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Economic Co-ordination Committee of Cabinet meets under Minister for Finance - Press Note issued by Press Information Department

May 30, 2014



Following is the text of press note issued by Press Information Department (PID)

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The ECC of the Cabinet met here today under the Chairmanship of the Federal Minister for Finance, Revenue, Statistics, Economic Affairs and Privatization, Senator Mohammad Ishaq Dar.

ECC considered and approved allocation of gas from SARA and SURI gas fields located in district Ghotki Sindh to GENCO-II at mutually agreed terms and conditions. It may be mentioned that the gas fields remain dormant due to lack of investment. It is estimated that 14-15 BCF gas reserves are lying in the gas field and it requires investment costing around $ 6-8 million.

ECC also approved a summary for re-allocation of low BTU gas from Bahu gas field to Fauji Kabirawala power company limited (FKPCL).Keeping in view the prevalent electricity crises in the country and higher dispatch order low BTU gas from Bahu Gas Field will be allocated to project for remaining term of its PPA i.e. 29th October 2029, to ensure its smooth operation and to avoid conversion of the Project on any expensive alternate liquid fuel, which would be an unaffordable option given the energy mix scenario in the country.

The ECC also considered and approved a summary of Ministry of Water and Power for issuance of policy guidelines to NEPRA to incorporate debt servicing on actual basis in revenue requirements of Distribution Companies which would be adjusted in tariff of DISCOs on annual basis.

The ECC also approved the summary of the Ministry of Water and Power for issuance of policy guidelines to NEPRA to rationalize T and D losses target of 12.82% to 15.75% on a same anology as done for the tariff for the FY/2012-13.

It may be mentioned that the DISCOs claim T and D losses of 17.55% for the year 2013-14. The Minister for Water and Power informed the ECC that the government in the last one year has improved in recovery and containing line losses up to the extent of 2% and will continue to make progress in this regard.

The ECC also approved the summary of the Revenue Division for transfer of tax exemption given to PSA Gwadar Pte Limited as per ECC decision in case No.13/1/2007 dated 1-2-2007 to China Overseas Ports Holding Company Limited for the remaining period of the term. ECC also approved the summary of Revenue Division for exemption from income tax to profits and gains derived by coal mining projects in Sindh supplying coal to power generation projects only.

The meeting was also attended by Mr. Pervez Rasheed, Minister for Information, Broadcasting and National Heritage, Khawaja Asif, Minister for Water and Power, Mr. Ahsan Iqbal, Minister for Planning and Development, Mr. Zahid Hamid, Minister for Science and Technology, Mr. Abbas Khan Afridi, Minister for Textile Industry, Ms. Anusha Rehman, Minister of State for IT, Mr. Muhammad Zubair, Chairman Privatization Commission, Federal Secretaries and senior officials.

For more information, contact:

Haji Ahmed Malik

Principal Information Officer

Press Information Department (PID)

Tel: +9251 925 2323 and +9251 925 2324

Fax: +9251 925 2325 and +9251 925 2326

Email: piopid@gmail.com

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Source: Pakistan Press International


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