ECC under FinMin extends LNG framework agreement

February 21, 2025 (MLN): The Economic Coordination Committee (ECC) of the Cabinet approved the extension of the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for another three years.

The ECC meeting, chaired by Minister for Finance and Revenue, Senator Muhammad Aurangzeb, was held at the Finance Division, Islamabad.

It deliberated on significant economic matters and approved key decisions.

The agreement, initially signed in 2023, allows PLL to procure one LNG cargo per month when required, without any financial obligations or take-or-pay commitments.

The extension aligns with Pakistan’s strategy for flexible LNG procurement based on seasonal demand, ensuring cost-effective energy solutions, according to the press release.

The meeting was attended by Minister for Petroleum Mr. Musadik Masood Malik, Minister for Industries and Production Rana Tanveer Hussain, Chairman FBR, Chairman SECP, Federal Secretaries, and senior officers from concerned ministries and divisions.

The ECC also discussed the summary of the Revenue Division and approved income tax exemptions for the International Cricket Council (ICC) in connection with the ICC Champions Trophy 2025.

These exemptions align with international best practices for hosting global sports events.

Under the standardized hosting rights agreement between ICC and Pakistan, no taxes or deductions will be applied to ICC revenues, its subsidiaries, associates, officials, and non-resident delegates.

However, Pakistani residents, including the Pakistan Cricket Board (PCB), will remain subject to income tax on their earnings from the tournament. There will be no exemptions from Sales Tax and Federal Excise Duty (FED).

The tax exemption is not expected to result in a revenue loss, as it was a prerequisite for securing the tournament’s hosting rights.

Additionally, the ECC deliberated on a summary from the Ministry of National Food Security & Research regarding lifting the ban on the commercial export of sheep and goats to Kuwait but deferred the agenda for further clarification and due diligence.

A Technical Supplementary Grant (TSG) of Rs.6.85 billion was also approved in favor of the Ministry of Energy (Power Division) for development expenditures in the current financial year (2024-25).

Copyright Mettis Link News