Briefing media after the ECC meeting presided over by Minister for Finance Dr Abdul Hafeez Sheikh, Additional Secretary Finance Rana Asad Amin and Secretary Statistics Division Asif Bajwa said that the meeting also exempted Karachi Export Processing Zones from 5 percent withholding tax on electricity bill. They said that withdrawal of 5 percent regulatory duty on sack paper would have a nominal impact on revenue.
The ECC after receiving a detailed presentation on sugar update directed the TCP to release on fast track basis available sugar stock in the open market so that prices of commodity to bring down what they described artificial hike of the commodity. The meeting also decided that 350,000 tons of sugar reaching Karachi in December 2010 would be tendered from the port and would not be taken into the TCP warehouse.
The meting also considered a summary moved by Ministry of Industries and Production (MoIP) seeking permission for import of five-year old vehicles due to high prices of local vehicles. They said that the local manufactures have not reduced the prices of vehicles despite negotiations with the government. The ECC constituted a committee with the Secretary Commerce and Industry and directed them to bring a joint summary in the next meeting regarding import of old vehicles.
The ECC also approved Rs 3 billion bailout package for Bank of Khyber (BoK) on the same terms and conditions on which Rs 10 billion were given to Bank of Punjab (BoP) by the State Bank of Pakistan. The BoK could avail of this credit till 2011 for a period five years with one-year grace period.
On the issue of providing additional fuel oil to KESC by PSO at rate of gas, the ECC decided that KESC would now make directly full payment of additional fuel to PSO and would seek price differential claims from the Finance Ministry. To a question about the differential cost, they said that it would be Rs 75 million per day.
The ECC constituted a committee with Minister for Petroleum, Water and Power, Deputy Chairman Planning Commission and Secretary Finance on gas load management and they have been asked to reprioritise the previous plan in one week with detailed information of its impact on various sectors. Additional Secretary Finance said a shortfall of 568 mmcfd to 917 mmcfd is anticipated in winter.
The ECC also gave approval of giving 40 million euro Italian loan to Pakistan Poverty Alleviation Fund (PPAF) as grant for poverty alleviation purpose and termed the motor gasoline and ethanol experience as successful and approved its continuation for another six months.