The Economic Coordination Committee (ECC) of the Cabinet on Wednesday rejected the demand of the Utility Stores Corporation to further enhance the Ramzan Relief Package (subsidy) by Rs 200 million
Meanwhile, the ECC directed the OGRA to develop mechanism to curb gains by oil marketing companies and refineries due to imposition of regulatory duties.
The meeting of the committee was held under the chair of Minister for Finance Ishaq Dar. According to sources, a heated debate took place on the performance of the Utility Stores Corporation (USC) after the provision of Rs 1.3 billion Ramzan relief package to the consumers. Some members of the meeting were of the opinion that the package was more for the sustainability of USC than the common folks.
The ECC took serious notice of the media reports regarding quality and non-availability of products at the stores. The USC MD clarified before the forum that all stores of the USC were well stocked and the USC had never compromised on the quality of products in its stores. The sale of products in Ramzan has been on peak as people have fully availed the opportunity to purchase subsidised products offered by the USC. The ECC chairman directed the secretary industries to verify facts for the information of public.
The committee rejected the demand of the USC, supported by the ministry of industries, to enhance the relief package limited by Rs 200 million. However, the committee found it inappropriate that for the last 10 remaining days of Ramzan such a huge amount of money should be provided to USC which was being criticised in the media and public for poor performance.
It is important to mention that the USC Ramzan relief package is worth Rs 2 billion every year, which is usually used to nullify the massive losses resulting from corruption and mismanagement and to keep the corporation afloat. However, this year, the government under the IMF pressure reduced the Ramzan subsidy at the USC to Rs 1.3 billion which is likely to be further reduced next year, sources said.
The meeting approved the proposal of the aviation division for extension in debt repayment period of the government-guaranteed PIAC Sukuk certificates of Rs 6.80 billion by five years with repayment at maturity. The meeting was informed that the sukuk investors had also agreed to extend the facility for the period of five years on the same terms and conditions.
The committee also approved the sale of lint cotton procured by the Trading Corporation of Pakistan (TCP) during 2014-15. The TCP will sell out the cotton stocks through international competitive bidding process. The TCP will fix a reserve price and bids below the reserve price will not be accepted.
On a proposal moved by the ministry of petroleum and natural resources, the ECC directed OGRA to develop a comprehensive recovery mechanism of regulatory duty on crude oil and petroleum products based on the principle that there should be no loss or gain to oil marketing companies and refineries due to imposition of regulatory duties.
