ZAHEER ABBASI

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved US$65 million (Rs 6.5 billion) fresh funds to National Bank of Pakistan (NBP) Bangladesh by NBP Pakistan to bridge its capital shortfall that if suffered during the Bangladesh operation.

The meeting chaired by Finance Minister Ishaq Dar decided that the amount to be remitted in two tranches to NBP, Bangladesh till January 31, 2015. The State Bank after evaluation of proposal has recommended that NBP may be allowed to remit US$65 million to NBP, Bangladesh, from inter-bank market against a regulatory capital shortfall of NBP, Bangladesh, operations due to operating losses. The SBP also recommended that provision of funds may be approved in two tranches and the ECC accordingly granted approval.

According to a statement, the ECC on a proposal by the Ministry of Water & Power has also approved the exemption from tax on profits/gains to Hubco Power Company’s Hubco Narowal Power Plant after its demerger as a new wholly-owned subsidiary wherein all assets and liabilities related to the Narowal plant will be transferred to the new company under sections 284-287 of the Companies’ Ordinance 1984. The chair during the meeting directed Secretary Cabinet Division to form a monitoring cell to pursue the status of implementation of all ECC decisions and inform the meeting. The Cabinet Division was also directed to remain in touch with the line ministries for timely implementation of ECC decisions.

Sources said that the minister was angry as details about implementation of ECC decisions, which was regularly presented to ECC in the past, have not been provided to the recent meetings.

An official said that a summary of Ministry of National Food Security and Research regarding removal of lifting of a regulatory duty on export of potato was not submitted. The ECC meeting, sources added, continued for only fifteen minutes as the Finance Minister had to spearhead talks with Pakistan Tehreek-e-Insaf (PTI) on finalization of terms of reference for a judicial commission to investigate rigging in the 2013 general elections.