The Economic Coordination Committee (ECC) of the federal cabinet has approved the continuation of electricity and gas subsidy for export-oriented sectors to support the momentum of growth in exports during the fiscal year 2021-22.
Finance Minister Shaukat Tarin presided over the ECC meeting on Monday.
The Ministry of Commerce presented a summary regarding continuation of concessional rates of electricity and RLNG to export-oriented sectors. The secretary commerce briefed the committee that extension of concessional rates of electricity and RLNG is important for sustained increase in exports by providing energy at regionally competitive rates.
After due deliberations, the ECC approved the continuation of electricity and gas subsidies for export-oriented sectors to support the momentum of growth in exports during the fiscal year 2021-22.
Speaking on the occasion, the finance minister emphasised the need to incentivise export-oriented sectors in order to take national exports to the next level. At the same time, the finance minister stressed the need to rationalise usage of energy inputs.
For this purpose, the ECC constituted a sub-committee comprising minister for energy, minister for industries & production, advisor on commerce, deputy chairman Planning Commission, additional secretary (CF) finance and other relevant officials for presenting a plan to resolve the issue of continued use of gas by some units for power generation and non-cooperation in audit of such use. The sub-committee was directed to present its recommendations before ECC within 30 days for further deliberation.
The ECC considered and approved a summary presented by the Power Division for extension of incremental consumption package for K-Electric industrial consumers of X-WAPDA DISCOs & K-Electric and application of incremental consumption package for BI(Non ToU) consumers of X-WAPDA DISCOs and K-Electric at the rate of Rs.12.96/kwh from 1st July 2021 to 31st December 2021.
The ECC also approved another summary by the Petroleum Division regarding NOC for issuance of the parent company guarantees/corporate guarantees by each of the consortium companies, on a joint and several basis, in favour of ADNOC and SCFEA to pursue international exploration and production opportunity in Abu-Dhabi, United Arab Emirates.
Minister for Privatisation Muhammad Mian Soomro, Minister for National Food Security & Research Syed Fakhar Imam, Minister for Industries and Production Makhdoom Khusro Bakhtiar, Minister for Energy Muhammad Hammad Azhar, Minister for Economic Affairs Division Omar Ayub Khan, Adviser to the PM on Commerce Abdul Razak Dawood, Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, SAPM on Finance and Revenue Dr Waqar Masood, SAPM on Power & Petroleum Tabish Gauhar, and other senior officers participated in the meeting, while Governor State Bank of Pakistan (SBP) Dr Reza Baqir also participated through video link.
