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Mettis Global News
Mettis Global News
Mettis Global News

CPI Preview: Inflation to fall below 14% YoY in May

ECC okays Rs62.27bn for PDC payment

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May 29, 2022 (MLN): The Economic Coordination Committee (ECC) of the Cabinet at the Finance Division on Saturday approved Rs62.27 billion for the Ministry of Energy (Petroleum Division) for making the payment of Price Differential Claims (PDCs) to Oil and Marketing Companies (OMCs) and refineries for the second fortnight of May 2022.

ECC also allowed the import of 2 MMT on a G2G basis while 1 MMT through the international tendering process under the existing arrangement. PASSCO will be the recipient agency for the imported wheat. The ECC further directed the MNFS&R to get the requirements of Wheat by the provincial governments.

The summary was submitted by the Ministry of National Food Security and Research pertaining to modalities framed for the import of 3.00 MMT of wheat in the light of the decisions of the ECC of the Cabinet on 09-05-2022 and the Federal Cabinet on 10-05-2022.

 In another summary of Ministry of National Food Security & Research for Ramzan Package Subsidy on wheat flour- Bridge financing facility for Punjab Food Department, the ECC decided that in case subsidy is not approved by the Punjab Cabinet, the shortfall will be bridged by the Federal Government but Govt. of Punjab will ensure that provincial cabinet approves the package as soon as its meeting is convened.

 The ECC also approved a summary submitted by the Pakistan Atomic Energy Commission for grant of extension in the construction period of K-2 from 30th November 2020 to 21st May 2021 and K-3 from 30th September 2021 to 18th April 2022 for ensuring disbursement of the pending loan of USD 383 million (approx.) before the expiry of loan availability on 03-06-2022 from Exim Bank, China to the contractor, who has already completed the project.

 Ministry of Industries and Production submitted a summary on the continuation of the PM relief package – 2020 for the months of May and June 2022 through USC. The ECC after deliberation allowed the continuation of the existing subsidy for two weeks on essential commodities (Atta, Sugar, Rice, and Pulses), and Rs. 100/kg subsidy on Ghee at USC. Finance Division will also release the outstanding amount on account of subsidy under the PM Relief Package – 2020 approved by the ECC for the previous months.

 Ministry of Industries and Production submitted another summary on the Chinese offer for the import of Urea by TCP on a G2G basis. ECC after deliberation allowed TCP to import 200,000 MT Granular Urea from China on a G2G basis on a deferred payment basis within 90 days.

Ministry of Economic Affairs submitted a summary on the exemption from all kinds of taxes and duties on the complete portfolio being executed by the Saudi Fund for Development (SFD). In Pakistan, SFD is providing assistance for various projects including Energy, Health, Education, and Infrastructure projects. The ECC, considering the comments of FBR on the subject, suggested that a tax exemption clause for SFD may be inserted in the Money Bill considering the strong and strategic relationship between Pakistan and the Kingdom of Saudi Arabia, encompassing economic cooperation and investment.

 The Ministry of Commerce submitted a summary of the duty structure on the import of edible palm oil. The ECC allowed removing 2% Additional Custom Duties on import of Palm Oil for shipments originating from all sources except Indonesia for 10-20 June 2022, subject to the approval of the federal cabinet.

During the meeting, the ECC also approved the following Technical Supplementary Grants (TSGs) of Rs7, 555,59 million for the Federal Directorate of Immunization (FDI) under the administrative control of MNFS&R.

Meanwhile, a grant of Rs2.44 billion was also approved in favour of the Ministry of Religious Affairs and Interfaith harmony for the grant of one-time support to Pilgrims under the government Hajj Scheme.

In addition, Rs107.84 million, and Rs200 million were approved in favour of the Ministry of Interior for maintaining law and order situation and Ministry of Law and Justice.  Additionally, the transfer of Rs24 billion to BISP from the Ministry of PA&SS has also been approved.

It was also decided that the Ministry of Housing and Works will receive a grant of Rs53.912 million and Rs280 million while Rs50 billion have been approved in favour of the Power Division with condition that the requisite funding will be provided against future subsidy claims.

The meeting was presided over by Federal Minister for Finance and Revenue Mr Miftah Ismail. 

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Posted on: 2022-05-29T10:32:40+05:00