The Economic Coordination Committee (ECC) of the Cabinet approved the renewal of an agreement between Sui Southern Gas Company (SSGC) and Fauji Fertilizer Bin Qasim (FFBL) to restore the supply of gas to the fertiliser company.
Petroleum Division placed a summary before ECC regarding renewal of the agreement which was approved after a detailed discussion. The ECC meeting was chaired by Minister for Finance and Revenue Dr Abdul Hafeez Shaikh.
The ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of five years. SSGC may restore the gas supplies to Fauji Fertilizer till December 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalisation of tariffs (whichever is earlier).
The ECC also approved summary for re-allocation of gas from Saqib-1A well, located in Ghotki, Sindh, to SSGC from its previous allocation to SNGPL, as approved earlier by the ECC on October 6, 2009. The price of gas will be as per the applicable petroleum policy.
The Petroleum Division also moved a summary for removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatisation. After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the government.
The ECC further decided that MPCL would ensure dividend distribution in accordance with the provisions of the Companies Act, 2017, and the Companies (Distribution of Dividends) Regulations, 2017.
On the recommendation of the Ministry of Housing and Works, the ECC allowed it to utilise its own Rs377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.
The ECC also approved Technical Supplementary Grants that included Rs141.308 million to the Ministry of Information and Broadcasting for media campaigns to create awareness among public during COVID-19 pandemic and Rs9.025 million for media campaign on the occasion of Kashmir Solidarity Day.
The ECC allowed grant of Rs5 million for purchase of spare parts for helicopter maintenance by Pakistan Rangers (Punjab), Rs 25 million for purchase of spare parts for helicopter maintenance by Frontier Corps Balochistan (South) and Rs10 million for the repair and maintenance of helicopter by Frontier Corps Khyber Pakhtunkhwa.
Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatisation Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Minister for Energy Omar Ayub Khan attended the meeting.