ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet onThursday approved the proposal to fix dealers margin at Rs. 7.00/liter forMotor Spirit (MS) and High Speed Diesel (HSD).
Federal Minister for Finance and Revenue Mr. Miftah Ismail presided overthe meeting of the Economic Coordination Committee (ECC) of the Cabinet atFinance Division today.
The Petroleum Division submitted a summary on revision of OMCs and dealersmargins on petroleum products, said a press release issued here.
It was informed that the existing margins were fixed in December , 2021 andPakistan Petroleum Dealers Association has approached the government forimmediate revision of their margins due to inflation, increase in tariffsalaries and utility bills, etc, said press release issued here.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister forPlanning, Development and Special Initiatives Prof. Ahsan Iqbal, FederalMinister for Industries and Production Makhdoom Syed Murtaza Mehmood,Federal Minister for Power , Khurram Dastgir Khan, Federal Minister forNational Food Security and Research Chaudhary Tariq Bashir Cheema, ShahidKhaqan Abbasi – MNA/ex-PM, Minister of State for Finance and Revenue Dr.Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik,Rana Ihsan Afzal, Coordinator to the PM on Commerce and Industry,Coordinator to the PM on Economy, Bial Azhar Kayani, Federal Secretariesand senior officers attended the meeting.
Ministry of National Food Security and Research submitted a summary onurgent advice relating to award of 4th International Wheat Tender 2022opened on 25th July, 2022.
It was informed that Trading Corporation of Pakistan (TCP) issued 4thtender on 19-05-2022 for securing quantity of 200,000 MT of imported wheaton CFR basis.
The tender was opened on 25-07-2022 wherein six (06) internationalsuppliers participated, out of which 05 offered rates. The ECC afterdetailed discussion approved the lowest bid offered by M/s FalconbridgeFZ LLC@ US$ 407.49/MT CFR bulk on sight LC basis with direction to TCP tonegotiate with the Russian authorities to procure wheat on lower ratesubject to confirmation of the ECC.
Ministry of Water Resources submitted a summary on compensation package forthe Chinese causalities at Dasu Hydro Power project.
The ECC decided that the amount of compensation/ good will package willremain the same as per ECC’s earlier decision dated January 21,2022 ( i.eUS$ 11.6 million) and approved disbursement of the compensation/goodwillamount directly to the company M/s China Gezhouba Group InternationalEngineering Co. Ltd (CGGC) through Ministry of Foreign Affairs.
The Ministry of Industries and Production submitted a summary on issuesfaced by Fatima Fertilizer ( Sheikhupura Plant) and Agritech.
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Both the SNGPL based plants are operated by provisioning of RLNG on costsharing basis. Gas rate for operation of these plants is worked out on thebasis of Variable Contribution Margin (VCM).
Due to price increase in fuel prices and other factors, both plants haveapproached M/o I&P for revision of VCM and capping of GST at the price paidby the plants.
The ECC after discussion approved the proposal to ensure compliance withthe earlier decision of the ECC and the Federal Cabinet of shifting boththe plants to indigenous gas.
The ECC further directed Ministries of Petroleum, Finance, National FoodSecurity and Industries & production to work out the gas price/VCM for theFertilizers. The ECC also decided that Sales tax may be charged on theactual price of the gas being paid by the company.
Ministry of Commerce submitted a summary on prohibition/completequantitative restrictions on import of non-essential and luxury items. Itwas submitted that in order to curtail the rising current account deficit(CAD), ban on the import of about 33 classes/categories of goods wasimposed with the approval of the Cabinet. Due to the decision, the overallimports of the banned items have shrunk by over 69% i-e from $ 399.4million to $ 123.9 million.
A review meeting was also held to review the ban after two months owing toserious concerns raised by major trading partners on the imposition of banand considering the fact that the ban has impacted supply chains anddomestic retail industry.
In the light of fact that imports substantially reduced due to consistentefforts of the Government, the ECC decided to lift the ban on importedgoods except for Auto CBU, Mobile CBU and Home Appliances CBU.
Further all held up consignments (except items which still remain in bannedcategory) which arrived at the ports after 1st July, 2022 may be clearedsubject to payment of 25% surcharge.
