The Economic Coordination Committee (ECC) of the Cabinet on Wednesday granted approval for placing a uniform tariff for K-Electric (KE) and raised the tariff to Rs1.55 per unit on an average to bring it on a par with other Power Distribution Companies (Discos) operating in the country.
The ECC also approved import of 200,000 tons of urea fertiliser and 300,000 tons of wheat in order to create buffer stocks of the basic food item of the country. The ECC approved authorising the Trading Corporation of Pakistan (TCP) to import 200,000 tons of granular urea from M/S Sinchchem fertilizer and M/S CNAMPGC at a negotiated rate of $500 per metric ton on basis of 90 days of deferred payment with markup.
The government will import wheat from Russia through Government-to-Government (G2G) basis. The government had already procured 500,000 metric tons wheat and total 800,000 metric tons of wheat will help create strategic reserves for avoiding price escalation in the domestic market.
According to official announcement made here on Wednesday, the Federal Minister for Finance and Revenue Miftah Ismail presided over the ECC meeting at Finance Division.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Coordinator to the PM on Economy Bilal Azhar Kayani, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, federal secretaries and senior officers attended the meeting.
Ministry of Energy (Power Division) presented a summary on tariff rationalisation for power sector and submitted that in accordance with the National Electricity Policy 2021, the government may maintain a uniform consumer–end tariff for K-Electric and state-owned distribution companies through incorporation of direct/indirect subsidies. Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country. The ECC approved the same tariff rationalisation for K-Electric as the rest of the country.
The Ministry of National Food Security and Research tabled a summary on urgent advice relating to award of 3rd International Wheat Tender 2022 opened on 18th July, 2022. The ECC after discussion approved the lowest bid offered by M/s Vittera B V/Marine International @ $404.86/MT for 120,000 MT on CFR bulk at sight L/C basis. Further, TCP was allowed to match the tender quantity of 300,000 MT.
The Ministry of Industries and Production submitted a summary seeking authorisation to TCP for signing agreement with Chinese firms for import of 200 KMT Urea from M/s Sinochem Fertilizer and M/s CNAMPGC at negotiated rate of $500/MT (FoB) on 90 days deferred payment with markup basis.
The ECC approved the summary subject to discussion and decision in the cabinet regarding allocation of Rs22 billion for this import with $100 million as exchange cover, which has not been allocated into the budget 2022-23.
The Ministry of Energy (Petroleum Division) tabled a summary on rate of Petroleum Levy on Liquefied Petroleum Gas (LPG). The ECC returned the summary to the Ministry for reconsideration of the proposal.
