore, the ECC accepted the enhancement of an existing approved guarantee, which will help PIAC overcome its financial difficulties.
The ECC also approved:
- A description of the Ministry of Industries and Production’s proposal to provide Liquefied Natural Gas (LNG) regasification to Sui Northern Gas Pipelines Ltd (SNGPL)-based facilities (Agritech and Fatima Fertilizer) in Punjab during the Rabi season 2021-22 to meet fertilizer needs.
- The ECC approved the provision of 70 million cubic feet per day of gas (mmcfd) RLNG with the instruction to convene a consultation session with fertilizer producer representatives to work out overall urea demand.
- The ECC also recommended that urea imports be considered if necessary, to maintain buffer stockpiles.
The Ministry of Commerce presented a summary of the revocation of the Minimum Export Price (MEP) limitations on the export of surgical tools, except for “single-use” surgical instruments. In the Export Policy Order of 2020, the ECC agreed to revoke the condition of the MEP to make our exports competitive in the global market.
A forum summary for the supply of wheat for AJ&K, from Passco stocks, was presented for the financial year 2021-22 by the Ministry of National Food Security and Research. The ECC approved that a combination of local and imported stock should be supplied with 300,000 tonnes of wheat in the amount of 80/20 to AJ&K.
As Chairman of the ECC, Federal Finance Minister emphasized that the government is fully committed to stabilizing wheat prices and ensuring its smooth supply at affordable costs across the country.
To upgrade the IT infrastructure, the ECC has approved Rs 3.860bn in favor of the Revenue Division (FBR) to view the increased frequency and severity of cyber-attacks so the risk to taxpayer’s data can be eliminated.
