The funds for drawbacks for local taxes and levies, allowed under the Prime Minister's Export Package, may be released by Finance Division within one week, as verified claims worth around Rs 36 billion are pending with the SBP.
Going forward, the sales tax refund claims and customs duty drawback may be paid by State Bank of Pakistan through authorised dealers immediately at the time of realisation of export proceeds. The Treasury Rules, 1997 may be amended to this effect, if needed.
The growing trade imbalance has been fast consuming the country's foreign exchange reserves and the government's entire effort is to boost the country's exports to deal with the problems of external account, the official added. He said that the ECC meeting will discuss various measures for enhancement of exports.
The ECC may approve allocation of 66 MMCFD additional Mari deep gas to MPCL for setting up a 180 MW CCGT power plant.
A proposal of Ministry of Industries and Production with regard to measures to address shortage of urea fertilizer will also be taken up by the ECC as well as allocation of gas from Zafir Field on a proposal of Petroleum Division.
ECC will also take decisions about sugar industry.
According to sources, sugar industry has held back-to-back meetings with the authorities. Finance Minister Asad Umar who apparently is unwilling to extend any subsidy or incentive to sugar industry also met Abdul Razak Dawood.
Sugar industry is of the view that it cannot start crushing in current circumstances and any adverse decision will also hurt farmers' interests. Razak Dawood is playing his role for resolution of sugar industry's issues.
Talking about supply of RLNG / natural gas to fertilizer plants, the government is expected to approve a price of Rs 780 per MMBTU. However, fertilizer industry is urging on tariff of Rs 735 per MMBTU. Ministry of Finance argues that fertilizer industry is already making high profits by selling urea at higher rates, asking that no further incentive be given to it. The ECC is also expected to approve a couple of summaries of Power Division and Commerce Division.