Inside Financial Markets
ECC approves grants, funds for different ministries - Inside Financial Markets

ECC approves grants, funds for different ministries

The Economic Coordination Committee (ECC) of the Cabinet Wednesday approved technical supplementary grant for Power Holding Limited (PHL) in addition to giving approval to various funds.

The meeting of the ECC was chaired by Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh, according to press statement issued by the Finance Ministry here.

Among others, the meeting was attended by Minister for Food Security, Syed Fakhar Imam, Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Industries and Production, Hammad Azhar, Adviser for Commerce, Abdul Razaq Dawood, Minister for Railways Sheikh Rashid Ahmed, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, Special Assistant to the Prime Minister on Revenue Dr. Waqar Masood Khan and Minister for Power Omar Ayub Khan.

The SAPM on Petroleum Nadeem Babar and Governor State Bank, Syed Baqar Raza participated through video link, the statement added.

On the summary moved by the Ministry of Information and Broadcasting for allocation of additional funds for the payment of media campaigns launched on August 5 (Kashmir Siege Day), ECC decided that Ministry of Information and Broadcasting may meet the immediate fund requirement through re-appropriation from its budget allocated for the financial year 2021 and any shortfall due to re-appropriation of the funds would be met through technical supplementary grant towards the end of the current financial year.

Ministry of Energy requested ECC to give directions for the settlement of a loan of about Rs. 7.6 billion and its associated costs from NBP in relation to advance payment for Karkey Karandeniz Elektrik Uretim (KARKEY).

ECC decided that Finance division should engage with the National Bank of Pakistan for the settlement of the loan. It was decided that a well-rounded proposal with all stakeholders on board would be presented before ECC for the final approval.

ECC in principle approved technical supplementary grant amounting to Rs.72.635 billion to Power Holding Limited (PHL) for onward disbursements to respective banks or through financial instruments as and when due during the current financial year.

In an earlier decision, ECC had decided to shift the power sector debt stock of Rs.804 billion to public debt.

As per debt repayment schedule agreed between PHL and lending institutions, an amount of Rs 72.635 billion were required to be paid partially during the FY 2019-20 and remaining is payable in 2020-21 as principal repayments to lenders.

Furthermore, the loan amounting to Rs. 82 billion taken from OGDCL and included in the total of Rs.804 billion is required to be considered separately through non-cash/cash settlements.

ECC also formed a committee headed by Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, Dr. Waqar Masood Khan, representatives of Finance and Power Divisions to prepare a proposal for the settlement of dues of power sector and other related issues in a holistic manner for onward submission in ECC.

ECC allocated Rs.10 billion from Stimulus Package for the payment of 1st installment of interest/ profit for the period of 21-05-2020 to 20-11-2020 in respect of Pakistan Energy Sukuk-II (amounting Rs.200 billion).

ECC approved the allocation of funds for implementation of the Interest Free Loans (IFL) program by Pakistan Poverty alleviation fund.

The BISP has surrendered funds amounting to Rs.4.98 billion in favor of Pakistan Poverty Alleviation Fund during the financial year 2020-21 which shall be used for the purpose of the IFL program, the statement concluded.

Syed Zaki Hussain

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