ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Wednesday granted approval to the proposal for the re-opening of the Kohat Oil Depot under the Inland Freight Equalisation Margin (IFEM) mechanism.
The ECC, which was chaired by Federal Minister for Finance and Revenue Shaukat Fayyaz Ahmed Tarin, has approved the proposal of the Ministry of Energy (Petroleum Division) for the re-opening of the Kohat Oil Depot under the Inland Freight Equalisation Margin (IFEM) mechanism. The re-opening of the depot will add approximately 2000 kilo liters to the country’s storage capacity. In order to facilitate the dealer and cartage contractor community of the area, the depot can be made ready for handling of petroleum products within 6 months with an expected restoration cost of around Rs 3 million.
The Senate Standing Committee on Petroleum in last year directed Pakistan State Oil (PSO) and OGRA to look into the issue of closure of Kohat Oil Depot and make it operational if it is viable for the Company. Ogra had endorsed PSO’s working regarding the comparison of its noted cost with inclusion of Kohat depot in the IFEM mechanism, which will reduce the freight cost by Rs 0.01 per liter amounting to Rs 5 million estimated saving each month.
The ECC approved the request of the Ministry of Overseas Pakistanis and Human Resource Development regarding federal government grant for pension support amounting to Rs. 4.52 billion. The ECC also approved the proposal of the Ministry of Maritime Affairs for “Appointment of Foreign Engineering Consultant for planning, preparing, reviewing and Updating of Port Master Plan of Port Qasim Authority, Karachi. The ECC directed that all matters where the Authority is using its own funds, after following the standard procedures, may be decided by the Boards/ Ministries for ensuring efficient progress on important matters.
The ECC approved the summary moved by the Ministry of Energy (Petroleum Division) for the revalidation of the ECC approval for exploration activities in Block-8 Iraq by PPL. Government of Pakistan allowed PPL to undertake the committed exploration activities with a minimum financial obligation of US$100 million (in 2012); out of which US$77.6 million have already have been invested. ECC allowed the revalidation with the direction to the PPL Board to revalidate feasibility of investment.
The ECC has approved technical supplementary grants (TSG) of Rs. 873.320 million for the Ministry of Defence for meeting the expenses of its various Executive Departments, Rs.1.5 billion for the Finance Division for providing food subsidy of the Government of AJ&K and Rs. 5 billion for the Ministry of Interior for the phase III of Civil Armed Forces raising.
It has also approved TSG of Rs. 250 million for National Heritage & Culture Division for establishing “Federal Government Artist Welfare Fund”, Rs. 150 million for the Revenue Division to meet its operating expenses. Three other technical supplementary grants of Rs1.762 billion, Rs 3.25 billion and Rs. 7.87 billion were approved for the Finance Division for providing funds to KP and Punjab Governments for strengthening hospitals and for effective response to Covid-19 and other natural calamities.
Federal Minister for Economic Affairs Division, Minister for Interior, Minister for Privatization, Minister for Maritime Affairs, Minister for National Food Security and Research, SA PM on Finance and Revenue, Adviser to PM on Commerce, Adviser to PM on Institutional Reforms and Austerity, SA PM on Energy and Governor State Bank of Pakistan attended the meeting.