ISLAMABAD-The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved to revise upwards the margins of oil marketing companies (OMCs) and dealers on petroleum products, which would increase the oil prices in the country. Petroleum Division updated the ECC about the recommendations firmed up by a sub-committee established in line with the earlier decision of the ECC dated Jan 28, 2021 regarding review of oil marketing companies (OMCs) and dealers margins on petroleum products. After detailed discussion, the ECC approved to revise OMCs and dealers margins on the basis of 85% of the latest average core inflation with immediate effect, and directed to expedite a study by PIDE.

An official said that Petroleum Division had informed the ECC that the sub-committee had proposed a hike in margins of OMCs and dealers of petroleum products on an interim basis as the study had not been conducted so far. The committee had recommended that the government should give interim relief to the OMCs and dealers till the PIDE study is completed. The study is likely to conclude by June 2021. The committee had recommended an increase in margins of petrol and diesel by Rs0.19 per litre from the existing Rs2.81 to Rs3 per litre each for OMCs. It also proposed a hike of Re0.25 per litre on petrol and Re0.21 per litre on diesel for dealers to Rs3.95 and Rs3.33 per litre, respectively. The current margin on petrol stands at Rs3.70 and high speed diesel Rs3.12 per litre. These margins have been proposed on interim basis till the completion of the study by PIDE. Federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh chaired the meeting of the ECC. The Power Division submitted another summary about re-targeting of power sector subsidies (phase-I). The Committee considered and approved the proposals recommending that Power Division will complete the analysis based on the listed principles and submit specific recommendations on thresholds and rates for the consumers before the ECC by 31st March, 2021. Ministry of Industries and Production presented another summary seeking permission regarding operation of two plants namely Agritech and Fatima Fertilizer from March till November, 2021 to produce urea from SNGPL based plants. The underlying rationale is to bridge the gap between estimated demand and actual domestic production of urea in the country. The Committee approved operations of the above-mentioned plants with a direction that the Ministry may closely monitor the demand-supply situation and take decision to import urea, if needed, as per requirement during the current year.

Secretary, Ministry of National Health Services, Regulation and Coordination tabled a summary for exemption of taxes and duties on import of auto disable syringes and raw material needed for local manufacturing of auto disable syringes in the country. The Secretary Health briefed the forum about efforts underway to switch from conventional syringes to auto disable syringes as reuse of conventional syringes leads to blood borne diseases in Pakistan such as hepatitis, HIV etc. The ECC approved the summary, in principle, and directed the Ministry of Health to hold a follow-up meeting with the Law Division to fine tune details. The ECC also considered a summary regarding exemption of Federal Excise Duty for 10 soft-skin vehicles imported by Food and Agriculture Organization (FAO) to be used by the Department of Plant Protection (DPP) for locust control operations. Ministry of NFS&R requested for a one-time exemption of Federal Excise Duty amounting to Rs.10.3 million for 10 vehicles. After due deliberation, the ECC constituted a Committee with representatives from Law Division, FBR and Ministry of National Food Security and Research for further discussion and submission of updated proposal before the Committee.

The Ministry of Commerce tabled a summary before the ECC seeking permission for import of cotton from Afghanistan and Central Asian States through land route via Torkham border to bridge the gap between supply and demand and to ensure sufficient availability of cotton for promoting textile exports. The ECC had granted such permission earlier to workout necessary arrangements with reference to Plant Quarantine Rules to meet Sanitary and Phytosanitary (SPS) requirements for import of cotton via land routes. Ministry of Commerce requested to extend the above permission for import of cotton via land route during the current financial year. The ECC approved the said request subject to fulfilment of codal formalities.

Secretary, Ministry of the Information Technology and Telecommunication presented a summary before the Committee based on recommendations by a Cross-stakeholder Committee for addressing critical issues of Cellular Mobile Industry for digital enablement such as reduction in NADRA Biometric Verification Charges (BVC), license renewal under further Spectrum Price etc. After detailed discussion, the ECC constituted a sub-committee under the chairmanship of the Adviser to the Prime Minister on Institutional Reforms and Austerity Ishrat Hussain with Secretary IT, Secretary Finance and a representative from PTA as its members to deliberate further and present before the ECC accordingly. Secretary, Ministry of Communications updated ECC on National Freight and Logistics Policy (NFLP) discussed in earlier meeting held on 20th January, 2021. The Ministry of Communications has segregated the proposals into two broad categories in line with the earlier directive of the Committee. The ECC directed to discuss the proposals involving multiple stakeholders as envisaged under the NFLP, through an Institutional framework, steered by the Deputy Chairman Planning for evolving consensus among all stakeholders including provincial representatives for a way forward.

The ECC approved technical supplementary grants (TSGs) of Rs 1056 million for the Ministry of Federal Education and Professional Training for completion of projects related to COVID-19, Rs. 1.5 billion for the Ministry of Housing and Works for disbursement of interest free loans to the borrowers under Prime Minister’s Low-Cost Housing Scheme and Rs.334.306 million for the Ministry of Interior for the payment of salaries/subsistence allowance to the Civil Armed Forces deployed in the Peacekeeping Missions. The ECC approved TSG of Rs.31.50 million for meeting expenses of Federal Insurance Ombudsman Secretariat working under the Ministry of Law and Justice, Rs. 9.685 million for Pakistan National Shipping Corporation, Karachi to clear the dues of M/s Coniston against PSM, Rs.67.358 million for the Cabinet Division for meeting various expenses. And Rs. 419 million were approved to facilitate Pakistan Central Cotton Committee to carry out its research and development activities.