RECORDER REPORT

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has decided that RLNG would be treated as a petroleum product for fixation of pricing on a monthly basis.

In response to a summary moved by the Ministry of Petroleum and Natural Resources, the ECC meeting chaired by Finance Minister has agreed to the proposed changes in the Petroleum Products Ordinance 1961 by the Committee comprising Secretary Finance, Secretary Petroleum, Secretary Law, Justice and Human Rights and Member Gas Oil and gas Regulatory Authority (OGRA) constituted on April 9 2015. According to the new arrangement, RLNG would be treated as a petroleum product and its pricing would be carried out in line with the prevailing practice for petrol/diesel pricing on a monthly basis.

The ECC has decided to import 100,000 tons of urea fertilizer for Kharif season 2015 (April-Sept 2015). The meeting has also decided to enhance import approximately supply of 82,000 tons under the SABIC facility within the previously allocated amount. Moreover, the ECC allowed an agreement between Economic Affairs Division (EAD) and SABIC in order to ensure the timely arrival of urea fertilizer for the Kharif season 2015. The chair also directed that steps should be taken to improve domestic production of urea which could help reduce the country’s import bill.

The ECC has approved a proposal of Privatization Commission with respect to the release of two months’ salaries of Rs. 1 billion for the employees of the Pakistan Steel Mills (PSM). The meeting also decided that the revised realistic operational plan of PSM with accurate funding requirement to be presented to the ECC of the cabinet subsequent to recommendation by the PSM board. The ECC has also approved, in principle, the signing of a Master Agreement and Power Purchase Agreement of CASA-1000 Project subject to the approval by CDWP.

The ECC also allowed the export of wheat on government-to-government basis to other countries on the same condition which were on January 23 2015. The ECC has given approval in its January 23 meeting to Sindh and Punjab to export 0.40 million tons and 0.8 million tons of wheat with a transport rebate of $45 and $ 55 per metric tons, respectively, but the transactions were allowed only through private exporters. The ECC after detailed deliberations on the Ramazan Package constituted a committee comprising Rana Assad Amin, Advisor Finance Division, Seerat Asghar Secretary Nation Food Security, Secretary Commerce and Managing Director Utility Stores Corporation (USC) to submit recommendations regarding the package in the next meeting. The proposal for the next meeting would incorporate a comparative analysis of prices/ quantities of all the items proposed for 2014 and 2015. The ECC would reconsider the package in the light of these recommendations.