ISLAMABAD – Over the issue of the Refinancing of the commercial loans,Pakistan government makes important announcement.Adviser to the PrimeMinister on Finance and Revenue Dr. Abdul Hafeez Shaikh that Pakistan hasno intension of seeking any kind of relief for repayment of its commercialloans/ borrowings.
Chairing a meeting of the Economic Coordination Committee, Shaikh alsoinformed that Pakistan has the means and will to honor its commercialcommitments.
ECC approved in principal to allow EAD to sign an MOU for availing the G-20relief initiative. Pakistan is required to enter into this MoU with allofficial bilateral creditors including Paris Club creditors to implementthe debt relief initiative of G-20.
“The following Technical supplementary Grants were approved by ECC a) Rs.360.515 million for the repair and maintenance of Supreme Court of PakistanBuildings in Islamabad and various cities. b) Rs. 3.836 billion in favor ofMinistry of Housing and Works to execute development schemes in the SindhProvince c) Rs. 291 million in favor of Ministry of Housing and Works/ Pak.PWD for payment of salary of maintenance staff of Pak. PWD,” said anofficial press release.
On the recommendations of the Committee formed under the Chairmanship ofAdviser to PM on Institutional Reforms and Austerity and comprisingSecretary Finance Division and Secretary Power Division to look into theissues of servicing of power sector loans and stock handling in a holisticmanner.
ECC allowed allocation of Rs.10 billion from Stimulus Package as a stop gaparrangement for the payment of interest on the Pakistan Energy Sukuk II fora period of six months or amendment in NEPRA Act whichever is earlier.
Subject to the approval of the Cabinet, ECC approved in principal to allowEAD to sign an MOU for availing the G-20 relief initiative.
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Pakistan is required to enter into this MoU with all official bilateralcreditors including Paris Club creditors to implement the debt reliefinitiative of G-20.
ECC also approved the proposal of the Revenue Division for declaration ofmulti-modal transit hub Jia Bagga NLC Transit Port as Customs Clearanceport under Section 9 of the Customs Act 1969.
In order to reduce the capacity charges of power generation companiesthrough synthetic financing, the committee also approved the ToRs fornegotiations with IPPs/Gencos as recommended by a committee constituted bythe CCOE vide its decision dated April 2nd 2020 under the Chairmanship ofMinister for Power and comprising SAPM on Mineral Resources, SecretaryFinance Division, Secretary Power and Secretary Law and Justice Division.The committee will submit its report in due course.
In order to manage and operate the Prime Minister’s COVID-19 PandemicRelief Fund 2020, ECC approved the constitution of the Policy Committeewith the following members; “1) Prime Minister of Pakistan.( Chairman) 2)Minister for Planning Development and Special Initiatives (member) 3)Adviser to PM on Finance and Revenue. (member) 4) Adviser to PM on Commerceand Investment. (member) 5) SA PM on Poverty alleviation and social safety.(member) 6) Prime Minister’s Focal person for Corona Philanthropy Drive.(member) 7) Secretary Finance Division. (member) 8) Secretary PovertyAlleviation and Social Safety”.
(Secretary) Terms of reference for the proposed committee would be asunder: 1) To decide on the appropriate usage of the proceeds deposited inthe fund including means of identification of the beneficiaries of the fundand the parameters of their selection. 2) To decide about the means ofdisbursement of assistance to the beneficiaries 3) To take any appropriatedecisions for collection of donations, maintenance and administration ofthe fund and related matters.
