The Economic Coordination Committee of the Cabinet (ECC) which met on Thursday under the chair of Federal Minister for Finance Senator Mohammad Ishaq Dar granted approval of the extension of 0.3 percent reduced rate of withholding tax on non-filers up to 7th November, 2015. It was further decided that in the event that the National Assembly extends the Income Tax Ordinance 2015, the reduced rate will remain applicable till 15th of November 2015.
The ECC considered and gave approval for the provision of 64,000 metric tons of wheat to the United Nations WFP for TDPs of FATA and KP. The said quantity costing Rs 2.569 billion will be distributed till December 2015.
The committee also considered and approved the proposal of Federal Board of Revenue for introducing a 10 percent regulatory duty on the import of cotton yarn and grey and processed fabrics of cotton. The FBR chairman informed the committee that the proposal was based on extensive consultations with the relevant stakeholders.
The ECC also approved the issuance of revised GoP guarantees of up to Rs 37,650 million for 425MW Nandipur power project. The guarantees have been issued to a syndicate of local banks (HBL, NBP, UBL, Askari bank, Bank Alfalah and BoP), against their financing for the project. The revision of guarantees will enable the syndicate to extend the period of financing facility till 1st June 2016. The ECC also granted approval for the issuance of sovereign guarantee against financing facility of PKR 18 billion for Thar-Matyari transmission line project. The project will transmit electricity produced from Thar coal-based 1200 MW power plant to the national grid.
The ECC granted approval for extension of GoP guarantees for Rs 15 billion term financing facility from the National Bank of Pakistan for Power Holding (Private) Limited. The guaranteed facility has been in place for the last two years and its tenor has been extended for another two years.
The ECC also approved provision of sovereign guarantees for establishment of letters of credit for setting up of two1000-1200MW (gross) combined cycle power plants at Haveli Bahadar Shah, Dist Jhang and Balloki, Dist Kasur.
