ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Wednesday considered the Petroleum Division’s proposal for renewal of gas supply agreement between Sui Southern Gas Company Limited (SSGC) and Fauji Fertilizer Bin Qasim Limited (FFBQL).
After a detailed discussion, the ECC meeting, chaired by Finance and Revenue Minister Dr Abdul Hafeez Shaikh, approved the summary with a condition that the renewal would be allowed on “as and when available basis” for a period of five years.
“The SSGC may restore gas supplies to Fauji Fertilizer till December 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier),” a statement issued by the Finance Division read.
Meanwhile, on the recommendation of the Ministry of Housing and Works, the ECC allowed the utilization of the ministry’s funds of Rs377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.
The committee also approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in Ghotki, Sindh, to SSGCL from its previous allocation to SNGPL (as approved earlier by the ECC on October 6, 2009). The price of gas would be as per the applicable petroleum policy.
Moreover, the Petroleum Division moved a summary for removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company was being considered for privatization.
After due deliberation, the ECC allowed that the dividend distribution cap might be removed to ensure that the divestment transaction generates optimum sale proceeds for the government.
The committee further decided that the MPCL would ensure dividend distribution in accordance with the provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
The ECC also approved technical supplementary grants (TSGs) including Rs141.308 million to the Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during Covid-19 pandemic; Rs9.025 million to the Ministry of Information and Broadcasting for a media campaign on the occasion of Kashmir Solidarity Day; Rs5 million for purchase of spare parts for helicopter maintenance by Pakistan Rangers (Punjab); Rs25 million for purchase of spare parts for helicopter maintenance by Frontier Corps Balochistan (South); and Rs10 million for repair and maintenance of helicopter by Frontier Corps KP (South), D I Khan.
Planning, Development and Special Initiatives Minister Asad Umar, Interior Minister Sheikh Rasheed Ahmad, Privatization Minister Muhammadmian Soomro, Adviser to PM on Institutional Reforms and Austerity Dr Ishrat Hussain, Special Assistant to the PM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Energy Minister Omar Ayub Khan were also present on the occasion.
