ECC approves withdrawal of customs duty on cotton yarn
ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved to withdraw the Customs Duty on import of cotton yarns till June 30, 2021.
Federal Secretary Commerce presented a summary before the ECC for withdrawal of Customs Duty on import of cotton yarns under PCT 5205, 5206 and 5207 till June 30, 2021.
The Committee took this initiative to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.
“Pleased to inform that on a summary moved by MoC, ECC has withdrawn customs duty on import of cotton yarns to facilitate the value-added exporters. This will be notified with the approval of the cabinet,” said Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood on Twitter.
He further said that regulatory duty was already withdrawn in December, 2020 on the recommendation of Ministry of Commerce. Now the value-added manufacturers and exporters can import cotton yarns at 0 per cent customs duty.
Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet. Power Division presented a summary regarding waiver of minimum 66% take-or-pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based Public Sector Power Plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant. These amendments would envisage submission of a Monthly Production Plan (MPP) as a binding on the Power Purchaser and the Power Seller wherein the Power Purchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which will be finalized by the System Operator and Operating Committee under the PPA.
The ECC also approved a Technical Supplementary Grant for Finance Division amounting to Rs 11.7 billion as the share of the federal government for the establishment of 4 mother and child hospitals in Punjab.
Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for Energy Omar Ayub Khan, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, Federal Secretaries, senior representatives of provincial governments, Chairman BOI and other senior officers participated in the meeting. Governor State Bank of Pakistan joined through a video link.