ECC likely to accord approval to sovereign guarantee

ZAHEER ABBaSI

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet is likely to approve issuance of a Rs 40 billion Sovereign Guarantee for power sector. Sources told Business Recorder that an ECC meeting to be chaired by Finance Minister Ishaq Dar would consider a proposal of Ministry of Water and Power regarding issuance of Sovereign Guarantee by Finance Ministry for Rs 40 billion Syndicated Term Finance Facility for power sector.

An official said the power sector is facing serious fiscal problems due to low recoveries and high line losses subsequent to failure by the relevant ministry to improve transmission, distribution, and administration losses of distribution companies (Discos).

The ECC would also consider a proposal of Ministry of Commerce regarding the disposal of 28,999 metric tons of unsold stock of sugar available with Trading Corporation of Pakistan (TCP) to Utility Stores Corporation (USC). Ministry of Industries and Production has reportedly submitted a restructuring option of Pakistan Steel Mills to the ECC for consideration.

The ECC is expected to consider a proposal of Ministry of National Food Security and Research with respect to a dispute on sugarcane prices between growers and sugar mills owners. Ministry of Petroleum is also said to have moved a summary to the ECC for allocation of gas from Oil and Gas Development Company Limited (OGDCL) Maru East gas field. The ECC would also consider another summary moved by Petroleum Ministry for allocation of gas from Miano Tight Gas Field.