ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet has approved the revocation of Neelum-Jhelum (NJ) surcharge of Re0.10 per unit in power bills with immediate effect.
Federal Finance and Revenue Minister Dr Abdul Hafeez Shaikh chaired the ECC meeting on Friday. National Food Security and Research Minister Syed Fakhar Imam, Industries and Production Minister Hammad Azhar, Adviser to PM on Institutional Reforms and Austerity Dr Ishrat Hussain, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Board of Investment (BOI) Chairman Atif Bokhari were also present on the occasion.
The Ministry of Energy had presented the summary about revocation of NJ surcharge.
The surcharge was imposed in the year 2007 for part financing of Neelum-Jhelum Hydropower Project with a sunset clause of Dec 31, 2015 — the completion target of the project started at the time with an estimated cost of Rs130 billion.
Meanwhile, the ECC considered another summary by the Ministry of Energy (Petroleum Division) regarding tax on payments to the offshore supply contractor to meet the contractual obligation. The ECC established a sub-committee comprising SAPM on petroleum, secretary law, secretary power and chairman Federal Board of Revenue (FBR) with a direction to evaluate the proposal and present workable recommendations before the forum for consideration.
The Ministry of Industries & Production presented a summary before ECC regarding revision of subsidised prices of essential commodities by the Utility Stores Corporation (USC), in accordance with the earlier directive of ECC, dated 28 January 2021.
The secretary industries & production presented various proposals to rationalise prices of wheat flour, sugar and ghee in view of continuous fluctuations in international commodity prices. After detailed discussion, the ECC approved only partial rationalisation and directed to provide maximum relief to the consumers despite significant price differential between subsidised price offered by the USC and the prevailing prices in the domestic markets.
However, according to sources, the ECC increased the price of ghee at utility stores by up to Rs30 per kg.
The ECC also approved another summary by the Ministry of Industries and Production for outstanding payment to M/s Ocean Wide Shipping Services, amounting to $0.58 million, from Pakistan Steel Mills to fulfil a contractual obligation for transportation of coal during the year 2010.
Secretary information technology and telecommunication presented a summary regarding taxation issues of the telecom sector. The ECC had earlier constituted a sub-committee dated 20th Oct 2020, under the chairmanship of Adviser to PM Dr Ishrat Hussain, for due deliberation in this regard. The sub-committee presented its recommendations for gradual abolishment of 12.5pc advance income tax on the telecom sector before the ECC. The committee approved these recommendations as endorsed by FBR.
Moreover, secretary national food security and research placed a summary before the ECC regarding the mechanism for disbursement of subsidies in line with the Prime Minister’s Fiscal Package for Agriculture in the backdrop of Covid-19 pandemic. The summary was approved by the ECC for timely disbursements of subsidies to the provinces by the M/o NFS&R, subject to clearance by the Finance Division.
The ECC also considered and approved a summary regarding the government’s sovereign guarantee for a PSDP project titled National Electronics Complex of Pakistan (NECOP) being executed by the National Engineering and Scientific Commission.
Among other agenda items, the ECC approved a technical supplementary grant of Rs550 million for Special Communications Organization (SCO) from Ministry of IT during FY21; Rs200 million (out of total allocation of Rs362.239 million) for Special Technology Zones (STZA) during the current financial year; and Rs109 million to Ministry of Information and Broadcasting to clear outstanding bills related to media campaigns on behalf of Ehsaas Programme during FY20.
