ISLAMABAD: The Economic Coordination Committee (ECC) Friday approved a proposal to deregulate margins on high speed diesel (HSD) for oil marketing companies (OMCs) and dealers under the policy of liberalisation and deregulation.
The impact of the policy would be reviewed after three months. It was decided that the OMCs would add fuel marker in HSD within six months at depot stage to avoid adulteration
It was decided that the Oil and Gas Regulatory Authority (OGRA) would develop a mechanism to monitor the OMCs commercial stock position, inventory system and fuel marker system.
The ECC meeting, chaired by Prime Minister Shahid Khaqan Abbasi at the Prime Minister’s Office, also accorded approved to a proposal submitted by the Commerce Ministry to allocate additional quantity of 12 million kilogrammes of surplus tobacco to all tobacco companies and dealers on pro rata basis.
Meanwhile, the meeting gave its provisional approval for issuance of government of Pakistan’s sovereign guarantee for Rs 39,000 million for construction of a 2x660MW coal power project in Jamshoro.
The ECC also extended the period of provision of subsidy to agricultural tube well consumers in Balochistan until December 31 subjected to commitment of past payments by all concerned/stakeholders on same terms and conditions as approved earlier by the ECC on June 17, 2015. The approval is linked to a comprehensive review of solarisation of tube wells to be undertaken on a priority basis in order to save electricity bills and the subsidy being provided by the federal and the provincial governments. The need to put in place efficient irrigation methods likes drip-irrigation was also emphasised by the meeting.
The ECC approved a summary for extending the period of applicability of reduced rate of 0.4% advance income tax on banking transactions of non-filers under section 236P of the Income Tax Ordinance, 2001, up to December 2017. In order to promote exports, the ECC approved a proposal that 50% of the export package incentive for eligible textile and non-textile sectors, announced in Prime Minister’s Export Package, be provided on the same terms as for the period January to June 2017 without condition of increment. Remaining 50% of the rate of incentive would be provided if the exporter achieves an increase of 10% or more in exports as compared to the corresponding period of the last year. It was also approved that an additional 2% drawback would be provided for export to non-traditional markets. Besides, expeditious settlement of payments claims by the State Bank of Pakistan was also approved.
Various measures for rationalisation of imports and reducing the import bill were also suggested by Commerce Division and the Federal Board of Revenue.
Published in Daily Times, October 7th 2017.
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