ECC approved 79 billion subsidy to export sectors

export subsidy

The Economic Coordination Committee (ECC) of the Cabinet has approved almost Rs 97 billion worth of supplementary grants comprising Rs 16 billion gas subsidy for fertilizers and over Rs 79 billion subsidy to export sectors.

Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting which was attended by Planning Minister Asad Umar and National Food Security & Research Minister Syed Fakhar Imam.

Adviser to PM on Commerce & Investment Abdul Razak Dawood, Governor SBP, Federal Secretaries, and Chairman Planning Commission also joined the meeting.

During the meeting, the Ministry of Industries and Production presented a summary of the persistent operation of two Punjab-based fertilizer plants of Agritech Mianwali and Fatima Fertiliser Sheikhupura Plant and demanded further local gas to fulfill domestic fertilizer needs.

Read more: Textile exports rise 26% to $9.38 billion in 1HFY22

Therefore, after the discussions meeting approved the suggestion for indigenous gas supply from Sui Northern Gas Pipelines Ltd (SNGPL) to these two urea plants latest by March 31. This will result in the saving of funds to be consumed on the delivery of regasified liquefied natural gas (RLNG) to these plants and continued operation throughout the year.

Directions to stimulate the process of shifting the plants on local transmission system gas within one month were also given by ECC.

Moreover, the meeting also sanctioned Rs 16 billion subsidy for payment of due to SNGPL for the month of February and estimated claims for the remaining months of March, April and May during the present fiscal year (2021-22).

The ECC also accepted a summary of the Ministry of Commerce on Drawback of Local Taxes Scheme (DLTS) for the period 2021-26. The meeting sanctioned the revised DLTS for the period of five financial years from July 1, 2021, to June 30, 2026.

Meanwhile, three other supplementary grants worth Rs 1.497 billion were also approved by ECC. These included Rs 681.046 million to the Ministry of Housing and Works, Rs 500 million to the Ministry of Federal Education and Professional Training for the National Commission for Human Development, and Rs 116.467 million to the Ministry of Interior.

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