Business

ECC approves an immediate technical supplementary grant of Rs. 27 billion for Kuwait Petroleum Company

ISLAMABAD, Mar 21 (SABAH): Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday.

Federal Minister for Power Engineer Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Petroleum Senator Dr. Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Federal Secretaries and other senior officers attended the meeting.

Ministry of Energy (Petroleum Division) submitted a summary on credit facility from Kuwait and presented that the Government of Pakistan is utilizing a credit facility extended by Kuwait Petroleum Corporation (KPC) against supply of Diesel Oil under the term contract with PSO since 2000 and the term contract is extended every year. PSO deposits Rupee equivalent with NBP after 30 days from the bill of lading date of each shipment and NBP transfers the cargo cost to KPC, Kuwait. In the current situation, this account has witnessed huge exchange losses due to upheaval in the Rupee-dollar parity during the last 12 months. The GoP is committed to cover these exchange losses. Considering the above situation, the ECC approved an immediate technical supplementary grant of Rs. 27 billion for Kuwait Petroleum Company.

The ECC considered a summary of Ministry of Kashmir Affairs and Gilgit-Baltistan on Wheat supply to Gilgit-Baltistan and approved immediate release of 25,000 MTs to GB for the months of March and April, 2023 to avoid shortage of wheat in the region, especially during the holy month of Ramazan. Keeping in view current wheat price, the ECC granted additional amount of Rs. 2.9 billion through Technical Supplementary Grant to meet urgent requirement of Gilgit-Baltistan.

The ECC further directed Ministry of KA&GB to submit a comprehensive plan for price rationalization in consultation with concerned stakeholders for consideration of the ECC within 30 days.

Meanwhile the US Ex-Ambassador Ms. Robin L. Raphel, called on Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar, at Finance Division on Tuesday. Finance Minister Senator Ishaq Dar welcomed Ms. Robin L. Raphel and shared deep rooted and strong bilateral relations with the United States on economic and trade fronts.

The Finance Minister shared economic policies and priorities of the government to address the challenging economic and socio-economic development of the population. The two exchanged views on matters of mutual interest in the backdrop of Pak-US relations and further deepening the existing bilateral relations between the two countries.

Ms. Robin L. Raphel underscored that both countries enjoy good relations and expressed confidence on the policies and programmes of the Government for economic sustainability and growth.