ISLAMABAD: The Economic Coordination Committee (CEC) of the cabinet approved on Wednesday the rescheduling of approximately Rs167 billion of debt in the electricity sector.
At an ECC meeting, chaired by the prime minister's finance and income advisor, Dr. Abdul Hafeez Shaikh increased the sales margins of oil marketing companies and distributors and ordered the release of 1,107 imported vehicles confiscated in The ports for months.
It also allowed a 6.5 percent increase in dealers' margins and the WTO commission on the sale of high-speed gasoline and diesel with immediate effect despite opposition from the Oil and Gas Regulatory Authority (Ogra) and the Planning Commission.
The MAC margin increased by 17 paisa per liter of HSD and gasoline instead of 25 paisa per liter proposed by the oil division. They would now charge Rs2.81 per liter commission instead of the existing rate of Rs2.64.
Likewise, the concessionaire's commission increased by 22 paisa per liter in gasoline and 18 paisa in HSD instead of 34 paisa and 29 paisa per liter requested by the oil division. The distributors would now charge a commission of Rs3.70 for each liter of gasoline and Rs3.11 in HSD.
It increases the sales margins of MACs and orders the release of more than 1,100 vehicles confiscated in ports for months
The oil division had calculated the margin increase on the basis of an inflation rate of more than 8.5pc for the period from April 2018 to May 2019. However, the planning commission questioned it, saying that inflation (CPI-General) during the period The fiscal year ending in June 2019 was approximately 6.5pc and the increase should not be allowed on the basis of selective months.
The ECC decided that in the future the margins of the MACs and distributors would be calculated on the basis of the annual average inflation of the fiscal year, and also requested the relevant stakeholders, including the oil, finance, planning, industry and industry divisions. production, the Bureau of Statistics and Ogra will finalize the recommendations within two months and re-submit the case.
The committee approved a proposal to increase the financial facilities of Rs136.454bn and Rs30bn for the adjustment of existing financial facilities of Power Holding Limited (PHL) with a consortium of local commercial banks in compliance with separate ECC decisions taken in November 2016 and February 2017 for reimbursement of Disks liabilities.
The meeting was informed that the terms and conditions of PHL's financial facilities had a five-year tenure, including the two-year grace period that had been completed and the installment payments on account of the principal party had been made payable. .
The finance ministry said that according to the last agreement approved by the ECC, the installment payments of the principal would be deferred for another two years from the date of execution of the new facilities.
The ECC took a summary of the trade division on import of used vehicles under personal luggage, transfer of residence and gift schemes that require the payment of tariffs and taxes through currencies organized by the Pakistani citizens themselves or local recipients who produce proof of conversion of foreigners. Shipping to local currency.
The committee allowed importers to meet any deficit in the settlement of foreign remittances required for the payment of tariffs and taxes through local sources in case of a scenario where the Pak Rupee depreciated or the government increased tariffs and taxes of import after receipt of the consignment and before the presentation of the declaration of assets, resulting in a deficit of the amount remitted against the duties and taxes payable.
This would help clarify a total of 1,017 vehicles currently stuck in the port of Karachi because no foreign consignment was received or the amount remitted was insufficient due to the depreciation of the rupee before the declaration of goods or the increase of the tariff rate . in the Finance Law of 2019.
The ECC gave its approval ex post to an SRO issued by the Commerce Division in August 2019 to extend until August 31 the implementation of quality standards in the import of photovoltaic solar equipment.
The committee authorized the Ministry of Communications and the National Highway Authority to proceed with the acquisition of consulting services for Section III Kalkatak-Chitral (48 km) under the Chakdara-Chitral Road Project (N-45).
Approved a proposal from the finance division for the acquisition of 8.5pc of additional shares of EPCL South Africa by Packages Pakistan through AHL Mauritius by improving the Standby Letter of Credit by $ 2.7 million. This would bring the aggregate investment of Packages Limited to $ 17.7 million. However, the decision stipulated that due to the current currency exchange restrictions, Packages Ltd could organize the required foreign exchange from abroad.
The ECC made separate proposals from the defense division for a supplementary technical grant of Rs6.210bn to pay the recurring cost of the Special Security Division (North) and another complementary technical grant of Rs4.966bn to pay for the Security Service Subsidy Internal army troops deployed on the western border.
He asked the defense division to raise the issue at the next ECC meeting after discussing and finalizing with the finance division how to organize the funds for the complementary grants in question.
Posted in Dawn, November 7, 2019
Source: https://www.dawn.com/news/1515397/ecc-okays-rs167bn-power-sector-debt-rescheduling