The Economic Coordination Committee (ECC) of the Cabinet has approved Rs8.280 billion Ramazan Relief Package 2022 to provide 19 essential items at subsidized rates through Utility Stores Corporation besides Rs 156 billion for ‘Relief Package’ announced by the Prime Minister to slash Rs5 per unit electricity for the next four months and Rs10 per litre petrol and diesel price.

The meeting presided over by Finance Minister Shaukat Tarin on Monday approved Rs 136 billion for Rs 5 per unit slash in electricity price and Rs 20 billion for Oil marketing and refineries as price differential claim on account of Rs 10 per litre cut in petrol and diesel price. An official on condition of anonymity said that the meeting has approved over Rs 302 billion supplementary/technical supplementary grants.

The ECC approved Prime Minister’s relief package to slash Rs 5 per unit by way of reduction in electricity charges base rate for the relief period of four months – March 2022 to June 2022. The relief package will be applicable to all commercial and domestic non-ToU consumers having monthly consumption up to 700 units, excluding life-line consumers. The meeting was informed that cash flow requirement for the Prime Minister’s Relief Package is Rs 136 billion.

The ECC meeting approved special PDC disbursement mechanism to pay the Price Differential Claims (PDC) of oil marketing companies (OMCs) and refineries within 15 days through opening of special assignment account with PSO and initial amount of Rs. 20 billion. The price differential would be paid to the Oil Marketing Compa-nies/refineries by the government as a subsidy to avert any shortage in the market. Ministry of Energy (Petroleum Division) have moved a summary for reimbursement of price differential claims of oil marketing companies (OMCs) and refineries, in line with Prime Minister’s relief package of reduction in the consumer prices of Motor Spirit and Diesel by Rs 10 per litre.

The ECC also approved technical supplementary grant of Rs 135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.

The meeting also approved Kamyab Overseas Programme (KOP) as a new component of Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement and valid travel documents and registered with NSER to avail interest free loans under KPP.

The meeting was informed that maximum amount of loan would be Rs 300,000 and returned in easy instalments starting after three months of departure. The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs 3 billion for the 4th quarter of 2021-22.

The ECC approved a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at USCs with total subsidy of Rs. 8.280 billion. The meeting of the ECC considered and approved a summary presented by Ministry of Commerce on proposed amendments in the import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy. The Ministry of Energy (Petroleum Division) submitted a summary for allocation of gas from Togh Field on commercial basis.

Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna and Pesu block of OGDCL. The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5% being state participator in Wali, Jandran West, Saruna and Pesu blocks of OGDCL.

The ECC also considered and approved following technical supplementary/ supplementary grants; (I) Rs 428.90 million to Foreign Affairs Division to meet the expenditure for holding of 48th session of the OIC Council of Foreign ministers to be held in Islamabad on 22-23 March, 2022; (ii) Rs 47.561 million to Poverty Alleviation and Social Safety Division.

The meeting was attended by Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Railways Muhammad Azam Khan Swati, Federal Minister for Energy Hammad Azhar, Federal Secretaries and senior officers.

The story was originally published in Business Recorder on March 8, 2022.