The Economic Coordination Committee (ECC) of the cabinet on Monday approved continuation of electricity and gas subsidy for export-oriented sectors to support the momentum of growth in exports during the fiscal year 2021-22.
The summary regarding continuation of concessional rates of electricity and RLNG to export-oriented sectors was presented by the ministry of commerce while secretary commerce briefed the committee that extension of concessional rates of electricity and RLNG was important for sustained increase in exports by providing energy at regionally competitive rates.
Federal Minister for Finance and Revenue Shaukat Tarin, while presiding over the ECC meeting, emphasised the need to incentivise export-oriented sectors in order to take the exports to the next level. At the same time, the minister stressed the need to rationalise usage of energy inputs.
For this purpose, the ECC constituted a sub-committee comprising minister for energy, minister for industries and production, advisor on commerce, deputy chairman planning commission, additional secretary finance division and other relevant officials for presenting a plan to resolve the issue of continued use of gas by some units for power generation and non-cooperation in audit of such use.
The sub-committee was directed to present its recommendations before ECC within 30 days for further deliberation.
The ECC approved a summary presented by the power division for extension of incremental consumption package for K-Electric industrial consumers of X-WAPDA DISCOs and K-Electric and application of incremental consumption package for BI (Non ToU) consumers of X-WAPDA DISCOs and K-Electric at the rate of Rs12.96/kwh from 1st July 2021 to 31st December 2021.
The ECC also approved another summary by the petroleum division regarding NOC for issuance of the parent company guarantees/corporate guarantees by each of the consortium companies, on a joint and several basis, in favour of ADNOC and SCFEA to pursue international exploration and production opportunity in Abu-Dhabi, United Arab Emirates.
Among others, the meeting was attended by Federal Minister for Privatization Muhammad Mian Soomro; Federal Minister for National Food Security and Research Syed Fakhar Imam; Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar; Federal Minister for Energy Muhammad Hammad Azhar; Federal Minister for Economic Affairs Division Omar Ayub Khan; Adviser to the PM on Commerce Abdul Razak Dawood; Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain; SAPM on Finance and Revenue Dr Waqar Masood; SAPM on Power and Petroleum Tabish Gauhar; Federal Secretary Finance, Secretary Ministry of Industries and Production; Secretary Ministry of National Food Security and Research, Secretary Power, Secretary Petroleum, Chairman FBR and other senior officers. Governor SBP Dr Reza Baqir also participated through video link.