ECC approves Rs2bn Ramazan package

ISLAMABAD: The government decided on Friday to extend a Rs2 billion subsidy package for supply of essential kitchen items at cheaper rates to people during Ramazan. The package was approved by the Economic Coordination Committee (ECC) of the cabinet at a meeting presided over by Finance Minister Ishaq Dar. Under the package beginning from June 23, 17 essential items will be sold through the Utility Stores Corporation (USC). The ECC, however, declined to release Rs1bn outstanding to the USC for previous Ramazan packages. About 120,000 tons of wheat flour will be supplied to the USC which will sell it Rs6 per kg cheaper than its normal rate. It will cost the government Rs720 million. About 80,000 tons of ghee/oil will be available at Rs10 per kg lower rate and cost the government Rs800m. The ECC was informed that Rs35m would be spent on 3,500 tons of dal chana to be sold at Rs10 per kg cheaper rate and Rs150m on sale of 3,000 tons of black tea at Rs50 per kg cheaper rate. Dal moong, masoor, white gram, besan, dates, basmati, sella and broken rice will be sold Rs10 per kg cheaper than normal USC rates. About five million bottles of squashes and syrups will be available at Rs8-10 cheaper price. Prices of spices will be reduced by 10 per cent. The meeting was informed that besides the government package, the USC would reduce prices of other 1000 items by narrowing its own margin by 5-10pc and obtaining special discounts from brand name vendors and suppliers. The ECC turned down a request for reducing the price of fertiliser by Rs50 per bag on 263,000 tons lying with the National Fertilizer Corporation to avoid Rs10 billion losses to the government. It allowed the finance ministry to issue sovereign guarantee for Rs31bn syndicated term financing facility to power companies to ease their cash flows, instead of building up budgetary injections to avoid IMF benchmarks for power sector subsidy limits. The petroleum and natural resources secretary informed the meeting that Mari Petroleum Company Ltd (MPCL) recently discovered additional gas in Pirkoh formation of Mari D&P Lease area. Initial test results and broad assessment of reservoirs size suggest that approximately 6mmcfd is expected to be available for supply at its natural specs (raw gas) and pressure for an estimated initial period of 18 months. The ECC approved a proposal to allocate the additional gas to Wapda’s thermal power station at Guddu for being in the vicinity of MPCL’s field. Published in Dawn, May 17th, 2014