ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has given approval to include the fertiliser sector in revised gas supply priority orders keeping in view the high international prices of fertiliser and also in view of food security.
The meeting of ECC was held under the chair of Minister for Economic Affairs Omer Ayub Khan on Thursday.
The ministry of Industries and Production presented the summary pertaining to gas supply priority orders.
Currently, there are two urea plants at SNGPL network, Fatima Fertiliser and Agritech, and one DAP/urea plant namely Fauji Fertiliser bin Qasim limited at SSGCL network.
Sources said that FFBQL plant at SSGCL network during the current winter season would be experiencing low gas supplies and would go on annual turn around in January 2022 due to non-provision of system gas as the system gas at SSGCL would be diverted to them during the current Rabi season 2021-22. They would be adding an additional up to 100KT of Urea in the national stocks.
Sources said that National Fertiliser Development Center is projecting negative inventory for Urea fertilizer from the month of December 2021 till February 2022. Due to high C&F prices of Urea Fertilizer, the Ministry of I&P may take up the matter with the petroleum division to make necessary arrangements for provision of additional gas/LNG to Urea plants, especially FFBQL.
If system gas supplies are assured to FFBQL, the inventory position with FFBQL producing 53KT from October to March during the Rabi season but the gas is not made available due to present merit order when supply to fertilizer sector has been placed after domestic use as well as export and power use.
Sources said that the ministry of I&P proposed ECC to revise with reference to the Fertilizer sector keeping in view the high international prices of fertiliser and also in view of food security.
A handout issued by EAD states that ECC approved the summary tabled by the Ministry of Industries & Production on revised Gas supply priority order to the Fertilizer Sector.
System gas supplies will be ensured to these plants during the current Rabi Session 2021-22 ensuring immediate availability of Urea Fertilizer and saving of foreign exchange in case of import of Urea from abroad.
The ECC after deliberation also approved the summary presented by Ministry of Energy on Retargeting of Power Sector Subsidies – Phase –II, that included removal of one slab benefit (Incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalization/cross subsidies.
The Committee also recommended the summary tabled by the Finance Division for enhancement of Ways and Means Limit of Khyber Pakhtunkhwa Government from Rs. 27.0 billion to Rs. 31.3 billion due to the impact of wage bill of erstwhile FATA.
The ECC discussed and approved the summary presented by the Ministry of Industries & Production for endorsement on the decision of the Committee constituted by the ECC of the Cabinet on scrapping of the tenders floated by TCP in respect of import of sugar.
The ECC after deliberation approved the summary presented by the Ministry of Commerce on Textile and Apparel Policy 2020-25 with directions to incorporate inputs of FBR and Finance Division and meet the observations of Power Division. After detailed discussion, ECC also approved the summary tabled by Ministry of Industry & Production on Auto Industry Development and Export Policy (AIDEP) 2021-26, with the directions that export targets given in the Policy may be reviewed every year and updated accordingly and proposed tariff structure to be presented separately to the ECC.
On the recommendations of the Technical Advisory Sub-Committee, ECC also approved the Technical Supplementary Grants of different ministries including Rs. 2,650.968 Million in favour of the Ministry of Housing & Works for execution of development schemes in the province of Sindh and Balochistan under SAP.
Meanwhile, ECC also approved Rs5 billion TSG in favour of the Ministry of Energy for payment of First Instalment (40%) to IPPS of 2002 under payment mechanism, source added.
In addition, amount to Rs2 billion for launching a comprehensive media campaign on government initiatives, programmes and projects have also been approved by ECC.
The ECC, after detailed discussion, deferred a summary tabled by the Ministry of National Food Security & Research for notification of minimum indicative price of Tobacco Crop 2022 with the directions that a committee may be formed to address the observations of stakeholders and present the proposal in the next meeting after detailed revision.
Earlier, Adviser to the Prime Minister on Finance & Revenue Shaukat Tarin, presided over the meeting of Technical Advisory Sub-Committee. The TASC reviewed the summaries in detail and presented its recommendations to the ECC for its consideration.
