ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved import of up to five years old tractors with a duty reduction allowing for depreciation in value at two per cent per month up to a maximum of 60 per cent.

The ECC meeting presided over by Finance Minister Ishaq Dar was submitted a summary by the Ministry of Commerce regarding the import of agricultural tractors under the Kissan package 2022 and proposed amendments in Import Policy Order, 2022, to reduce the cost of tractors and the ECC allowed amendment in the relevant clause of the IPO 2022 for import of up to five years old tractors. With regard to duty reduction for the import of second-hand tractors, the ECC allowed depreciation in value at two percent per month up to a maximum of 60 percent.

The ECC considered the proposals of the SBP and allowed equity investment of US$ 4.9 million by Fauji Foundation for the acquisition of 2,750,000 shares (18.64 per cent stake) of Daharki Power Holdings Limited and granted waiver/ exemption to Fauji Foundation from the policy enumerated in Foreign Exchange Manual being incorporated as a trust under Charitable Endowment Act 1980.

The ECC was told that the government had allowed Fauji Foundation to make an equity investment abroad of US$ 12 million in “Daharki Power Holdings Limited” in 2008. Fauji Foundation, the Asian Development Bank, and Daharki Power Holdings Limited, BVI entered into an agreement in 2008, which provided the ADB the right to exercise put option in respect 2,750,000 shares subscribed by it.

The ECC, after discussion, approved the Ministry of Energy (Petroleum Division)’s summary for the assignment of 34 percent working interest of M/s Pakistan Oilfields Limited (POL) and six percent of M/s Attock Oil Company Limited (AOC) to M/s PolskieGornictwo Naftowei Gazowinictwo S.A (Polish Oil and Gas Company) (POGC) in Khirthar South Block (Sindh).

The Ministry of Energy (Power Division) submitted another summary for amendments in the Standardized Security Package Documents (SPDs) for the large solar PV projects, based on the market response to the earlier modifications by the competent forum and in order to ensure the viability of the project.

The ECC approved the proposals that indexation of tariff in the SPDs be on an annual basis and payment mechanism for settlement of invoices as per Framework Guidelines.

The ECC considered and approved the proposal of the Petroleum Division for the enhancement of oil and gas production from Tal Block (KPK) proposing the sale of gas from Mamikhel South discovery to third party in accordance with the Petroleum Concessions Agreement (PCA) after it was informed that the State-Owned Entities (SOEs) have around 70 per cent working interest in TAL exploration license. The meeting was informed that this arrangement will be to the benefit of the government in the form of increased dividends and taxes and it will be an opportunity to enhance private sector participation. —ZAHEER ABBASI