The Economic Coordination Committee (ECC) approved the removal of regulatory duty on the import of cotton yarn to enhance value-added exports.
Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the ECC of the Cabinet in Islamabad and approved the removal of regulatory duty after a detailed discussion.
Ministry of Commerce presented a proposal before the ECC regarding the removal of a 5 percent regulatory duty on the import of cotton yarn till June 30, 2021.
Ministry of Commerce submitted another summary to re-consider the earlier decision taken by ECC dated October 19, 2020 regarding the procedure for registration under concessionary regime of electricity, re-gasified liquefied natural gas (RLNG), and Gas in export-oriented sectors (erstwhile zero-rated sectors).
After due deliberation, the Chair directed to maintain the status quo with a condition that FBR may register new manufacturers or exporters in five export-oriented sectors, erstwhile five zero-rated sectors, in coordination with the Ministry of Commerce till June 2020.
Communication Division requested ECC for conversion of National Highways Authority (NHA) loans into Government Grants, or grant a waive off, for a much needed fiscal space. A detailed presentation was made before the forum to remodel NHA as a self-sustaining and performance based organization.
ECC directed to constitute a sub-committee under the Chairmanship of the Minister for Planning, Development and Special Initiatives and would include SAPM Nadeem Babar, Minister for Maritime Affairs Ali Zaidi, Secretary Finance and Secretary Communications to prepare a holistic proposal suggesting revenue generation roadmap for NHA within a month. NHA was also granted a one-month moratorium to work out details and present recommendations regarding the financial viability of NHA before the forum.
ECC recommended a summary presented by the Industries and Production Division to approve release of funds to PSM for payment in lieu of gas supply to SSGC through a Technical Supplementary Grant (TSG).
ECC approved an allocation of up to 9.5 MMCFD gas from M/s PPL’s Benari X-I discovery to SSGCL. Similarly, the allocation of 10 MMCFD gas from PPL’s Hadaf X-I to SSGCL was also approved during the meeting.
Federal Minister for Maritime Affairs raised the matter of priority berthing for wheat and sugar. ECC directed the Logistics Committee to ensure the berthing of wheat and sugar vessels on priority, keeping in view, that other imports are not affected.
ECC also accorded approval for allocation of additional funds for maintenance of Islamabad High Court (IHC) Building and Judges Residences through TSG as requested by the Ministry of Housing and Works.
The agenda item on the Karachi Transformation Plan, presented by the Ministry of Planning, Development and Special Initiatives was deferred to the next ECC meeting for a detailed discussion.
Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Production and Industries Hammad Azhar, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Power Omar Ayub Khan, Minister for Maritime Affairs Syed Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, SAPM on Revenue Dr. Waqar Masood, and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain also participated in the meeting. Governor State Bank of Pakistan (SBP) Dr. Reza Baqir joined the meeting through video link.
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