ZAHEER ABBASI
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has decided to procure 0.3 million metric tons of sugar from mills and approved issuance of a government guarantee against financing facility of Rs13.132 billion from local banks for 1,320MW imported coal power plant at Hub.
A meeting of the ECC presided over by Prime Minister Shahid Khaqan Abbasi directed Trading Corporation of Pakistan (TCP) to procure sugar from mills. The decision was taken with the objective to facilitate mills for timely procurement of sugarcane and ensure payments to farmers at prescribed rates. The meeting was informed that no bid was received against the TCP tender for procurement of sugar at Rs48 per kg.
The meeting also approved a plan to settle power sector payables that will ensure that government-owned companies including PSO, SSGPL, SNGPL, Gencos, Discos and nuclear power plants continue to operate normally. An official said the government is said to have decided to borrow Rs80 billion from local banks for power sector payables to ensure smooth generation of electricity till elections. An official said that net circular debt, excluding the amount parked in Power Holding Company Limited (PHCL), has crossed over Rs500 billion. The ECC also approved issuance of government sovereign guarantee against a financing facility of Rs13.132 billion from local banks for evacuation of power from 1,320MW imported coal power plant.
The government will also settle outstanding dues of IPPs after reconciliation and pre-audit in a prescribed manner to ensure transparency.
The ECC also approved the procurement target of 6.1 million tons of wheat for the year 2017-18 and three months salary (October to December 2017) for the employees of Pakistan Steel Mills Corporation (PSM).
The meeting also approved signing of Headquarter Agreement between Pakistan and SAARC Arbitration Council (SARCO) for exemption from duties and taxes to SARCO and its officials, and accorded approval to a proposal to link price of JP-8 petroleum products with ex-refinery price of JP-1.
