The Economic Coordination Committee (ECC) of the Cabinet has approved theproposal to issue a letter of comfort in favor of PSO for raising a loanfacility of Rs. 50 billion.
Federal Minister for Finance and Revenue Miftah Ismail presided over themeeting.Ministry of Energy presented a summary on syndicated runningfinance facility for PSO. The ministry informed that the banks wouldinitiate the process of issuing loan to PSO on letter of comfort.Consequently, ECC approved the proposal to issue a letter of comfort infavour of PSO for raising a loan facility of Rs. 50 billion on urgent basis.
However, the committee also asked Finance Division to divert some otherallocated guarantees to PSO without exceeding Rs. 105 billion domesticguarantee limit for the 1st quarter of CFY.
ECC also approved summary regarding issuance of GoP guarantee in favour ofNational Bank of Pakistan (NBP). The summary was presented by Ministry ofAviation. It was informed that Roosevelt Hotel Corporation (RHC), which isowned by Pakistan International Airlines-Investment Limited (PIA-IL), shutdown in December 2020 due to financial troubles. A committee wasconstituted to look into the financial challenges of RHC, which recommendedGoP support of $142 million. The ECC after discussion approved GoPguarantee for financing facility as loan from NBP.
Ministry of Industry and Production tabled a summary for revision in priceof imported Urea. It was informed that the price of imported Urea stored inNational Fertilizer Marketing Limited (NFML) warehouses is lower thanlocally manufactured Urea. Therefore, ECC approved the proposal that DealerTransfer Price (DTP) of 50 kg imported Urea may be revised upward at Rs.1805/bag by NFML (exclusive of dealer margin of Rs. 145/bag) for the stockssold between June 23 to July 25, 2022.
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Furthermore, it was directed that DTP of remaining stocks held with NFMLmay further be revised upward to Rs. 2150/bag (exclusive of dealer marginof Rs. 50/bag) with effect from July 26, 2022 onwards. The ECC furtherdirected to fix the Urea pricing and dealer margin in future with itsapproval of the ECC.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for PowerKhurram Dastgir Khan, Shahid Khaqan Abbasi, Minister of State for Financeand Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum MusadikMasood Malik, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan,Coordinator to the PM on economy Bilal Azhar Kayani , Coordinator to PM onCommerce & Industry Rana Ihsan Afzal, federal secretaries and seniorofficers attended the meeting.
