LAHORE: The Economic Coordination Committee (ECC) of the Cabinet approved the release of Rs410-million grant to the Sui Southern Gas Company (SSGC) for supply of gas to the Pakistan Steel Mills (PSM).
The decision was made during the ECC meeting which was held under the chairmanship of Advisor to Prime Minister on Finance Abdul Hafeez Shaikh to discuss a 10-point agenda.
Earlier in the meeting, the Ministry of Industries had suggested the ECC to defer the grant till the privatisation of PSM, and to release an overall grant of Rs984 million through technical supplementary grants (TSG). However, the ECC instructed the finance ministry to immediately release Rs410 million to clear SSGC’s dues.
It may be mentioned that the SSGC had warned PSM of disconnecting their gas connection if the company fails to pay outstanding gas bills.
According to sources, a low flame gas supply of 2MMCFD is being supplied to PSM for primarily preserving coke oven batteries and refractory kilns at an average monthly bill of Rs82 million despite the fact that the production activity had been discontinued in 2015.
After due deliberation, the finance advisor directed to maintain status quo on the condition that the Federal Board of Revenue (FBR) may register new manufacturers or exporters in five export-oriented sectors in coordination with the Ministry of Commerce till June next year.
Later in the day, Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood in a statement on his official Twitter account said that the removal of regulatory tax from cotton yarn will facilitate exporters of the apparel sector.
“This is in line with our policy of getting more value-added products. The ECC decision will now go to the cabinet for ratification, after which it will be notified,” he added.
