Islamabad - Despite tough opposition from Oil and Gas Regulatory Authority (OGRA), the Economic Coordination Committee (ECC) of the Cabinet has allowed to determine oil prices on weekly basis on trial basis to examine impact on general public and oil marketing companies.
The ECC met here on Tuesday under the chairmanship of Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh to discuss various agenda of national importance. The ECC approved to import 0.3 million urea and decided not to change existing pricing formula. ECC also approved in principle the removal of High Octane Blending Component (HOBC) from inland freight equalization margin (IFEM) regime, subject to consultation and endorsement from ministry of law and justice. The ECC also approved the short and long term liquefied natural gas (LNG) import framework proposed by ministry of petroleum and natural resources. However, the ECC formed a technical group to work further on mechanism, bidding details, guarantee matters and legal issues as raised by minister of law and to present a report to ECC a next meeting.
The ECC approved import of furnace oil by Pakistan State Oil (PSO) under term contract. However, the ECC asked ministry of petroleum and natural resources to work for detailed calculations on the subject with consultation of ministry of finance. The matter of terms of settlement with IPPS regarding delays in payments by power purchaser under power policy 2002 was also discussed in the meeting. The ECC approved the payment schedule of the amount of Rs 24 billion which is overdue and payable for more than 45 days, as proposed by ministry of water and power. The ECC also constituted a committee comprising Secretary Petroleum and Natural Resources, Secretary Finance and Deputy Chairman Planning Commission to work further on the other matters of the said proposal.
While arguing the need of energy in the country, ministry of water and power proposed a summary for issuance of GOP guarantee in the sum of Rs 10 billion to be raised in the form of loan from the banks/institutions by WAPDA for water sector projects and the repayment of loan along with interest to be made through PSDP as concurred by the Finance Division. The ECC approved in principal the summary; however, the retiring of loan will be decided by a committee headed by DC Planning Commission, and comprising Secretary Finance and Chairman WAPDA. The ECC approved in principle the proposal for issuance of Government of Pakistan guarantee for 10 billion rupees to be raised in the form of loan from banks and institutions by WAPDA for water sector projects. The ECC also allowed 30,000 tons of sugar export to Tajikistan on government to government basis at price differential of $ 20 per ton from international market.
The ECC also approved in principle the sale of wheat to Iran under barter trade system. The ECC asked Governor State Bank to get Ministry of Foreign Affairs’ viewpoint in context with international trade restrictions faced by Iran.